To the Congress of the United States: The State of the Union is sound. Our economy is recovering from a recession. A national energy plan is in place and our dependence on foreign oil is decreasing. We have been at peace for four uninterrupted years. But, our Nation has serious problems. Inflation and unemployment are unacceptably high. The world oil market is increasingly tight. There are trouble spots throughout the world, and 53 American hostages are being held in Iran against international law and against every precept of human affairs. However, I firmly believe that, as a result of the progress made in so many domestic and international areas over the past four years, our Nation is stronger, wealthier, more compassionate and freer than it was four years ago. I am proud of that fact. And I believe the Congress should be proud as well, for so much of what has been accomplished over the past four years has been due to the hard work, insights and cooperation of Congress. I applaud the Congress for its efforts and its achievements. In this State of the Union Message I want to recount the achievements and progress of the last four years and to offer recommendations to the Congress for this year. While my term as President will end before the 97th Congress begins its work in earnest, I hope that my recommendations will serve as a guide for the direction this country should take so we build on the record of the past four years. RECORD OF PROGRESS When I took office, our Nation faced a number of serious domestic and international problems: • no national energy policy existed, and our dependence on foreign oil was rapidly increasing; • public trust in the integrity and openness of the government was low; • the Federal government was operating inefficiently in administering essential programs and policies; • major social problems were being ignored or poorly addressed by the Federal government; • our defense posture was declining as a result of a defense budget which was continuously shrinking in real terms; • the strength of the NATO Alliance needed to be bolstered; • tensions between Israel and Egypt threatened another Middle East war; and • America's resolve to oppose human rights violations was under serious question. Over the past 48 months, clear progress has been made in solving the challenges we found in January of 1977: • almost all of our comprehensive energy program have been enacted, and the Department of Energy has been established to administer the program; • confidence in the government's integrity has been restored, and respect for the government's openness and fairness has been renewed; • the government has been made more effective and efficient: the Civil Service system was completely reformed for the first time this century; 14 reorganization initiatives have been proposed to the Congress, approved, and implemented; two new Cabinet departments have been created to consolidate and streamline the government's handling of energy and education problems; inspectors general have been placed in each Cabinet department to combat fraud, waste and other abuses; the regulatory process has been reformed through creation of the Regulatory Council, implementation of Executive Order 12044 and its requirement for cost-impact analyses, elimination of unnecessary regulation, and passage of the Regulatory Flexibility Act; procedures have been established to assure citizen participation in government; and the airline, trucking, rail and communications industries are being deregulated; • critical social problems, many long ignored by the Federal government, have been addressed directly; an urban policy was developed and implemented to reverse the decline in our urban areas; the Social Security System was refinanced to put it on a sound financial basis; the Humphrey-Hawkins Full Employment Act was enacted; Federal assistance for education was expanded by more than 75 percent; the minimum wage was increased to levels needed to ease the effects of inflation; affirmative action has been pursued aggressively-more blacks, Hispanics and women have been appointed to senior government positions and to judgeships than at any other time in our history; the ERA ratification deadline was extended to aid the ratification effort; and minority business procurement by the Federal government has more than doubled; • the Nation's first sectoral policies were put in place, for the auto and steel industries, with my Administration demonstrating the value of cooperation between the government, business and labor; • reversing previous trends, real defense spending has increased every year since 1977; the real increase in FY 1980 defense spending is well above 3 percent and I expect FY 1981 defense spending to be even higher; looking ahead, the defense program I am proposing is premised on a real increase in defense spending over the next five years of 20 percent or more; • the NATO Alliance has proven its unity in responding to the situations in Eastern Europe and Southwest Asia and in agreeing on the issues to be addressed in the review of the Helsinki Final Act currently underway in Madrid; • the peace process in the Middle East established at Camp David and by the Peace Treaty between Egypt and Israel is being buttressed on two fronts: steady progress in the normalization of Egyptian-Israeli relations in many fields, and the commitment of both Egypt and Israel, with United States' assistance, to see through to successful conclusion the autonomy negotiations for the West Bank and Gaza; • the Panama Canal Treaties have been put into effect, which has helped to improve relations with Latin America; • we have continued this Nation's strong commitment to the pursuit of human rights throughout the world, evenhandedly and objectively; our commitment to a worldwide human rights policy has remained firm; and many other countries have given high priority to it; • our resolve to oppose aggression, such as the illegal invasion of the Soviet Union into Afghanistan, has been supported by tough action. I. ENSURING ECONOMIC STRENGTH 
 
ECONOMY During the last decade our Nation has withstood a series of economic shocks unprecedented in peacetime. The most dramatic of these has been the explosive increases of OPEC oil prices. But we have also faced world commodity shortages, natural disasters, agricultural shortages and major challenges to world peace and security. Our ability to deal with these shocks has been impaired because of a decrease in the growth of productivity and the persistence of underlying inflationary forces built up over the past 15 years. Nevertheless, the economy has proved to be remarkably resilient. Real output has grown at an average rate of 3 percent per year since I took office, and employment has grown by 10 percent. We have added about 8 million productive private sector jobs to the economy. However, unacceptably high inflation—the most difficult economic problem I have faced—persists. This inflation—which threatens the growth, productivity, and stability of our economy—requires that we restrain the growth of the budget to the maximum extent consistent with national security and human compassion. I have done so in my earlier budgets, and in my FY '82 budget. However, while restraint is essential to any appropriate economic policy, high inflation cannot be attributed solely to government spending. The growth in budget outlays has been more the result of economic factors than the cause of them. We are now in the early stages of economic recovery following a short recession. Typically, a post-recessionary period has been marked by vigorous economic growth aided by anti-recessionary policy measures such as large tax cuts or big, stimulation spending programs. I have declined to recommend such actions to stimulate economic activity, because the persistent inflationary pressures that beset our economy today dictate a restrained fiscal policy. Accordingly, I am asking the Congress to postpone until January 1, 1982, the personal tax reductions I had earlier proposed to take effect on January 1 of this year. However, my 1982 budget proposes significant tax changes to increase the sources of financing for business investment. While emphasizing the need for continued fiscal restraint, this budget takes the first major step in a long-term tax reduction program designed to increase capital formation. The failure of our Nation's capital stock to grow at a rate that keeps pace with its labor force has clearly been one cause of our productivity slowdown. Higher investment rates are also critically needed to meet our Nation's energy needs, and to replace energy-inefficient plants and equipment with new energy-saving physical plants. The level of investment that is called for will not occur in the absence of policies to encourage it. Therefore, my budget proposes a major liberalization of tax allowances for depreciation, as well as simplified depreciation accounting, increasing the allowable rates by about 40 percent. I am also proposing improvements in the investment tax credit, making it refundable, to meet the investment needs of firms with no current earnings. These two proposals, along with carefully-phased tax reductions for individuals, will improve both economic efficiency and tax equity. I urge the Congress to enact legislation along the lines and timetable I have proposed. THE 1982 BUDGET The FY 1982 budget I have sent to the Congress continues our four-year policy of prudence and restraint. While the budget deficits during my term are higher than I would have liked, their size is determined for the most part by economic conditions. And in spite of these conditions, the relative size of the deficit continues to decline. In 1976, before I took office, the budget deficit equalled 4 percent of gross national product. It had been cut to 2.3 percent in the 1980 fiscal year just ended. My 1982 budget contains a deficit estimated to be less than 1 percent of our gross national product. The rate of growth in Federal spending has been held to a minimum. Nevertheless, outlays are still rising more rapidly than many had anticipated, the result of many powerful forces in our society: We face a threat to our security, as events in Afghanistan, the Middle East, and Eastern Europe make clear. We have a steadily aging population and, as a resuit, the biggest single increase in the Federal budget is the rising cost of retirement programs, particularly social security. We face other important domestic needs: to continue responsibility for the disadvantaged; to provide the capital needed by our cities and our transportation systems; to protect our environment; to revitalize American industry; and to increase the export of American goods and services so essential to the creation of jobs and a trade surplus. Yet the Federal Government itself may not always be the proper source of such assistance. For example, it must not usurp functions if they can be more appropriately decided upon, managed, and financed by the private sector or by State and local governments. My Administration has always sought to consider the proper focus of responsibility for the most efficient resolution of problems. We have also recognized the need to simplify the system of grants to State and local governments. I have again proposed several grant consolidations in the 1982 budget, including a new proposal that would consolidate several highway programs. The pressures for growth in Federal use of national resources are great. My Administration has initiated many new approaches to cope with these pressures. We started a multi-year budget system, and we began a system for controlling Federal credit programs. Yet in spite of increasing needs to limit spending growth, we have consistently adhered to these strong budget principles: • Our Nation's armed forces must always stand sufficiently strong to deter aggression and to assure our security. • An effective national energy plan is essential to increase domestic production of oil and gas, to encourage conservation of our scarce energy resources, to stimulate conversion to more abundant fuels, and to reduce our trade deficit. • The essential human needs for our citizens must be given the highest priority. • The Federal Government must lead the way in investment in the Nation's technological future. • The Federal Government has an obligation to nurture and protect our environment-the common resource, birthright, and sustenance of the American people. My 1982 budget continues to support these principles. It also proposes responsible tax reductions to encourage a more productive economy, and adequate funding of our highest priority programs within an overall policy of constraint. Fiscal restraint must be continued in the years ahead. Budgets must be tight enough to convince those who set wages and prices that the Federal Government is serious about fighting inflation but not so tight as to choke off all growth. Careful budget policy should be supplemented by other measures designed to reduce inflation at lower cost in lost output and employment. These other steps include measures to increase investment-such as the tax proposals included in my 1982 budget—and measures to increase competition and productivity in our economy. Voluntary incomes policies can also directly influence wages and prices in the direction of moderation and thereby bring inflation down faster and at lower cost to the economy. Through a tax-based incomes policy (TIP) we could provide tax incentives for firms and workers to moderate their wage and price increases. In the coming years, control of Federal expenditures can make possible periodic tax reductions. The Congress should therefore begin now to evaluate the potentialities of a TIP program so that when the next round of tax reductions is appropriate a TIP program will be seriously considered. EMPLOYMENT During the last four years we have given top priority to meeting the needs of workers and providing additional job opportunities to those who seek work. Since the end of 1976: • almost 9 million new jobs have been added to the nation's economy • total employment has reached 97 million. More jobs than ever before are held by women, minorities and young people. Employment over the past four years has increased by: 
—17% for adult women 
—11% for blacks, and 
—30% for Hispanics • employment of black teenagers increased by more than 5%, reversing the decline that occurred in the previous eight years. Major initiatives launched by this Administration helped bring about these accomplishments and have provided a solid foundation for employment and training policy in the 1980's. In 1977, as part of the comprehensive economic stimulus program: • 425,000 public service jobs were created • A $1 billion youth employment initiative funded 200,000 jobs • the doubling of the Job Corps to 44,000 slots began and I million summer youth jobs were approved—a 25 percent increase. In 1978: • the Humphrey-Hawkins Full Employment Act became law • the $400 million Private Sector Initiatives Program was begun • a targeted jobs tax credit for disadvantaged youth and others with special employment barriers was enacted • the Comprehensive Employment and Training Act was reauthorized for four years. In 1979: • a $6 billion welfare reform proposal was introduced with funding for 400,000 public service jobs • welfare reform demonstration projects were launched in communities around the country • the Vice President initiated a nationwide review of youth unemployment in this country. In 1980: • the findings of the Vice President's Task Force revealed the major education and employment deficits that exist for poor and minority youngsters. As a result a $2 billion youth education and jobs initiative was introduced to provide unemployed youth with the basic education and work experience they need to compete in the labor market of the 1980's. • As part of the economic revitalization program several steps were proposed to aid workers in high unemployment communities: —an additional 13 weeks of unemployment benefits for the long term unemployed. —$600 million to train the disadvantaged and unemployed for new private sector jobs. —positive adjustment demonstrations to aid workers in declining industries. • The important Title VII Private Sector Initiatives Program was reauthorized for an additional two years. In addition to making significant progress in helping the disadvantaged and unemployed, important gains were realized for all workers: • an historic national accord with organized labor made it possible for the views of working men and women to be heard as the nation's economic and domestic policies were formulated. • the Mine Safety and Health Act brought about improved working conditions for the nation's 500,000 miners. • substantial reforms of the Occupational Safety and Health Administration were accomplished to help reduce unnecessary burdens on business and to focus on major health and safety problems. • the minimum wage was increased over a four year period from $2.30 to $3.35 an hour. • the Black Lung Benefit Reform Act was signed into law. • attempts to weaken the Davis-Bacon Act were defeated. While substantial gains have been made in the last four years, continued efforts are required to ensure that this progress is continued: • government must continue to make labor a full partner in the policy decisions that affect the interests of working men and women • a broad, bipartisan effort to combat youth unemployment must be sustained • compassionate reform of the nation's welfare system should be continued with employment opportunities provided for those able to work • workers in declining industries should be provided new skills and help in finding employment TRADE Over the past year, the U.S. trade picture improved as a result of solid export gains in both manufactured and agricultural products. Agricultural exports reached a new record of over $40 billion, while manufactured exports have grown by 24 percent to a record $144 billion. In these areas the United States recorded significant surpluses of $24 billion and $19 billion respectively. While our oil imports remained a major drain on our foreign exchange earnings, that drain was somewhat moderated by a 19 percent decline in the volume of oil imports. U.S. trade negotiators made significant progress over the past year in assuring effective implementation of the agreements negotiated during the Tokyo Round of Multilateral Trade Negotiations. Agreements reached with the Japanese government, for example, will assure that the United States will be able to expand its exports to the Japanese market in such key areas as telecommunications equipment, tobacco, and lumber. Efforts by U.S. trade negotiators also helped to persuade a number of key developing countries to accept many of the non-tariff codes negotiated during the Multilateral Trade Negotiations. This will assure that these countries will increasingly assume obligations under the international trading system. A difficult world economic environment posed a challenge for the management of trade relations. U.S. trade negotiators were called upon to manage serious sectoral problems in such areas as steel, and helped to assure that U.S. chemical exports will have continued access to the European market. Close consultations with the private sector in the United States have enabled U.S. trade negotiators to pinpoint obstacles to U.S. trade in services, and to build a basis for future negotiations. Services have been an increasingly important source of export earnings for the United States, and the United States must assure continued and increased access to foreign markets. The trade position of the United States has improved. But vigorous efforts are needed in a number of areas to assure continued market access for U.S. exports, particularly agricultural and high technology products, in which the United States continues to have a strong competitive edge. Continued efforts are also needed to remove many domestic disincentives, which now hamper U.S. export growth. And we must ensure that countries do not manipulate investment, or impose investment performance requirements which distort trade and cost us jobs in this country. In short, we must continue to seek free—but fair—trade. That is the policy my Administration has pursued from the beginning, even in areas where foreign competition has clearly affected our domestic industry. In the steel industry, for instance, we have put a Trigger Price Mechanism into place to help prevent the dumping of steel. That action has strengthened the domestic steel industry. In the automobile industry, we have worked—without resort to import quotas—to strengthen the industry's ability to modernize and compete effectively. SMALL BUSINESS I have often said that there is nothing small about small business in America. These firms account for nearly one-half our gross national product; over half of new technology; and much more than half of the jobs created by industry. Because this sector of the economy is the very lifeblood of our National economy, we have done much together to improve the competitive climate for smaller firms. These concerted efforts have been an integral part of my program to revitalize the economy. They include my campaign to shrink substantially the cash and time consuming red tape burden imposed on business. They include my personally-directed policy of ambitiously increasing the Federal contracting dollars going to small firms, especially those owned by women and minorities. And they include my proposals to reinvigorate existing small businesses and assist the creation of new ones through tax reform; financing assistance; market expansion; and support of product innovation. Many of my initiatives to facilitate the creation and growth of small businesses were made in response to the White House Conference on Small Business, which I convened. My Administration began the implementation of most of the ideas produced last year by that citizen's advisory body; others need to be addressed. I have proposed the reconvening of the Conference next year to review progress; reassess priorities; and set new goals. In the interim I hope that the incoming Administration and the new Congress will work with the committee I have established to keep these business development ideas alive and help implement Conference recommendations. MINORITY BUSINESS One of the most successful developments of my Administration has been the growth and strengthening of minority business. This is the first Administration to put the issue on the policy agenda as a matter of major importance. To implement the results of our early efforts in this field I submitted legislation to Congress designed to further the development of minority business. We have reorganized the Office of Minority Business into the Minority Business Development Administration in the Department of Commerce. MBDA has already proven to be a major factor in assisting minority businesses to achieve equitable competitive positions in the marketplace. The Federal government's procurement from minority-owned firms has nearly tripled since I took office. Federal deposits in minority-owned banks have more than doubled and minority ownership of radio and television stations has nearly doubled. The SBA administered 8(a) Pilot Program for procurement with the Army proved to be successful and I recently expanded the number of agencies involved to include NASA and the Departments of Energy and Transportation. I firmly believe the critical path to full freedom and equality for America's minorities rests with the ability of minority communities to participate competitively in the free enterprise system. I believe the government has a fundamental responsibility to assist in the development of minority business and I hope the progress made in the last four years will continue. II. CREATING ENERGY SECURITY Since I took office, my highest legislative priorities have involved the reorientation and redirection of U.S. energy activities and for the first time, to establish a coordinated national energy policy. The struggle to achieve that policy has been long and difficult, but the accomplishments of the past four years make clear that our country is finally serious about the problems caused by our overdependence on foreign oil. Our progress should not be lost. We must rely on and encourage multiple forms of energy production—coal, crude oil, natural gas, solar, nuclear, synthetics—and energy conservation. The framework put in place over the last four years will enable us to do this. NATIONAL ENERGY POLICY As a result of actions my Administration and the Congress have taken over the past four years, our country finally has a national energy policy: • Under my program of phased decontrol, domestic crude oil price controls will end September 30, 1981. As a result exploratory drilling activities have reached an all-time high; • Prices for new natural gas are being decontrolled under the Natural Gas Policy Act—and natural gas production is now at an all time high; the supply shortages of several years ago have been eliminated; • The windfall profits tax on crude oil has been enacted providing $227 billion over ten years for assistance to low-income households, increased mass transit funding, and a massive investment in the production and development of alternative energy sources; • The Synthetic Fuels Corporation has been established to help private companies build the facilities to produce energy from synthetic fuels; • Solar energy funding has been quadrupled, solar energy tax credits enacted, and a Solar Energy and Energy Conservation Bank has been established; • A route has been chosen to bring natural gas from the North Slope of Alaska to the lower 48 states; • Coal production and consumption incentives have been increased, and coal production is now at its highest level in history; • A gasoline rationing plan has been approved by Congress for possible use in the event of a severe energy supply shortage or interruption; • Gasohol production has been dramatically increased, with a program being put in place to produce 500 million gallons of alcohol fuel by the end of this year—an amount that could enable gasohol to meet the demand for 10 percent of all unleaded gasoline; • New energy conservation incentives have been provided for individuals, businesses and communities and conservation has increased dramatically. The U.S. has reduced oil imports by 25 percent—or 2 million barrels per day—over the past four years. INCREASED DEVELOPMENT OF DOMESTIC 
 
ENERGY SOURCES Although it is essential that the Nation reduce its dependence on imported fossil fuels and complete the transition to reliance on domestic renewable sources of energy, it is also important that this transition be accomplished in an orderly, economic, and environmentally sound manner. To this end, the Administration has launched several initiatives. Leasing of oil and natural gas on federal lands, particularly the outer continental shelf, has been accelerated at the same time as the Administration has reformed leasing procedures through the 1978 amendments to the Outer Continental Shelf Lands Act. In 1979 the Interior Department held six OCS lease sales, the greatest number ever, which resulted in federal receipts of $6.5 billion, another record. The five-year OCS Leasing schedule was completed, requiring 36 sales over the next five years. Since 1971 no general federal coal lease sales were suspended. Over the past four years the Administration has completely revised the federal coal leasing program to bring it into compliance with the requirements of 1976 Federal Land Planning and Management Act and other statutory provisions. The program is designed to balance the competing interests that affect resource development on public lands and to ensure that adequate supplies of coal will be available to meet national needs. As a result, the first general competitive federal coal lease sale in ten years will be held this month. In July 1980, I signed into law the Energy Security Act of 1980 which established the Synthetic Fuels Corporation. The Corporation is designed to spur the development of commercial technologies for production of synthetic fuels, such as liquid and gaseous fuels from coal and the production of oil from oil shale. The Act provides the Corporation with an initial $22 billion to accomplish these objectives. The principal purpose of the legislation is to ensure that the nation will have available in the late 1980's the option to undertake commercial development of synthetic fuels if that becomes necessary. The Energy Security Act also provides significant incentives for the development of gasohol and biomass fuels, thereby enhancing the nation's supply of alternative energy sources. COMMITMENT TO A SUSTAINABLE ENERGY 
 
FUTURE The Administration's 1977 National Energy Plan marked an historic departure from the policies of previous Administrations. The plan stressed the importance of both energy production and conservation to achieving our ultimate national goal of relying primarily on secure sources of energy. The National Energy Plan made energy conservation a cornerstone of our national energy policy. In 1978, I initiated the Administration's Solar Domestic Policy Review. This represented the first step towards widespread introduction of renewable energy sources into the Nation's economy. As a result of the Review, I issued the 1979 Solar Message to Congress, the first such message in the Nation's history. The Message outlined the Administration's solar program and established an ambitious national goal for the year 2000 of obtaining 20 percent of this Nation's energy from solar and renewable sources. The thrust of the federal solar program is to help industry develop solar energy sources by emphasizing basic research and development of solar technologies which are not currently economic, such as photovoltaics, which generate energy directly from the sun. At the same time, through tax incentives, education, and the Solar Energy and Energy Conservation Bank, the solar program seeks to encourage state and local governments, industry, and our citizens to expand their use of solar and renewable resource technologies currently available. As a result of these policies and programs, the energy efficiency of the American economy has improved markedly and investments in renewable energy sources have grown significantly. It now takes 3¼ percent less energy to produce a constant dollar of GNP than it did in January 1977. This increase in efficiency represents a savings of over 1.3 million barrels per day of oil equivalent, about the level of total oil production now occurring in Alaska. Over the same period, Federal support for conservation and solar energy has increased by more than 3000 percent, to $3.3 billion in FY 1981, including the tax credits for solar energy and energy conservation investments—these credits are expected to amount to $1.2 billion in FY 1981 and $1.5 billion in FY 1982. COMMITMENT TO NUCLEAR SAFETY AND 
SECURITY Since January 1977, significant progress has been achieved in resolving three critical problems resulting from the use of nuclear energy: radioactive waste management, nuclear safety and weapons proliferation. In 1977, the Administration announced its nuclear nonproliferation policy and initiated the International Fuel Cycle Evaluation. In 1978, Congress passed the Nuclear Nonproliferation Act, an historic piece of legislation. In February 1980, the Administration transmitted its nuclear waste management policy to the Congress. This policy was a major advance over all previous efforts. The principal aspects of that policy are: acknowledging the seriousness of the problem and the numerous technical and institutional issues; adopting a technically and environmentally conservative approach to the first permanent repository; and providing the states with significant involvement in nuclear waste disposal decisions by creating the State Planning Council. While much of the plan can be and is being implemented administratively, some new authorities are needed. The Congress should give early priority to enacting provisions for away-from-reactor storage and the State Planning Council. The accident at Three Mile Island made the nation acutely aware of the safety risks posed by nuclear power plants. In response, the President established the Kemeny Commission to review the accident and make recommendations. Virtually all of the Commission's substantive recommendations were adopted by the Administration and are now being implemented by the Nuclear Regulatory Commission. The Congress adopted the President's proposed plan for the Nuclear Regulatory Commission and the Nuclear Safety Oversight Committee was established to ensure that the Administration's decisions were implemented. Nuclear safety will remain a vital concern in the years ahead. We must continue to press ahead for the safe, secure disposal of radioactive wastes, and prevention of nuclear proliferation. While significant growth in foreign demand for U.S. steam coal is foreseen, congestion must be removed at major U.S. coal exporting ports such as Hampton Roads, Virginia, and Baltimore, Maryland. My Administration has worked through the Interagency Coal Task Force Study to promote cooperation and coordination of resources between shippers, railroads, vessel broker/operators and port operators, and to determine the most appropriate Federal role in expanding and modernizing coal export facilities, including dredging deeper channels at selected ports. As a result of the Task Force's efforts, administrative steps have been taken by the Corps of Engineers to reduce significantly the amount of time required for planning and economic review of port dredging proposals. The Administration has also recommended that the Congress enact legislation to give the President generic authority to recommend appropriations for channel dredging activities. Private industry will, of course, play the major role in developing the United States' coal export facilities, but the government must continue to work to facilitate transportation to foreign markets. III. ENHANCING BASIC HUMAN AND 
 
SOCIAL NEEDS For too long prior to my Administration, many of our Nation's basic human and social needs were being ignored or handled insensitively by the Federal government. Over the last four years, we have significantly increased funding for many of the vital programs in these areas; developed new programs where needs were unaddressed; targeted Federal support to those individuals and areas most in need of our assistance; and removed barriers that have unnecessarily kept many disadvantaged citizens from obtaining aid for their most basic needs. Our record has produced clear progress in the effort to solve some of the country's fundamental human and social problems. My Administration and the Congress, working together, have demonstrated that government must and can meet our citizens' basic human and social needs in a responsible and compassionate way. But there is an unfinished agenda still before the Congress. If we are to meet our obligations to help all Americans realize the dreams of sound health care, decent housing, effective social services, a good education, and a meaningful job, important legislation still must be enacted. National Health Insurance, Welfare Reform, Child Health Assessment Program, are before the Congress and I urge their passage. Health 
 
NATIONAL HEALTH PLAN During my Administration, I proposed to Congress a National Health Plan which will enable the country to reach the goal of comprehensive, universal health care coverage. The legislation I submitted lays the foundation for this comprehensive plan and addresses the most serious problems of health financing and delivery. It is realistic and enactable. It does not overpromise or overspend, and, as a result, can be the solution to the thirty years of Congressional battles on national health insurance. My Plan includes the following key features: • nearly 15 million additional poor would receive fully-subsidized comprehensive coverage; • pre-natal and delivery services are provided for all pregnant women and coverage is provided for all acute care for infants in their first year of life; • the elderly and disabled would have a limit of $1,250 placed on annual out-of-pocket medical expenses and would no longer face limits on hospital coverage; • all full-time employees and their families would receive insurance against at least major medical expenses under mandated employer coverage; • Medicare and Medicaid would be combined and expanded into an umbrella Federal program, Healthcare, for increased program efficiency, accountability and uniformity; and • strong cost controls and health system reforms would be implemented, including greater incentives for Health Maintenance Organizations. I urge the new Congress to compare my Plan with the alternatives—programs which either do too little to improve the health care needs of Americans most in need or programs which would impose substantial financial burdens on the American taxpayers. I hope the Congress will see the need for and the benefits of my Plan and work toward prompt enactment. We cannot afford further delay in this vital area. HEALTH CARE COST CONTROL Inflation in health care costs remains unacceptably high. Throughout my Administration, legislation to reduce health care cost inflation was one of my highest priorities, but was not passed by the Congress. Therefore, my FY 1982 budget proposes sharing the responsibility for health care cost control with the private sector, through voluntary hospital cost guidelines and intensified monitoring. In the longer term, the health care reimbursement system must be reformed. We must move away from inflationary cost-based reimbursement and fee-for-service, and toward a system of prospective reimbursement, under which health care providers would operate within predetermined budgets. This reimbursement reform is essential to ultimately control inflation in health care costs, and will be a significant challenge to the new Congress. HEALTH PROMOTION AND DISEASE 
 
PREVENTION During my Administration, the Surgeon General released Healthy People, a landmark report on health promotion and disease prevention. The report signals the growing consensus that the Nation's health strategy must be refocused in the 1980's to emphasize the prevention of disease. Specifically, the report lays out measurable and achievable goals in the reduction of mortality which can be reached by 1990. I urge the new Congress to endorse the principles of Healthy People, and to adopt the recommendations to achieve its goals. This will necessitate adoption of a broader concept of health care, to include such areas as environmental health, workplace health and safety, commercial product safety, traffic safety, and health education, promotion and information. MATERNAL AND CHILD HEALTH Ensuring a healthy start in life for children remains not only a high priority of my Administration, but also one of the most cost effective forms of health care. When I took office, immunization levels for preventable childhood diseases had fallen to 70%. As a result of a concerted nationwide effort during my Administration, I am pleased to report that now at least 90% of children under 15, and virtually all school-age children are immunized. In addition, reported cases of measles and mumps are at their lowest levels ever. Under the National Health Plan I have proposed, there would be no cost-sharing for prenatal and delivery services for all pregnant women and for acute care provided to infants in their first year of life. These preventive services have extremely high returns in terms of improved newborn and long-term child health. Under the Child Health Assurance Program (CHAP) legislation which I submitted to the Congress, and which passed the House, an additional two million low income children under 18 would become eligible for Medicaid benefits, which would include special health assessments. CHAP would also improve the continuity of care for the nearly 14 million children now eligible for Medicaid. An additional 100,000 low-income pregnant women would become eligible for prenatal care under the proposal. I strongly urge the new Congress to enact CHAP and thereby provide millions of needy children with essential health services. The legislation has had strong bipartisan support, which should continue as the details of the bill are completed. I also urge the new Congress to provide strong support for two highly successful ongoing programs: the special supplemental food program for women, infants and children (WIC) and Family Planning. The food supplements under WIC have been shown to effectively prevent ill health and thereby reduce later medical costs. The Family Planning program has been effective at reducing unwanted pregnancies among low-income women and adolescents. EXPANSION OF SERVICES TO THE POOR 
 
AND UNDERSERVED During my Administration, health services to the poor and underserved have been dramatically increased. The number of National Health Service Corps (NHSC) assignees providing services in medically underserved communities has grown from 500 in 1977 to nearly 3,000 in 1981. The population served by the NHSC has more than tripled since 1977. The number of Community Health Centers providing services in high priority underserved areas has doubled during my Administration, and will serve an estimated six million people in 1981. I strongly urge the new Congress to support these highly successful programs. MENTAL HEALTH One of the most significant health achievements during my Administration was the recent passage of the Mental Health Systems Act, which grew out of recommendations of my Commission on Mental Health. I join many others in my gratitude to the First Lady for her tireless and effective contribution to the passage of this important legislation. The Act is designed to inaugurate a new era of Federal and State partnership in the planning and provision of mental health services. In addition, the Act specifically provides for prevention and sup. port services to the chronically mentally ill to prevent unnecessary institutionalization and for the development of community-based mental health services. I urge the new Congress to provide adequate support for the full and timely implementation of this Act. HEALTH PROTECTION With my active support, the Congress recently passed "Medigap" legislation, which provides for voluntary certification of health insurance policies supplemental to Medicare, to curb widespread abuses in this area. In the area of toxic agent control, legislation which I submitted to the Congress recently passed. This will provide for a "super-fund" to cover hazardous waste cleanup costs. In the area of accidental injury control, we have established automobile safety standards and increased enforcement activities with respect to the 55 MPH speed limit. By the end of the decade these actions are expected to save over 13,000 lives and 100,000 serious injuries each year. I urge the new Congress to continue strong support for all these activities. FOOD AND NUTRITION Building on the comprehensive reform of the Food Stamp Program that I proposed and Congress passed in 1977, my Administration and the Congress worked together in 1979 and 1980 to enact several other important changes in the Program. These changes will further simplify administration and reduce fraud and error, will make the program more responsive to the needs of the elderly and disabled, and will increase the cap on allowable program expenditures. The Food Stamp Act will expire at the end of fiscal 1981. It is essential that the new Administration and the Congress continue this program to ensure complete eradication of the debilitating malnutrition witnessed and documented among thousands of children in the 1960's. DRUG ABUSE PREVENTION At the beginning of my Administration there were over a half million heroin addicts in the United States. Our continued emphasis on reducing the supply of heroin, as well as providing treatment and rehabilitation to its victims, has reduced the heroin addict population, reduced the number of heroin overdose deaths by 80%, and reduced the number of heroin related injuries by 50%. We have also seen and encouraged a national movement of parents and citizens committed to reversing the very serious and disturbing trends of adolescent drug abuse. Drug abuse in many forms will continue to detract, however, from the quality of life of many Americans. To prevent that, I see four great challenges in the years ahead. First, we must deal aggressively with the supplies of illegal drugs at their source, through joint crop destruction programs with foreign nations and increased law enforcement and border interdiction. Second, we must look to citizens and parents across the country to help educate the increasing numbers of American youth who are experimenting with drugs to the dangers of drug abuse. Education is a key factor in reducing drug abuse. Third, we must focus our efforts on drug and alcohol abuse in the workplace for not only does this abuse contribute to low productivity but it also destroys the satisfaction and sense of purpose all Americans can gain from the work experience. Fourth, we need a change in attitude, from an attitude which condones the casual use of drugs to one that recognizes the appropriate use of drugs for medical purposes and condemns the inappropriate and harmful abuse of drugs. I hope the Congress and the new Administration will take action to meet each of these challenges. Education The American people have always recognized that education is one of the soundest investments they can make. The dividends are reflected in every dimension of our national life—from the strength of our economy and national security to the vitality of our music, art, and literature. Among the accomplishments that have given me the most satisfaction over the last four years are the contributions that my Administration has been able to make to the well-being of students and educators throughout the country. This Administration has collaborated successfully with the Congress on landmark education legislation. Working with the Congressional leadership, my Administration spotlighted the importance of education by creating a new Department of Education. The Department has given education a stronger voice at the Federal level, while at the same time reserving the actual control and operation of education to states, localities, and private institutions. The Department has successfully combined nearly 150 Federal education programs into a cohesive, streamlined organization that is more responsive to the needs of educators and students. The Department has made strides to cut red tape and paperwork and thereby to make the flow of Federal dollars to school districts and institutions of higher education more efficient. It is crucial that the Department be kept intact and strengthened. Our collaboration with the Congress has resulted in numerous other important legislative accomplishments for education. A little over two years ago, I signed into law on the same day two major bills—one benefiting elementary and secondary education and the other, postsecondary education. The Education Amendments of 1978 embodied nearly all of my Administration's proposals for improvements in the Elementary and Secondary Education Act, including important new programs to improve students' achievement in the basic skills and to aid school districts with exceptionally high concentrations of children from low-income families. The Middle Income Student Assistance Act, legislation jointly sponsored by this Administration and the Congressional leadership, expanded eligibility for need-based Basic Educational Opportunity Grants to approximately one-third of the students enrolled in postsecondary education and made many more students eligible for the first time for other types of grants, work-study, and loans. Just three and a half months ago, my Administration and the Congress successfully concluded over two years of work on a major reauthorization bill that further expands benefits to postsecondary education. Reflected in the Education Amendments of 1980 are major Administration recommendations for improvements in the Higher Education Act—including proposals for better loan access for students; a new parent loan program; simplified application procedures for student financial aid; a strengthened Federal commitment to developing colleges, particularly the historically Black institutions; a new authorization for equipment and facilities modernization funding for the nation's major research universities; and revitalized international education programs. Supplementing these legislative accomplishments have been important administrative actions aimed at reducing paperwork and simplifying regulations associated with Federal education programs. We also launched major initiatives to reduce the backlog of defaulted student loans and otherwise to curb fraud, abuse, and waste in education programs. To insure that the education enterprise is ready to meet the scientific and technological changes of the future, we undertook a major study of the status of science and engineering education throughout the nation. I hope that the findings from this report will serve as a springboard for needed reforms at all levels of education. I am proud that this Administration has been able to provide the financial means to realize many of our legislative and administrative goals. Compared to the previous administration's last budget, I have requested the largest overall increase in Federal funding for education in our nation's history. My budget requests have been particularly sensitive to the needs of special populations like minorities, women, the educationally and economically disadvantaged, the handicapped, and students with limited English-speaking ability. At the same time, I have requested significant increases for many programs designed to enhance the quality of American education, including programs relating to important areas as diverse as international education, research libraries, museums, and teacher centers. Last year, I proposed to the Congress a major legislative initiative that would direct $2 billion into education and job training programs designed to alleviate youth unemployment through improved linkages between the schools and the work place. This legislation generated bipartisan support; but unfortunately, action on it was not completed in the final, rushed days of the 96th Congress. I urge the new Congress—as it undertakes broad efforts to strengthen the economy as well as more specific tasks like reauthorizing the Vocational Education Act—to make the needs of our nation's unemployed youth a top priority for action. Only by combining a basic skills education program together with work training and employment incentives can we make substantial progress in eliminating one of the most severe social problems in our nation—youth unemployment, particularly among minorities. I am proud of the progress already made through passage of the Youth Employment and Demonstration Project Act of 1977 and the substantial increase in our investment in youth employment programs. The new legislation would cap these efforts. Income Security 
 
SOCIAL SECURITY One of the highest priorities of my Administration has been to continue the tradition of effectiveness and efficiency widely associated with the social security program, and to assure present and future beneficiaries that they will receive their benefits as expected. The earned benefits that are paid monthly to retired and disabled American workers and their families provide a significant measure of economic protection to millions of people who might otherwise face retirement or possible disability with fear. I have enacted changes to improve the benefits of many social security beneficiaries during my years as President. The last four years have presented a special set of concerns over the financial stability of the social security system. Shortly after taking office I proposed and Congress enacted legislation to protect the stability of the old age and survivors trust fund and prevent the imminent exhaustion of the disability insurance trust fund, and to correct a flaw in the benefit formula that was threatening the long run health of the entire social security system. The actions taken by the Congress at my request helped stabilize the system. That legislation was later complemented by the Disability Insurance Amendments of 1980 which further bolstered the disability insurance program, and reduced certain inequities among beneficiaries. My commitment to the essential retirement and disability protection provided to 35 million people each month has been demonstrated by the fact that without interruption those beneficiaries have continued to receive their social security benefits, including annual cost of living increases. Changing and unpredictable economic circumstances require that we continue to monitor the financial stability of the social security system. To correct anticipated short-term strains on the system, I proposed last year that the three funds be allowed to borrow from one another, and I urge the Congress again this year to adopt such interfund borrowing. To further strengthen the social security system and provide a greater degree of assurance to beneficiaries, given projected future economic uncertainties, additional action should be taken. Among the additional financing options available are borrowing from the general fund, financing half of the hospital insurance fund with general revenues, and increasing the payroll tax rate. The latter option is particularly unpalatable given the significant increase in the tax rate already mandated in law. This Administration continues to oppose cuts in basic social security benefits and taxing social security benefits. The Administration continues to support annual indexing of social security benefits. WELFARE REFORM In 1979 I proposed a welfare reform package which offers solutions to some of the most urgent problems in our welfare system. This proposal is embodied in two bills—The Work and Training Opportunities Act and The Social Welfare Reform Amendments Act. The House passed the second of these two proposals. Within the framework of our present welfare system, my reform proposals offer achievable means to increase self-sufficiency through work rather than welfare, more adequate assistance to people unable to work, the removal of inequities in coverage under current programs, and fiscal relief needed by States and localities. Our current welfare system is long overdue for serious reform; the system is wasteful and not fully effective. The legislation I have proposed will help eliminate inequities by establishing a national minimum benefit, and by directly relating benefit levels to the poverty threshold. It will reduce program complexity, which leads to inefficiency and waste, by simplifying and coordinating administration among different programs. I urge the Congress to take action in this area along the lines I have recommended. CHILD WELFARE My Administration has worked closely with the Congress on legislation which is designed to improve greatly the child welfare services and foster care programs and to create a Federal system of adoption assistance. These improvements will be achieved with the recent enactment of H.R. 3434, the Adoption Assistance and Child Welfare Act of 1980. The wellbeing of children in need of homes and their permanent placement have been a primary concern of my Administration. This legislation will ensure that children are not lost in the foster care system, but instead will be returned to their families where possible or placed in permanent adoptive homes. LOW-INCOME ENERGY ASSISTANCE In 1979 I proposed a program to provide an annual total of $1.6 billion to low income households which are hardest hit by rising energy bills. With the cooperation of Congress, we were able to move quickly to provide assistance to eligible households in time to meet their winter heating bills. In response to the extreme heat conditions affecting many parts of the country during 1980, I directed the Community Services Administration to make available over $27 million to assist low-income individuals, especially the elderly, facing life threatening circumstances due to extreme heat. Congress amended and reauthorized the low-income energy assistance program for fiscal year 1981, and provided $1.85 billion to meet anticipated increasing need. The need for a program to help low income households with rising energy expenses will not abate in the near future. The low-income energy assistance program should be reauthorized to meet those needs. Housing For the past 14 months, high interest rates have had a severe impact on the nation's housing market. Yet the current pressures and uncertainties should not obscure the achievements of the past four years. Working with the Congress, the regulatory agencies, and the financial community, my Administration has brought about an expanded and steadier flow of funds into home mortgages. Deregulation of the interest rates payable by depository institutions, the evolution of variable and renegotiated rate mortgages, development of high yielding savings certificates, and expansion of the secondary mortgage market have all increased housing's ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose. These actions will diminish the cyclically of the housing industry. Further, we have secured legislation updating the Federal Government's emergency authority to provide support for the housing industry through the Brooke-Cranston program, and creating a new Section 235 housing stimulus program. These tools will enable the Federal Government to deal quickly and effectively with serious distress in this critical industry. We have also worked to expand homeownership opportunities for Americans. By using innovative financing mechanisms, such as the graduated payment mortgage, we have increased the access of middle income families to housing credit. By revitalizing the Section 235 program, we have enabled nearly 100,000 moderate income households to purchase new homes. By reducing paperwork and regulation in Federal programs, and by working with State and local governments to ease the regulatory burden, we have helped to hold down housing costs and produce affordable housing. As a result of these governmentwide efforts, 5 1/2 million more American families bought homes in the past four years than in any equivalent period in history. And more than 7 million homes have begun construction during my Administration, 1 million more than in the previous four years. We have devoted particular effort to meeting the housing needs of low and moderate income families. In the past four years, more than 1 million subsidized units have been made available for occupancy by lower income Americans and more than 600,000 assisted units have gone into construction. In addition, we have undertaken a series of measures to revitalize and preserve the nation's 2 million units of public and assisted housing. For Fiscal Year 1982, I am proposing to continue our commitment to lower income housing. I am requesting funds to support 260,000 units of Section 8 and public housing, maintaining these programs at the level provided by Congress in Fiscal 1981. While we have made progress in the past four years, in the future there are reasons for concern. Home price inflation and high interest rates threaten to put homeownership out of reach for first-time homebuyers. Lower income households, the elderly and those dependent upon rental housing face rising rents, low levels of rental housing construction by historic standards, and the threat of displacement due to conversion to condominiums and other factors. Housing will face strong competition for investment capital from the industrial sector generally and the energy industries, in particular. To address these issues, I appointed a Presidential Task Force and Advisory Group last October. While this effort will not proceed due to the election result, I hope the incoming Administration will proceed with a similar venture. The most important action government can take to meet America's housing needs is to restore stability to the economy and bring down the rate of inflation. Inflation has driven up home prices, operating costs and interest rates. Market uncertainty about inflation has contributed to the instability in interest rates, which has been an added burden to homebuilders and homebuyers alike. By making a long-term commitment to provide a framework for greater investment, sustained economic growth, and price stability, my Administration has begun the work of creating a healthy environment for housing. Transportation With the passage of the Airline Deregulation Act of 1978, the Motor Carrier Act of 1980, and the Harley O. Staggers Rail Act of 1980, my Administration, working with the Congress, has initiated a new era of reduced regulation of transportation industries. Deregulation will lead to increased productivity and operating efficiencies in the industries involved, and stimulate price and service competition, to the benefit of consumers generally. I urge the new Administration to continue our efforts on behalf of deregulation legislation for the intercity passenger bus industry as well. In the coming decade, the most significant challenge facing the nation in transportation services will be to improve a deteriorating physical infrastructure of roadways, railroads, waterways and mass transit systems, in order to conserve costly energy supplies while promoting effective transportation services. HIGHWAYS Our vast network of highways, which account for 90 percent of travel and 80 percent by value of freight traffic goods movement, is deteriorating. If current trends continue, a major proportion of the Interstate pavement will have deteriorated by the end of the 1980's. Arresting the deterioration of the nation's system of highways is a high priority objective for the 1980's. We must reorient the Federal mission from major new construction projects to the stewardship of the existing Interstate Highway System. Interstate gaps should be judged on the connections they make and on their compatibility with community needs. During this decade, highway investments will be needed to increase productivity, particularly in the elimination of bottlenecks, provide more efficient connections to ports and seek low-cost solutions to traffic demand. My Administration has therefore recommended redefining completion of the Interstate system, consolidating over 27 categorical assistance programs into nine, and initiating a major repair and rehabilitation program for segments of the Interstate system. This effort should help maintain the condition and performance of the Nation's highways, particularly the Interstate and primary system; provide a realistic means to complete the Interstate system by 1990; ensure better program delivery through consolidation, and assist urban revitalization. In addition, the Congress must address the urgent funding problems of the highway trust fund, and the need to generate greater revenues. MASS TRANSIT In the past decade the nation's public transit systems' ridership increased at an annual average of 1.1% each year in the 1970's (6.9% in 1979). Continued increases in the cost of fuel are expected to make transit a growing part of the nation's transportation system. As a result, my Administration projected a ten year, $43 billion program to increase mass transit capacity by 50 percent, and promote more energy efficient vehicle uses in the next decade. The first part of this proposal was the five year, $24.7 billion Urban Mass Transportation Administration reauthorization legislation I sent to the Congress in March, 1980. I urge the 97th Congress to quickly enact this or similar legislation in 1981. My Administration was also the first to have proposed and signed into law a nonurban formula grant program to assist rural areas and small communities with public transportation programs to end their dependence on the automobile, promote energy conservation and efficiency, and provide transportation services to impoverished rural communities. A principal need of the 1980's will be maintaining mobility for all segments of the population in the face of severely increasing transportation costs and uncertainty of fuel supplies. We must improve the flexibility of our transportation system and offer greater choice and diversity in transportation services. While the private automobile will continue to be the principal means of transportation for many Americans, public transportation can become an increasingly attractive alternative. We, therefore, want to explore a variety of paratransit modes, various types of buses, modern rapid transit, regional rail systems and light rail systems. Highway planning and transit planning must be integrated and related to State, regional, district and neighborhood planning efforts now in place or emerging. Low density development and land use threaten the fiscal capacity of many communities to support needed services and infrastructure. ELDERLY AND HANDICAPPED TRANSPORTATION Transportation policies in the 1980's must pay increasing attention to the needs of the elderly and handicapped. By 1990, the number of people over 65 will have grown from today's 19 million to 27 million. During the same period, the number of handicapped—people who have difficulty using transit as well as autos, including the elderly—is expected to increase from 9 to 11 million, making up 4.5 percent of the population. We must not retreat from a policy that affords a significant and growing portion of our population accessible public transportation while recognizing that the handicapped are a diverse group and will need flexible, door-to-door service where regular public transportation will not do the job. RAILROADS In addition, the Federal government must reassess the appropriate Federal role of support for passenger and freight rail services such as Amtrak and Conrail. Our goal through federal assistance should be to maintain and enhance adequate rail service, where it is not otherwise available to needy communities. But Federal subsidies must be closely scrutinized to be sure they are a stimulus to, and not a replacement for, private investment and initiative. Federal assistance cannot mean permanent subsidies for unprofitable operations. WATERWAYS AND RURAL TRANSPORTATION There is a growing need in rural and small communities for improved transportation services. Rail freight service to many communities has declined as railroads abandon unproductive branch lines. At the same time, rural roads are often inadequate to handle large, heavily-loaded trucks. The increased demand for "harvest to harbor" service has also placed an increased burden on rural transportation systems, while bottlenecks along the Mississippi River delay grain shipments to the Gulf of Mexico. We have made some progress: • To further develop the nation's waterways, my Administration began construction of a new 1,200 foot lock at the site of Lock and Dam 26 on the Mississippi River. When opened in 1987, the new lock will have a capacity of 86 million tons per year, an 18 percent increase over the present system. The U.S. Army Corps of Engineers has also undertaken studies to assess the feasibility of expanding the Bonneville Locks. Rehabilitation of John Day Lock was begun in 1980 and should be completed in 1982. My Administration also supports the completion of the Upper Mississippi River Master Plan to determine the feasibility of constructing a second lock at Alton, Illinois. These efforts will help alleviate delays in transporting corn, soybeans and other goods along the Mississippi River to the Gulf of Mexico. • The Department of Transportation's new Small Community and Rural Transportation Policy will target federal assistance for passenger transportation, roads and highways, truck service, and railroad freight service to rural areas. This policy implements and expands upon the earlier White House Initiative, Improving Transportation in Rural America, announced in June, 1979, and the President's Small Community and Rural Development Policy announced in December, 1979. The Congress should seek ways to balance rail branch line abandonment with the service needs of rural and farm communities, provide financial assistance to rail branch line rehabilitation where appropriate, assist shippers to adjust to rail branch line abandonment where it takes place, and help make it possible for trucking firms to serve light density markets with dependable and efficient trucking services. MARITIME POLICY During my Administration I have sought to ensure that the U.S. maritime industry will not have to function at an unfair competitive disadvantage in the international market. As I indicated in my maritime policy statement to the Congress in July, 1979, the American merchant marine is vital to our Nation's welfare, and Federal actions should promote rather than harm it. In pursuit of this objective, I signed into law the Controlled Carrier Act of 1978, authorizing the Federal Maritime Commission to regulate certain rate cutting practices of some state-controlled carriers, and recently signed a bilateral maritime agreement with the People's Republic of China that will expand the access of American ships to 20 specified Chinese ports, and set aside for American-flag ships a substantial share (at least one-third) of the cargo between our countries. This agreement should officially foster expanded U.S. and Chinese shipping services linking the two countries, and will provide further momentum to the growth of Sino-American trade. There is also a need to modernize and expand the dry bulk segment of our fleet. Our heavy dependence on foreign carriage of U.S.-bulk cargoes deprives the U.S. economy of seafaring and shipbuilding jobs, adds to the balance-of-payments deficit, deprives the Government of substantial tax revenues, and leaves the United States dependent on foreign-flag shipping for a continued supply of raw materials to support the civil economy and war production in time of war. I therefore sent to the Congress proposed legislation to strengthen this woefully weak segment of the U.S.-flag fleet by removing certain disincentives to U.S. construction of dry bulkers and their operation under U.S. registry. Enactment of this proposed legislation would establish the basis for accelerating the rebuilding of the U.S.-flag dry bulk fleet toward a level commensurate with the position of the United States as the world's leading bulk trading country. During the past year the Administration has stated its support for legislation that would provide specific Federal assistance for the installation of fuel-efficient engines in existing American ships, and would strengthen this country's shipbuilding mobilization base. Strengthening the fleet is important, but we must also maintain our shipbuilding base for future ship construction. Provisions in existing laws calling for substantial or exclusive use of American flag vessels to carry cargoes generated by the Government must be vigorously pursued. I have therefore supported requirements that 50 percent of oil purchased for the strategic petroleum reserve be transported in U.S.-flag vessels, that the Cargo Preference Act be applied to materials furnished for the U.S. assisted construction of air bases in Israel, and to cargoes transported pursuant to the Chrysler Corporation Loan Guarantee Act. In addition, the Deep Seabed Hard Mineral Resources Act requires that at least one ore carrier per mine site be a U.S.-flag vessel. Much has been done, and much remains to be done. The FY 1982 budget includes a $107 million authorization for Construction Differential Subsidy ("CDS") funds which, added to the unobligated CDS balance of $100 million from 1980, and the recently enacted $135 million 1981 authorization, will provide an average of $171 million in CDS funds in 1981 and 1982. COAL EXPORT POLICY While significant growth in foreign demand for U.S. steam coal is foreseen, congestion at major U.S. coal exporting ports such as Hampton Roads, Virginia, and Baltimore, Maryland, could delay and impede exports. My Administration has worked through the Interagency Coal Task Force Study, which I created, to promote cooperation and coordination of resources between shippers, railroads, vessel broker/operators and port operators, and to determine the most appropriate Federal role in expanding and modernizing coal export facilities, including dredging deeper channels at selected ports. Some progress has already been made. In addition to action taken by transshippers to reduce the number of coal classifications used whenever possible, by the Norfolk and Western Railroad to upgrade its computer capability to quickly inventory its coal cars in its yards, and by the Chessie Railroad which is reactivating Pier 15 in Newport News and has established a berth near its Curtis Bay Pier in Baltimore to decrease delays in vessel berthing, public activities will include: • A $26.5 million plan developed by the State of Pennsylvania and Conrail to increase Conrail's coal handling capacity at Philadelphia; • A proposal by the State of Virginia to construct a steam coal port on the Craney Island Disposal area in Portsmouth harbor; • Plans by Mobile, Alabama, which operates the only publicly owned coal terminal in the U.S. to enlarge its capacity at McDuffie Island to 10 million tons ground storage and 100 car unit train unloading capability; • Development at New Orleans of steam coal facilities that are expected to add over 20 million tons of annual capacity by 1983; and • The Corps of Engineers, working with other interested Federal agencies, will determine which ports should be dredged, to what depth and on what schedule, in order to accommodate larger coal carrying vessels. Private industry will, of course, play a major role in developing the United States' coal export facilities. The new Administration should continue to work to eliminate transportation bottlenecks that impede our access to foreign markets. Special Needs 
 
WOMEN The past four years have been years of rapid advancement for women. Our focus has been two-fold: to provide American women with a full range of opportunities and to make them a part of the mainstream of every aspect of our national life and leadership. I have appointed a record number of women to judgeships and to top government posts. Fully 22 percent of all my appointees are women, and I nominated 41 of the 46 women who sit on the Federal bench today. For the first time in our history, women occupy policymaking positions at the highest level of every Federal agency and department and have demonstrated their ability to serve our citizens well. We have strengthened the rights of employed women by consolidating and strengthening enforcement of sex discrimination laws under the EEOC, by expanding employment rights of pregnant women through the Pregnancy Disability Bill, and by increasing federal employment opportunities for women through civil service reform, and flexi-time and part-time employment. By executive order, I created the first national program to provide women businessowners with technical assistance, grants, loans, and improved access to federal contracts. We have been sensitive to the needs of women who are homemakers. I established an Office of Families within HHS and sponsored the White House Conference on Families. We initiated a program targeting CETA funds to help displaced homemakers. The Social Security system was amended to eliminate the widow's penalty and a comprehensive study of discriminatory provisions and possible changes was presented to Congress. Legislation was passed to give divorced spouses of foreign service officers rights to share in pension benefits. We created an office on domestic violence within HHS to coordinate the 12 agencies that now have domestic violence relief programs, and to distribute information on the problem and the services available to victims. Despite a stringent budget for FY 1981, the Administration consistently supported the Women's Educational Equity Act and family planning activities, as well as other programs that affect women, such as food stamps, WIC, and social security. We have been concerned not only about the American woman's opportunities, but ensuring equality for women around the world. In November, 1980, I sent to the Senate the Convention on the Elimination of All Forms of Discrimination Against Women. This United Nations document is the most comprehensive and detailed international agreement which seeks the advancement of women. On women's issues, I have sought the counsel of men and women in and out of government and from all regions of our country. I established two panels—the President's Advisory Committee for Women and the Interdepartmental Task Force on Women—to advise me on these issues. The mandate for both groups expired on December 31, but they have left behind a comprehensive review of the status of women in our society today. That review provides excellent guidance for the work remaining in our battle against sex discrimination. Even though we have made progress, much remains on the agenda for women. I remain committed to the Equal Rights Amendment and will continue to work for its passage. It is essential to the goal of bringing America's women fully into the mainstream of American life that the ERA be ratified. The efforts begun for women in employment, business and education should be continued and strengthened. Money should be available to states to establish programs to help the victims of domestic violence. Congress should pass a national health care plan and a welfare reform program, and these measures should reflect the needs of women. The talents of women should continue to be used to the fullest inside and outside of government, and efforts should continue to see that they have the widest range of opportunities and options. HANDICAPPED I hope that my Administration will be remembered in this area for leading the way toward full civil fights for handicapped Americans. When I took office, no federal agency had yet issued 504 regulations. As I leave office, this first step by every major agency and department in the federal government is almost complete. But it is only a first step. The years ahead will require steadfast dedication by the President to protect and promote these precious rights in the classroom, in the workplace, and in all public facilities so that handicapped individuals may join the American mainstream and contribute to the fullest their resources and talents to our economic and social life. Just as we supported, in an unprecedented way, the civil rights of disabled persons in schools and in the workplace, other initiatives in health prevention-such as our immunization and nutrition programs for young children and new intense efforts to reverse spinal cord injury must continue so that the incidence of disability continues to decline. This year is the UN-declared International Year of Disabled Persons. We are organizing activities to celebrate and promote this important commemorative year within the government as well as in cooperation with private sector efforts in this country and around the world. The International Year will give our country the opportunity to recognize the talents and capabilities of our fellow citizens with disabilities. We can also share our rehabilitation and treatment skills with other countries and learn from them as well. I am proud that the United States leads the world in mainstreaming and treating disabled people. However, we have a long way to go before all psychological and physical barriers to disabled people are torn down and they can be full participants in our American way of life. We must pledge our full commitment to this goal during the International Year. FAMILIES Because of my concern for American families, my Administration convened last year the first White House Conference on Families which involved seven national hearings, over 506 state and local events, three White House Conferences, and the direct participation of more than 125,000 citizens. The Conference reaffirmed the centrality of families in our lives and nation but documented problems American families face as well. We also established the Office of Families within the Department of Health and Human Services to review government policies and programs that affect families. I expect the departments and agencies within the executive branch of the Federal government as well as Members of Congress, corporate and business leaders, and State and local officials across the country, to study closely the recommendations of the White House Conference and implement them appropriately. As public policy is developed and implemented by the Federal government, cognizance of the work of the Conference should be taken as a pragmatic and essential step. The Conference has done a good job of establishing an agenda for action to assure that the policies of the Federal government are more sensitive in their impact on families. I hope the Congress will review and seriously consider the Conference's recommendations. OLDER AMERICANS My Administration has taken great strides toward solving the difficult problems faced by older Americans. Early in my term we worked successfully with the Congress to assure adequate revenues for the Social Security Trust Funds. And last year the strength of the Social Security System was strengthened by legislation I proposed to permit borrowing among the separate trust funds. I have also signed into law legislation prohibiting employers from requiring retirement prior to age 70, and removing mandatory retirement for most Federal employees. In addition, my Administration worked very closely with Congress to amend the Older Americans Act in a way that has already improved administration of its housing, social services, food delivery, and employment programs. This year, I will be submitting to Congress a budget which again demonstrates my commitment to programs for the elderly. It will include, as my previous budgets have, increased funding for nutrition, senior centers and home health care, and will focus added resources on the needs of older Americans. With the 1981 White House Conference on Aging approaching, I hope the new Administration will make every effort to assure an effective and useful conference. This Conference should enable older Americans to voice their concerns and give us guidance in our continued efforts to ensure the quality of life so richly deserved by our senior citizens. REFUGEES We cannot hope to build a just and humane society at home if we ignore the humanitarian claims of refugees, their lives at stake, who have nowhere else to turn. Our country can be proud that hundreds of thousands of people around the world would risk everything they have-including their own lives—to come to our country. This Administration initiated and implemented the first comprehensive reform of our refugee and immigration policies in over 25 years. We also established the first refugee coordination office in the Department of State under the leadership of a special ambassador and coordinator for refugee affairs and programs. The new legislation and the coordinator's office will bring common sense and consolidation to our Nation's previously fragmented, inconsistent, and in many ways, outdated, refugee and immigration policies. With the unexpected arrival of thousands of Cubans and Haitians who sought refuge in our country last year, outside of our regular immigration and refugee admissions process, our country and its government were tested in being compassionate and responsive to a major human emergency. Because we had taken steps to reorganize our refugee programs, we met that test successfully. I am proud that the American people responded to this crisis with their traditional good will and hospitality. Also, we would never have been able to handle this unprecedented emergency without the efforts of the private resettlement agencies who have always been there to help refugees in crises. Immigrants to this country always contribute more toward making our country stronger than they ever take from the system. I am confident that the newest arrivals to our country will carry on this tradition. While we must remain committed to aiding and assisting those who come to our shores, at the same time we must uphold our immigration and refugee policies and provide adequate enforcement resources. As a result of our enforcement policy, the illegal flow from Cuba has been halted and an orderly process has been initiated to make certain that our refugee and immigration laws are honored. This year the Select Commission on Immigration and Refugee Policy will complete its work and forward its advice and recommendations. I hope that the recommendations will be carefully considered by the new Administration and the Congress, for it is clear that we must take additional action to keep our immigration policy responsive to emergencies and ever changing times. VETERANS This country and its leadership has a continuing and unique obligation to the men and women who served their nation in the armed forces and help maintain or restore peace in the world. My commitment to veterans—as evidenced by my record—is characterized by a conscientious and consistent emphasis in these general areas: First, we have worked to honor the Vietnam veteran. During my Administration, and under the leadership of VA Administrator Max Cleland, I was proud to lead our country in an overdue acknowledgement of our Nation's gratitude to the men and women who served their country during the bitter war in Southeast Asia. Their homecoming was deferred and seemed doomed to be ignored. Our country has matured in the last four years and at long last we were able to separate the war from the warrior and honor these veterans. But with our acknowledgement of their service goes an understanding that some Vietnam veterans have unique needs and problems. My Administration was able to launch a long sought after psychological readjustment and outreach program, unprecedented in its popularity, sensitivity and success. This program must be continued. The Administration has also grappled with the difficult questions posed by some veterans who served in Southeast Asia and were exposed to potentially harmful substances, including the herbicide known as Agent Orange. We have launched scientific inquiries that should answer many veterans' questions about their health and should provide the basis for establishing sound compensation policy. We cannot rest until their concerns are dealt with in a sensitive, expeditious and compassionate fashion. Second, we have focused the VA health care system in the needs of the service-connected disabled veteran. We initiated and are implementing the first reform of the VA vocational rehabilitation system since its inception in 1943. Also, my Administration was the first to seek a cost-of-living increase for the recipients of VA compensation every year. My last budget also makes such a request. The Administration also launched the Disabled Veterans Outreach Program in the Department of Labor which has successfully placed disabled veterans in jobs. Services provided by the VA health care system will be further targeted to the special needs of disabled veterans during the coming year. Third, the VA health care system—the largest in the free world—has maintained its independence and high quality during my Administration. We have made the system more efficient and have therefore treated more veterans than ever before by concentrating on out-patient care and through modern management improvements. As the median age of the American veteran population increases, we must concentrate on further changes within the VA system to keep it independent and to serve as a model to the nation and to the world as a center for research, treatment and rehabilitation. Government Assistance 
 
GENERAL AID TO STATE AND LOCAL GOVERNMENTS Since taking office, I have been strongly committed to strengthening the fiscal and economic condition of our Nation's State and local governments. I have accomplished this goal by encouraging economic development of local communities, and by supporting the General Revenue Sharing and other essential grant-in-aid programs. GRANTS-IN-AID TO STATES AND LOCALITIES During my Administration, total grants-in-aid to State and local governments have increased by more than 40 percent-from $68 billion in Fiscal Year 1977 to $96 billion in Fiscal Year 1981. This significant increase in aid has allowed States and localities to maintain services that are essential to their citizens without imposing onerous tax burdens. It also has allowed us to establish an unprecedented partnership between the leaders of the Federal government and State and local government elected officials. GENERAL REVENUE SHARING Last year Congress enacted legislation that extends the General Revenue Sharing program for three more ),ears. This program is the cornerstone of our efforts to maintain the fiscal health of our Nation's local government. It will provide $4.6 billion in each of the next three years to cities, counties and towns. This program is essential to the continued ability of our local governments to provide essential police, fire and sanitation services. This legislation renewing GRS will be the cornerstone of Federal-State-local government relations in the 1980's. This policy will emphasize the need for all levels of government to cooperate in order to meet the needs of the most fiscally strained cities and counties, and also will emphasize the important role that GRS can play in forging this partnership. I am grateful that Congress moved quickly to assure that our Nation's localities can begin the 1980's in sound fiscal condition. COUNTER-CYCLICAL ASSISTANCE Last year, I proposed that Congress enact a $1 billion counter-cyclical fiscal assistance program to protect States and localities from unexpected changes in the national economy. This program unfortunately was not enacted by the [full] Congress. I, therefore, have not included funding for counter-cyclical aid in my Fiscal Year 1982 budget. Nevertheless, I urge Congress to enact a permanent stand-by counter-cyclical program, so that States and cities can be protected during the next economic downturn. Urban Policy Three years ago, I proposed the Nation's first comprehensive urban policy. That policy involved more than one hundred improvements in existing Federal programs, four new Executive Orders and nineteen pieces of urban-oriented legislation. With Congress' cooperation, sixteen of these bills have now been signed into law. ECONOMIC DEVELOPMENT One of the principal goals of my domestic policy has been to strengthen the private sector economic base of our Nation's economically troubled urban and rural areas. With Congress' cooperation, we have substantially expanded the Federal government's economic development programs and provided new tax incentives for private investment in urban and rural communities. These programs have helped many communities to attract new private sector jobs and investments and to retain the jobs and investments that already are in place. When I took office, the Federal government was spending less than $300 million annually on economic development programs, and only $60 million of those funds in our Nation's urban areas. Since that time, we have created the Urban Development Action Grant (UDAG) program and substantially expanded the economic development programs in the Commerce Department. My FY 1982 budget requests more than $1.5 billion for economic development grants, loans and interest subsidies and almost $1.5 billion for loan guarantees. Approximately 60 percent of these funds will be spent in our Nation's urban areas. In addition, we have extended the 10 percent investment credit to include rehabilitation of existing industrial facilities as well as new construction. I continue to believe that the development of private sector investment and jobs is the key to revitalizing our Nation's economically depressed urban and rural areas. To ensure that the necessary economic development goes forward, the Congress must continue to provide strong support for the UDAG program and the programs for the Economic Development Administration. Those programs provide a foundation for the economic development of our Nation in the 1980's. COMMUNITY DEVELOPMENT The partnership among Federal, State and local governments to revitalize our Nation's communities has been a high priority of my Administration. When I took office, I proposed a substantial expansion of the Community Development Block Grant (CDBG) program and the enactment of a new $400 million Urban Development Action Grant (UDAG) program. Both of these programs have provided essential community and economic development assistance to our Nation's cities and counties. Last year, Congress reauthorized both the CDBG and UDAG programs. The CDBG program was reauthorized for three more years with annual funding increases of $150 million, and the UDAG program was extended for three years at the current funding level of $675 million annually. My 1982 budget requests full funding for both of these programs. These actions should help our Nation's cities and counties to continue the progress they have made in the last three years. NEIGHBORHOODS During my Administration we have taken numerous positive steps to achieve a full partnership of neighborhood organizations and government at all levels. We have successfully fought against red lining and housing discrimination. We created innovative Self Help funding and technical resource transfer mechanisms. We have created unique methods of access for neighborhood organizations to have a participating role in Federal and State government decision-making. Neighborhood based organizations are the threshold of the American community. The Federal government will need to develop more innovative and practical ways for neighborhood based organizations to successfully participate in the identification and solution of local and neighborhood concerns. Full partnership will only be achieved with the knowing participation of leaders of government, business, education and unions. Neither state nor Federal solutions imposed from on high will suffice. Neighborhoods are the fabric and soul of this great land. Neighborhoods define the weave that has been used to create a permanent fabric. The Federal government must take every opportunity to provide access and influence to the individuals and organizations affected at the neighborhood level. Rural Policy Since the beginning of my Administration, I have been committed to improving the effectiveness with which the Federal government deals with the problems and needs of a rapidly changing rural America. The rapid growth of some rural areas has placed a heavy strain on communities and their resources. There are also persistent problems of poverty and economic stagnation in other parts of rural America. Some rural areas continue to lose population, as they have for the past several decades. In December, 1979, I announced the Small Community and Rural Development Policy. It was the culmination of several years' work and was designed to address the varying needs of our rural population. In 1980, my Administration worked with the Congress to pass the Rural Development Policy Act of 1980, which when fully implemented will allow us to meet the needs of rural people and their communities more effectively and more efficiently. As a result of the policy and the accompanying legislation, we have: • Created the position of Under Secretary of Agriculture for Small Community and Rural Development to provide overall leadership. • Established a White House Working Group to assist in the implementation of the policy. • Worked with more than 40 governors to form State rural development councils to work in partnership with the White House Working Group, and the Federal agencies, to better deliver State and Federal programs to rural areas. • Directed the White House Working Group to annually review existing and proposed policies, programs, and budget levels to determine their adequacy in meeting rural needs and the fulfilling of the policy's objectives and principles. This effort on the part of my Administration and the Congress has resulted in a landmark policy. For the first time, rural affairs has received the prominence it has always deserved. It is a policy that can truly help alleviate the diverse and differing problems rural America will face in the 1980's. With the help and dedication of a great many people around the country who are concerned with rural affairs, we have constructed a mechanism for dealing effectively with rural problems. There is now a great opportunity to successfully combine Federal efforts with the efforts of rural community leaders and residents. It is my hope this spirit of cooperation and record of accomplishment will be continued in the coming years. Consumers In September, 1979, I signed an Executive Order designed to strengthen and coordinate Federal consumer programs and to establish procedures to improve and facilitate consumer participation in government decision-making. Forty Federal agencies have adopted programs to comply with the requirements of the Order. These programs will improve complaint handling, provide better information to consumers, enhance opportunities for public participation in government proceedings, and assure that the consumer point of view is considered in all programs, policies, and regulations. While substantial progress has been made in assuring a consumer presence in Federal agencies, work must continue to meet fully the goals of the Executive Order. Close monitoring of agency compliance with the requirements of the Order is necessary. Continued evaluation to assure that the programs are effective and making maximum use of available resources is also essential. As a complement to these initiatives, efforts to provide financial assistance in regulatory proceedings to citizen groups, small businesses, and others whose participation is limited by their economic circumstances must continue to be pursued. It is essential that consumer representatives in government pay particular attention to the needs and interests of low-income consumers and minorities. The Office of Consumer Affairs' publication, People Power: What Communities Are Doing to Counter Inflation, catalogues some of the ways that government and the private sector can assist the less powerful in our society to help themselves. New ways should be found to help foster this new people's movement which is founded on the principle of self-reliance. Science and Technology Science and technology contribute immeasurably to the lives of all Americans. Our high standard of living is largely the product of the technology that surrounds us in the home or factory. Our good health is due in large part to our ever increasing scientific understanding. Our national security is assured by the application of technology. And our environment is protected by the use of science and technology. Indeed, our vision of the future is often largely defined by the bounty that we anticipate science and technology will bring. The Federal government has a special role to play in science and technology. Although the fruits of scientific achievements surround us, it is often difficult to predict the benefits that will arise from a given scientific venture. And these benefits, even if predictable, do not usually lead to ownership rights. Accordingly, the Government has a special obligation to support science as an investment in our future. My Administration has sought to reverse a decade-long decline in funding. Despite the need for fiscal restraint, real support of basic research has grown nearly 11% during my term in office. And, my Administration has sought to increase the support of long-term research in the variety of mission agencies. In this way, we can harness the American genius for innovation to meet the economic, energy, health, and security challenges that confront our nation. • International Relations and National Security. Science and technology are becoming increasingly important elements of our national security and foreign policies. This is especially so in the current age of sophisticated defense systems and of growing dependence among all countries on modern technology for all aspects of their economic strength. For these reasons, scientific and technological considerations have been integral elements of the Administration's decisionmaking on such national security and foreign policy issues as the modernization of our strategic weaponry, arms control, technology transfer, the growing bilateral relationship with China, and our relations with the developing world. Four themes have shaped U.S. policy in international scientific and technological cooperation: pursuit of new international initiatives to advance our own research and development objectives; development and strengthening of scientific exchange to bridge politically ideological, and cultural divisions between this country and other countries; formulation of programs and institutional relations to help developing countries use science and technology beneficially; and cooperation with other nations to manage technologies with local impact. At my direction, my Science and Technology Adviser has actively pursued international programs in support of these four themes. We have given special attention to scientific and technical relations with China, to new forms of scientific and technical cooperation with Japan, to cooperation with Mexico, other Latin American and Caribbean countries and several states in Black America [Africa], and to the proposed Institute for Scientific and Technological Cooperation. In particular our cooperation with developing countries reflects the importance that each of them has placed on the relationship between economic growth and scientific and technological capability. It also reflects their view that the great strength of the U.S. in science and technology makes close relations with the U.S. technical community an especially productive means of enhancing this capability. Scientific and technological assistance is a key linkage between the U.S. and the developing world, a linkage that has been under-utilized in the past and one which we must continue to work to strengthen. • Space Policy. The Administration has established a framework for a strong and evolving space program for the 1980's. The Administration's space policy reaffirmed the separation of military space systems and the open civil space program, and at the same time, provided new guidance on technology transfer between the civil and military programs. The civil space program centers on three basic tenets: First, our space policy will reflect a balanced strategy of applications, science, and technology development. Second, activities will be pursued when they can be uniquely or more efficiently accomplished in space. Third, a premature commitment to a high challenge, space-engineering initiative of the complexity of Apollo is inappropriate. As the Shuttle development phases down, however, there will be added flexibility to consider new space applications, space science and new space exploration activities. • Technology Development. The Shuttle dominates our technology development effort and correctly so. It represents one of the most sophisticated technological challenges ever undertaken, and as a result, has encountered technical problems. Nonetheless, the first manned orbital flight is now scheduled for March, 1981. I have been pleased to support strongly the necessary funds for the Shuttle throughout my Administration. • Space Applications. Since 1972, the U.S. has conducted experimental civil remote sensing through Landsat satellites, thereby realizing many successful applications. Recognizing this fact, I directed the implementation of an operational civil land satellite remote sensing system, with the operational management responsibility in Commerce's National Oceanic and Atmospheric Administration. In addition, because ocean observations from space can meet common civil and military data requirements, a National Oceanic Satellite System has been proposed as a major FY 1981 new start. • Space Science Exploration. The goals of this Administration's policy in space science have been to: (1) continue a vigorous program of planetary exploration to understand the origin and evolution of the solar system; (2) utilize the space telescope and free-flying satellites to usher in a new era of astronomy; (3) develop a better understanding of the sun and its interaction with the terrestrial environment; and (4) utilize the Shuttle and Spacelab to conduct basic research that complements earth-based life science investigations. District of Columbia Washington, D.C., is home to both the Federal Government and to more than half a million American citizens. I have worked to improve the relationship between the Federal establishment and the Government of the District of Columbia in order to further the goals and spirit of home rule. The City controls more of its own destiny than was the case four years ago. Yet, despite the close cooperation between my Administration and that of Mayor Barry, we have not yet seen the necessary number of states ratify the Constitutional Amendment granting full voting representation in the Congress to the citizens of this city. It is my hope that this inequity will be rectified. The country and the people who inhabit Washington deserve no less. The Arts The arts are a precious national resource. Federal support for the arts has been enhanced during my Administration by expanding government funding and services to arts institutions, individual artists, scholars, and teachers through the National Endowment for the Arts. We have broadened its scope and reach to a more diverse population. We have also reactivated the Federal Council on the Arts and Humanities. It is my hope that during the coming years the new Administration and the Congress will: • Continue support of institutions promoting development and understanding of the arts; • Encourage business participants in a comprehensive effort to achieve a truly mixed economy of support for the arts; • Explore a variety of mechanisms to nurture the creative talent of our citizens and build audiences for their work; • Support strong, active National Endowments for the Arts; • Seek greater recognition for the rich cultural tradition of the nation's minorities; • Provide grants for the arts in low income neighborhoods. The Humanities In recently reauthorizing Federal appropriations for the National Endowment for the Humanities, the Congress has once again reaffirmed that "the encouragement and support of national progress and scholarship in the humanities . . . while primarily a matter for private and local initiative, is also an appropriate matter of concern to the Federal Government" and that "a high civilization must not limit its efforts to science and technology alone but must give full value and support to the other great branches of man's scholarly and cultural activity in order to achieve a better understanding of the past, a better analysis of the present, and a better view of the future." I believe we are in agreement that the humanities illuminate the values underlying important personal, social, and national questions raised in our society by its multiple links to and increasing dependence on technology, and by the diverse heritage of our many regions and ethnic groups. The humanities cast light on the broad issue of the role in a society of men and women of imagination and energy—those individuals who through their own example define "the spirit of the age," and in so doing move nations. Our Government's support for the humanities, within the framework laid down by the Congress, is a recognition of their essential nourishment of the life of the mind and vital enrichment of our national life. I will be proposing an increase in funding this year sufficient to enable the Endowment to maintain the same level of support offered our citizens in Fiscal Year 1981. In the allocation of this funding, special emphasis will be given to: • Humanities education in the nation's schools, in response to the great needs that have arisen in this area; • Scholarly research designed to increase our understanding of the cultures, traditions, and historical forces at work in other nations and in our own; • Drawing attention to the physical disintegration of the raw material of our cultural heritage—books, manuscripts, periodicals, and other documents—and to the development of techniques to prevent the destruction and to preserve those materials; and • The dissemination of quality programming in the humanities to increasingly large American audiences through the use of radio and television. The dominant effort in the Endowment's expenditures will be a commitment to strengthen and promulgate scholarly excellence and achievement in work in the humanities in our schools, colleges, universities, libraries, museums and other cultural institutions, as well as in the work of individual scholars or collaborative groups engaged in advanced research in the humanities. In making its grants the Endowment will increase its emphasis on techniques which stimulate support for the humanities from non-Federal sources, in order to reinforce our tradition of private philanthropy in this field, and to insure and expand the financial viability of our cultural institutions and life. Insular Areas I have been firmly committed to self-determination for Puerto Rico, the Virgin Islands, Guam, American Samoa and the Northern Mariana Islands, and have vigorously supported the realization of whatever political status aspirations are democratically chosen by their peoples. This principle was the keystone of the comprehensive territorial policy I sent the Congress last year. I am pleased that most of the legislative elements of that policy were endorsed by the 96th Congress. The unique cultures, fragile economies, and locations of our Caribbean and Pacific Islands are distinct assets to the United States which require the sensitive application of policy. The United States Government should pursue initiatives begun by my Administration and the Congress to stimulate insular economic development; enhance treatment under Federal programs eliminating current inequities; provide vitally needed special assistance and coordinate and rationalize policies. These measures will result in greater self-sufficiency and balanced growth. In particular, I hope that the new Congress will support funding for fiscal management, comprehensive planning and other technical assistance for the territories, as well as create the commission I have proposed to review the applicability of all Federal laws to the insular areas and make recommendations for appropriate modification. IV. REMOVING GOVERNMENTAL WASTE 
 
AND INEFFICIENCY One of my major commitments has been to restore public faith in our Federal government by cutting out waste and inefficiency. In the past four years, we have made dramatic advances toward this goal, many of them previously considered impossible to achieve. Where government rules and operations were unnecessary, they have been eliminated, as with airline, rail, trucking and financial deregulation. Where government functions are needed, they have been streamlined, through such landmark measures as the Civil Service Reform Act of 1978. I hope that the new administration and the Congress will keep up the momentum we have established for effective and responsible change in this area of crucial public concern. CIVIL SERVICE REFORM In March 1978, I submitted the Civil Service Reform Act to Congress. I called it the centerpiece of my efforts to reform and reorganize the government. With bipartisan support from Congress, the bill passed, and I am pleased to say that implementation is running well ahead of the statutory schedule. Throughout the service, we are putting into place the means to assure that reward and retention are based on performance and not simply on length of time on the job. In the first real test of the Reform Act, 98 percent of the eligible top-level managers joined the Senior Executive Service, choosing to relinquish job protections for the challenge and potential reward of this new corps of top executives. Though the Act does not require several of its key elements to be in operation for another year, some Federal agencies already have established merit pay systems for GS-13-15 managers, and most agencies are well on their way to establishing new performance standards for all their employees. All have paid out, or are now in the process of paying out, performance bonuses earned by outstanding members of the Senior Executive Service. Dismissals have increased by 10 percent, and dismissals specifically for inadequate job performance have risen 1500 percent, since the Act was adopted. Finally, we have established a fully independent Merit Systems Protection Board and Special Counsel to protect the rights of whistle-blowers and other Federal employees faced with threats to their rights. In 1981, civil service reform faces critical challenges—all agencies must have fully functioning performance appraisal systems for all employees, and merit pay systems for compensating the government's 130,000 GS-13-15 managers. Performance bonuses for members of the Senior Executive Service will surely receive scrutiny. If this attention is balanced and constructive, it can only enhance the chances for ultimate success of our bipartisan commitment to the revolutionary and crucial pay-for-performance concept. REGULATORY REFORM During the past four years we have made tremendous progress in regulatory reform. We have discarded old economic regulations that prevented competition and raised consumer costs, and we have imposed strong management principles on the regulatory programs the country needs, cutting paperwork and other wasteful burdens. The challenge for the future is to continue the progress in both areas without crippling vital health and safety programs. Our economic deregulation program has achieved major successes in five areas: Airlines: The Airline Deregulation Act is generating healthy competition, saving billions in fares, and making the airlines more efficient. The Act provides that in 1985 the CAB itself will go out of existence. Trucking: The trucking deregulation bill opens the industry to competition and allows truckers wide latitude on the routes they drive and the goods they haul. The bill also phases out most of the old law's immunity for setting rates. The Congressional Budget Office estimates these reforms will save as much as $8 billion per year and cut as much as half a percentage point from the inflation rate. Railroads: Overregulation has stifled railroad management initiative, service, and competitive pricing. The new legislation gives the railroads the freedom they need to rebuild a strong, efficient railroad industry. Financial Institutions: With the help of the Congress, over the past four years we have achieved two major pieces of financial reform legislation—legislation which has provided the basis for the most farreaching changes in the financial services industry since the 1930's. The International Banking Act of 1978 was designed to reduce the advantages that foreign banks operating in the United States possessed in comparison to domestic banks. The Depository Institutions Deregulation and Monetary Control Act, adopted last March, provides for the phased elimination of a variety of anti-competitive barriers to financial institutions and freedom to offer services to and attract the savings of consumers, especially small savers. Recently, I submitted to the Congress my Administration's recommendations for the phased liberalization of restrictions on geographic expansion by commercial banks. Last year the Administration and financial regulatory agencies proposed legislation to permit the interstate acquisition of failing depository institutions. In view of the difficult outlook for some depository institutions I strongly urge the Congress to take prompt favorable action on the failing bank legislation. Telecommunications: While Congress did not pass legislation in this area, the Federal Communications Commission has taken dramatic action to open all aspects of communications to competition and to eliminate regulations in the areas where competition made them obsolete. The public is benefitting from an explosion of competition and new services. While these initiatives represent dramatic progress in economic deregulation, continued work is needed. I urge Congress to act on communications legislation and to consider other proposed deregulation measures, such as legislation on the bus industry. In addition, the regulatory commissions must maintain their commitment to competition as the best regulator of all. The other part of my reform program covers the regulations that are needed to protect the health, safety, and welfare of our citizens. For these regulations, my Administration has created a management program to cut costs without sacrificing goals. Under my Executive Order 12044, we required agencies to analyze the costs of their major new rules and consider alternative approaches—such as performance standards and voluntary codes—that may make rules less costly and more flexible. We created the Regulatory Analysis Review Group in the White House to analyze the most costly proposed new rules and find ways to improve them. The Regulatory Council was established to provide the first Government-wide listing of upcoming rules and eliminate overlapping and conflicting regulations. Agencies have launched "sunset" programs to weed out outmoded old regulations. We have acted to encourage public participation in regulatory decisionmaking. These steps have already saved billions of dollars in regulatory costs and slashed thousands of outmoded regulations. We are moving steadily toward a regulatory system that provides needed protections fairly, predictably, and at minimum cost. I urge Congress to continue on this steady path and resist the simplistic solutions that have been proposed as alternatives. Proposals like legislative veto and increased judicial review will add another layer to the regulatory process, making it more cumbersome and inefficient. The right approach to reform is to improve the individual statutes—where they need change—and to ensure that the regulatory agencies implement those statutes sensibly. PAPERWORK REDUCTION The Federal Government imposes a huge paperwork burden on business, local government, and the private sector. Many of these forms are needed for vital government functions, but others are duplicative, overly complex or obsolete. During my Administration we cut the paperwork burden by 15 percent, and we created procedures to continue this progress. The new Paperwork Reduction Act centralizes, in OMB, oversight of all agencies' information requirements and strengthens OMB's authority to eliminate needless forms. The "paperwork budget" process, which I established by executive order, applies the discipline of the budget process to the hours of reporting time imposed on the public, forcing agencies to scrutinize all their forms each year. With effective implementation, these steps should allow further, substantial paperwork cuts in the years ahead. TIGHTENING STANDARDS FOR GOVERNMENTAL EFFICIENCY AND INTEGRITY To develop a foundation to carry out energy policy, we consolidated scattered energy programs and launched the Synthetic Fuels Corporation; to give education the priority it deserves and at the same time reduce HHS to more manageable size, I gave education a seat at the Cabinet table, to create a stronger system for attacking waste and fraud, I reorganized audit and investigative functions by putting an Inspector General in major agencies. Since I took office, we have submitted 14 reorganization initiatives and had them all approved by Congress. We have saved hundreds of millions of dollars through the adoption of businesslike cash management principles and set strict standards for personal financial disclosure and conflict of interest avoidance by high Federal officials. To streamline the structure of the government, we have secured approval of 14 reorganization initiatives, improving the efficiency of the most important sectors of the government, including energy, education, and civil rights enforcement. We have eliminated more than 300 advisory committees as well as other agencies, boards and commissions which were obsolete or ineffective. Independent Inspectors General have been appointed in major agencies to attack fraud and waste. More than a billion dollars of questionable transactions have been identified through their audit activities. The adoption of business-like cash management and debt collection initiatives will save over $1 billion, by streamlining the processing of receipts, by controlling disbursements more carefully, and by reducing idle cash balances. Finally this Administration has set strict standards for personal financial disclosure and conflict of interest avoidance by high Federal officials, to elevate the level of public trust in the government. V. PROTECTING BASIC RIGHTS AND 
 
LIBERTIES I am extremely proud of the advances we have made in ensuring equality and protecting the basic freedoms of all Americans. • The Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance (OFCCP) have been reorganized and strengthened and a permanent civil rights unit has been established in OMB. • To avoid fragmented, inconsistent and duplicative enforcement of civil rights laws, three agencies have been given coordinative and standard-setting responsibilities in discrete areas: EEOC for all employment-related activities, HUD for all those relating to housing, and the Department of Justice for all other areas. • With the enactment of the Right to Financial Privacy Act and a bill limiting police search of newsrooms, we have begun to establish a sound, comprehensive, privacy program. Ratification of the Equal Rights Amendment must be aggressively pursued. Only one year remains in which to obtain ratification by three additional states. The Congress must give early attention to a number of important bills which remain. These bills would: • strengthen the laws against discrimination in housing. Until it is enacted, the 1968 Civil Rights Act's promise of equal access to housing will remain unfulfilled; • establish a charter for the FBI and the intelligence agencies. The failure to define in law the duties and responsibilities of these agencies has made possible some of the abuses which have occurred in recent years; • establish privacy safeguards for medical research, bank, insurance, and credit records; and provide special protection for election fund transfer systems. EQUAL RIGHTS AMENDMENT I remain committed as strongly as possible to the ratification of the Equal Rights Amendment. As a result of our efforts in 1978, the Equal Rights Amendment's deadline for ratification was extended for three years. We have now one year and three States left. We cannot afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional States. Although the Congress has no official role in the ratification process at this point, you do have the ability to affect public opinion and the support of State Legislators for the Amendment. I urge Members from States which have not yet ratified the Equal Rights Amendment to use their influence to secure ratification. I will continue my own efforts to help ensure ratification of the Equal Rights Amendment. MARTIN LUTHER KING, JR. Dr. Martin Luther King, Jr. led this Nation's effort to provide all its citizens with civil rights and equal opportunities. His commitment to human rights, peace and non-violence stands as a monument to his humanity and courage. As one of our Nation's most outstanding leaders, it is appropriate that his birthday be commemorated as a national holiday. I hope the Congress will enact legislation this year that will achieve this goal. FAIR HOUSING The Fair Housing Act Amendments of 1980 passed the House of Representatives by an overwhelming bipartisan majority only to die in the Senate at the close of the 96th Congress. The leaders of both parties have pledged to make the enactment of fair housing legislation a top priority of the incoming Congress. The need is pressing and a strengthened federal enforcement effort must be the primary method of resolution. CRIMINAL CODE The Federal criminal laws are often archaic, frequently contradictory and imprecise, and clearly in need of revision and codification. The new Administration should continue the work which has been begun to develop a Federal criminal code which simplifies and clarifies our criminal laws, while maintaining our basic civil liberties and protections. PRIVACY As our public and private institutions collect more and more information and as communications and computer technologies advance, we must act to protect the personal privacy of our citizens. In the past four years we acted on the report of the Privacy Commission and established a national privacy policy. We worked with Congress to pass legislation restricting wiretaps and law enforcement access to bank records and to reporters' files. We reduced the number of personal files held by the government and restricted the transfer of personal information among Federal agencies. We also worked with the Organization for Economic Cooperation and Development to establish international guidelines to protect the privacy of personal information that is transferred across borders. VI. PROTECTING AND DEVELOPING OUR 
 
NATURAL RESOURCES Two of our Nation's most precious natural resources are our environment and our vast agricultural capacity. From the beginning of my Administration, I have worked with the Congress to enhance and protect, as well as develop our natural resources. In the environmental areas, I have been especially concerned about the importance of balancing the need for resource development with preserving a clean environment, and have taken numerous actions to foster this goal. In the agricultural area, I have taken the steps needed to improve farm incomes and to increase our agricultural production to record levels. That progress must be continued in the 1980's. Environment Preserving the quality of our environment has been among the most important objectives of my Administration and of the Congress. As a result of these shared commitments and the dedicated efforts of many members of the Congress and my Administration, we have achieved several historic accomplishments. PROTECTION OF ALASKA LANDS Passage of the Alaska National Interest Lands Conservation Act was one of the most important conservation actions of this century. At stake was the fate of millions of acres of beautiful land, outstanding and unique wildlife populations, native cultures, and the opportunity to ensure that future generations of Americans would be able to enjoy the benefits of these nationally significant resources. As a result of the leadership, commitment, and persistence of my Administration and the Congressional leadership, the Alaska Lands Bill was signed into law last December. The Act adds 97 million acres of new parks and refuges, more than doubling the size of our National Park and National Wildlife Refuge Systems. The bill triples the size of our national wilderness system, increasing its size by 56 million acres. And by adding 25 free-flowing river segments to the Wild and Scenic River System, the bill almost doubles the fiver mileage in that system. The Alaska Lands Act reaffirms our commitment to the environment and strikes a balance between protecting areas of great beauty and allowing development of Alaska's oil, gas. mineral, and timber resources. PROTECTION OF NATURAL RESOURCES In addition to the Alaska Lands Act. over the past four years we have been able to expand significantly the national wilderness and parks systems. In 1978, the Congress passed the historic Omnibus Parks Act, which made 12 additions to the National Park System. The Act also established the first two national trails since the National Trails System Act was passed in 1968. Then, in 1980, as a result of my 1979 Environmental Message, the Federal land management agencies have established almost 300 new National Recreational Trails. With the completion of the RARE II process, which eliminated the uncertainty surrounding the status of millions of acres of land, we called for over 15 million acres of new wilderness in the nation's National Forest, in 1980 the Congress established about 4.5 million acres of wilderness in the lower 48 states. In addition, the Administration recommended legislation to protect Lake Tahoe, and through and Executive Order has already established a mechanism to help ensure the Lake's protection. Finally, in 1980 the Administration established the Channel Islands Marine Sanctuary. Administration actions over the past four years stressed the importance of providing Federal support only for water resource projects that are economically and environmentally sound. This policy should have a major and lasting influence on the federal government's role in water resource development and management. The Administration's actions to recommend to the Congress only economically and environmentally sound water resource projects for funding resulted not only in our opposing uneconomic projects but also—in 1979—in the first Administration proposal of new project starts in 4 years. One of the most significant water policy actions of the past four years was the Administration's June 6, 1978 Water Policy Reform Message to the Congress. This Message established a new national water resources policy with the following objectives: • to give priority emphasis to water conservation; • to consider environmental requirements and values more fully and along with economic factors in the planning and management of water projects and programs; • to enhance cooperation between state and federal agencies in water resources planning and management. In addition, the Executive Office of the President established 11 policy decision criteria to evaluate the proposed federal water projects, the Water Resources Council developed and adopted a new set of Principles and Standards for water projects which is binding on all federal construction agencies, and improved regulations were developed to implement the National Historic Preservation Act and the Fish and Wildlife Coordination Act. As a result, water resource projects must be determined to be economically sound before the Administration will recommend authorization or appropriation. Over the years ahead, this policy will help to reduce wasteful federal spending by targeting federal funds to the highest priority water resource projects. In the pursuit of this policy, however, we cannot lose sight of the vital role that sound water resource projects play in providing irrigation, power, and flood control. We must also recognize the special needs of particular regions of the country in evaluating the need for additional projects. ADDRESSING GLOBAL RESOURCE AND ENVIRONMENTAL PROBLEMS The Global 2000 Report to the President, prepared in response to my 1977 Environment Message, is the first of its kind. Never before has our government, or any government, taken such a comprehensive, long-range look at the interrelated global issues of resources, population, and environment. The Report's conclusions are important. They point to a rapid increase in population and human needs through the year 2000 while at the same time a decline in the earth's capacity to meet those needs-unless nations of the world act decisively to alter current trends. The United States has contributed actively to a series of UN conferences on the environment, population, and resources, and is preparing for the 1981 Conference on New and Renewable Sources of Energy. Following my 1977 Environmental Message, the Administration development assistance programs have added emphasis to natural resource management and environmental protection. My 1979 Environmental Message called attention to the alarming loss of world forests, particularly in the tropics. An interagency task force on tropical forests has developed a U.S. government program to encourage conservation and wise management of tropical forests. The Administration is encouraging action by other nations and world organizations to the same purpose. The United States is a world leader in wildlife conservation and the assessment of environmental effects of government actions. The January 5, 1979, Executive Order directing U.S. government agencies to consider the effects of their major actions abroad, is another example of this leadership. COMMITMENT TO CONTROL OF POLLUTION AND HAZARDOUS CHEMICALS Over the past four years, there has been steady progress towards cleaner air and water, sustained by the commitment of Congress and the Administration to these important national objectives. In addition, the Administration has developed several new pollution compliance approaches such as alternative and innovative waste water treatment projects, the "bubble" concept, the "offset" policy, and permit consolidation, all of which are designed to reduce regulatory burdens on the private sector. One of the most pressing problems to come to light in the past four years has been improper hazardous waste disposal. The Administration has moved on three fronts. First, we proposed the Oil Hazardous Substances and Hazardous Waste Response, Liability and Compensation Act (the "Superfund" bill) to provide comprehensive authority and $1.6 billion in funds to clean up abandoned hazardous waste disposal sites. In November 1980 the Congress passed a Superfund bill which I signed into law. Second, the administration established a hazardous waste enforcement strike force to ensure that when available, responsible parties are required to clean up sites posing dangers to public health and to the environment. To date, 50 lawsuits have been brought by the strike force. Third, regulations implementing subtitle C of the Resource Conservation and Recovery Act were issued. The regulations establish comprehensive controls for hazardous waste and, together with vigorous enforcement, will help to ensure that Love Canal will not be repeated. THE FUTURE For the future, we cannot—and we must not—forget that we are charged with the stewardship of an irreplaceable environment and natural heritage. Our children, and our children's children, are dependent upon our maintaining our commitment to preserving and enhancing the quality of our environment. It is my hope that when our descendants look back on the 1980's they will be able to affirm: • that we kept our commitment to the restoration of environmental quality; • that we protected the public health from the continuing dangers of toxic chemicals, from pollution, from hazardous and radioactive waste, and that we made our communities safer, healthier and better places to live; • that we preserved America's wilderness areas and particularly its last great frontier, Alaska, for the benefit of all Americans in perpetuity; • that we put this nation on a path to a sustainable energy future, one based increasingly on renewable resources and on energy conservation; • that we moved to protect America's countryside and coastland from mismanagement and irresponsibility; • that we redirected the management of the nation's water resources toward water conservation, sound development and environmental protection; • that we faced squarely such worldwide problems as the destruction of forests, acid rain, carbon dioxide build-up and nuclear proliferation; and • that we protected the habitat and the existence of our own species on this earth. Agriculture 
 
THE FARM ECONOMY The farm economy is sound and its future is bright. Agriculture remains a major bulwark of the nation's economy and an even more important factor in the world food system. The demand for America's agricultural abundance, here and abroad, continues to grow. In the near-term, the strength of this demand is expected to press hard against supplies, resulting in continued price strength. The health and vitality of current-day agriculture represents a significant departure from the situation that existed when I came to office four years ago. In January 1977, the farm economy was in serious trouble. Farm prices and farm income were failing rapidly. Grain prices were at their lowest levels in years and steadily falling. Livestock producers, in their fourth straight year of record losses, were liquidating breeding herds at an unparalleled rate. Dairy farmers were losing money on every hundredweight of milk they produced. Sugar prices were in a nosedive. Through a combination of improvements in old, established programs and the adoption of new approaches where innovation and change were needed, my Administration turned this situation around. Commodity prices have steadily risen. Farm income turned upward. U.S. farm exports set new records each year, increasing over 80 percent for the four year period. Livestock producers began rebuilding their herds. Dairy farmers began to earn a profit again. RECENT POLICY INITIATIVES Several major agricultural policy initiatives have been undertaken over the past year. Some are the culmination of policy proposals made earlier in this Administration; others are measures taken to help farmers offset the impact of rapid inflation in production costs. In combination, they represent a significant strengthening of our nation's food and agricultural policy. These initiatives include: FOOD SECURITY RESERVE The Congress authorized formation of a 4 million ton food grain reserve for use in international food assistance. This reserve makes it possible for the United States to stand behind its food aid commitment to food deficit nations, even during periods of short supplies and high prices. This corrects a serious fault in our past food assistance policy. COMPREHENSIVE CROP INSURANCE The Congress also authorized a significant new crop insurance program during 1980. This measure provides farmers with an important new program tool for sharing the economic risks that are inherent to agriculture. When fully operational, it will replace a hodgepodge of disaster programs that suffered from numerous shortcomings. SPECIAL LOAN RATES Another legislative measure passed late in the 2nd session of the 96th Congress authorizes the Secretary of Agriculture to provide higher loan rates to farmers who enter their grain in the farmer-owned grain reserve. This additional incentive to participate will further strengthen the reserve. INCREASED LOAN PRICES In July 1980, I administratively raised loan prices for wheat, feedgrains, and soybeans to help offset the effects of a serious cost-price squeeze. At the same time, the release and call prices for the grain reserve were adjusted upward. HIGHER TARGET PRICES The Agricultural Adjustment Act of 1980 raised the target prices for 1980-crop wheat and feed grain crops. This change corrected for shortcomings in the adjustment formula contained in the Food and Agriculture Act of 1977. FUTURE AGENDA The food and agricultural policies adopted by this Administration over the past four years, including those described above, will provide a firm foundation for future governmental actions in this field. Expiration of the Food and Agriculture Act of 1977 later this year will require early attention by the Congress. With relatively minor changes, most of the authorities contained in the 1977 Act should be extended in their present form. The farmer-owned grain reserve has proven to be a particularly effective means of stabilizing grain markets and should be preserved in essentially its present form. Beyond this, it will be important for the Congress to keep a close eye on price-cost developments in the farm sector. As noted above, some of the actions I took last year were for the purpose of providing relief from the cost-price squeeze facing farmers. Should these pressures continue, further actions might be required. My Administration has devoted particular attention to the issues of world hunger, agricultural land use, and the future structure of American agriculture. I encourage the Congress and the next Administration to review the results of these landmark enquiries and, where deemed appropriate, to act on their recommendations. Following a careful review of the situation, I recently extended the suspension of grain sales to the Soviet Union. I am satisfied that this action has served its purpose effectively and fairly. However, as long as this suspension must remain in effect, it will be important for the next Administration and the Congress to take whatever actions are necessary to ensure that the burden does not fall unfairly on our Nation's farmers. This has been a key feature of my Administration's policy, and it should be maintained. VII. FOREIGN POLICY From the time I assumed office four years ago this month, I have stressed the need for this country to assert a leading role in a world undergoing the most extensive and intensive change in human history. My policies have been directed in particular at three areas of change: • the steady growth and increased projection abroad of Soviet military power-power that has grown faster than our own over the past two decades. • the overwhelming dependence of Western nations, which now increasingly includes the United States, on vital oil supplies from the Middle East. • the pressures of change in many nations of the developing world, in Iran and uncertainty about the future stability of many developing countries. As a result of those fundamental facts, we face some of the most serious challenges in the history of this nation. The Soviet invasion of Afghanistan is a threat to global peace, to East-West relations, and to regional 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 nonaligned—regard the Soviet invasion as a threat to their independence and security. Turmoil within the region adjacent to the Persian Gulf poses risks for the security and prosperity of every oil importing nation and thus for the entire global economy. The continuing holding of American hostages in Iran is both an affront to civilized people everywhere, and a serious impediment to meeting the self-evident threat to widely-shared common interests—including those of Iran. But as we focus our most urgent efforts on pressing problems, we will continue to pursue the benefits that only change can bring. For it always has been the essence of America that we want to move on—we understand that prosperity, progress and most of all peace cannot be had by standing still. A world of nations striving to preserve their independence, and of peoples aspiring for economic development and political freedom, is not a world hostile to the ideals and interests of the United States. We face powerful adversaries, but we have strong friends and dependable allies. We have common interests with the vast majority of the world's nations and peoples. There have been encouraging developments in recent years, as well as matters requiring continued vigilance and concern: • Our alliances with the world's most advanced and democratic states from Western Europe through Japan are stronger than ever. • We have helped to bring about a dramatic improvement in relations between Egypt and Israel and an historic step towards a comprehensive Arab-Israeli settlement. • Our relations with China are growing closer, providing a major new dimension in our policy in Asia and the world. • Across southern Africa from Rhodesia to Namibia we are helping with the peaceful transition to majority rule in a context of respect for minority as well as majority rights. • We have worked domestically and with our allies to respond to an uncertain energy situation by conservation and diversification of energy supplies based on internationally agreed targets. • We have unambiguously demonstrated our commitment to defend Western interests in Southwest Asia, and we have significantly increased our ability to do so. • And over the past four years the U.S. has developed an energy program which is comprehensive and ambitious. New institutions have been established such as the Synthetic Fuels Corporation and Solar Bank. Price decontrol for oil and gas is proceeding. American consumers have risen to the challenge, and we have experienced real improvements in consumption patterns. The central challenge for us today is to our steadfastness of purpose. We are no longer tempted by isolationism. But we must also learn to deal effectively with the contradictions of the world—the need to cooperate with potential adversaries without euphoria, without undermining our determination to compete with such adversaries and if necessary confront the threats they may pose to our security. We face a broad range of threats and opportunities. We have and should continue to pursue a broad range of defense, diplomatic and economic capabilities and objectives. I see six basic goals for America in the world over the 1980's: • First, we will continue, as we have over the past four years, to build America's military strength and that of our allies and friends. Neither the Soviet Union nor any other nation will have reason to question our will to sustain the strongest and most flexible defense forces. • Second, we will pursue an active diplomacy in the world, working—together with our friends and allies—to resolve disputes through peaceful means and to make any aggressor pay a heavy price. • Third, we will strive to resolve pressing international economic problems-particularly energy and inflation—and continue to pursue our still larger objective of global economic growth through expanded trade and development assistance and through the preservation of an open multilateral trading system. • Fourth, we will continue vigorously to support the process of building democratic institutions and improving human rights protection around the world. We are deeply convinced that the future lies not with dictatorship but democracy. • Fifth, we remain deeply committed to the process of mutual and verifiable arms control, particularly to the effort to prevent the spread and further development of nuclear weapons. Our decision to defer, but not abandon our efforts to secure ratification of the SALT II Treaty reflects our firm conviction that the United States has a profound national security interest in the constraints on Soviet nuclear forces which only that treaty can provide. • Sixth, we must continue to look ahead in order to evaluate and respond to resource, environment and population challenges through the end of this century. One very immediate and pressing objective that is uppermost on our minds and those of the American people is the release of our hostages in Iran. We have no basic quarrel with the nation, the revolution or the people of Iran. The threat to them comes not from American policy but from Soviet actions in the region. We are prepared to work with the government of Iran to develop a new and mutually beneficial relationship. But that will not be possible so long as Iran continues to hold Americans hostages, in defiance of the world community and civilized behavior. They must be released unharmed. We have thus far pursued a measured program of peaceful diplomatic and economic steps in an attempt to resolve this issue without resorting to other remedies available to us under international law. This reflects the deep respect of our nation for the rule of law and for the safety of our people being held, and our belief that a great power bears a responsibility to use its strength in a measured and judicious manner. But our patience is not unlimited and our concern for the well-being of our fellow citizens grows each day. Enhancing National Security—American Military Strength The maintenance of national security is my first concern, as it has been for every president before me. We must have both the military power and the political will to deter our adversaries and to support our friends and allies. We must pay whatever price is required to remain the strongest nation in the world. That price has increased as the military power of our major adversary has grown and its readiness to use that power been made all too evident in Afghanistan. The real increases in defense spending, therefore probably will be higher than previously projected; protecting our security may require a larger share of our national wealth in the future. THE U.S.-SOVIET RELATIONSHIP We are demonstrating to the Soviet Union across a broad front that it will pay a heavy price for its aggression in terms of our relationship. Throughout the last decades U.S.-Soviet relations have been a mixture of cooperation and competition. The Soviet invasion of Afghanistan and the imposition of a puppet government have highlighted in the starkest terms the darker side of their policies-going well beyond competition and the legitimate pursuit of national interest, and violating all norms of international law and practice. This attempt to subjugate an independent, non-aligned Islamic people is a callous violation of international law and the United Nations Charter, two fundamentals of international order. Hence, it is also a dangerous threat to world peace. For the first time since the communization of Eastern Europe after World War II, the Soviets have sent combat forces into an area that was not previously under their control, into a non-aligned and sovereign state. The destruction of the independence of the Afghanistan government and the occupation by the Soviet Union have altered the strategic situation in that part of the world in a very ominous fashion. It has significantly shortened the striking distance to the Indian Ocean and the Persian Gulf for the Soviet Union. It has also eliminated a buffer between the Soviet Union and Pakistan and presented a new threat to Iran. These two countries are now far more vulnerable to Soviet political intimidation. If that intimidation were to prove effective, the Soviet Union could control an area of vital strategic and economic significance to the survival of Western Europe, the Far East, and ultimately the United States. It has now been over a year since the Soviet invasion of Afghanistan dealt a major blow to U.S.-Soviet relations and the entire international system. The U.S. response has proven to be serious and far-reaching. It has been increasingly effective, imposing real and sustained costs on the USSR's economy and international image. Meanwhile, we have encouraged and supported efforts to reach a political settlement in Afghanistan which would lead to a withdrawal of Soviet forces from that country and meet the interests of all concerned. It is Soviet intransigence that has kept those efforts from bearing fruit. Meanwhile, an overwhelming November resolution of the United Nations General Assembly on Afghanistan has again made clear that the world has not and will not forget Afghanistan. And our response continues to make it clear that Soviet use of force in pursuit of its international objectives is incompatible with the notion of business-as-usual. BILATERAL COMMUNICATION U.S.-Soviet relations remain strained by the continued Soviet presence in Afghanistan, by growing Soviet military capabilities, and by the Soviets' apparent willingness to use those capabilities without respect for the most basic norms of international behavior. But the U.S.-Soviet relationship remains the single most important element in determining whether there will be war or peace. And so, despite serious strains in our relations, we have maintained a dialogue with the Soviet Union over the past year. Through this dialogue, we have ensured against bilateral misunderstandings and miscalculations which might escalate out of control, and have managed to avoid the injection of superpower rivalries into areas of tension like the Iran-Iraq conflict. POLAND Now, as was the case a year ago, the prospect of Soviet use of force threatens the international order. The Soviet Union has completed preparations for a possible military intervention against Poland. Although the situation in Poland has shown signs of stabilizing recently, Soviet forces remain in a high state of readiness and they could move into Poland on short notice. We continue to believe that the Polish people should be allowed to work out their internal problems themselves, without outside interference, and we have made clear to the Soviet leadership that any intervention in Poland would have severe and prolonged consequences for East-West detente, and U.S.-Soviet relations in particular. DEFENSE BUDGET For many years the Soviets have steadily increased their real defense spending, expanded their strategic forces, strengthened their forces in Europe and Asia, and enhanced their capability for projecting military force around the world directly or through the use of proxies. Afghanistan dramatizes the vastly increased military power of the Soviet Union. The Soviet Union has built a war machine far beyond any reasonable requirements for their own defense and security. In contrast, our own defense spending declined in real terms every year from 1968 through 1976. We have reversed this decline in our own effort. Every year since 1976 there has been a real increase in our defense spending—and our lead has encouraged increases by our allies. With the support of the Congress, we must and will make an even greater effort in the years ahead. The Fiscal Year 1982 budget would increase funding authority for defense to more than $196 billion. This amount, together with a supplemental request for FY 1981 of about $6 billion, will more than meet my Administration's pledge for a sustained growth of 3 percent in real expenditures, and provides for 5 percent in program growth in FY 1982 and beyond. The trends we mean to correct cannot be remedied overnight; we must be willing to see this program through. To ensure that we do so I am setting a growth rate for defense that we can sustain over the long haul. The defense program I have proposed for the next five years will require some sacrifice—but sacrifice we can well afford. The defense program emphasizes four areas: • 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; • 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; • It provides us the ability to come quickly to the aid of friends and allies around the globe; • And it ensures that our Navy will continue to be the most powerful on the seas. STRATEGIC FORCES We are strengthening each of the three legs of our strategic forces. The cruise missile production which will begin next year will modernize our strategic air deterrent. B-52 capabilities will also be improved. These steps will maintain and enhance the B-52 fleet by improving its ability to deliver weapons against increasingly heavily defended targets. We are also modernizing our strategic submarine force. Four more POSEIDON submarines backfitted with new, 4,000 mile TRIDENT I missiles began deployments in 1980. Nine TRIDENT submarines have been authorized through 1981, and we propose one more each year. The new M-X missile program to enhance our land-based intercontinental ballistic missile force continues to make progress. Technical refinements in the basing design over the last year will result in operational benefits, lower costs, and reduced environmental impact. The M-X program continues to be an essential ingredient in our strategic posture—providing survivability, endurance, secure command and control and the capability to threaten targets the Soviets hold dear. Our new systems will enable U.S. strategic forces to maintain equivalence in the face of the mounting Soviet challenge. We would however need an even greater investment in strategic systems to meet the likely Soviet buildup without SALT. STRATEGIC DOCTRINE This Administration's systematic contributions to the necessary evolution of strategic doctrine began in 1977 when I commissioned a comprehensive net assessment. From that base a number of thorough investigations of specific topics continued. I should emphasize that the need for an evolutionary doctrine is driven not by any change in our basic objective-which remains peace and freedom for all mankind. Rather, the need for change is driven by the inexorable buildup of Soviet military power and the increasing propensity of Soviet leaders to use this power in coercion and outright aggression to impose their will on others. I have codified our evolving strategic doctrine in a number of interrelated and mutually supporting Presidential Directives. Their overarching theme is to provide a doctrinal basis—and the specific program to implement it—that tells the world that no potential adversary of the United States could ever conclude that the fruits of his aggression would be significant or worth the enormous costs of our retaliation. 
The Presidential Directives include: 
PD-18: An overview of our strategic objectives 
PD-37: Basic space policy 
PD-41: Civil Defense 
PD-53: Survivability and endurance for telecommunications 
PD-57: Mobilization planning 
PD-58: Continuity of Government 
PD-59: Countervailing Strategy for General War These policies have been devised to deter, first and foremost, Soviet aggression. As such they confront not only Soviet military forces but also Soviet military doctrine. By definition deterrence requires that we shape Soviet assessments about the risks of war—assessments they will make using their doctrine, not ours. But at the same time we in no way seek to emulate their doctrine. In particular, nothing in our policy contemplates that nuclear warfare could ever be a deliberate instrument for achieving our own goals of peace and freedom. Moreover, our policies are carefully devised to provide the greatest possible incentives and opportunities for future progress in arms control. Finally, our doctrinal evolution has been undertaken with appropriate consultation with our NATO Allies and others. We are fully consistent with NATO's strategy of flexible response. FORCES FOR NATO We are greatly accelerating our ability to reinforce Western Europe with massive ground and air forces in a crisis. We are undertaking a major modernization program for the Army's weapons and equipment, adding armor, firepower, and tactical mobility. We are prepositioning more heavy equipment in Europe to help us cope with attacks with little warning, and greatly strengthening our airlift and sealift capabilities. We are also improving our tactical air forces—buying about 1700 new fighter and attack aircraft over the next five years—and increasing the number of Air Force fighter wings ,by over 10 percent. We are working closely with our European allies to secure the Host Nation Support necessary to enable us to deploy more quickly a greater ratio of combat forces to the European theater at a lower cost to the United States. SECURITY ASSISTANCE As we move to enhance U.S. defense capabilities, we must not lose sight of the need to assist others in maintaining their own security and independence. Events since World War II, most recently in Southwest Asia, have amply demonstrated that U.S. security cannot exist in a vacuum, and that our own prospects for peace are closely tied to those of our friends. The security assistance programs which I am proposing for the coming fiscal year thus directly promote vital U.S. foreign policy and national security aims—and are integral parts of our efforts to improve and upgrade our own military forces. More specifically, these programs, which are part of our overall foreign aid request, promote U.S. security in two principal ways. First, they assist friendly and allied nations to develop the capability to defend themselves and maintain their own independence. An example during this past year was the timely support provided Thailand to help bolster that country's defenses against the large numbers of Soviet-backed Vietnamese troops ranged along its eastern frontier. In addition, over the years these programs have been important to the continued independence of other friends and allies such as Israel, Greece, Turkey and Korea. Second, security assistance constitutes an essential element in the broad cooperative relationships we have established with many nations which permit either U.S. bases on their territory or access by U.S. forces to their facilities. These programs have been particularly important with regard to the recently-concluded access agreements with various countries in the Persian Gulf and Indian Ocean regions and have been crucial to the protection of our interests throughout Southwest Asia. RAPID DEPLOYMENT FORCES We are systematically enhancing our ability to respond rapidly to non-NATO contingencies wherever required by our commitments or when our vital interests are threatened. The rapid deployment forces we are assembling will be extraordinarily flexible: They could range in size from a few ships or air squadrons to formations as large as 100,000 men, together with their support. Our forces will be prepared for rapid deployment to any region of strategic significance. Among the specific initiatives we are taking to help us respond to crises outside of Europe are: • the development of a new fleet of large cargo aircraft with intercontinental range; • the design and procurement of a force of Maritime Prepositioning Ships that will carry heavy equipment and supplies for three Marine Corps brigades; • the procurement of fast sealift ships to move large quantities of men and material quickly from the U.S. to overseas areas of deployment; • increasing training and exercise activities to ensure that our forces will be well prepared to deploy and operate in distant areas. In addition, our European allies have agreed on the importance of providing support to U.S. deployments to Southwest Asia. NAVAL FORCES Seapower is indispensable to our global position—in peace and also in war. Our shipbuilding program will sustain a 50-ship Navy in the 1990's and we will continue to build the most capable ships afloat. The program I have proposed will assure the ability of our Navy to operate in high threat areas, to maintain control of the seas and protect vital lines of communication-both military and economic-and to provide the strong maritime component of our rapid deployment forces. This is essential for operations in remote areas of the world, where we cannot predict far in advance the precise location of trouble, or preposition equipment on land. MILITARY PERSONNEL No matter how capable or advanced our weapons systems, our military security depends on the abilities, the training and the dedication of the people who serve in our armed forces. I am determined to recruit and to retain under any foreseeable circumstances an ample level of such skilled and experienced military personnel. This Administration has supported for FY 1981 the largest peacetime increase ever in military pay and allowances. We have enhanced our readiness and combat endurance by improving the Reserve Components. All reservists are assigned to units structured to complement and provide needed depth to our active forces. Some reserve personnel have also now been equipped with new equipment. MOBILIZATION PLANNING We have completed our first phase of mobilization planning—the first such Presidentially-directed effort since World War II. The government-wide exercise of our mobilization plans at the end of 1980 showed, first, that planning pays off and, second, that much more needs to be done. OUR INTELLIGENCE POSTURE Our national interests are critically dependent on a strong and effective intelligence capability. We will maintain and strengthen the intelligence capabilities needed to assure our national security. Maintenance of and continued improvements in our multi-faceted intelligence effort are essential if we are to cope successfully with the turbulence and uncertainties of today's world. The intelligence budget I have submitted to the Congress responds to our needs in a responsible way, providing for significant growth over the Fiscal Year 1981 budget. This growth will enable us to develop new technical means of intelligence collection while also assuring that the more traditional methods of intelligence work are also given proper stress. We must continue to integrate both modes of collection in our analyses. Regional Policies Every President for over three decades has recognized that America's interests are global and that we must pursue a global foreign policy. Two world wars have made clear our stake in Western Europe and the North Atlantic area. We are also inextricably linked with the Far East—politically, economically, and militarily. In both of these, the United States has a permanent presence and security commitments which would be automatically triggered. We have become increasingly conscious of our growing interests in a third area—the Middle East and the Persian Gulf area. We have vital stakes in other major regions of the world as well. We have long recognized that in an era of interdependence, our own security and prosperity depend upon a larger common effort with friends and allies throughout the world. THE ATLANTIC ALLIANCE At the outset of this Administration, I emphasized the primacy of our Atlantic 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. In recognition of the threat which the Soviet invasion of Afghanistan posed to Western interests in both Europe and Southwest Asia, NATO foreign and defense ministers have expressed full support for U.S. efforts to develop a capability to respond to a contingency in Southwest Asia and have approved an extensive program to help fill the gap which could be created by the diversion of U.S. forces to that region. The U.S. has not been alone in seeking to maintain stability in the Southwest Asia area and insure access to the needed resources there. The European nations with the capability to do so are improving their own forces in the region and providing greater economic and political support to the residents of the area. In the face of the potential danger posed by the Iran-Iraq conflict, we have developed coordination among the Western forces in the area of the Persian Gulf in order to be able to safeguard passage in that essential waterway. Concerning developments in and around Poland, the allies have achieved the highest level of cohesion and unity of purpose in making clear the effects on future East-West relations of a precipitous Soviet act there. The alliance has continued to build on the progress of the past three years in improving its conventional forces through the Long-Term Defense Program. Though economic conditions throughout Europe today are making its achievement difficult, the yearly real increase of 3 percent in defense spending remains a goal actively sought by the alliance. The NATO alliance also has moved forward during the past year with the implementation of its historic December 1979 decision to modernize its Theater Nuclear Force capabilities through deployment of improved Pershing ballistic missiles and ground launched cruise missiles in Europe. Our allies continue to cooperate actively with us in this important joint endeavor, whose purpose is to demonstrate convincingly to the Soviet Union the potential costs of a nuclear conflict in Europe. At the same time, we offered convincing evidence of our commitment to arms control in Europe by initiating preliminary consultations with the Soviet Union in Geneva on the subject of negotiated limits on long-range theater nuclear forces. Also, during 1980 we initiated and carried out a withdrawal from our nuclear weapons stockpile in Europe of 1,000 nuclear warheads. This successful drawdown in our nuclear stockpile was a further tangible demonstration of our commitment to the updating of our existing theater nuclear forces in Europe. In the NATO area, we continued to work closely with other countries in providing resources to help Turkey regain economic health. We regretted that massive political and internal security problems led the Turkish military to take over the government on September 12. The new Turkish authorities are making some progress in resolving those problems, and they have pledged an early return to civilian government. The tradition of the Turkish military gives us cause to take that pledge seriously. We welcomed the reestablishment of Greece's links to the integrated military command structure of the Atlantic Alliance—a move which we had strongly encouraged—as a major step toward strengthening NATO's vital southern flank at a time of international crisis and tension in adjacent areas. Greek reintegration exemplifies the importance which the allies place on cooperating in the common defense and shows that the allies can make the difficult decisions necessary to insure their continued security. We also welcomed the resumption of the intercommunal talks on Cyprus. THE U.S. AND THE PACIFIC NATIONS The United States is a Pacific nation, as much as it is an Atlantic nation. Our interests in Asia are as important to us as our interests in Europe. Our trade with Asia is as great as our trade with Europe. During the past four years we have regained a strong, dynamic and flexible posture for the United States in this vital region. Our major alliances with Japan, Australia and New Zealand are now stronger than they ever have been, and together with the nations of western Europe, we have begun to form the basic political structure for dealing with international crises that affect us all. Japan, Australia and New Zealand have given us strong support in developing a strategy for responding to instability in the Persian Gulf. Normalization of U.S. relations with China has facilitated China's full entry into the international community and encouraged a constructive Chinese role in the Asia-Pacific region. Our relations with China have been rapidly consolidated over the past year through the conclusion of a series of bilateral agreements. We have established a pattern of frequent and frank consultations between our two governments, exemplified by a series of high-level visits and by regular exchanges at the working level, through which we have been able to identify increasingly broad areas of common interest on which we can cooperate. United States relations with the Association of Southeast Asian Nations (ASEAN) have also expanded dramatically in the past four years. ASEAN is now the focus for U.S. policy in Southeast Asia, and its cohesion and strength are essential to stability in this critical area and beyond. Soviet-supported Vietnamese aggression in Indochina has posed a major challenge to regional stability. In response, we have reiterated our security commitment to Thailand and have provided emergency security assistance for Thai forces facing a Vietnamese military threat along the Thai-Cambodian border. We have worked closely with ASEAN and the UN to press for withdrawal of Vietnamese forces from Cambodia and to encourage a political settlement in Cambodia which permits that nation to be governed by leaders of its own choice. We still look forward to the day when Cambodia peacefully can begin the process of rebuilding it social, economic and political institutions, after years of devastation and occupation. And, on humanitarian grounds and in support of our friends in the region, we have worked vigorously with international organizations to arrange relief and resettlement for the exodus of Indochinese refugees which threatened to overwhelm these nations. We have maintained our alliance with Korea and helped assure Korea's security during a difficult period of political transition. We have amended our military base agreement with the Philippines, ensuring stable access to these bases through 1991. The importance of our Philippine bases to the strategic flexibility of U.S. forces and our access to the Indian Ocean is self-evident. Finally, we are in the process of concluding a long negotiation establishing Micronesia's status as a freely associated state. We enter the 1980's with a firm strategic footing in East Asia and the Pacific, based on stable and productive U.S. relations with the majority of countries of the region. We have established a stable level of U.S. involvement in the region, appropriate to our own interests and to the interests of our friends and allies there. THE MIDDLE EAST AND SOUTHWEST ASIA The continuing Soviet occupation of Afghanistan and the dislocations caused by the Iraq-Iran war serve as constant reminders of the critical importance for us, and our allies, of a third strategic zone stretching across the Middle East, the Persian Gulf, and much of the Indian subcontinent. This Southwest Asian region has served as a key strategic and commercial link between East and West over the centuries. Today it produces two-thirds of the world's oil exports, providing most of the energy needs of our European allies and Japan. It has experienced almost continuous conflict between nations, internal instabilities in many countries, and regional rivalries, combined with very rapid economic and social change. And now the Soviet Union remains in occupation of one of these nations, ignoring world opinion which has called on it to get out. We have taken several measures to meet these challenges. MIDDLE EAST In the Middle East, our determination to consolidate what has already been achieved in the peace process—and to 
buttress that accomplishment with further progress toward a comprehensive peace settlement—must remain a central goal of our foreign policy. Pursuant to their peace treaty, Egypt and Israel have made steady progress in the normalization of their relations in a variety of fields, bringing the benefits of peace directly to their people. The new relationship between Egypt and Israel stands as an example of peaceful cooperation in an increasingly fragmented and turbulent region. Both President Sadat and Prime Minister Begin remain committed to the current negotiations to provide full autonomy to the inhabitants of the West Bank and Gaza. These negotiations have been complex and difficult, but they have already made significant progress, and it is vital that the two sides, with our assistance, see the process through to a successful conclusion. We also recognize the need to broaden the peace process to include other parties to the conflict and believe that a successful autonomy agreement is an essential first step toward this objective. We have also taken a number of steps to strengthen our bilateral relations with both Israel and Egypt. We share important strategic interests with both of these countries. We remain committed to Israel's security and are prepared to take concrete steps to support Israel whenever that security is threatened. PERSIAN GULF The Persian Gulf has been a vital crossroads for trade between Europe and Asia at many key moments in history. It has become essential in recent years for its supply of oil to the United States, our allies, and our friends. We have taken effective measures to control our own consumption of imported fuel, working in cooperation with the other key industrial nations of the world. However, there is little doubt that the healthy growth of our American and world economies will depend for many years on continued safe access to the Persian Gulf's oil production. The denial of these oil supplies would threaten not only our own but world security. The potent new threat from an advancing Soviet Union, against the background of regional instability of which it can take advantage, requires that we reinforce our ability to defend our regional friends and to protect the flow of oil. We are continuing to build on the strong political, economic, social and humanitarian ties which bind this government and the American people to friendly governments and peoples of the Persian Gulf. We have also embarked on a course to reinforce the trust and confidence our regional friends have in our ability to come to their assistance rapidly with American military force if needed. We have increased our naval presence in the Indian Ocean. We have created a Rapid Deployment Force which can move quickly to the Gulf—or indeed any other area of the world where outside aggression threatens. We have concluded several agreements with countries which are prepared to let us use their airports and naval facilities in an emergency. We have met requests for reasonable amounts of American weaponry from regional countries which are anxious to defend themselves. And we are discussing with a number of our area friends further ways we can help to improve their security and ours, both for the short and the longer term. SOUTH ASIA We seek a South Asia comprising sovereign and stable states, free of outside interference, which can strengthen their political institutions according to their own national genius and can develop their economies for the betterment of their people. The Soviet invasion of Afghanistan has posed a new challenge to this region, and particularly to neighboring Pakistan. We are engaged in a continuing dialogue with the Pakistan government concerning its development and security requirements and the economic burden imposed by Afghan refugees who have fled to Pakistan. We are participating with other aid consortium members in debt rescheduling and will continue to cooperate through the UNHCR in providing refugee assistance. We remain committed to Pakistan's territorial integrity and independence. Developments in the broad South/ Southwest Asian region have also lent a new importance to our relations with India, the largest and strongest power in the area. We share India's interest in a more constructive relationship. Indian policies and perceptions at times differ from our own, and we have established a candid dialogue with this sister democracy which seeks to avoid the misunderstandings which have sometimes complicated our ties. We attach major importance to strong economic assistance programs to the countries in the area, which include a majority of the poor of the non-Communist world. We believe that these programs will help achieve stability in the area, an objective we share with the countries in the region. Great progress has been achieved by these countries in increasing food production; international cooperation in harnessing the great river resources of South Asia would contribute further to this goal and help to increase energy production. We continue to give high priority to our non-proliferation goals in the area in the context of our broad global and regional priorities. The decision to continue supply of nuclear fuel to the Indian Tarapur reactors was sensitive to this effort. AFRICA The United States has achieved a new level of trust and cooperation with Africa. Our efforts, together with our allies, to achieve peace in southern Africa, our increased efforts to help the poorest countries in Africa to combat poverty, and our expanded efforts to promote trade and investment have led to growing respect for the U.S. and to cooperation in areas of vital interest to the United States. Africa is a continent of poor nations for the most part. It also contains many of the mineral resources vital for our economy. We have worked with Africa in a spirit of mutual cooperation to help the African nations solve their problems of poverty and to develop stronger ties between our private sector and African economies. Our assistance to Africa has more than doubled in the last four years. Equally important, we set in motion new mechanisms for private investment and trade. Nigeria is the largest country in Black Africa and the second largest oil supplier to the United States. During this Administration we have greatly expanded and improved our relationship with Nigeria and other West African states whose aspirations for a constitutional democratic order we share and support. This interest was manifested both symbolically and practically by the visit of Vice President Mondale to West Africa in July (1980) and the successful visit to Washington of the President of Nigeria in October. During Vice President Mondale's visit, a Joint Agricultural Consultative Committee was established, with the U.S. represented entirely by the private sector. This could herald a new role for the American private sector in helping solve the world's serious food shortages. I am pleased to say that our relations with Nigeria are at an all-time high, providing the foundation for an even stronger relationship in the years ahead. Another tenet of this Administration's approach to African problems has been encouragement and support for regional solutions to Africa's problems. We have supported initiatives by the Organization of African Unity to solve the protracted conflict in the western Sahara, Chad, and the Horn. In Chad, the world is watching with dismay as a country torn by a devastating civil war has become a fertile field for Libya's exploitation, thus demonstrating that threats to peace can come from forces within as well as without Africa. In southern Africa the United States continues to pursue a policy of encouraging peaceful development toward majority rule. In 1980, Southern Rhodesia became independent as Zimbabwe, a multiracial nation under a system of majority rule. Zimbabwean independence last April was the culmination of a long struggle within the country and diplomatic efforts involving Great Britain, African states neighboring Zimbabwe, and the United States. The focus of our efforts in pursuit of majority rule in southern Africa has now turned to Namibia. Negotiations are proceeding among concerned parties under the leadership of UN Secretary General Waldheim. This should lead to implementation of the UN plan for self-determination and independence for Namibia during 1981. If these negotiations are successfully concluded, sixty-five years of uncertainty over the status of the territory, including a seven-year-long war, will be ended. Common efforts to resolve the Zimbabwean and Namibian issues have brought the United States closer both to its Western allies—Great Britain, France, the Federal Republic of Germany, and Canada-and to African states such as Tanzania, Zambia, Mozambique, Angola, and Botswana, with whom relations have at some times in the past been difficult. The success of these common undertakings demonstrates that complex problems with sometimes bitter and bloody histories can be resolved peacefully through negotiation. In response to our active concern with issues of importance to Africans, African states have cooperated with us on issues of importance to our national interests. African states voted overwhelmingly in favor of the UN Resolution calling for release of the hostages, and for the UN Resolution condemning the Soviet invasion of Afghanistan. Two countries of Africa have signed access agreements with the U.S. allowing us use of naval and air facilities in the Indian Ocean. Africans have become increasingly vocal on human rights. African leaders have spoken out on the issue of political prisoners, and the OAU is drafting its own Charter on Human Rights. Three countries in Africa—Nigeria, Ghana, and Uganda—have returned to civilian rule during the past year. U.S. cooperation with Africa on all these matters represents a strong base on which we can build in future years. Liberia is a country of long-standing ties with the U.S. and the site of considerable U.S. investment and facilities. This past April a coup replaced the government and a period of political and economic uncertainty ensued. The U.S. acted swiftly to meet this situation. We, together with African leaders, urged the release of political prisoners, and many have been released; we provided emergency economic assistance to help avoid economic collapse, and helped to involve the IMF and the banking community to bring about economic stability; and we have worked closely with the new leaders to maintain Liberia's strong ties with the West and to protect America's vital interests. NORTH AFRICA In early 1979, following a Libyaninspired commando attack on a Tunisian provincial city, the U.S. responded promptly to Tunisia's urgent request for assistance, both by airlifting needed military equipment and by making clear our longstanding interest in the security and integrity of this friendly country. The U.S. remains determined to oppose other irresponsible Libyan aspirations. Despairing of a productive dialogue with the Libyan authorities, the U.S. closed down its embassy in Libya and later expelled six Libyan diplomats in Washington in order to deter an intimidation campaign against Libyan citizens in the U.S. U.S. relations with Algeria have improved, and Algeria has played an indispensable and effective role as intermediary between Iran and the U.S. over the hostage issue. The strengthening of our arms supply relationship with Morocco has helped to deal with attacks inside its internationally recognized frontiers and to strengthen its confidence in seeking a political settlement of the Western Sahara conflict. While not assuming a mediatory role, the U.S. encouraged all interested parties to turn their energies to a peaceful and sensible compromise resolution of the war in the Sahara and supported efforts by the Organization of African Unity toward that end. As the year drew to a close, the U.S. was encouraged by evolution in the attitudes of all sides, and is hopeful that their differences will be peacefully resolved in the year ahead so that the vast economic potential of North Africa can be developed for the well-being of the people living there. LATIN AMERICA AND THE CARIBBEAN The principles of our policies in this hemisphere have been clear and constant over the last four years. We support democracy and respect for human rights. We have struggled with many to help free the region of both repression and terrorism. We have respected ideological diversity and opposed outside intervention in purely internal affairs. We will act, though, in response to a request for assistance by a country threatened by external aggression. We support social and economic development within a democratic framework. We support the peaceful settlement of disputes. We strongly encourage regional cooperation and shared responsibilities within the hemisphere to all these ends, and we have eagerly and regularly sought the advice of the leaders of the region on a wide range of issues. Last November, I spoke to the General Assembly of the Organization of American States of a cause that has been closest to my heart—human rights. It is an issue that has found its time in the hemisphere. The cause is not mine alone, but an historic movement that will endure. At Riobamba, Ecuador, last September four Andean Pact countries, Costa Rica, and Panama broke new ground by adopting a "Code of Conduct," stating that joint action in defense of human rights does not violate the principles of nonintervention in the internal affairs of states in this hemisphere. The Organization of American States has twice condemned the coup that overturned the democratic process in Bolivia and the widespread abuse of human rights by the regime which seized power. The Inter-American Commission on Human Rights has gained world acclaim for its dispassionate reports. It completed two major country studies this year in addition to its annual report. In a resolution adopted without opposition, the OAS General Assembly in November strongly supported the work of the Commission. The American Convention on Human Rights is in force and an Inter-American Court has been created to judge human rights violations. This convention has been pending before the Senate for two years; I hope the United States this year will join the other nations of the hemisphere in ratifying a convention which embodies principles that are our tradition. The trend in favor of democracy has continued. During this past year, Peru inaugurated a democratically elected government. Brazil continues its process of liberalization. In Central America, Hondurans voted in record numbers in their first national elections in over eight years. In the Caribbean seven elections have returned governments firmly committed to the democratic traditions of the Commonwealth. Another major contribution to peace in the hemisphere is Latin America's own Treaty for the Prohibition of Nuclear Weapons. On behalf of the United States, I signed Protocol I of this Treaty in May of 1977 and sent it to the Senate for ratification. I urge that it be acted upon promptly by the Senate in order that it be brought into the widest possible effect in the Latin American region. Regional cooperation for development is gaining from Central America to the Andes, and throughout the Caribbean. The Caribbean Group for Cooperation in Economic Development, which we established with 29 other nations in 1977, has helped channel $750 million in external support for growth in the Caribbean. The recent meeting of the Chiefs of State of the Eastern Caribbean set a new precedent for cooperation in that region. Mexico and Venezuela jointly and Trinidad and Tobago separately have established oil facilities that will provide substantial assistance to their oil importing neighbors. The peace treaty between El Salvador and Honduras will hopefully stimulate Central America to move forward again toward economic integration. Formation of Caribbean/Central American Action, a private sector organization, has given a major impetus to improving people-to-people bonds and strengthening the role of private enterprise in the development of democratic societies. The Panama treaties have been in force for over a year. A new partnership has been created with Panama; it is a model for large and small nations. A longstanding issue that divided us from our neighbors has been resolved. The security of the canal has been enhanced. The canal is operating as well as ever, with traffic through it reaching record levels this year. Canal employees, American and Panamanian alike, have remained on the job and have found their living and working conditions virtually unchanged. In 1980, relations with Mexico continued to improve due in large measure to the effectiveness of the Coordinator for Mexican Affairs and the expanded use of the U.S.-Mexico Consultative Mechanism. By holding periodic meetings of its various working groups, we have been able to prevent mutual concerns from becoming political issues. The Secretary of State visited Mexico City in November, and, along with the Mexican Secretary of Foreign Relations, reviewed the performance of the Consultative Mechanism. The office of the Coordinator has ensured the implementation of my directive to all agencies to accord high priority to Mexican concerns. Trade with Mexico rose by almost 60 percent to nearly $30 billion, making that country our third largest trading partner. These are all encouraging development. Other problems remain, however. The impact of large-scale migration is affecting many countries in the hemisphere. The most serious manifestation was the massive, illegal exodus from Cuba last summer. The Cuban government unilaterally encouraged the disorderly and even deadly migration of 125,000 of its citizens in complete disregard for international law or the immigration laws of its neighbors. Migrations of this nature clearly require concerted action, and we have asked the OAS to explore means of dealing with similar situations which may occur in the future. We have a long-standing treaty with Colombia on Quita Sueno, Roncador, and Serrano which remains to be ratified by the Senate. In Central America, the future of Nicaragua is unclear. Recent tensions, the restrictions on the press and political activity, an inordinate Cuban presence in the country and the tragic killing by the security forces of a businessman well known for his democratic orientation, cause us considerable concern. These are not encouraging developments. But those who seek a free society remain in the contest for their nation's destiny. They have asked us to help rebuild their country, and by our assistance, to demonstrate that the democratic nations do not intend to abandon Nicaragua to the Cubans. As long as those who intend to pursue their pluralistic goals play important roles in Nicaragua, it deserves our continuing support. In El Salvador, we have supported the efforts of the Junta to change the fundamental basis of an inequitable system and to give a stake in a new nation to those millions of people, who for so long, lived without hope or dignity. As the government struggles against those who would restore an old tyranny or impose a new one, the United States will continue to stand behind them. We have increased our aid to the Caribbean, an area vital to our national security, and we should continue to build close relations based on mutual respect and understanding, and common interests. As the nations of this hemisphere prepare to move further into the 1980's, I am struck by the depth of underlying commitment that there is to our common principles: non-intervention, peaceful settlement of disputes, cooperation for development, democracy and defense of basic human rights. I leave office satisfied that the political, economic, social and organizational basis for further progress with respect to all these principles have been substantially strengthened in the past four years. I am particularly reassured by the leadership by other nations of the hemisphere in advancing these principles. The success of our common task of improving the circumstances of all peoples and nations in the hemisphere can only be assured by the sharing of responsibility. I look forward to a hemisphere that at the end of this decade has proven itself anew as a leader in the promotion of both national and human dignity. THE INTERNATIONAL ECONOMY A growing defense effort and a vigorous foreign policy rest upon a strong economy here in the United States. And the strength of our own economy depends upon our ability to lead and compete in the international marketplace. ENERGY Last year, the war between Iraq and Iran led to the loss of nearly 4 million barrels of oil to world markets, the third major oil market disruption in the past seven years. This crisis has vividly demonstrated once again both the value of lessened dependence on oil imports and the continuing instability of the Persian Gulf area. Under the leadership of the United States, the 21 members of the International Energy Agency took collective action to ensure that the oil shortfall stemming from the Iran-Iraq war would not be aggravated by competition for scarce spot market supplies. We are also working together to see that those nations most seriously affected by the oil disruption—including our key NATO allies Turkey and Portugal—can get the oil they need. At the most recent IEA Ministerial meeting we joined the other members in pledging to take those policy measures necessary to slice our joint oil imports in the first quarter of 1981 by 2.2 million barrels. Our international cooperation efforts in the energy field are not limited to crisis management. At the Economic Summit meetings in Tokyo and Venice, the heads of government of the seven major industrial democracies agreed to a series of tough energy conservation and production goals. We are working together with all our allies and friends in this effort. Construction has begun on a commercial scale coal liquefaction plant in West Virginia co-financed by the United States, Japan and West Germany. An interagency task force has just reported to me on a series of measures we need to take to increase coal production and exports. This report builds on the work of the International Energy Agency's Coal Industry Advisory Board. With the assurances of a reliable United States steam coal supply at reasonable prices, many of the electric power plants to be built in the 1980's and 1990's can be coal-fired rather than oil-burning. We are working cooperatively with other nations to increase energy security in other areas as well. Joint research and development with our allies is underway in solar energy, nuclear power, industrial conservation and other areas. In addition, we are assisting rapidly industrializing nations to carefully assess their basic energy policy choices, and our development assistance program helps the developing countries to increase indigenous energy production to meet the energy needs of their poorest citizens. We support the proposal for a new World Bank energy affiliate to these same ends, whose fulfillment will contribute to a better global balance between energy supply and demand. INTERNATIONAL MONETARY POLICY Despite the rapid increase in oil costs, the policy measures we have taken to improve domestic economic performance have had a continued powerful effect on our external accounts and on the strength of the dollar. A strong dollar helps in the fight against inflation. There has also been considerable forward movement in efforts to improve the functioning of the international monetary system. The stability of the international system of payments and trade is important to the stability and good health of our own economy. We have given strong support to the innovative steps being taken by the International Monetary Fund and World Bank to help promote early adjustment to the difficult international economic problems. Recent agreement to increase quotas by fifty percent will ensure the IMF has sufficient resources to perform its central role in promoting adjustment and financing payments imbalances. The World Bank's new structural adjustment lending program will also make an important contribution to international efforts to help countries achieve a sustainable level of growth and development. SUGAR In 1980, Congress passed U.S. implementing legislation for the International Sugar Agreement, thus fulfilling a major commitment of this Administration. The agreement is an important element in our international commodity policy with farreaching implications for our relations with developing countries, particularly sugar producers in Latin America. Producers and consumers alike will benefit from a more stable market for this essential commodity. COFFEE At year's end, Congress approved implementing legislation permitting the U.S. to carry out fully its commitments under the International Coffee Agreement. Specifically, the legislation enables us to meet our part of an understanding negotiated last fall among members of the Agreement, which defends, by use of export quotas, a price range well below coffee prices of previous years and which commits major coffee producers to eliminate cartel arrangements that manipulated future markets to raise prices. The way is now open to a fully-functioning International Coffee Agreement which can help to stabilize this major world commodity market. The results will be positive for both consumers—who will be less likely to suffer from sharp increases in coffee prices—and producers—who can undertake future investment with assurance of greater protection against disruptive price fluctuations in their exports. NATURAL RUBBER In 1980, the International Natural Rubber Agreement entered into force provisionally. U.S. membership in this new body was approved overwhelmingly by the Senate last year. The natural rubber agreement is a model of its kind and should make a substantial contribution to a stable world market in this key industrial commodity. It is thus an excellent example of constructive steps to improve the operation of the world economy in ways which can benefit the developing and industrialized countries alike. In particular, the agreement has improved important U.S. relationships with the major natural rubber-producing countries of Southeast Asia. COMMON FUND The United States joined members of the United Nations Conference on Trade and Development, both developed and developing nations, in concluding Articles of Agreement in 1980 for a Common Fund to help international commodity agreements stabilize the prices of raw materials. ECONOMIC COOPERATION WITH DEVELOPING NATIONS Our relations with the developing nations are of major importance to the United States. The fabric of our relations with these countries has strong economic and political dimensions. They constitute the most rapidly growing markets for our exports, and are important sources of fuel and raw materials. Their political views are increasingly important, as demonstrated in their overwhelming condemnation of the Soviet invasion of Afghanistan. Our ability to work together with developing nations toward goals we have in common—their political independence, the resolution of regional tensions, and our growing ties of trade for example—require us to maintain the policy of active involvement with the developing world that we have pursued over the past four years. The actions we have taken in such areas as energy, trade, commodities, and international financial institutions are all important to the welfare of the developing countries. Another important way the United States can directly assist these countries and demonstrate our concern for their future is through our multilateral and bilateral foreign assistance program. The legislation which I will be submitting to you for FY 82 provides the authority and the funds to carry on this activity. Prompt Congressional action on this legislation is essential in order to attack such high priority global problems as food and energy, meet our treaty and base rights agreements, continue our peace efforts in the Middle East, provide economic and development support to countries in need, promote progress on North-South issues, protect Western interests, and counter Soviet influence. Our proposed FY 1982 bilateral development aid program is directly responsive to the agreement reached at the 1980 Venice Economic Summit that the major industrial nations should increase their aid for food and energy production and for family planning. We understand that other Summit countries plan similar responses. It is also important to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the International Financial Institutions. These multilateral programs enhance the efficiency of US contributions by combining them with those of many other donor countries to promote development; the proposed new World Bank affiliate to increase energy output in developing countries offers particular promise. All these types of aid benefit our longrun economic and political interests. Progress was made on a number of economic issues in negotiations throughout the UN system. However, in spite of lengthy efforts in the United Nations, agreement has not been reached on how to launch a process of Global Negotiations in which nations might collectively work to solve such important issues as energy, food, protectionism, and population pressures. The United States continues to believe that progress can best be made when nations focus on such specific problems, rather than on procedural and institutional questions. It will continue to work to move the North-South dialogue into a more constructive phase. FOOD—THE WAR ON HUNGER The War on Hunger must be a continuous urgent priority. Major portions of the world's population continue to be threatened by 'the specter of hunger and malnutrition. During the past year, some 150 million people in 36 African countries were faced with near disaster as the result of serious drought, induced food shortages. Our government, working in concert with the UN's Food and Agricultural Organization (FAO), helped to respond to that need. But the problems of hunger cannot be solved by short-term measures. We must continue to support those activities, bilateral and multilateral, which aim at improving food production especially in developing countries and assuring global food security. These measures are necessary to the maintenance of a stable and healthy world economy. I am pleased that negotiation of a new Food Aid Convention, which guarantees a minimum annual level of food assistance, was successfully concluded in March. The establishment of the International Emergency Wheat Reserve will enable the U.S. to meet its commitment under the new Convention to feed hungry people, even in times of short supply. Of immediate concern is the prospect of millions of Africans threatened by famine because of drought and civil disturbances. The U.S. plea for increased food aid resulted in the organization of an international pledging conference and we are hopeful that widespread starvation will be avoided. Good progress has been made since the Venice Economic Summit called for increased effort on this front. We and other donor countries have begun to assist poor countries develop long-term strategies to improve their food production. The World Bank will invest up to $4 billion in the next few years in improving the grain storage and food-handling capacity of countries prone to food shortages. Good progress has been made since the Tokyo Economic Summit called for increased effort on this front. The World Bank is giving this problem top priority, as are some other donor countries. The resources of the consultative Group on International Agricultural Research will be doubled over a five-year period. The work of our own Institute of Scientific and Technological Cooperation will further strengthen the search for relevant new agricultural technologies. The goal of freeing the world from hunger by the year 2000 should command the full support of all countries. The Human Dimension of Foreign 
Policy HUMAN RIGHTS The human rights policy of the United States has been an integral part of our overall foreign policy for the past several years. This policy serves the national interest of the United States in several important ways: by encouraging respect by governments for the basic rights of human beings, it promotes peaceful, constructive change, reduces the likelihood of internal pressures for violent change and for the exploitation of these by our adversaries, and thus directly serves our long-term interest in peace and stability; by matching espousal of fundamental American principles of freedom with specific foreign policy actions, we stand out in vivid contrast to our ideological adversaries; by our efforts to expand freedom elsewhere, we render our own freedom, and our own nation, more secure. Countries that respect human rights make stronger allies and better friends. Rather than attempt to dictate what system of government or institutions other countries should have, the U.S. supports, throughout the world, the internationally recognized human rights which all members of the United Nations have pledged themselves to respect. There is more than one model that can satisfy the continuing human reach for freedom and justice: 1980 has been a year of some disappointments, but has also seen some positive developments in the ongoing struggle for fulfillment of human rights throughout the world. In the year we have seen: • Free elections were held and democratic governments installed in Peru, Dominica, and Jamaica. Honduras held a free election for installation of a constituent assembly. An interim government was subsequently named pointing toward national presidential elections in 1981. Brazil continues on its course of political liberalization. • The "Charter of Conduct" signed in Riobamba, Ecuador, by Ecuador, Colombia, Venezuela, Peru, Costa Rica, Panama and Spain, affirms the importance of democracy and human rights for the Andean countries. • The Organization of American States, in its annual General Assembly, approved a resolution in support of the Inter-American Human Rights Commission's work. The resolution took note of the Commission's annual report, which described the status of human rights in Chile, El Salvador, Paraguay and Uruguay; and the special reports on Argentina and Haiti, which described human rights conditions as investigated during on-site inspections to these countries. • The awarding of the Nobel Prize for Peace to Adolfo Perez Esquivel of Argentina for his non-violent advocacy of human rights. • The United States was able to rejoin the International Labor Organization after an absence of two years, as that UN body reformed its procedures to return to its original purpose of strengthening employer-employee-government relations to insure human rights for the working people of the world. The United States, of course, cannot take credit for all these various developments. But we can take satisfaction in knowing that our policies encourage and perhaps influence them. Those who see a contradiction between our security and our humanitarian interests forget that the basis for a secure and stable society is the bond of trust between a government and its people. I profoundly believe that the future of our world is not to be found in authoritarianism: that wears the mask of order, or totalitarianism that wears the mask of justice. Instead, let us find our future in the human face of democracy, the human voice of individual liberty, the human hand of economic development. HUMANITARIAN AID The United States has continued to play its traditional role of safehaven for those who flee or are forced to flee their homes because of persecution or war. During 1980, the United States provided resettlement opportunities for 216,000 refugees from countries around the globe. In addition, the United States joined with other nations to provide relief to refugees in country of first asylum in Africa, the Middle East, and Asia. The great majority of refugee admissions continued to be from Indochina. During 1980, 168,000 Indochinese were resettled in the United States. Although refugee populations persist in camps in Southeast Asia, and refugees continue to flee Vietnam, Laos and Kampuchea, the flow is not as great as in the past. One factor in reducing the flow from Vietnam has been the successful negotiation and commencement of an Orderly Departure Program which permits us to process Vietnamese for resettlement in the United States with direct departure from H, Chi Minh Ville in an orderly fashion. The first group of 250 departed Vietnam for the United States in December, 1980. In addition to the refugees admitted last year, the United States accepted for entry into the United States 125,000 Cubans who were expelled by Fidel Castro. Federal and state authorities, as well as private voluntary agencies, responded with unprecedented vigor to coping with the unexpected influx of Cubans. Major relief efforts to aid refugees in countries of first asylum continued in several areas of the world. In December, 1980, thirty-two nations, meeting in New York City, agreed to contribute $65 million to the continuing famine relief program in Kampuchea. Due in great part to the generosity of the American people and the leadership exercised in the international arena by the United States, we have played the pivotal role in ameliorating massive suffering in Kampuchea. The United States has taken the lead among a group of donor countries who are providing relief to some two million refugees in the Horn of Africa who have been displaced by fighting in Ethiopia. U.S. assistance, primarily to Somalia, consists of $35 million worth of food and $18 million in cash and kind. Here again, United States efforts can in large part be credited with keeping hundreds of thousands of people alive. Another major international relief effort has been mounted in Pakistan. The United States is one of 25 countries plus the European Economic Community who have been helping the Government of Pakistan to cope with the problem of feeding and sheltering the more than one million refugees that have been generated by the Soviet invasion of Afghanistan. In April, 1980, the Congress passed the Refugee Act of 1980 which brought together, for the first time, in one piece of legislation the various threads of U.S. policy towards refugees. The law laid down a new, broader definition of the term refugee, established mechanisms for arriving at a level of refugee admissions through consultation with Congress, and established the Office of the United States Coordinator for Refugees. It cannot be ignored that the destructive and aggressive policies of the Soviet Union have added immeasurably to the suffering in these three tragic situations. The Control of Nuclear Weapons Together with our friends and allies, we are striving to build a world in which peoples with diverse interests can live freely and prosper. But all that humankind has achieved to date, all that we are seeking to accomplish, and human existence itself can be undone in an instant—in the catastrophe of a nuclear war. Thus one of the central objectives of my Administration has been to control the proliferation of nuclear weapons to those nations which do not have them, and their further development by the existing nuclear powers—notably the Soviet Union and the United States. NON-PROLIFERATION My Administration has been committed to stemming the spread of nuclear weapons. Nuclear proliferation would raise the spectre of the use of nuclear explosives in crucial, unstable regions of the world endangering not only our security and that of our Allies, but that of the whole world. Non-proliferation is not and. can not be a unilateral U.S. policy, nor should it be an issue of contention between the industrialized and developing states. The international non-proliferation effort requires the support of suppliers as well as importers of nuclear technology and materials. We have been proceeding on a number of fronts: • First, we have been seeking to encourage nations to accede to the Non-Proliferation Treaty. The U.S. is also actively encouraging other nations to accept full-scope safeguards on all of their nuclear activities and is asking other nuclear suppliers to adopt a full-scope safeguards requirement as a condition for future supply. • Second, the International Nuclear Fuel Cycle Evaluation (INFCE), which was completed in 1980, demonstrated that suppliers and recipients can work together on these technically complex and sensitive issues. While differences remain, the INFCE effort provides a broader international basis for national decisions which must balance energy needs with non-proliferation concerns. • Finally, we are working to encourage regional cooperation and restraint. Protocol I of the Treaty of Tlatelolco which will contribute to the lessening of nuclear dangers for our Latin American neighbors ought now to be ratified by the United States Senate. LIMITATIONS ON STRATEGIC ARMS I remain convinced that the SALT II Treaty is in our Nation's security interest and that it would add significantly to the control of nuclear weapons. I strongly support continuation of the SALT process and the negotiation of more far-reaching mutual restraints on nuclear weaponry. CONCLUSION We have new support in the world for our purposes of national independence and individual human dignity. We have a new will at home to do what is required to keep us the strongest nation on earth. We must move together into this decade with the strength which comes from realization of the dangers before us and from the confidence that together we can overcome them. JIMMY CARTER 
The White House, January 16, 1981.
To the Congress of the United States: The State of the Union is sound. Our economy is recovering from a recession. A national energy plan is in place and our dependence on foreign oil is decreasing. We have been at peace for four uninterrupted years. But, our Nation has serious problems. Inflation and unemployment are unacceptably high. The world oil market is increasingly tight. There are trouble spots throughout the world, and 53 American hostages are being held in Iran against international law and against every precept of human affairs. However, I firmly believe that, as a result of the progress made in so many domestic and international areas over the past four years, our Nation is stronger, wealthier, more compassionate and freer than it was four years ago. I am proud of that fact. And I believe the Congress should be proud as well, for so much of what has been accomplished over the past four years has been due to the hard work, insights and cooperation of Congress. I applaud the Congress for its efforts and its achievements. In this State of the Union Message I want to recount the achievements and progress of the last four years and to offer recommendations to the Congress for this year. While my term as President will end before the 97th Congress begins its work in earnest, I hope that my recommendations will serve as a guide for the direction this country should take so we build on the record of the past four years. RECORD OF PROGRESS When I took office, our Nation faced a number of serious domestic and international problems: • no national energy policy existed, and our dependence on foreign oil was rapidly increasing; • public trust in the integrity and openness of the government was low; • the Federal government was operating inefficiently in administering essential programs and policies; • major social problems were being ignored or poorly addressed by the Federal government; • our defense posture was declining as a result of a defense budget which was continuously shrinking in real terms; • the strength of the NATO Alliance needed to be bolstered; • tensions between Israel and Egypt threatened another Middle East war; and • America's resolve to oppose human rights violations was under serious question. Over the past 48 months, clear progress has been made in solving the challenges we found in January of 1977: • almost all of our comprehensive energy program have been enacted, and the Department of Energy has been established to administer the program; • confidence in the government's integrity has been restored, and respect for the government's openness and fairness has been renewed; • the government has been made more effective and efficient: the Civil Service system was completely reformed for the first time this century; 14 reorganization initiatives have been proposed to the Congress, approved, and implemented; two new Cabinet departments have been created to consolidate and streamline the government's handling of energy and education problems; inspectors general have been placed in each Cabinet department to combat fraud, waste and other abuses; the regulatory process has been reformed through creation of the Regulatory Council, implementation of Executive Order 12044 and its requirement for cost-impact analyses, elimination of unnecessary regulation, and passage of the Regulatory Flexibility Act; procedures have been established to assure citizen participation in government; and the airline, trucking, rail and communications industries are being deregulated; • critical social problems, many long ignored by the Federal government, have been addressed directly; an urban policy was developed and implemented to reverse the decline in our urban areas; the Social Security System was refinanced to put it on a sound financial basis; the Humphrey-Hawkins Full Employment Act was enacted; Federal assistance for education was expanded by more than 75 percent; the minimum wage was increased to levels needed to ease the effects of inflation; affirmative action has been pursued aggressively-more blacks, Hispanics and women have been appointed to senior government positions and to judgeships than at any other time in our history; the ERA ratification deadline was extended to aid the ratification effort; and minority business procurement by the Federal government has more than doubled; • the Nation's first sectoral policies were put in place, for the auto and steel industries, with my Administration demonstrating the value of cooperation between the government, business and labor; • reversing previous trends, real defense spending has increased every year since 1977; the real increase in FY 1980 defense spending is well above 3 percent and I expect FY 1981 defense spending to be even higher; looking ahead, the defense program I am proposing is premised on a real increase in defense spending over the next five years of 20 percent or more; • the NATO Alliance has proven its unity in responding to the situations in Eastern Europe and Southwest Asia and in agreeing on the issues to be addressed in the review of the Helsinki Final Act currently underway in Madrid; • the peace process in the Middle East established at Camp David and by the Peace Treaty between Egypt and Israel is being buttressed on two fronts: steady progress in the normalization of Egyptian-Israeli relations in many fields, and the commitment of both Egypt and Israel, with United States' assistance, to see through to successful conclusion the autonomy negotiations for the West Bank and Gaza; • the Panama Canal Treaties have been put into effect, which has helped to improve relations with Latin America; • we have continued this Nation's strong commitment to the pursuit of human rights throughout the world, evenhandedly and objectively; our commitment to a worldwide human rights policy has remained firm; and many other countries have given high priority to it; • our resolve to oppose aggression, such as the illegal invasion of the Soviet Union into Afghanistan, has been supported by tough action. I. ENSURING ECONOMIC STRENGTH ECONOMY During the last decade our Nation has withstood a series of economic shocks unprecedented in peacetime. The most dramatic of these has been the explosive increases of OPEC oil prices. But we have also faced world commodity shortages, natural disasters, agricultural shortages and major challenges to world peace and security. Our ability to deal with these shocks has been impaired because of a decrease in the growth of productivity and the persistence of underlying inflationary forces built up over the past 15 years. Nevertheless, the economy has proved to be remarkably resilient. Real output has grown at an average rate of 3 percent per year since I took office, and employment has grown by 10 percent. We have added about 8 million productive private sector jobs to the economy. However, unacceptably high inflation—the most difficult economic problem I have faced—persists. This inflation—which threatens the growth, productivity, and stability of our economy—requires that we restrain the growth of the budget to the maximum extent consistent with national security and human compassion. I have done so in my earlier budgets, and in my FY '82 budget. However, while restraint is essential to any appropriate economic policy, high inflation cannot be attributed solely to government spending. The growth in budget outlays has been more the result of economic factors than the because of them. We are now in the early stages of economic recovery following a short recession. Typically, a post-recessionary period has been marked by vigorous economic growth aided by anti-recessionary policy measures such as large tax cuts or big, stimulation spending programs. I have declined to recommend such actions to stimulate economic activity, because the persistent inflationary pressures that beset our economy today dictate a restrained fiscal policy. Accordingly, I am asking the Congress to postpone until January 1, 1982, the personal tax reductions I had earlier proposed to take effect on January 1 of this year. However, my 1982 budget proposes significant tax changes to increase the sources of financing for business investment. While emphasizing the need for continued fiscal restraint, this budget takes the first major step in a long-term tax reduction program designed to increase capital formation. The failure of our Nation's capital stock to grow at a rate that keeps pace with its labor force has clearly been one because of our productivity slowdown. Higher investment rates are also critically needed to meet our Nation's energy needs, and to replace energy-inefficient plants and equipment with new energy-saving physical plants. The level of investment that is called for will not occur in the absence of policies to encourage it. Therefore, my budget proposes a major liberalization of tax allowances for depreciation, as well as simplified depreciation accounting, increasing the allowable rates by about 40 percent. I am also proposing improvements in the investment tax credit, making it refundable, to meet the investment needs of firms with no current earnings. These two proposals, along with carefully-phased tax reductions for individuals, will improve both economic efficiency and tax equity. I urge the Congress to enact legislation along the lines and timetable I have proposed. THE 1982 BUDGET The FY 1982 budget I have sent to the Congress continues our four-year policy of prudence and restraint. While the budget deficits during my term are higher than I would have liked, their size is determined for the most part by economic conditions. And in spite of these conditions, the relative size of the deficit continues to decline. In 1976, before I took office, the budget deficit equalled 4 percent of gross national product. It had been cut to 2.3 percent in the 1980 fiscal year just ended. My 1982 budget contains a deficit estimated to be less than 1 percent of our gross national product. The rate of growth in Federal spending has been held to a minimum. Nevertheless, outlays are still rising more rapidly than many had anticipated, the result of many powerful forces in our society: We face a threat to our security, as events in Afghanistan, the Middle East, and Eastern Europe make clear. We have a steadily aging population and, as a resuit, the biggest single increase in the Federal budget is the rising cost of retirement programs, particularly social security. We face other important domestic needs: to continue responsibility for the disadvantaged; to provide the capital needed by our cities and our transportation systems; to protect our environment; to revitalize American industry; and to increase the export of American goods and services so essential to the creation of jobs and a trade surplus. Yet the Federal Government itself may not always be the proper source of such assistance. For example, it must not usurp functions if they can be more appropriately decided upon, managed, and financed by the private sector or by State and local governments. My Administration has always sought to consider the proper focus of responsibility for the most efficient resolution of problems. We have also recognized the need to simplify the system of grants to State and local governments. I have again proposed several grant consolidations in the 1982 budget, including a new proposal that would consolidate several highway programs. The pressures for growth in Federal use of national resources are great. My Administration has initiated many new approaches to cope with these pressures. We started a multi-year budget system, and we began a system for controlling Federal credit programs. Yet in spite of increasing needs to limit spending growth, we have consistently adhered to these strong budget principles: • Our Nation's armed forces must always stand sufficiently strong to deter aggression and to assure our security. • An effective national energy plan is essential to increase domestic production of oil and gas, to encourage conservation of our scarce energy resources, to stimulate conversion to more abundant fuels, and to reduce our trade deficit. • The essential human needs for our citizens must be given the highest priority. • The Federal Government must lead the way in investment in the Nation's technological future. • The Federal Government has an obligation to nurture and protect our environment-the common resource, birthright, and sustenance of the American people. My 1982 budget continues to support these principles. It also proposes responsible tax reductions to encourage a more productive economy, and adequate funding of our highest priority programs within an overall policy of constraint. Fiscal restraint must be continued in the years ahead. Budgets must be tight enough to convince those who set wages and prices that the Federal Government is serious about fighting inflation but not so tight as to choke off all growth. Careful budget policy should be supplemented by other measures designed to reduce inflation at lower cost in lost output and employment. These other steps include measures to increase investment-such as the tax proposals included in my 1982 budget—and measures to increase competition and productivity in our economy. Voluntary incomes policies can also directly influence wages and prices in the direction of moderation and thereby bring inflation down faster and at lower cost to the economy. Through a tax-based incomes policy (TIP) we could provide tax incentives for firms and workers to moderate their wage and price increases. In the coming years, control of Federal expenditures can make possible periodic tax reductions. The Congress should therefore begin now to evaluate the potentialities of a TIP program so that when the next round of tax reductions is appropriate a TIP program will be seriously considered. EMPLOYMENT During the last four years we have given top priority to meeting the needs of workers and providing additional job opportunities to those who seek work. Since the end of 1976: • almost 9 million new jobs have been added to the nation's economy • total employment has reached 97 million. More jobs than ever before are held by women, minorities and young people. Employment over the past four years has increased by: —17% for adult women —11% for blacks, and —30% for Hispanics • employment of black teenagers increased by more than 5%, reversing the decline that occurred in the previous eight years. Major initiatives launched by this Administration helped bring about these accomplishments and have provided a solid foundation for employment and training policy in the 1980's. In 1977, as part of the comprehensive economic stimulus program: • 425,000 public service jobs were created • A $1 billion youth employment initiative funded 200,000 jobs • the doubling of the Job Corps to 44,000 slots began and I million summer youth jobs were approved—a 25 percent increase. In 1978: • the Humphrey-Hawkins Full Employment Act became law • the $400 million Private Sector Initiatives Program was begun • a targeted jobs tax credit for disadvantaged youth and others with special employment barriers was enacted • the Comprehensive Employment and Training Act was reauthorized for four years. In 1979: • a $6 billion welfare reform proposal was introduced with funding for 400,000 public service jobs • welfare reform demonstration projects were launched in communities around the country • the Vice President initiated a nationwide review of youth unemployment in this country. In 1980: • the findings of the Vice President's Task Force revealed the major education and employment deficits that exist for poor and minority youngsters. As a result a $2 billion youth education and jobs initiative was introduced to provide unemployed youth with the basic education and work experience they need to compete in the labor market of the 1980's. • As part of the economic revitalization program several steps were proposed to aid workers in high unemployment communities: —an additional 13 weeks of unemployment benefits for the long term unemployed. —$600 million to train the disadvantaged and unemployed for new private sector jobs. —positive adjustment demonstrations to aid workers in declining industries. • The important Title VII Private Sector Initiatives Program was reauthorized for an additional two years. In addition to making significant progress in helping the disadvantaged and unemployed, important gains were realized for all workers: • an historic national accord with organized labor made it possible for the views of working men and women to be heard as the nation's economic and domestic policies were formulated. • the Mine Safety and Health Act brought about improved working conditions for the nation's 500,000 miners. • substantial reforms of the Occupational Safety and Health Administration were accomplished to help reduce unnecessary burdens on business and to focus on major health and safety problems. • the minimum wage was increased over a four year period from $2.30 to $3.35 an hour. • the Black Lung Benefit Reform Act was signed into law. • attempts to weaken the Davis-Bacon Act were defeated. While substantial gains have been made in the last four years, continued efforts are required to ensure that this progress is continued: • government must continue to make labor a full partner in the policy decisions that affect the interests of working men and women • a broad, bipartisan effort to combat youth unemployment must be sustained • compassionate reform of the nation's welfare system should be continued with employment opportunities provided for those able to work • workers in declining industries should be provided new skills and help in finding employment TRADE Over the past year, the YOU.S. trade picture improved as a result of solid export gains in both manufactured and agricultural products. Agricultural exports reached a new record of over $40 billion, while manufactured exports have grown by 24 percent to a record $144 billion. In these areas the United States recorded significant surpluses of $24 billion and $19 billion respectively. While our oil imports remained a major drain on our foreign exchange earnings, that drain was somewhat moderated by a 19 percent decline in the volume of oil imports. YOU.S. trade negotiators made significant progress over the past year in assuring effective implementation of the agreements negotiated during the Tokyo Round of Multilateral Trade Negotiations. Agreements reached with the Japanese government, for example, will assure that the United States will be able to expand its exports to the Japanese market in such key areas as telecommunications equipment, tobacco, and lumber. Efforts by YOU.S. trade negotiators also helped to persuade a number of key developing countries to accept many of the non-tariff codes negotiated during the Multilateral Trade Negotiations. This will assure that these countries will increasingly assume obligations under the international trading system. A difficult world economic environment posed a challenge for the management of trade relations. YOU.S. trade negotiators were called upon to manage serious sectoral problems in such areas as steel, and helped to assure that YOU.S. chemical exports will have continued access to the European market. Close consultations with the private sector in the United States have enabled YOU.S. trade negotiators to pinpoint obstacles to YOU.S. trade in services, and to build a basis for future negotiations. Services have been an increasingly important source of export earnings for the United States, and the United States must assure continued and increased access to foreign markets. The trade position of the United States has improved. But vigorous efforts are needed in a number of areas to assure continued market access for YOU.S. exports, particularly agricultural and high technology products, in which the United States continues to have a strong competitive edge. Continued efforts are also needed to remove many domestic disincentives, which now hamper YOU.S. export growth. And we must ensure that countries do not manipulate investment, or impose investment performance requirements which distort trade and cost us jobs in this country. In short, we must continue to seek free—but fair—trade. That is the policy my Administration has pursued from the beginning, even in areas where foreign competition has clearly affected our domestic industry. In the steel industry, for instance, we have put a Trigger Price Mechanism into place to help prevent the dumping of steel. That action has strengthened the domestic steel industry. In the automobile industry, we have worked—without resort to import quotas—to strengthen the industry's ability to modernize and compete effectively. SMALL BUSINESS I have often said that there is nothing small about small business in America. These firms account for nearly one-half our gross national product; over half of new technology; and much more than half of the jobs created by industry. Because this sector of the economy is the very lifeblood of our National economy, we have done much together to improve the competitive climate for smaller firms. These concerted efforts have been an integral part of my program to revitalize the economy. They include my campaign to shrink substantially the cash and time consuming red tape burden imposed on business. They include my personally-directed policy of ambitiously increasing the Federal contracting dollars going to small firms, especially those owned by women and minorities. And they include my proposals to reinvigorate existing small businesses and assist the creation of new ones through tax reform; financing assistance; market expansion; and support of product innovation. Many of my initiatives to facilitate the creation and growth of small businesses were made in response to the White House Conference on Small Business, which I convened. My Administration began the implementation of most of the ideas produced last year by that citizen's advisory body; others need to be addressed. I have proposed the reconvening of the Conference next year to review progress; reassess priorities; and set new goals. In the interim I hope that the incoming Administration and the new Congress will work with the committee I have established to keep these business development ideas alive and help implement Conference recommendations. MINORITY BUSINESS One of the most successful developments of my Administration has been the growth and strengthening of minority business. This is the first Administration to put the issue on the policy agenda as a matter of major importance. To implement the results of our early efforts in this field I submitted legislation to Congress designed to further the development of minority business. We have reorganized the Office of Minority Business into the Minority Business Development Administration in the Department of Commerce. MBDA has already proven to be a major factor in assisting minority businesses to achieve equitable competitive positions in the marketplace. The Federal government's procurement from minority-owned firms has nearly tripled since I took office. Federal deposits in minority-owned banks have more than doubled and minority ownership of radio and television stations has nearly doubled. The SBA administered 8(a) Pilot Program for procurement with the Army proved to be successful and I recently expanded the number of agencies involved to include NASA and the Departments of Energy and Transportation. I firmly believe the critical path to full freedom and equality for America's minorities rests with the ability of minority communities to participate competitively in the free enterprise system. I believe the government has a fundamental responsibility to assist in the development of minority business and I hope the progress made in the last four years will continue. II. CREATING ENERGY SECURITY Since I took office, my highest legislative priorities have involved the reorientation and redirection of YOU.S. energy activities and for the first time, to establish a coordinated national energy policy. The struggle to achieve that policy has been long and difficult, but the accomplishments of the past four years make clear that our country is finally serious about the problems caused by our overdependence on foreign oil. Our progress should not be lost. We must rely on and encourage multiple forms of energy production—coal, crude oil, natural gas, solar, nuclear, synthetics—and energy conservation. The framework put in place over the last four years will enable us to do this. NATIONAL ENERGY POLICY As a result of actions my Administration and the Congress have taken over the past four years, our country finally has a national energy policy: • Under my program of phased decontrol, domestic crude oil price controls will end September 30, 1981. As a result exploratory drilling activities have reached an all-time high; • Prices for new natural gas are being decontrolled under the Natural Gas Policy Act—and natural gas production is now at an all time high; the supply shortages of several years ago have been eliminated; • The windfall profits tax on crude oil has been enacted providing $227 billion over ten years for assistance to low-income households, increased mass transit funding, and a massive investment in the production and development of alternative energy sources; • The Synthetic Fuels Corporation has been established to help private companies build the facilities to produce energy from synthetic fuels; • Solar energy funding has been quadrupled, solar energy tax credits enacted, and a Solar Energy and Energy Conservation Bank has been established; • A route has been chosen to bring natural gas from the North Slope of Alaska to the lower 48 states; • Coal production and consumption incentives have been increased, and coal production is now at its highest level in history; • A gasoline rationing plan has been approved by Congress for possible use in the event of a severe energy supply shortage or interruption; • Gasohol production has been dramatically increased, with a program being put in place to produce 500 million gallons of alcohol fuel by the end of this year—an amount that could enable gasohol to meet the demand for 10 percent of all unleaded gasoline; • New energy conservation incentives have been provided for individuals, businesses and communities and conservation has increased dramatically. The YOU.S. has reduced oil imports by 25 percent—or 2 million barrels per day—over the past four years. INCREASED DEVELOPMENT OF DOMESTIC ENERGY SOURCES Although it is essential that the Nation reduce its dependence on imported fossil fuels and complete the transition to reliance on domestic renewable sources of energy, it is also important that this transition be accomplished in an orderly, economic, and environmentally sound manner. To this end, the Administration has launched several initiatives. Leasing of oil and natural gas on federal lands, particularly the outer continental shelf, has been accelerated at the same time as the Administration has reformed leasing procedures through the 1978 amendments to the Outer Continental Shelf Lands Act. In 1979 the Interior Department held six OCS lease sales, the greatest number ever, which resulted in federal receipts of $6.5 billion, another record. The five-year OCS Leasing schedule was completed, requiring 36 sales over the next five years. Since 1971 no general federal coal lease sales were suspended. Over the past four years the Administration has completely revised the federal coal leasing program to bring it into compliance with the requirements of 1976 Federal Land Planning and Management Act and other statutory provisions. The program is designed to balance the competing interests that affect resource development on public lands and to ensure that adequate supplies of coal will be available to meet national needs. As a result, the first general competitive federal coal lease sale in ten years will be held this month. In July 1980, I signed into law the Energy Security Act of 1980 which established the Synthetic Fuels Corporation. The Corporation is designed to spur the development of commercial technologies for production of synthetic fuels, such as liquid and gaseous fuels from coal and the production of oil from oil shale. The Act provides the Corporation with an initial $22 billion to accomplish these objectives. The principal purpose of the legislation is to ensure that the nation will have available in the late 1980's the option to undertake commercial development of synthetic fuels if that becomes necessary. The Energy Security Act also provides significant incentives for the development of gasohol and biomass fuels, thereby enhancing the nation's supply of alternative energy sources. COMMITMENT TO A SUSTAINABLE ENERGY FUTURE The Administration's 1977 National Energy Plan marked an historic departure from the policies of previous Administrations. The plan stressed the importance of both energy production and conservation to achieving our ultimate national goal of relying primarily on secure sources of energy. The National Energy Plan made energy conservation a cornerstone of our national energy policy. In 1978, I initiated the Administration's Solar Domestic Policy Review. This represented the first step towards widespread introduction of renewable energy sources into the Nation's economy. As a result of the Review, I issued the 1979 Solar Message to Congress, the first such message in the Nation's history. The Message outlined the Administration's solar program and established an ambitious national goal for the year 2000 of obtaining 20 percent of this Nation's energy from solar and renewable sources. The thrust of the federal solar program is to help industry develop solar energy sources by emphasizing basic research and development of solar technologies which are not currently economic, such as photovoltaics, which generate energy directly from the sun. At the same time, through tax incentives, education, and the Solar Energy and Energy Conservation Bank, the solar program seeks to encourage state and local governments, industry, and our citizens to expand their use of solar and renewable resource technologies currently available. As a result of these policies and programs, the energy efficiency of the American economy has improved markedly and investments in renewable energy sources have grown significantly. It now takes 3¼ percent less energy to produce a constant dollar of GNP than it did in January 1977. This increase in efficiency represents a savings of over 1.3 million barrels per day of oil equivalent, about the level of total oil production now occurring in Alaska. Over the same period, Federal support for conservation and solar energy has increased by more than 3000 percent, to $3.3 billion in FY 1981, including the tax credits for solar energy and energy conservation investments—these credits are expected to amount to $1.2 billion in FY 1981 and $1.5 billion in FY 1982. COMMITMENT TO NUCLEAR SAFETY AND SECURITY Since January 1977, significant progress has been achieved in resolving three critical problems resulting from the use of nuclear energy: radioactive waste management, nuclear safety and weapons proliferation. In 1977, the Administration announced its nuclear nonproliferation policy and initiated the International Fuel Cycle Evaluation. In 1978, Congress passed the Nuclear Nonproliferation Act, an historic piece of legislation. In February 1980, the Administration transmitted its nuclear waste management policy to the Congress. This policy was a major advance over all previous efforts. The principal aspects of that policy are: acknowledging the seriousness of the problem and the numerous technical and institutional issues; adopting a technically and environmentally conservative approach to the first permanent repository; and providing the states with significant involvement in nuclear waste disposal decisions by creating the State Planning Council. While much of the plan can be and is being implemented administratively, some new authorities are needed. The Congress should give early priority to enacting provisions for away-from-reactor storage and the State Planning Council. The accident at Three Mile Island made the nation acutely aware of the safety risks posed by nuclear power plants. In response, the President established the Kemeny Commission to review the accident and make recommendations. Virtually all of the Commission's substantive recommendations were adopted by the Administration and are now being implemented by the Nuclear Regulatory Commission. The Congress adopted the President's proposed plan for the Nuclear Regulatory Commission and the Nuclear Safety Oversight Committee was established to ensure that the Administration's decisions were implemented. Nuclear safety will remain a vital concern in the years ahead. We must continue to press ahead for the safe, secure disposal of radioactive wastes, and prevention of nuclear proliferation. While significant growth in foreign demand for YOU.S. steam coal is foreseen, congestion must be removed at major YOU.S. coal exporting ports such as Hampton Roads, Virginia, and Baltimore, Maryland. My Administration has worked through the Interagency Coal Task Force Study to promote cooperation and coordination of resources between shippers, railroads, vessel broker/operators and port operators, and to determine the most appropriate Federal role in expanding and modernizing coal export facilities, including dredging deeper channels at selected ports. As a result of the Task Force's efforts, administrative steps have been taken by the Corps of Engineers to reduce significantly the amount of time required for planning and economic review of port dredging proposals. The Administration has also recommended that the Congress enact legislation to give the President generic authority to recommend appropriations for channel dredging activities. Private industry will, of course, play the major role in developing the United States' coal export facilities, but the government must continue to work to facilitate transportation to foreign markets. III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS For too long prior to my Administration, many of our Nation's basic human and social needs were being ignored or handled insensitively by the Federal government. Over the last four years, we have significantly increased funding for many of the vital programs in these areas; developed new programs where needs were unaddressed; targeted Federal support to those individuals and areas most in need of our assistance; and removed barriers that have unnecessarily kept many disadvantaged citizens from obtaining aid for their most basic needs. Our record has produced clear progress in the effort to solve some of the country's fundamental human and social problems. My Administration and the Congress, working together, have demonstrated that government must and can meet our citizens' basic human and social needs in a responsible and compassionate way. But there is an unfinished agenda still before the Congress. If we are to meet our obligations to help all Americans realize the dreams of sound health care, decent housing, effective social services, a good education, and a meaningful job, important legislation still must be enacted. National Health Insurance, Welfare Reform, Child Health Assessment Program, are before the Congress and I urge their passage. Health NATIONAL HEALTH PLAN During my Administration, I proposed to Congress a National Health Plan which will enable the country to reach the goal of comprehensive, universal health care coverage. The legislation I submitted lays the foundation for this comprehensive plan and addresses the most serious problems of health financing and delivery. It is realistic and enactable. It does not overpromise or overspend, and, as a result, can be the solution to the thirty years of Congressional battles on national health insurance. My Plan includes the following key features: • nearly 15 million additional poor would receive fully-subsidized comprehensive coverage; • pre-natal and delivery services are provided for all pregnant women and coverage is provided for all acute care for infants in their first year of life; • the elderly and disabled would have a limit of $1,250 placed on annual out-of-pocket medical expenses and would no longer face limits on hospital coverage; • all full-time employees and their families would receive insurance against at least major medical expenses under mandated employer coverage; • Medicare and Medicaid would be combined and expanded into an umbrella Federal program, Healthcare, for increased program efficiency, accountability and uniformity; and • strong cost controls and health system reforms would be implemented, including greater incentives for Health Maintenance Organizations. I urge the new Congress to compare my Plan with the alternatives—programs which either do too little to improve the health care needs of Americans most in need or programs which would impose substantial financial burdens on the American taxpayers. I hope the Congress will see the need for and the benefits of my Plan and work toward prompt enactment. We cannot afford further delay in this vital area. HEALTH CARE COST CONTROL Inflation in health care costs remains unacceptably high. Throughout my Administration, legislation to reduce health care cost inflation was one of my highest priorities, but was not passed by the Congress. Therefore, my FY 1982 budget proposes sharing the responsibility for health care cost control with the private sector, through voluntary hospital cost guidelines and intensified monitoring. In the longer term, the health care reimbursement system must be reformed. We must move away from inflationary cost-based reimbursement and fee-for-service, and toward a system of prospective reimbursement, under which health care providers would operate within predetermined budgets. This reimbursement reform is essential to ultimately control inflation in health care costs, and will be a significant challenge to the new Congress. HEALTH PROMOTION AND DISEASE PREVENTION During my Administration, the Surgeon General released Healthy People, a landmark report on health promotion and disease prevention. The report signals the growing consensus that the Nation's health strategy must be refocused in the 1980's to emphasize the prevention of disease. Specifically, the report lays out measurable and achievable goals in the reduction of mortality which can be reached by 1990. I urge the new Congress to endorse the principles of Healthy People, and to adopt the recommendations to achieve its goals. This will necessitate adoption of a broader concept of health care, to include such areas as environmental health, workplace health and safety, commercial product safety, traffic safety, and health education, promotion and information. MATERNAL AND CHILD HEALTH Ensuring a healthy start in life for children remains not only a high priority of my Administration, but also one of the most cost effective forms of health care. When I took office, immunization levels for preventable childhood diseases had fallen to 70%. As a result of a concerted nationwide effort during my Administration, I am pleased to report that now at least 90% of children under 15, and virtually all school-age children are immunized. In addition, reported cases of measles and mumps are at their lowest levels ever. Under the National Health Plan I have proposed, there would be no cost-sharing for prenatal and delivery services for all pregnant women and for acute care provided to infants in their first year of life. These preventive services have extremely high returns in terms of improved newborn and long-term child health. Under the Child Health Assurance Program (CHAP) legislation which I submitted to the Congress, and which passed the House, an additional two million low income children under 18 would become eligible for Medicaid benefits, which would include special health assessments. CHAP would also improve the continuity of care for the nearly 14 million children now eligible for Medicaid. An additional 100,000 low-income pregnant women would become eligible for prenatal care under the proposal. I strongly urge the new Congress to enact CHAP and thereby provide millions of needy children with essential health services. The legislation has had strong bipartisan support, which should continue as the details of the bill are completed. I also urge the new Congress to provide strong support for two highly successful ongoing programs: the special supplemental food program for women, infants and children (WIC) and Family Planning. The food supplements under WIC have been shown to effectively prevent ill health and thereby reduce later medical costs. The Family Planning program has been effective at reducing unwanted pregnancies among low-income women and adolescents. EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED During my Administration, health services to the poor and underserved have been dramatically increased. The number of National Health Service Corps (NHSC) assignees providing services in medically underserved communities has grown from 500 in 1977 to nearly 3,000 in 1981. The population served by the NHSC has more than tripled since 1977. The number of Community Health Centers providing services in high priority underserved areas has doubled during my Administration, and will serve an estimated six million people in 1981. I strongly urge the new Congress to support these highly successful programs. MENTAL HEALTH One of the most significant health achievements during my Administration was the recent passage of the Mental Health Systems Act, which grew out of recommendations of my Commission on Mental Health. I join many others in my gratitude to the First Lady for her tireless and effective contribution to the passage of this important legislation. The Act is designed to inaugurate a new era of Federal and State partnership in the planning and provision of mental health services. In addition, the Act specifically provides for prevention and sup. port services to the chronically mentally ill to prevent unnecessary institutionalization and for the development of community-based mental health services. I urge the new Congress to provide adequate support for the full and timely implementation of this Act. HEALTH PROTECTION With my active support, the Congress recently passed "Medigap" legislation, which provides for voluntary certification of health insurance policies supplemental to Medicare, to curb widespread abuses in this area. In the area of toxic agent control, legislation which I submitted to the Congress recently passed. This will provide for a "super-fund" to cover hazardous waste cleanup costs. In the area of accidental injury control, we have established automobile safety standards and increased enforcement activities with respect to the 55 MPH speed limit. By the end of the decade these actions are expected to save over 13,000 lives and 100,000 serious injuries each year. I urge the new Congress to continue strong support for all these activities. FOOD AND NUTRITION Building on the comprehensive reform of the Food Stamp Program that I proposed and Congress passed in 1977, my Administration and the Congress worked together in 1979 and 1980 to enact several other important changes in the Program. These changes will further simplify administration and reduce fraud and error, will make the program more responsive to the needs of the elderly and disabled, and will increase the cap on allowable program expenditures. The Food Stamp Act will expire at the end of fiscal 1981. It is essential that the new Administration and the Congress continue this program to ensure complete eradication of the debilitating malnutrition witnessed and documented among thousands of children in the 1960's. DRUG ABUSE PREVENTION At the beginning of my Administration there were over a half million heroin addicts in the United States. Our continued emphasis on reducing the supply of heroin, as well as providing treatment and rehabilitation to its victims, has reduced the heroin addict population, reduced the number of heroin overdose deaths by 80%, and reduced the number of heroin related injuries by 50%. We have also seen and encouraged a national movement of parents and citizens committed to reversing the very serious and disturbing trends of adolescent drug abuse. Drug abuse in many forms will continue to detract, however, from the quality of life of many Americans. To prevent that, I see four great challenges in the years ahead. First, we must deal aggressively with the supplies of illegal drugs at their source, through joint crop destruction programs with foreign nations and increased law enforcement and border interdiction. Second, we must look to citizens and parents across the country to help educate the increasing numbers of American youth who are experimenting with drugs to the dangers of drug abuse. Education is a key factor in reducing drug abuse. Third, we must focus our efforts on drug and alcohol abuse in the workplace for not only does this abuse contribute to low productivity but it also destroys the satisfaction and sense of purpose all Americans can gain from the work experience. Fourth, we need a change in attitude, from an attitude which condones the casual use of drugs to one that recognizes the appropriate use of drugs for medical purposes and condemns the inappropriate and harmful abuse of drugs. I hope the Congress and the new Administration will take action to meet each of these challenges. Education The American people have always recognized that education is one of the soundest investments they can make. The dividends are reflected in every dimension of our national life—from the strength of our economy and national security to the vitality of our music, art, and literature. Among the accomplishments that have given me the most satisfaction over the last four years are the contributions that my Administration has been able to make to the well-being of students and educators throughout the country. This Administration has collaborated successfully with the Congress on landmark education legislation. Working with the Congressional leadership, my Administration spotlighted the importance of education by creating a new Department of Education. The Department has given education a stronger voice at the Federal level, while at the same time reserving the actual control and operation of education to states, localities, and private institutions. The Department has successfully combined nearly 150 Federal education programs into a cohesive, streamlined organization that is more responsive to the needs of educators and students. The Department has made strides to cut red tape and paperwork and thereby to make the flow of Federal dollars to school districts and institutions of higher education more efficient. It is crucial that the Department be kept intact and strengthened. Our collaboration with the Congress has resulted in numerous other important legislative accomplishments for education. A little over two years ago, I signed into law on the same day two major bills—one benefiting elementary and secondary education and the other, postsecondary education. The Education Amendments of 1978 embodied nearly all of my Administration's proposals for improvements in the Elementary and Secondary Education Act, including important new programs to improve students' achievement in the basic skills and to aid school districts with exceptionally high concentrations of children from low-income families. The Middle Income Student Assistance Act, legislation jointly sponsored by this Administration and the Congressional leadership, expanded eligibility for need-based Basic Educational Opportunity Grants to approximately one-third of the students enrolled in postsecondary education and made many more students eligible for the first time for other types of grants, work-study, and loans. Just three and a half months ago, my Administration and the Congress successfully concluded over two years of work on a major reauthorization bill that further expands benefits to postsecondary education. Reflected in the Education Amendments of 1980 are major Administration recommendations for improvements in the Higher Education Act—including proposals for better loan access for students; a new parent loan program; simplified application procedures for student financial aid; a strengthened Federal commitment to developing colleges, particularly the historically Black institutions; a new authorization for equipment and facilities modernization funding for the nation's major research universities; and revitalized international education programs. Supplementing these legislative accomplishments have been important administrative actions aimed at reducing paperwork and simplifying regulations associated with Federal education programs. We also launched major initiatives to reduce the backlog of defaulted student loans and otherwise to curb fraud, abuse, and waste in education programs. To insure that the education enterprise is ready to meet the scientific and technological changes of the future, we undertook a major study of the status of science and engineering education throughout the nation. I hope that the findings from this report will serve as a springboard for needed reforms at all levels of education. I am proud that this Administration has been able to provide the financial means to realize many of our legislative and administrative goals. Compared to the previous administration's last budget, I have requested the largest overall increase in Federal funding for education in our nation's history. My budget requests have been particularly sensitive to the needs of special populations like minorities, women, the educationally and economically disadvantaged, the handicapped, and students with limited English-speaking ability. At the same time, I have requested significant increases for many programs designed to enhance the quality of American education, including programs relating to important areas as diverse as international education, research libraries, museums, and teacher centers. Last year, I proposed to the Congress a major legislative initiative that would direct $2 billion into education and job training programs designed to alleviate youth unemployment through improved linkages between the schools and the work place. This legislation generated bipartisan support; but unfortunately, action on it was not completed in the final, rushed days of the 96th Congress. I urge the new Congress—as it undertakes broad efforts to strengthen the economy as well as more specific tasks like reauthorizing the Vocational Education Act—to make the needs of our nation's unemployed youth a top priority for action. Only by combining a basic skills education program together with work training and employment incentives can we make substantial progress in eliminating one of the most severe social problems in our nation—youth unemployment, particularly among minorities. I am proud of the progress already made through passage of the Youth Employment and Demonstration Project Act of 1977 and the substantial increase in our investment in youth employment programs. The new legislation would cap these efforts. Income Security SOCIAL SECURITY One of the highest priorities of my Administration has been to continue the tradition of effectiveness and efficiency widely associated with the social security program, and to assure present and future beneficiaries that they will receive their benefits as expected. The earned benefits that are paid monthly to retired and disabled American workers and their families provide a significant measure of economic protection to millions of people who might otherwise face retirement or possible disability with fear. I have enacted changes to improve the benefits of many social security beneficiaries during my years as President. The last four years have presented a special set of concerns over the financial stability of the social security system. Shortly after taking office I proposed and Congress enacted legislation to protect the stability of the old age and survivors trust fund and prevent the imminent exhaustion of the disability insurance trust fund, and to correct a flaw in the benefit formula that was threatening the long run health of the entire social security system. The actions taken by the Congress at my request helped stabilize the system. That legislation was later complemented by the Disability Insurance Amendments of 1980 which further bolstered the disability insurance program, and reduced certain inequities among beneficiaries. My commitment to the essential retirement and disability protection provided to 35 million people each month has been demonstrated by the fact that without interruption those beneficiaries have continued to receive their social security benefits, including annual cost of living increases. Changing and unpredictable economic circumstances require that we continue to monitor the financial stability of the social security system. To correct anticipated short-term strains on the system, I proposed last year that the three funds be allowed to borrow from one another, and I urge the Congress again this year to adopt such interfund borrowing. To further strengthen the social security system and provide a greater degree of assurance to beneficiaries, given projected future economic uncertainties, additional action should be taken. Among the additional financing options available are borrowing from the general fund, financing half of the hospital insurance fund with general revenues, and increasing the payroll tax rate. The latter option is particularly unpalatable given the significant increase in the tax rate already mandated in law. This Administration continues to oppose cuts in basic social security benefits and taxing social security benefits. The Administration continues to support annual indexing of social security benefits. WELFARE REFORM In 1979 I proposed a welfare reform package which offers solutions to some of the most urgent problems in our welfare system. This proposal is embodied in two bills—The Work and Training Opportunities Act and The Social Welfare Reform Amendments Act. The House passed the second of these two proposals. Within the framework of our present welfare system, my reform proposals offer achievable means to increase self-sufficiency through work rather than welfare, more adequate assistance to people unable to work, the removal of inequities in coverage under current programs, and fiscal relief needed by States and localities. Our current welfare system is long overdue for serious reform; the system is wasteful and not fully effective. The legislation I have proposed will help eliminate inequities by establishing a national minimum benefit, and by directly relating benefit levels to the poverty threshold. It will reduce program complexity, which leads to inefficiency and waste, by simplifying and coordinating administration among different programs. I urge the Congress to take action in this area along the lines I have recommended. CHILD WELFARE My Administration has worked closely with the Congress on legislation which is designed to improve greatly the child welfare services and foster care programs and to create a Federal system of adoption assistance. These improvements will be achieved with the recent enactment of H.R. 3434, the Adoption Assistance and Child Welfare Act of 1980. The wellbeing of children in need of homes and their permanent placement have been a primary concern of my Administration. This legislation will ensure that children are not lost in the foster care system, but instead will be returned to their families where possible or placed in permanent adoptive homes. LOW-INCOME ENERGY ASSISTANCE In 1979 I proposed a program to provide an annual total of $1.6 billion to low income households which are hardest hit by rising energy bills. With the cooperation of Congress, we were able to move quickly to provide assistance to eligible households in time to meet their winter heating bills. In response to the extreme heat conditions affecting many parts of the country during 1980, I directed the Community Services Administration to make available over $27 million to assist low-income individuals, especially the elderly, facing life threatening circumstances due to extreme heat. Congress amended and reauthorized the low-income energy assistance program for fiscal year 1981, and provided $1.85 billion to meet anticipated increasing need. The need for a program to help low income households with rising energy expenses will not abate in the near future. The low-income energy assistance program should be reauthorized to meet those needs. Housing For the past 14 months, high interest rates have had a severe impact on the nation's housing market. Yet the current pressures and uncertainties should not obscure the achievements of the past four years. Working with the Congress, the regulatory agencies, and the financial community, my Administration has brought about an expanded and steadier flow of funds into home mortgages. Deregulation of the interest rates payable by depository institutions, the evolution of variable and renegotiated rate mortgages, development of high yielding savings certificates, and expansion of the secondary mortgage market have all increased housing's ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose. These actions will diminish the cyclically of the housing industry. Further, we have secured legislation updating the Federal Government's emergency authority to provide support for the housing industry through the Brooke-Cranston program, and creating a new Section 235 housing stimulus program. These tools will enable the Federal Government to deal quickly and effectively with serious distress in this critical industry. We have also worked to expand homeownership opportunities for Americans. By using innovative financing mechanisms, such as the graduated payment mortgage, we have increased the access of middle income families to housing credit. By revitalizing the Section 235 program, we have enabled nearly 100,000 moderate income households to purchase new homes. By reducing paperwork and regulation in Federal programs, and by working with State and local governments to ease the regulatory burden, we have helped to hold down housing costs and produce affordable housing. As a result of these governmentwide efforts, 5 1/2 million more American families bought homes in the past four years than in any equivalent period in history. And more than 7 million homes have begun construction during my Administration, 1 million more than in the previous four years. We have devoted particular effort to meeting the housing needs of low and moderate income families. In the past four years, more than 1 million subsidized units have been made available for occupancy by lower income Americans and more than 600,000 assisted units have gone into construction. In addition, we have undertaken a series of measures to revitalize and preserve the nation's 2 million units of public and assisted housing. For Fiscal Year 1982, I am proposing to continue our commitment to lower income housing. I am requesting funds to support 260,000 units of Section 8 and public housing, maintaining these programs at the level provided by Congress in Fiscal 1981. While we have made progress in the past four years, in the future there are reasons for concern. Home price inflation and high interest rates threaten to put homeownership out of reach for first-time homebuyers. Lower income households, the elderly and those dependent upon rental housing face rising rents, low levels of rental housing construction by historic standards, and the threat of displacement due to conversion to condominiums and other factors. Housing will face strong competition for investment capital from the industrial sector generally and the energy industries, in particular. To address these issues, I appointed a Presidential Task Force and Advisory Group last October. While this effort will not proceed due to the election result, I hope the incoming Administration will proceed with a similar venture. The most important action government can take to meet America's housing needs is to restore stability to the economy and bring down the rate of inflation. Inflation has driven up home prices, operating costs and interest rates. Market uncertainty about inflation has contributed to the instability in interest rates, which has been an added burden to homebuilders and homebuyers alike. By making a long-term commitment to provide a framework for greater investment, sustained economic growth, and price stability, my Administration has begun the work of creating a healthy environment for housing. Transportation With the passage of the Airline Deregulation Act of 1978, the Motor Carrier Act of 1980, and the Harley O. Staggers Rail Act of 1980, my Administration, working with the Congress, has initiated a new era of reduced regulation of transportation industries. Deregulation will lead to increased productivity and operating efficiencies in the industries involved, and stimulate price and service competition, to the benefit of consumers generally. I urge the new Administration to continue our efforts on behalf of deregulation legislation for the intercity passenger bus industry as well. In the coming decade, the most significant challenge facing the nation in transportation services will be to improve a deteriorating physical infrastructure of roadways, railroads, waterways and mass transit systems, in order to conserve costly energy supplies while promoting effective transportation services. HIGHWAYS Our vast network of highways, which account for 90 percent of travel and 80 percent by value of freight traffic goods movement, is deteriorating. If current trends continue, a major proportion of the Interstate pavement will have deteriorated by the end of the 1980's. Arresting the deterioration of the nation's system of highways is a high priority objective for the 1980's. We must reorient the Federal mission from major new construction projects to the stewardship of the existing Interstate Highway System. Interstate gaps should be judged on the connections they make and on their compatibility with community needs. During this decade, highway investments will be needed to increase productivity, particularly in the elimination of bottlenecks, provide more efficient connections to ports and seek low-cost solutions to traffic demand. My Administration has therefore recommended redefining completion of the Interstate system, consolidating over 27 categorical assistance programs into nine, and initiating a major repair and rehabilitation program for segments of the Interstate system. This effort should help maintain the condition and performance of the Nation's highways, particularly the Interstate and primary system; provide a realistic means to complete the Interstate system by 1990; ensure better program delivery through consolidation, and assist urban revitalization. In addition, the Congress must address the urgent funding problems of the highway trust fund, and the need to generate greater revenues. MASS TRANSIT In the past decade the nation's public transit systems' ridership increased at an annual average of 1.1% each year in the 1970's (6.9% in 1979). Continued increases in the cost of fuel are expected to make transit a growing part of the nation's transportation system. As a result, my Administration projected a ten year, $43 billion program to increase mass transit capacity by 50 percent, and promote more energy efficient vehicle uses in the next decade. The first part of this proposal was the five year, $24.7 billion Urban Mass Transportation Administration reauthorization legislation I sent to the Congress in March, 1980. I urge the 97th Congress to quickly enact this or similar legislation in 1981. My Administration was also the first to have proposed and signed into law a nonurban formula grant program to assist rural areas and small communities with public transportation programs to end their dependence on the automobile, promote energy conservation and efficiency, and provide transportation services to impoverished rural communities. A principal need of the 1980's will be maintaining mobility for all segments of the population in the face of severely increasing transportation costs and uncertainty of fuel supplies. We must improve the flexibility of our transportation system and offer greater choice and diversity in transportation services. While the private automobile will continue to be the principal means of transportation for many Americans, public transportation can become an increasingly attractive alternative. We, therefore, want to explore a variety of paratransit modes, various types of buses, modern rapid transit, regional rail systems and light rail systems. Highway planning and transit planning must be integrated and related to State, regional, district and neighborhood planning efforts now in place or emerging. Low density development and land use threaten the fiscal capacity of many communities to support needed services and infrastructure. ELDERLY AND HANDICAPPED TRANSPORTATION Transportation policies in the 1980's must pay increasing attention to the needs of the elderly and handicapped. By 1990, the number of people over 65 will have grown from today's 19 million to 27 million. During the same period, the number of handicapped—people who have difficulty using transit as well as autos, including the elderly—is expected to increase from 9 to 11 million, making up 4.5 percent of the population. We must not retreat from a policy that affords a significant and growing portion of our population accessible public transportation while recognizing that the handicapped are a diverse group and will need flexible, door-to-door service where regular public transportation will not do the job. RAILROADS In addition, the Federal government must reassess the appropriate Federal role of support for passenger and freight rail services such as Amtrak and Conrail. Our goal through federal assistance should be to maintain and enhance adequate rail service, where it is not otherwise available to needy communities. But Federal subsidies must be closely scrutinized to be sure they are a stimulus to, and not a replacement for, private investment and initiative. Federal assistance cannot mean permanent subsidies for unprofitable operations. WATERWAYS AND RURAL TRANSPORTATION There is a growing need in rural and small communities for improved transportation services. Rail freight service to many communities has declined as railroads abandon unproductive branch lines. At the same time, rural roads are often inadequate to handle large, heavily-loaded trucks. The increased demand for "harvest to harbor" service has also placed an increased burden on rural transportation systems, while bottlenecks along the Mississippi River delay grain shipments to the Gulf of Mexico. We have made some progress: • To further develop the nation's waterways, my Administration began construction of a new 1,200 foot lock at the site of Lock and Dam 26 on the Mississippi River. When opened in 1987, the new lock will have a capacity of 86 million tons per year, an 18 percent increase over the present system. The YOU.S. Army Corps of Engineers has also undertaken studies to assess the feasibility of expanding the Bonneville Locks. Rehabilitation of John Day Lock was begun in 1980 and should be completed in 1982. My Administration also supports the completion of the Upper Mississippi River Master Plan to determine the feasibility of constructing a second lock at Alton, Illinois. These efforts will help alleviate delays in transporting corn, soybeans and other goods along the Mississippi River to the Gulf of Mexico. • The Department of Transportation's new Small Community and Rural Transportation Policy will target federal assistance for passenger transportation, roads and highways, truck service, and railroad freight service to rural areas. This policy implements and expands upon the earlier White House Initiative, Improving Transportation in Rural America, announced in June, 1979, and the President's Small Community and Rural Development Policy announced in December, 1979. The Congress should seek ways to balance rail branch line abandonment with the service needs of rural and farm communities, provide financial assistance to rail branch line rehabilitation where appropriate, assist shippers to adjust to rail branch line abandonment where it takes place, and help make it possible for trucking firms to serve light density markets with dependable and efficient trucking services. MARITIME POLICY During my Administration I have sought to ensure that the YOU.S. maritime industry will not have to function at an unfair competitive disadvantage in the international market. As I indicated in my maritime policy statement to the Congress in July, 1979, the American merchant marine is vital to our Nation's welfare, and Federal actions should promote rather than harm it. In pursuit of this objective, I signed into law the Controlled Carrier Act of 1978, authorizing the Federal Maritime Commission to regulate certain rate cutting practices of some state-controlled carriers, and recently signed a bilateral maritime agreement with the People's Republic of China that will expand the access of American ships to 20 specified Chinese ports, and set aside for American-flag ships a substantial share (at least one-third) of the cargo between our countries. This agreement should officially foster expanded YOU.S. and Chinese shipping services linking the two countries, and will provide further momentum to the growth of Sino-American trade. There is also a need to modernize and expand the dry bulk segment of our fleet. Our heavy dependence on foreign carriage of YOU.S.-bulk cargoes deprives the YOU.S. economy of seafaring and shipbuilding jobs, adds to the balance-of-payments deficit, deprives the Government of substantial tax revenues, and leaves the United States dependent on foreign-flag shipping for a continued supply of raw materials to support the civil economy and war production in time of war. I therefore sent to the Congress proposed legislation to strengthen this woefully weak segment of the YOU.S.-flag fleet by removing certain disincentives to YOU.S. construction of dry bulkers and their operation under YOU.S. registry. Enactment of this proposed legislation would establish the basis for accelerating the rebuilding of the YOU.S.-flag dry bulk fleet toward a level commensurate with the position of the United States as the world's leading bulk trading country. During the past year the Administration has stated its support for legislation that would provide specific Federal assistance for the installation of fuel-efficient engines in existing American ships, and would strengthen this country's shipbuilding mobilization base. Strengthening the fleet is important, but we must also maintain our shipbuilding base for future ship construction. Provisions in existing laws calling for substantial or exclusive use of American flag vessels to carry cargoes generated by the Government must be vigorously pursued. I have therefore supported requirements that 50 percent of oil purchased for the strategic petroleum reserve be transported in YOU.S.-flag vessels, that the Cargo Preference Act be applied to materials furnished for the YOU.S. assisted construction of air bases in Israel, and to cargoes transported pursuant to the Chrysler Corporation Loan Guarantee Act. In addition, the Deep Seabed Hard Mineral Resources Act requires that at least one ore carrier per mine site be a YOU.S.-flag vessel. Much has been done, and much remains to be done. The FY 1982 budget includes a $107 million authorization for Construction Differential Subsidy ("CDS") funds which, added to the unobligated CDS balance of $100 million from 1980, and the recently enacted $135 million 1981 authorization, will provide an average of $171 million in CDS funds in 1981 and 1982. COAL EXPORT POLICY While significant growth in foreign demand for YOU.S. steam coal is foreseen, congestion at major YOU.S. coal exporting ports such as Hampton Roads, Virginia, and Baltimore, Maryland, could delay and impede exports. My Administration has worked through the Interagency Coal Task Force Study, which I created, to promote cooperation and coordination of resources between shippers, railroads, vessel broker/operators and port operators, and to determine the most appropriate Federal role in expanding and modernizing coal export facilities, including dredging deeper channels at selected ports. Some progress has already been made. In addition to action taken by transshippers to reduce the number of coal classifications used whenever possible, by the Norfolk and Western Railroad to upgrade its computer capability to quickly inventory its coal cars in its yards, and by the Chessie Railroad which is reactivating Pier 15 in Newport News and has established a berth near its Curtis Bay Pier in Baltimore to decrease delays in vessel berthing, public activities will include: • A $26.5 million plan developed by the State of Pennsylvania and Conrail to increase Conrail's coal handling capacity at Philadelphia; • A proposal by the State of Virginia to construct a steam coal port on the Craney Island Disposal area in Portsmouth harbor; • Plans by Mobile, Alabama, which operates the only publicly owned coal terminal in the YOU.S. to enlarge its capacity at McDuffie Island to 10 million tons ground storage and 100 car unit train unloading capability; • Development at New Orleans of steam coal facilities that are expected to add over 20 million tons of annual capacity by 1983; and • The Corps of Engineers, working with other interested Federal agencies, will determine which ports should be dredged, to what depth and on what schedule, in order to accommodate larger coal carrying vessels. Private industry will, of course, play a major role in developing the United States' coal export facilities. The new Administration should continue to work to eliminate transportation bottlenecks that impede our access to foreign markets. Special Needs WOMEN The past four years have been years of rapid advancement for women. Our focus has been two-fold: to provide American women with a full range of opportunities and to make them a part of the mainstream of every aspect of our national life and leadership. I have appointed a record number of women to judgeships and to top government posts. Fully 22 percent of all my appointees are women, and I nominated 41 of the 46 women who sit on the Federal bench today. For the first time in our history, women occupy policymaking positions at the highest level of every Federal agency and department and have demonstrated their ability to serve our citizens well. We have strengthened the rights of employed women by consolidating and strengthening enforcement of sex discrimination laws under the EEOC, by expanding employment rights of pregnant women through the Pregnancy Disability Bill, and by increasing federal employment opportunities for women through civil service reform, and flexi-time and part-time employment. By executive order, I created the first national program to provide women businessowners with technical assistance, grants, loans, and improved access to federal contracts. We have been sensitive to the needs of women who are homemakers. I established an Office of Families within HHS and sponsored the White House Conference on Families. We initiated a program targeting CETA funds to help displaced homemakers. The Social Security system was amended to eliminate the widow's penalty and a comprehensive study of discriminatory provisions and possible changes was presented to Congress. Legislation was passed to give divorced spouses of foreign service officers rights to share in pension benefits. We created an office on domestic violence within HHS to coordinate the 12 agencies that now have domestic violence relief programs, and to distribute information on the problem and the services available to victims. Despite a stringent budget for FY 1981, the Administration consistently supported the Women's Educational Equity Act and family planning activities, as well as other programs that affect women, such as food stamps, WIC, and social security. We have been concerned not only about the American woman's opportunities, but ensuring equality for women around the world. In November, 1980, I sent to the Senate the Convention on the Elimination of All Forms of Discrimination Against Women. This United Nations document is the most comprehensive and detailed international agreement which seeks the advancement of women. On women's issues, I have sought the counsel of men and women in and out of government and from all regions of our country. I established two panels—the President's Advisory Committee for Women and the Interdepartmental Task Force on Women—to advise me on these issues. The mandate for both groups expired on December 31, but they have left behind a comprehensive review of the status of women in our society today. That review provides excellent guidance for the work remaining in our battle against sex discrimination. Even though we have made progress, much remains on the agenda for women. I remain committed to the Equal Rights Amendment and will continue to work for its passage. It is essential to the goal of bringing America's women fully into the mainstream of American life that the ERA be ratified. The efforts begun for women in employment, business and education should be continued and strengthened. Money should be available to states to establish programs to help the victims of domestic violence. Congress should pass a national health care plan and a welfare reform program, and these measures should reflect the needs of women. The talents of women should continue to be used to the fullest inside and outside of government, and efforts should continue to see that they have the widest range of opportunities and options. HANDICAPPED I hope that my Administration will be remembered in this area for leading the way toward full civil fights for handicapped Americans. When I took office, no federal agency had yet issued 504 regulations. As I leave office, this first step by every major agency and department in the federal government is almost complete. But it is only a first step. The years ahead will require steadfast dedication by the President to protect and promote these precious rights in the classroom, in the workplace, and in all public facilities so that handicapped individuals may join the American mainstream and contribute to the fullest their resources and talents to our economic and social life. Just as we supported, in an unprecedented way, the civil rights of disabled persons in schools and in the workplace, other initiatives in health prevention-such as our immunization and nutrition programs for young children and new intense efforts to reverse spinal cord injury must continue so that the incidence of disability continues to decline. This year is the UN-declared International Year of Disabled Persons. We are organizing activities to celebrate and promote this important commemorative year within the government as well as in cooperation with private sector efforts in this country and around the world. The International Year will give our country the opportunity to recognize the talents and capabilities of our fellow citizens with disabilities. We can also share our rehabilitation and treatment skills with other countries and learn from them as well. I am proud that the United States leads the world in mainstreaming and treating disabled people. However, we have a long way to go before all psychological and physical barriers to disabled people are torn down and they can be full participants in our American way of life. We must pledge our full commitment to this goal during the International Year. FAMILIES Because of my concern for American families, my Administration convened last year the first White House Conference on Families which involved seven national hearings, over 506 state and local events, three White House Conferences, and the direct participation of more than 125,000 citizens. The Conference reaffirmed the centrality of families in our lives and nation but documented problems American families face as well. We also established the Office of Families within the Department of Health and Human Services to review government policies and programs that affect families. I expect the departments and agencies within the executive branch of the Federal government as well as Members of Congress, corporate and business leaders, and State and local officials across the country, to study closely the recommendations of the White House Conference and implement them appropriately. As public policy is developed and implemented by the Federal government, cognizance of the work of the Conference should be taken as a pragmatic and essential step. The Conference has done a good job of establishing an agenda for action to assure that the policies of the Federal government are more sensitive in their impact on families. I hope the Congress will review and seriously consider the Conference's recommendations. OLDER AMERICANS My Administration has taken great strides toward solving the difficult problems faced by older Americans. Early in my term we worked successfully with the Congress to assure adequate revenues for the Social Security Trust Funds. And last year the strength of the Social Security System was strengthened by legislation I proposed to permit borrowing among the separate trust funds. I have also signed into law legislation prohibiting employers from requiring retirement prior to age 70, and removing mandatory retirement for most Federal employees. In addition, my Administration worked very closely with Congress to amend the Older Americans Act in a way that has already improved administration of its housing, social services, food delivery, and employment programs. This year, I will be submitting to Congress a budget which again demonstrates my commitment to programs for the elderly. It will include, as my previous budgets have, increased funding for nutrition, senior centers and home health care, and will focus added resources on the needs of older Americans. With the 1981 White House Conference on Aging approaching, I hope the new Administration will make every effort to assure an effective and useful conference. This Conference should enable older Americans to voice their concerns and give us guidance in our continued efforts to ensure the quality of life so richly deserved by our senior citizens. REFUGEES We cannot hope to build a just and humane society at home if we ignore the humanitarian claims of refugees, their lives at stake, who have nowhere else to turn. Our country can be proud that hundreds of thousands of people around the world would risk everything they have-including their own lives—to come to our country. This Administration initiated and implemented the first comprehensive reform of our refugee and immigration policies in over 25 years. We also established the first refugee coordination office in the Department of State under the leadership of a special ambassador and coordinator for refugee affairs and programs. The new legislation and the coordinator's office will bring common sense and consolidation to our Nation's previously fragmented, inconsistent, and in many ways, outdated, refugee and immigration policies. With the unexpected arrival of thousands of Cubans and Haitians who sought refuge in our country last year, outside of our regular immigration and refugee admissions process, our country and its government were tested in being compassionate and responsive to a major human emergency. Because we had taken steps to reorganize our refugee programs, we met that test successfully. I am proud that the American people responded to this crisis with their traditional good will and hospitality. Also, we would never have been able to handle this unprecedented emergency without the efforts of the private resettlement agencies who have always been there to help refugees in crises. Immigrants to this country always contribute more toward making our country stronger than they ever take from the system. I am confident that the newest arrivals to our country will carry on this tradition. While we must remain committed to aiding and assisting those who come to our shores, at the same time we must uphold our immigration and refugee policies and provide adequate enforcement resources. As a result of our enforcement policy, the illegal flow from Cuba has been halted and an orderly process has been initiated to make certain that our refugee and immigration laws are honored. This year the Select Commission on Immigration and Refugee Policy will complete its work and forward its advice and recommendations. I hope that the recommendations will be carefully considered by the new Administration and the Congress, for it is clear that we must take additional action to keep our immigration policy responsive to emergencies and ever changing times. VETERANS This country and its leadership has a continuing and unique obligation to the men and women who served their nation in the armed forces and help maintain or restore peace in the world. My commitment to veterans—as evidenced by my record—is characterized by a conscientious and consistent emphasis in these general areas: First, we have worked to honor the Vietnam veteran. During my Administration, and under the leadership of VA Administrator Max Cleland, I was proud to lead our country in an overdue acknowledgement of our Nation's gratitude to the men and women who served their country during the bitter war in Southeast Asia. Their homecoming was deferred and seemed doomed to be ignored. Our country has matured in the last four years and at long last we were able to separate the war from the warrior and honor these veterans. But with our acknowledgement of their service goes an understanding that some Vietnam veterans have unique needs and problems. My Administration was able to launch a long sought after psychological readjustment and outreach program, unprecedented in its popularity, sensitivity and success. This program must be continued. The Administration has also grappled with the difficult questions posed by some veterans who served in Southeast Asia and were exposed to potentially harmful substances, including the herbicide known as Agent Orange. We have launched scientific inquiries that should answer many veterans' questions about their health and should provide the basis for establishing sound compensation policy. We cannot rest until their concerns are dealt with in a sensitive, expeditious and compassionate fashion. Second, we have focused the VA health care system in the needs of the service-connected disabled veteran. We initiated and are implementing the first reform of the VA vocational rehabilitation system since its inception in 1943. Also, my Administration was the first to seek a cost-of-living increase for the recipients of VA compensation every year. My last budget also makes such a request. The Administration also launched the Disabled Veterans Outreach Program in the Department of Labor which has successfully placed disabled veterans in jobs. Services provided by the VA health care system will be further targeted to the special needs of disabled veterans during the coming year. Third, the VA health care system—the largest in the free world—has maintained its independence and high quality during my Administration. We have made the system more efficient and have therefore treated more veterans than ever before by concentrating on out-patient care and through modern management improvements. As the median age of the American veteran population increases, we must concentrate on further changes within the VA system to keep it independent and to serve as a model to the nation and to the world as a center for research, treatment and rehabilitation. Government Assistance GENERAL AID TO STATE AND LOCAL GOVERNMENTS Since taking office, I have been strongly committed to strengthening the fiscal and economic condition of our Nation's State and local governments. I have accomplished this goal by encouraging economic development of local communities, and by supporting the General Revenue Sharing and other essential grant-in-aid programs. GRANTS-IN-AID TO STATES AND LOCALITIES During my Administration, total grants-in-aid to State and local governments have increased by more than 40 percent-from $68 billion in Fiscal Year 1977 to $96 billion in Fiscal Year 1981. This significant increase in aid has allowed States and localities to maintain services that are essential to their citizens without imposing onerous tax burdens. It also has allowed us to establish an unprecedented partnership between the leaders of the Federal government and State and local government elected officials. GENERAL REVENUE SHARING Last year Congress enacted legislation that extends the General Revenue Sharing program for three more ),ears. This program is the cornerstone of our efforts to maintain the fiscal health of our Nation's local government. It will provide $4.6 billion in each of the next three years to cities, counties and towns. This program is essential to the continued ability of our local governments to provide essential police, fire and sanitation services. This legislation renewing GRS will be the cornerstone of Federal-State-local government relations in the 1980's. This policy will emphasize the need for all levels of government to cooperate in order to meet the needs of the most fiscally strained cities and counties, and also will emphasize the important role that GRS can play in forging this partnership. I am grateful that Congress moved quickly to assure that our Nation's localities can begin the 1980's in sound fiscal condition. COUNTER-CYCLICAL ASSISTANCE Last year, I proposed that Congress enact a $1 billion counter-cyclical fiscal assistance program to protect States and localities from unexpected changes in the national economy. This program unfortunately was not enacted by the [full] Congress. I, therefore, have not included funding for counter-cyclical aid in my Fiscal Year 1982 budget. Nevertheless, I urge Congress to enact a permanent stand-by counter-cyclical program, so that States and cities can be protected during the next economic downturn. Urban Policy Three years ago, I proposed the Nation's first comprehensive urban policy. That policy involved more than one hundred improvements in existing Federal programs, four new Executive Orders and nineteen pieces of urban-oriented legislation. With Congress' cooperation, sixteen of these bills have now been signed into law. ECONOMIC DEVELOPMENT One of the principal goals of my domestic policy has been to strengthen the private sector economic base of our Nation's economically troubled urban and rural areas. With Congress' cooperation, we have substantially expanded the Federal government's economic development programs and provided new tax incentives for private investment in urban and rural communities. These programs have helped many communities to attract new private sector jobs and investments and to retain the jobs and investments that already are in place. When I took office, the Federal government was spending less than $300 million annually on economic development programs, and only $60 million of those funds in our Nation's urban areas. Since that time, we have created the Urban Development Action Grant (UDAG) program and substantially expanded the economic development programs in the Commerce Department. My FY 1982 budget requests more than $1.5 billion for economic development grants, loans and interest subsidies and almost $1.5 billion for loan guarantees. Approximately 60 percent of these funds will be spent in our Nation's urban areas. In addition, we have extended the 10 percent investment credit to include rehabilitation of existing industrial facilities as well as new construction. I continue to believe that the development of private sector investment and jobs is the key to revitalizing our Nation's economically depressed urban and rural areas. To ensure that the necessary economic development goes forward, the Congress must continue to provide strong support for the UDAG program and the programs for the Economic Development Administration. Those programs provide a foundation for the economic development of our Nation in the 1980's. COMMUNITY DEVELOPMENT The partnership among Federal, State and local governments to revitalize our Nation's communities has been a high priority of my Administration. When I took office, I proposed a substantial expansion of the Community Development Block Grant (CDBG) program and the enactment of a new $400 million Urban Development Action Grant (UDAG) program. Both of these programs have provided essential community and economic development assistance to our Nation's cities and counties. Last year, Congress reauthorized both the CDBG and UDAG programs. The CDBG program was reauthorized for three more years with annual funding increases of $150 million, and the UDAG program was extended for three years at the current funding level of $675 million annually. My 1982 budget requests full funding for both of these programs. These actions should help our Nation's cities and counties to continue the progress they have made in the last three years. NEIGHBORHOODS During my Administration we have taken numerous positive steps to achieve a full partnership of neighborhood organizations and government at all levels. We have successfully fought against red lining and housing discrimination. We created innovative Self Help funding and technical resource transfer mechanisms. We have created unique methods of access for neighborhood organizations to have a participating role in Federal and State government decision-making. Neighborhood based organizations are the threshold of the American community. The Federal government will need to develop more innovative and practical ways for neighborhood based organizations to successfully participate in the identification and solution of local and neighborhood concerns. Full partnership will only be achieved with the knowing participation of leaders of government, business, education and unions. Neither state nor Federal solutions imposed from on high will suffice. Neighborhoods are the fabric and soul of this great land. Neighborhoods define the weave that has been used to create a permanent fabric. The Federal government must take every opportunity to provide access and influence to the individuals and organizations affected at the neighborhood level. Rural Policy Since the beginning of my Administration, I have been committed to improving the effectiveness with which the Federal government deals with the problems and needs of a rapidly changing rural America. The rapid growth of some rural areas has placed a heavy strain on communities and their resources. There are also persistent problems of poverty and economic stagnation in other parts of rural America. Some rural areas continue to lose population, as they have for the past several decades. In December, 1979, I announced the Small Community and Rural Development Policy. It was the culmination of several years' work and was designed to address the varying needs of our rural population. In 1980, my Administration worked with the Congress to pass the Rural Development Policy Act of 1980, which when fully implemented will allow us to meet the needs of rural people and their communities more effectively and more efficiently. As a result of the policy and the accompanying legislation, we have: • Created the position of Under Secretary of Agriculture for Small Community and Rural Development to provide overall leadership. • Established a White House Working Group to assist in the implementation of the policy. • Worked with more than 40 governors to form State rural development councils to work in partnership with the White House Working Group, and the Federal agencies, to better deliver State and Federal programs to rural areas. • Directed the White House Working Group to annually review existing and proposed policies, programs, and budget levels to determine their adequacy in meeting rural needs and the fulfilling of the policy's objectives and principles. This effort on the part of my Administration and the Congress has resulted in a landmark policy. For the first time, rural affairs has received the prominence it has always deserved. It is a policy that can truly help alleviate the diverse and differing problems rural America will face in the 1980's. With the help and dedication of a great many people around the country who are concerned with rural affairs, we have constructed a mechanism for dealing effectively with rural problems. There is now a great opportunity to successfully combine Federal efforts with the efforts of rural community leaders and residents. It is my hope this spirit of cooperation and record of accomplishment will be continued in the coming years. Consumers In September, 1979, I signed an Executive Order designed to strengthen and coordinate Federal consumer programs and to establish procedures to improve and facilitate consumer participation in government decision-making. Forty Federal agencies have adopted programs to comply with the requirements of the Order. These programs will improve complaint handling, provide better information to consumers, enhance opportunities for public participation in government proceedings, and assure that the consumer point of view is considered in all programs, policies, and regulations. While substantial progress has been made in assuring a consumer presence in Federal agencies, work must continue to meet fully the goals of the Executive Order. Close monitoring of agency compliance with the requirements of the Order is necessary. Continued evaluation to assure that the programs are effective and making maximum use of available resources is also essential. As a complement to these initiatives, efforts to provide financial assistance in regulatory proceedings to citizen groups, small businesses, and others whose participation is limited by their economic circumstances must continue to be pursued. It is essential that consumer representatives in government pay particular attention to the needs and interests of low-income consumers and minorities. The Office of Consumer Affairs' publication, People Power: What Communities Are Doing to Counter Inflation, catalogues some of the ways that government and the private sector can assist the less powerful in our society to help themselves. New ways should be found to help foster this new people's movement which is founded on the principle of self-reliance. Science and Technology Science and technology contribute immeasurably to the lives of all Americans. Our high standard of living is largely the product of the technology that surrounds us in the home or factory. Our good health is due in large part to our ever increasing scientific understanding. Our national security is assured by the application of technology. And our environment is protected by the use of science and technology. Indeed, our vision of the future is often largely defined by the bounty that we anticipate science and technology will bring. The Federal government has a special role to play in science and technology. Although the fruits of scientific achievements surround us, it is often difficult to predict the benefits that will arise from a given scientific venture. And these benefits, even if predictable, do not usually lead to ownership rights. Accordingly, the Government has a special obligation to support science as an investment in our future. My Administration has sought to reverse a decade-long decline in funding. Despite the need for fiscal restraint, real support of basic research has grown nearly 11% during my term in office. And, my Administration has sought to increase the support of long-term research in the variety of mission agencies. In this way, we can harness the American genius for innovation to meet the economic, energy, health, and security challenges that confront our nation. • International Relations and National Security. Science and technology are becoming increasingly important elements of our national security and foreign policies. This is especially so in the current age of sophisticated defense systems and of growing dependence among all countries on modern technology for all aspects of their economic strength. For these reasons, scientific and technological considerations have been integral elements of the Administration's decisionmaking on such national security and foreign policy issues as the modernization of our strategic weaponry, arms control, technology transfer, the growing bilateral relationship with China, and our relations with the developing world. Four themes have shaped YOU.S. policy in international scientific and technological cooperation: pursuit of new international initiatives to advance our own research and development objectives; development and strengthening of scientific exchange to bridge politically ideological, and cultural divisions between this country and other countries; formulation of programs and institutional relations to help developing countries use science and technology beneficially; and cooperation with other nations to manage technologies with local impact. At my direction, my Science and Technology Adviser has actively pursued international programs in support of these four themes. We have given special attention to scientific and technical relations with China, to new forms of scientific and technical cooperation with Japan, to cooperation with Mexico, other Latin American and Caribbean countries and several states in Black America [Africa], and to the proposed Institute for Scientific and Technological Cooperation. In particular our cooperation with developing countries reflects the importance that each of them has placed on the relationship between economic growth and scientific and technological capability. It also reflects their view that the great strength of the YOU.S. in science and technology makes close relations with the YOU.S. technical community an especially productive means of enhancing this capability. Scientific and technological assistance is a key linkage between the YOU.S. and the developing world, a linkage that has been under-utilized in the past and one which we must continue to work to strengthen. • Space Policy. The Administration has established a framework for a strong and evolving space program for the 1980's. The Administration's space policy reaffirmed the separation of military space systems and the open civil space program, and at the same time, provided new guidance on technology transfer between the civil and military programs. The civil space program centers on three basic tenets: First, our space policy will reflect a balanced strategy of applications, science, and technology development. Second, activities will be pursued when they can be uniquely or more efficiently accomplished in space. Third, a premature commitment to a high challenge, space-engineering initiative of the complexity of Apollo is inappropriate. As the Shuttle development phases down, however, there will be added flexibility to consider new space applications, space science and new space exploration activities. • Technology Development. The Shuttle dominates our technology development effort and correctly so. It represents one of the most sophisticated technological challenges ever undertaken, and as a result, has encountered technical problems. Nonetheless, the first manned orbital flight is now scheduled for March, 1981. I have been pleased to support strongly the necessary funds for the Shuttle throughout my Administration. • Space Applications. Since 1972, the YOU.S. has conducted experimental civil remote sensing through Landsat satellites, thereby realizing many successful applications. Recognizing this fact, I directed the implementation of an operational civil land satellite remote sensing system, with the operational management responsibility in Commerce's National Oceanic and Atmospheric Administration. In addition, because ocean observations from space can meet common civil and military data requirements, a National Oceanic Satellite System has been proposed as a major FY 1981 new start. • Space Science Exploration. The goals of this Administration's policy in space science have been to: (1) continue a vigorous program of planetary exploration to understand the origin and evolution of the solar system; (2) utilize the space telescope and free-flying satellites to usher in a new era of astronomy; (3) develop a better understanding of the sun and its interaction with the terrestrial environment; and (4) utilize the Shuttle and Spacelab to conduct basic research that complements earth-based life science investigations. District of Columbia Washington, D.C., is home to both the Federal Government and to more than half a million American citizens. I have worked to improve the relationship between the Federal establishment and the Government of the District of Columbia in order to further the goals and spirit of home rule. The City controls more of its own destiny than was the case four years ago. Yet, despite the close cooperation between my Administration and that of Mayor Barry, we have not yet seen the necessary number of states ratify the Constitutional Amendment granting full voting representation in the Congress to the citizens of this city. It is my hope that this inequity will be rectified. The country and the people who inhabit Washington deserve no less. The Arts The arts are a precious national resource. Federal support for the arts has been enhanced during my Administration by expanding government funding and services to arts institutions, individual artists, scholars, and teachers through the National Endowment for the Arts. We have broadened its scope and reach to a more diverse population. We have also reactivated the Federal Council on the Arts and Humanities. It is my hope that during the coming years the new Administration and the Congress will: • Continue support of institutions promoting development and understanding of the arts; • Encourage business participants in a comprehensive effort to achieve a truly mixed economy of support for the arts; • Explore a variety of mechanisms to nurture the creative talent of our citizens and build audiences for their work; • Support strong, active National Endowments for the Arts; • Seek greater recognition for the rich cultural tradition of the nation's minorities; • Provide grants for the arts in low income neighborhoods. The Humanities In recently reauthorizing Federal appropriations for the National Endowment for the Humanities, the Congress has once again reaffirmed that "the encouragement and support of national progress and scholarship in the humanities . . . while primarily a matter for private and local initiative, is also an appropriate matter of concern to the Federal Government" and that "a high civilization must not limit its efforts to science and technology alone but must give full value and support to the other great branches of man's scholarly and cultural activity in order to achieve a better understanding of the past, a better analysis of the present, and a better view of the future." I believe we are in agreement that the humanities illuminate the values underlying important personal, social, and national questions raised in our society by its multiple links to and increasing dependence on technology, and by the diverse heritage of our many regions and ethnic groups. The humanities cast light on the broad issue of the role in a society of men and women of imagination and energy—those individuals who through their own example define "the spirit of the age," and in so doing move nations. Our Government's support for the humanities, within the framework laid down by the Congress, is a recognition of their essential nourishment of the life of the mind and vital enrichment of our national life. I will be proposing an increase in funding this year sufficient to enable the Endowment to maintain the same level of support offered our citizens in Fiscal Year 1981. In the allocation of this funding, special emphasis will be given to: • Humanities education in the nation's schools, in response to the great needs that have arisen in this area; • Scholarly research designed to increase our understanding of the cultures, traditions, and historical forces at work in other nations and in our own; • Drawing attention to the physical disintegration of the raw material of our cultural heritage—books, manuscripts, periodicals, and other documents—and to the development of techniques to prevent the destruction and to preserve those materials; and • The dissemination of quality programming in the humanities to increasingly large American audiences through the use of radio and television. The dominant effort in the Endowment's expenditures will be a commitment to strengthen and promulgate scholarly excellence and achievement in work in the humanities in our schools, colleges, universities, libraries, museums and other cultural institutions, as well as in the work of individual scholars or collaborative groups engaged in advanced research in the humanities. In making its grants the Endowment will increase its emphasis on techniques which stimulate support for the humanities from non-Federal sources, in order to reinforce our tradition of private philanthropy in this field, and to insure and expand the financial viability of our cultural institutions and life. Insular Areas I have been firmly committed to self-determination for Puerto Rico, the Virgin Islands, Guam, American Samoa and the Northern Mariana Islands, and have vigorously supported the realization of whatever political status aspirations are democratically chosen by their peoples. This principle was the keystone of the comprehensive territorial policy I sent the Congress last year. I am pleased that most of the legislative elements of that policy were endorsed by the 96th Congress. The unique cultures, fragile economies, and locations of our Caribbean and Pacific Islands are distinct assets to the United States which require the sensitive application of policy. The United States Government should pursue initiatives begun by my Administration and the Congress to stimulate insular economic development; enhance treatment under Federal programs eliminating current inequities; provide vitally needed special assistance and coordinate and rationalize policies. These measures will result in greater self-sufficiency and balanced growth. In particular, I hope that the new Congress will support funding for fiscal management, comprehensive planning and other technical assistance for the territories, as well as create the commission I have proposed to review the applicability of all Federal laws to the insular areas and make recommendations for appropriate modification. IV. REMOVING GOVERNMENTAL WASTE AND INEFFICIENCY One of my major commitments has been to restore public faith in our Federal government by cutting out waste and inefficiency. In the past four years, we have made dramatic advances toward this goal, many of them previously considered impossible to achieve. Where government rules and operations were unnecessary, they have been eliminated, as with airline, rail, trucking and financial deregulation. Where government functions are needed, they have been streamlined, through such landmark measures as the Civil Service Reform Act of 1978. I hope that the new administration and the Congress will keep up the momentum we have established for effective and responsible change in this area of crucial public concern. CIVIL SERVICE REFORM In March 1978, I submitted the Civil Service Reform Act to Congress. I called it the centerpiece of my efforts to reform and reorganize the government. With bipartisan support from Congress, the bill passed, and I am pleased to say that implementation is running well ahead of the statutory schedule. Throughout the service, we are putting into place the means to assure that reward and retention are based on performance and not simply on length of time on the job. In the first real test of the Reform Act, 98 percent of the eligible top-level managers joined the Senior Executive Service, choosing to relinquish job protections for the challenge and potential reward of this new corps of top executives. Though the Act does not require several of its key elements to be in operation for another year, some Federal agencies already have established merit pay systems for GS-13-15 managers, and most agencies are well on their way to establishing new performance standards for all their employees. All have paid out, or are now in the process of paying out, performance bonuses earned by outstanding members of the Senior Executive Service. Dismissals have increased by 10 percent, and dismissals specifically for inadequate job performance have risen 1500 percent, since the Act was adopted. Finally, we have established a fully independent Merit Systems Protection Board and Special Counsel to protect the rights of whistle-blowers and other Federal employees faced with threats to their rights. In 1981, civil service reform faces critical challenges—all agencies must have fully functioning performance appraisal systems for all employees, and merit pay systems for compensating the government's 130,000 GS-13-15 managers. Performance bonuses for members of the Senior Executive Service will surely receive scrutiny. If this attention is balanced and constructive, it can only enhance the chances for ultimate success of our bipartisan commitment to the revolutionary and crucial pay-for-performance concept. REGULATORY REFORM During the past four years we have made tremendous progress in regulatory reform. We have discarded old economic regulations that prevented competition and raised consumer costs, and we have imposed strong management principles on the regulatory programs the country needs, cutting paperwork and other wasteful burdens. The challenge for the future is to continue the progress in both areas without crippling vital health and safety programs. Our economic deregulation program has achieved major successes in five areas: Airlines: The Airline Deregulation Act is generating healthy competition, saving billions in fares, and making the airlines more efficient. The Act provides that in 1985 the CAB itself will go out of existence. Trucking: The trucking deregulation bill opens the industry to competition and allows truckers wide latitude on the routes they drive and the goods they haul. The bill also phases out most of the old law's immunity for setting rates. The Congressional Budget Office estimates these reforms will save as much as $8 billion per year and cut as much as half a percentage point from the inflation rate. Railroads: Overregulation has stifled railroad management initiative, service, and competitive pricing. The new legislation gives the railroads the freedom they need to rebuild a strong, efficient railroad industry. Financial Institutions: With the help of the Congress, over the past four years we have achieved two major pieces of financial reform legislation—legislation which has provided the basis for the most farreaching changes in the financial services industry since the 1930's. The International Banking Act of 1978 was designed to reduce the advantages that foreign banks operating in the United States possessed in comparison to domestic banks. The Depository Institutions Deregulation and Monetary Control Act, adopted last March, provides for the phased elimination of a variety of anti-competitive barriers to financial institutions and freedom to offer services to and attract the savings of consumers, especially small savers. Recently, I submitted to the Congress my Administration's recommendations for the phased liberalization of restrictions on geographic expansion by commercial banks. Last year the Administration and financial regulatory agencies proposed legislation to permit the interstate acquisition of failing depository institutions. In view of the difficult outlook for some depository institutions I strongly urge the Congress to take prompt favorable action on the failing bank legislation. Telecommunications: While Congress did not pass legislation in this area, the Federal Communications Commission has taken dramatic action to open all aspects of communications to competition and to eliminate regulations in the areas where competition made them obsolete. The public is benefitting from an explosion of competition and new services. While these initiatives represent dramatic progress in economic deregulation, continued work is needed. I urge Congress to act on communications legislation and to consider other proposed deregulation measures, such as legislation on the bus industry. In addition, the regulatory commissions must maintain their commitment to competition as the best regulator of all. The other part of my reform program covers the regulations that are needed to protect the health, safety, and welfare of our citizens. For these regulations, my Administration has created a management program to cut costs without sacrificing goals. Under my Executive Order 12044, we required agencies to analyze the costs of their major new rules and consider alternative approaches—such as performance standards and voluntary codes—that may make rules less costly and more flexible. We created the Regulatory Analysis Review Group in the White House to analyze the most costly proposed new rules and find ways to improve them. The Regulatory Council was established to provide the first Government-wide listing of upcoming rules and eliminate overlapping and conflicting regulations. Agencies have launched "sunset" programs to weed out outmoded old regulations. We have acted to encourage public participation in regulatory decisionmaking. These steps have already saved billions of dollars in regulatory costs and slashed thousands of outmoded regulations. We are moving steadily toward a regulatory system that provides needed protections fairly, predictably, and at minimum cost. I urge Congress to continue on this steady path and resist the simplistic solutions that have been proposed as alternatives. Proposals like legislative veto and increased judicial review will add another layer to the regulatory process, making it more cumbersome and inefficient. The right approach to reform is to improve the individual statutes—where they need change—and to ensure that the regulatory agencies implement those statutes sensibly. PAPERWORK REDUCTION The Federal Government imposes a huge paperwork burden on business, local government, and the private sector. Many of these forms are needed for vital government functions, but others are duplicative, overly complex or obsolete. During my Administration we cut the paperwork burden by 15 percent, and we created procedures to continue this progress. The new Paperwork Reduction Act centralizes, in OMB, oversight of all agencies' information requirements and strengthens OMB's authority to eliminate needless forms. The "paperwork budget" process, which I established by executive order, applies the discipline of the budget process to the hours of reporting time imposed on the public, forcing agencies to scrutinize all their forms each year. With effective implementation, these steps should allow further, substantial paperwork cuts in the years ahead. TIGHTENING STANDARDS FOR GOVERNMENTAL EFFICIENCY AND INTEGRITY To develop a foundation to carry out energy policy, we consolidated scattered energy programs and launched the Synthetic Fuels Corporation; to give education the priority it deserves and at the same time reduce HHS to more manageable size, I gave education a seat at the Cabinet table, to create a stronger system for attacking waste and fraud, I reorganized audit and investigative functions by putting an Inspector General in major agencies. Since I took office, we have submitted 14 reorganization initiatives and had them all approved by Congress. We have saved hundreds of millions of dollars through the adoption of businesslike cash management principles and set strict standards for personal financial disclosure and conflict of interest avoidance by high Federal officials. To streamline the structure of the government, we have secured approval of 14 reorganization initiatives, improving the efficiency of the most important sectors of the government, including energy, education, and civil rights enforcement. We have eliminated more than 300 advisory committees as well as other agencies, boards and commissions which were obsolete or ineffective. Independent Inspectors General have been appointed in major agencies to attack fraud and waste. More than a billion dollars of questionable transactions have been identified through their audit activities. The adoption of business-like cash management and debt collection initiatives will save over $1 billion, by streamlining the processing of receipts, by controlling disbursements more carefully, and by reducing idle cash balances. Finally this Administration has set strict standards for personal financial disclosure and conflict of interest avoidance by high Federal officials, to elevate the level of public trust in the government. V. PROTECTING BASIC RIGHTS AND LIBERTIES I am extremely proud of the advances we have made in ensuring equality and protecting the basic freedoms of all Americans. • The Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance (OFCCP) have been reorganized and strengthened and a permanent civil rights unit has been established in OMB. • To avoid fragmented, inconsistent and duplicative enforcement of civil rights laws, three agencies have been given coordinative and standard-setting responsibilities in discrete areas: EEOC for all employment-related activities, HUD for all those relating to housing, and the Department of Justice for all other areas. • With the enactment of the Right to Financial Privacy Act and a bill limiting police search of newsrooms, we have begun to establish a sound, comprehensive, privacy program. Ratification of the Equal Rights Amendment must be aggressively pursued. Only one year remains in which to obtain ratification by three additional states. The Congress must give early attention to a number of important bills which remain. These bills would: • strengthen the laws against discrimination in housing. Until it is enacted, the 1968 Civil Rights Act's promise of equal access to housing will remain unfulfilled; • establish a charter for the FBI and the intelligence agencies. The failure to define in law the duties and responsibilities of these agencies has made possible some of the abuses which have occurred in recent years; • establish privacy safeguards for medical research, bank, insurance, and credit records; and provide special protection for election fund transfer systems. EQUAL RIGHTS AMENDMENT I remain committed as strongly as possible to the ratification of the Equal Rights Amendment. As a result of our efforts in 1978, the Equal Rights Amendment's deadline for ratification was extended for three years. We have now one year and three States left. We cannot afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional States. Although the Congress has no official role in the ratification process at this point, you do have the ability to affect public opinion and the support of State Legislators for the Amendment. I urge Members from States which have not yet ratified the Equal Rights Amendment to use their influence to secure ratification. I will continue my own efforts to help ensure ratification of the Equal Rights Amendment. MARTIN LUTHER KING, JR. Dr. Martin Luther King, Jr. led this Nation's effort to provide all its citizens with civil rights and equal opportunities. His commitment to human rights, peace and non-violence stands as a monument to his humanity and courage. As one of our Nation's most outstanding leaders, it is appropriate that his birthday be commemorated as a national holiday. I hope the Congress will enact legislation this year that will achieve this goal. FAIR HOUSING The Fair Housing Act Amendments of 1980 passed the House of Representatives by an overwhelming bipartisan majority only to die in the Senate at the close of the 96th Congress. The leaders of both parties have pledged to make the enactment of fair housing legislation a top priority of the incoming Congress. The need is pressing and a strengthened federal enforcement effort must be the primary method of resolution. CRIMINAL CODE The Federal criminal laws are often archaic, frequently contradictory and imprecise, and clearly in need of revision and codification. The new Administration should continue the work which has been begun to develop a Federal criminal code which simplifies and clarifies our criminal laws, while maintaining our basic civil liberties and protections. PRIVACY As our public and private institutions collect more and more information and as communications and computer technologies advance, we must act to protect the personal privacy of our citizens. In the past four years we acted on the report of the Privacy Commission and established a national privacy policy. We worked with Congress to pass legislation restricting wiretaps and law enforcement access to bank records and to reporters' files. We reduced the number of personal files held by the government and restricted the transfer of personal information among Federal agencies. We also worked with the Organization for Economic Cooperation and Development to establish international guidelines to protect the privacy of personal information that is transferred across borders. VI. PROTECTING AND DEVELOPING OUR NATURAL RESOURCES Two of our Nation's most precious natural resources are our environment and our vast agricultural capacity. From the beginning of my Administration, I have worked with the Congress to enhance and protect, as well as develop our natural resources. In the environmental areas, I have been especially concerned about the importance of balancing the need for resource development with preserving a clean environment, and have taken numerous actions to foster this goal. In the agricultural area, I have taken the steps needed to improve farm incomes and to increase our agricultural production to record levels. That progress must be continued in the 1980's. Environment Preserving the quality of our environment has been among the most important objectives of my Administration and of the Congress. As a result of these shared commitments and the dedicated efforts of many members of the Congress and my Administration, we have achieved several historic accomplishments. PROTECTION OF ALASKA LANDS Passage of the Alaska National Interest Lands Conservation Act was one of the most important conservation actions of this century. At stake was the fate of millions of acres of beautiful land, outstanding and unique wildlife populations, native cultures, and the opportunity to ensure that future generations of Americans would be able to enjoy the benefits of these nationally significant resources. As a result of the leadership, commitment, and persistence of my Administration and the Congressional leadership, the Alaska Lands Bill was signed into law last December. The Act adds 97 million acres of new parks and refuges, more than doubling the size of our National Park and National Wildlife Refuge Systems. The bill triples the size of our national wilderness system, increasing its size by 56 million acres. And by adding 25 free-flowing river segments to the Wild and Scenic River System, the bill almost doubles the fiver mileage in that system. The Alaska Lands Act reaffirms our commitment to the environment and strikes a balance between protecting areas of great beauty and allowing development of Alaska's oil, gas. mineral, and timber resources. PROTECTION OF NATURAL RESOURCES In addition to the Alaska Lands Act. over the past four years we have been able to expand significantly the national wilderness and parks systems. In 1978, the Congress passed the historic Omnibus Parks Act, which made 12 additions to the National Park System. The Act also established the first two national trails since the National Trails System Act was passed in 1968. Then, in 1980, as a result of my 1979 Environmental Message, the Federal land management agencies have established almost 300 new National Recreational Trails. With the completion of the RARE II process, which eliminated the uncertainty surrounding the status of millions of acres of land, we called for over 15 million acres of new wilderness in the nation's National Forest, in 1980 the Congress established about 4.5 million acres of wilderness in the lower 48 states. In addition, the Administration recommended legislation to protect Lake Tahoe, and through and Executive Order has already established a mechanism to help ensure the Lake's protection. Finally, in 1980 the Administration established the Channel Islands Marine Sanctuary. Administration actions over the past four years stressed the importance of providing Federal support only for water resource projects that are economically and environmentally sound. This policy should have a major and lasting influence on the federal government's role in water resource development and management. The Administration's actions to recommend to the Congress only economically and environmentally sound water resource projects for funding resulted not only in our opposing uneconomic projects but also—in 1979—in the first Administration proposal of new project starts in 4 years. One of the most significant water policy actions of the past four years was the Administration's June 6, 1978 Water Policy Reform Message to the Congress. This Message established a new national water resources policy with the following objectives: • to give priority emphasis to water conservation; • to consider environmental requirements and values more fully and along with economic factors in the planning and management of water projects and programs; • to enhance cooperation between state and federal agencies in water resources planning and management. In addition, the Executive Office of the President established 11 policy decision criteria to evaluate the proposed federal water projects, the Water Resources Council developed and adopted a new set of Principles and Standards for water projects which is binding on all federal construction agencies, and improved regulations were developed to implement the National Historic Preservation Act and the Fish and Wildlife Coordination Act. As a result, water resource projects must be determined to be economically sound before the Administration will recommend authorization or appropriation. Over the years ahead, this policy will help to reduce wasteful federal spending by targeting federal funds to the highest priority water resource projects. In the pursuit of this policy, however, we cannot lose sight of the vital role that sound water resource projects play in providing irrigation, power, and flood control. We must also recognize the special needs of particular regions of the country in evaluating the need for additional projects. ADDRESSING GLOBAL RESOURCE AND ENVIRONMENTAL PROBLEMS The Global 2000 Report to the President, prepared in response to my 1977 Environment Message, is the first of its kind. Never before has our government, or any government, taken such a comprehensive, long-range look at the interrelated global issues of resources, population, and environment. The Report's conclusions are important. They point to a rapid increase in population and human needs through the year 2000 while at the same time a decline in the earth's capacity to meet those needs-unless nations of the world act decisively to alter current trends. The United States has contributed actively to a series of UN conferences on the environment, population, and resources, and is preparing for the 1981 Conference on New and Renewable Sources of Energy. Following my 1977 Environmental Message, the Administration development assistance programs have added emphasis to natural resource management and environmental protection. My 1979 Environmental Message called attention to the alarming loss of world forests, particularly in the tropics. An interagency task force on tropical forests has developed a YOU.S. government program to encourage conservation and wise management of tropical forests. The Administration is encouraging action by other nations and world organizations to the same purpose. The United States is a world leader in wildlife conservation and the assessment of environmental effects of government actions. The January 5, 1979, Executive Order directing YOU.S. government agencies to consider the effects of their major actions abroad, is another example of this leadership. COMMITMENT TO CONTROL OF POLLUTION AND HAZARDOUS CHEMICALS Over the past four years, there has been steady progress towards cleaner air and water, sustained by the commitment of Congress and the Administration to these important national objectives. In addition, the Administration has developed several new pollution compliance approaches such as alternative and innovative waste water treatment projects, the "bubble" concept, the "offset" policy, and permit consolidation, all of which are designed to reduce regulatory burdens on the private sector. One of the most pressing problems to come to light in the past four years has been improper hazardous waste disposal. The Administration has moved on three fronts. First, we proposed the Oil Hazardous Substances and Hazardous Waste Response, Liability and Compensation Act (the "Superfund" bill) to provide comprehensive authority and $1.6 billion in funds to clean up abandoned hazardous waste disposal sites. In November 1980 the Congress passed a Superfund bill which I signed into law. Second, the administration established a hazardous waste enforcement strike force to ensure that when available, responsible parties are required to clean up sites posing dangers to public health and to the environment. To date, 50 lawsuits have been brought by the strike force. Third, regulations implementing subtitle C of the Resource Conservation and Recovery Act were issued. The regulations establish comprehensive controls for hazardous waste and, together with vigorous enforcement, will help to ensure that Love Canal will not be repeated. THE FUTURE For the future, we cannot—and we must not—forget that we are charged with the stewardship of an irreplaceable environment and natural heritage. Our children, and our children's children, are dependent upon our maintaining our commitment to preserving and enhancing the quality of our environment. It is my hope that when our descendants look back on the 1980's they will be able to affirm: • that we kept our commitment to the restoration of environmental quality; • that we protected the public health from the continuing dangers of toxic chemicals, from pollution, from hazardous and radioactive waste, and that we made our communities safer, healthier and better places to live; • that we preserved America's wilderness areas and particularly its last great frontier, Alaska, for the benefit of all Americans in perpetuity; • that we put this nation on a path to a sustainable energy future, one based increasingly on renewable resources and on energy conservation; • that we moved to protect America's countryside and coastland from mismanagement and irresponsibility; • that we redirected the management of the nation's water resources toward water conservation, sound development and environmental protection; • that we faced squarely such worldwide problems as the destruction of forests, acid rain, carbon dioxide build-up and nuclear proliferation; and • that we protected the habitat and the existence of our own species on this earth. Agriculture THE FARM ECONOMY The farm economy is sound and its future is bright. Agriculture remains a major bulwark of the nation's economy and an even more important factor in the world food system. The demand for America's agricultural abundance, here and abroad, continues to grow. In the near-term, the strength of this demand is expected to press hard against supplies, resulting in continued price strength. The health and vitality of current-day agriculture represents a significant departure from the situation that existed when I came to office four years ago. In January 1977, the farm economy was in serious trouble. Farm prices and farm income were failing rapidly. Grain prices were at their lowest levels in years and steadily falling. Livestock producers, in their fourth straight year of record losses, were liquidating breeding herds at an unparalleled rate. Dairy farmers were losing money on every hundredweight of milk they produced. Sugar prices were in a nosedive. Through a combination of improvements in old, established programs and the adoption of new approaches where innovation and change were needed, my Administration turned this situation around. Commodity prices have steadily risen. Farm income turned upward. YOU.S. farm exports set new records each year, increasing over 80 percent for the four year period. Livestock producers began rebuilding their herds. Dairy farmers began to earn a profit again. RECENT POLICY INITIATIVES Several major agricultural policy initiatives have been undertaken over the past year. Some are the culmination of policy proposals made earlier in this Administration; others are measures taken to help farmers offset the impact of rapid inflation in production costs. In combination, they represent a significant strengthening of our nation's food and agricultural policy. These initiatives include: FOOD SECURITY RESERVE The Congress authorized formation of a 4 million ton food grain reserve for use in international food assistance. This reserve makes it possible for the United States to stand behind its food aid commitment to food deficit nations, even during periods of short supplies and high prices. This corrects a serious fault in our past food assistance policy. COMPREHENSIVE CROP INSURANCE The Congress also authorized a significant new crop insurance program during 1980. This measure provides farmers with an important new program tool for sharing the economic risks that are inherent to agriculture. When fully operational, it will replace a hodgepodge of disaster programs that suffered from numerous shortcomings. SPECIAL LOAN RATES Another legislative measure passed late in the 2nd session of the 96th Congress authorizes the Secretary of Agriculture to provide higher loan rates to farmers who enter their grain in the farmer-owned grain reserve. This additional incentive to participate will further strengthen the reserve. INCREASED LOAN PRICES In July 1980, I administratively raised loan prices for wheat, feedgrains, and soybeans to help offset the effects of a serious cost-price squeeze. At the same time, the release and call prices for the grain reserve were adjusted upward. HIGHER TARGET PRICES The Agricultural Adjustment Act of 1980 raised the target prices for 1980-crop wheat and feed grain crops. This change corrected for shortcomings in the adjustment formula contained in the Food and Agriculture Act of 1977. FUTURE AGENDA The food and agricultural policies adopted by this Administration over the past four years, including those described above, will provide a firm foundation for future governmental actions in this field. Expiration of the Food and Agriculture Act of 1977 later this year will require early attention by the Congress. With relatively minor changes, most of the authorities contained in the 1977 Act should be extended in their present form. The farmer-owned grain reserve has proven to be a particularly effective means of stabilizing grain markets and should be preserved in essentially its present form. Beyond this, it will be important for the Congress to keep a close eye on price-cost developments in the farm sector. As noted above, some of the actions I took last year were for the purpose of providing relief from the cost-price squeeze facing farmers. Should these pressures continue, further actions might be required. My Administration has devoted particular attention to the issues of world hunger, agricultural land use, and the future structure of American agriculture. I encourage the Congress and the next Administration to review the results of these landmark enquiries and, where deemed appropriate, to act on their recommendations. Following a careful review of the situation, I recently extended the suspension of grain sales to the Soviet Union. I am satisfied that this action has served its purpose effectively and fairly. However, as long as this suspension must remain in effect, it will be important for the next Administration and the Congress to take whatever actions are necessary to ensure that the burden does not fall unfairly on our Nation's farmers. This has been a key feature of my Administration's policy, and it should be maintained. VII. FOREIGN POLICY From the time I assumed office four years ago this month, I have stressed the need for this country to assert a leading role in a world undergoing the most extensive and intensive change in human history. My policies have been directed in particular at three areas of change: • the steady growth and increased projection abroad of Soviet military power-power that has grown faster than our own over the past two decades. • the overwhelming dependence of Western nations, which now increasingly includes the United States, on vital oil supplies from the Middle East. • the pressures of change in many nations of the developing world, in Iran and uncertainty about the future stability of many developing countries. As a result of those fundamental facts, we face some of the most serious challenges in the history of this nation. The Soviet invasion of Afghanistan is a threat to global peace, to East-West relations, and to regional 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 nonaligned—regard the Soviet invasion as a threat to their independence and security. Turmoil within the region adjacent to the Persian Gulf poses risks for the security and prosperity of every oil importing nation and thus for the entire global economy. The continuing holding of American hostages in Iran is both an affront to civilized people everywhere, and a serious impediment to meeting the self-evident threat to widely-shared common interests—including those of Iran. But as we focus our most urgent efforts on pressing problems, we will continue to pursue the benefits that only change can bring. For it always has been the essence of America that we want to move on—we understand that prosperity, progress and most of all peace cannot be had by standing still. A world of nations striving to preserve their independence, and of peoples aspiring for economic development and political freedom, is not a world hostile to the ideals and interests of the United States. We face powerful adversaries, but we have strong friends and dependable allies. We have common interests with the vast majority of the world's nations and peoples. There have been encouraging developments in recent years, as well as matters requiring continued vigilance and concern: • Our alliances with the world's most advanced and democratic states from Western Europe through Japan are stronger than ever. • We have helped to bring about a dramatic improvement in relations between Egypt and Israel and an historic step towards a comprehensive Arab-Israeli settlement. • Our relations with China are growing closer, providing a major new dimension in our policy in Asia and the world. • Across southern Africa from Rhodesia to Namibia we are helping with the peaceful transition to majority rule in a context of respect for minority as well as majority rights. • We have worked domestically and with our allies to respond to an uncertain energy situation by conservation and diversification of energy supplies based on internationally agreed targets. • We have unambiguously demonstrated our commitment to defend Western interests in Southwest Asia, and we have significantly increased our ability to do so. • And over the past four years the YOU.S. has developed an energy program which is comprehensive and ambitious. New institutions have been established such as the Synthetic Fuels Corporation and Solar Bank. Price decontrol for oil and gas is proceeding. American consumers have risen to the challenge, and we have experienced real improvements in consumption patterns. The central challenge for us today is to our steadfastness of purpose. We are no longer tempted by isolationism. But we must also learn to deal effectively with the contradictions of the world—the need to cooperate with potential adversaries without euphoria, without undermining our determination to compete with such adversaries and if necessary confront the threats they may pose to our security. We face a broad range of threats and opportunities. We have and should continue to pursue a broad range of defense, diplomatic and economic capabilities and objectives. I see six basic goals for America in the world over the 1980's: • First, we will continue, as we have over the past four years, to build America's military strength and that of our allies and friends. Neither the Soviet Union nor any other nation will have reason to question our will to sustain the strongest and most flexible defense forces. • Second, we will pursue an active diplomacy in the world, working—together with our friends and allies—to resolve disputes through peaceful means and to make any aggressor pay a heavy price. • Third, we will strive to resolve pressing international economic problems-particularly energy and inflation—and continue to pursue our still larger objective of global economic growth through expanded trade and development assistance and through the preservation of an open multilateral trading system. • Fourth, we will continue vigorously to support the process of building democratic institutions and improving human rights protection around the world. We are deeply convinced that the future lies not with dictatorship but democracy. • Fifth, we remain deeply committed to the process of mutual and verifiable arms control, particularly to the effort to prevent the spread and further development of nuclear weapons. Our decision to defer, but not abandon our efforts to secure ratification of the SALT II Treaty reflects our firm conviction that the United States has a profound national security interest in the constraints on Soviet nuclear forces which only that treaty can provide. • Sixth, we must continue to look ahead in order to evaluate and respond to resource, environment and population challenges through the end of this century. One very immediate and pressing objective that is uppermost on our minds and those of the American people is the release of our hostages in Iran. We have no basic quarrel with the nation, the revolution or the people of Iran. The threat to them comes not from American policy but from Soviet actions in the region. We are prepared to work with the government of Iran to develop a new and mutually beneficial relationship. But that will not be possible so long as Iran continues to hold Americans hostages, in defiance of the world community and civilized behavior. They must be released unharmed. We have thus far pursued a measured program of peaceful diplomatic and economic steps in an attempt to resolve this issue without resorting to other remedies available to us under international law. This reflects the deep respect of our nation for the rule of law and for the safety of our people being held, and our belief that a great power bears a responsibility to use its strength in a measured and judicious manner. But our patience is not unlimited and our concern for the well-being of our fellow citizens grows each day. Enhancing National Security—American Military Strength The maintenance of national security is my first concern, as it has been for every president before me. We must have both the military power and the political will to deter our adversaries and to support our friends and allies. We must pay whatever price is required to remain the strongest nation in the world. That price has increased as the military power of our major adversary has grown and its readiness to use that power been made all too evident in Afghanistan. The real increases in defense spending, therefore probably will be higher than previously projected; protecting our security may require a larger share of our national wealth in the future. THE 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 invasion of Afghanistan and the imposition of a puppet government have highlighted in the starkest terms the darker side of their policies-going well beyond competition and the legitimate pursuit of national interest, and violating all norms of international law and practice. This attempt to subjugate an independent, non-aligned Islamic people is a callous violation of international law and the United Nations Charter, two fundamentals of international order. Hence, it is also a dangerous threat to world peace. For the first time since the communization of Eastern Europe after World War II, the Soviets have sent combat forces into an area that was not previously under their control, into a non-aligned and sovereign state. The destruction of the independence of the Afghanistan government and the occupation by the Soviet Union have altered the strategic situation in that part of the world in a very ominous fashion. It has significantly shortened the striking distance to the Indian Ocean and the Persian Gulf for the Soviet Union. It has also eliminated a buffer between the Soviet Union and Pakistan and presented a new threat to Iran. These two countries are now far more vulnerable to Soviet political intimidation. If that intimidation were to prove effective, the Soviet Union could control an area of vital strategic and economic significance to the survival of Western Europe, the Far East, and ultimately the United States. It has now been over a year since the Soviet invasion of Afghanistan dealt a major blow to YOU.S.-Soviet relations and the entire international system. The YOU.S. response has proven to be serious and far-reaching. It has been increasingly effective, imposing real and sustained costs on the USSR's economy and international image. Meanwhile, we have encouraged and supported efforts to reach a political settlement in Afghanistan which would lead to a withdrawal of Soviet forces from that country and meet the interests of all concerned. It is Soviet intransigence that has kept those efforts from bearing fruit. Meanwhile, an overwhelming November resolution of the United Nations General Assembly on Afghanistan has again made clear that the world has not and will not forget Afghanistan. And our response continues to make it clear that Soviet use of force in pursuit of its international objectives is incompatible with the notion of business-as-usual. BILATERAL COMMUNICATION YOU.S.-Soviet relations remain strained by the continued Soviet presence in Afghanistan, by growing Soviet military capabilities, and by the Soviets' apparent willingness to use those capabilities without respect for the most basic norms of international behavior. But the YOU.S.-Soviet relationship remains the single most important element in determining whether there will be war or peace. And so, despite serious strains in our relations, we have maintained a dialogue with the Soviet Union over the past year. Through this dialogue, we have ensured against bilateral misunderstandings and miscalculations which might escalate out of control, and have managed to avoid the injection of superpower rivalries into areas of tension like the Iran-Iraq conflict. POLAND Now, as was the case a year ago, the prospect of Soviet use of force threatens the international order. The Soviet Union has completed preparations for a possible military intervention against Poland. Although the situation in Poland has shown signs of stabilizing recently, Soviet forces remain in a high state of readiness and they could move into Poland on short notice. We continue to believe that the Polish people should be allowed to work out their internal problems themselves, without outside interference, and we have made clear to the Soviet leadership that any intervention in Poland would have severe and prolonged consequences for East-West detente, and YOU.S.-Soviet relations in particular. DEFENSE BUDGET For many years the Soviets have steadily increased their real defense spending, expanded their strategic forces, strengthened their forces in Europe and Asia, and enhanced their capability for projecting military force around the world directly or through the use of proxies. Afghanistan dramatizes the vastly increased military power of the Soviet Union. The Soviet Union has built a war machine far beyond any reasonable requirements for their own defense and security. In contrast, our own defense spending declined in real terms every year from 1968 through 1976. We have reversed this decline in our own effort. Every year since 1976 there has been a real increase in our defense spending—and our lead has encouraged increases by our allies. With the support of the Congress, we must and will make an even greater effort in the years ahead. The Fiscal Year 1982 budget would increase funding authority for defense to more than $196 billion. This amount, together with a supplemental request for FY 1981 of about $6 billion, will more than meet my Administration's pledge for a sustained growth of 3 percent in real expenditures, and provides for 5 percent in program growth in FY 1982 and beyond. The trends we mean to correct cannot be remedied overnight; we must be willing to see this program through. To ensure that we do so I am setting a growth rate for defense that we can sustain over the long haul. The defense program I have proposed for the next five years will require some sacrifice—but sacrifice we can well afford. The defense program emphasizes four areas: • 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; • 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; • It provides us the ability to come quickly to the aid of friends and allies around the globe; • And it ensures that our Navy will continue to be the most powerful on the seas. STRATEGIC FORCES We are strengthening each of the three legs of our strategic forces. The cruise missile production which will begin next year will modernize our strategic air deterrent. B-52 capabilities will also be improved. These steps will maintain and enhance the B-52 fleet by improving its ability to deliver weapons against increasingly heavily defended targets. We are also modernizing our strategic submarine force. Four more POSEIDON submarines backfitted with new, 4,000 mile TRIDENT I missiles began deployments in 1980. Nine TRIDENT submarines have been authorized through 1981, and we propose one more each year. The new M-X missile program to enhance our land-based intercontinental ballistic missile force continues to make progress. Technical refinements in the basing design over the last year will result in operational benefits, lower costs, and reduced environmental impact. The M-X program continues to be an essential ingredient in our strategic posture—providing survivability, endurance, secure command and control and the capability to threaten targets the Soviets hold dear. Our new systems will enable 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. STRATEGIC DOCTRINE This Administration's systematic contributions to the necessary evolution of strategic doctrine began in 1977 when I commissioned a comprehensive net assessment. From that base a number of thorough investigations of specific topics continued. I should emphasize that the need for an evolutionary doctrine is driven not by any change in our basic objective-which remains peace and freedom for all mankind. Rather, the need for change is driven by the inexorable buildup of Soviet military power and the increasing propensity of Soviet leaders to use this power in coercion and outright aggression to impose their will on others. I have codified our evolving strategic doctrine in a number of interrelated and mutually supporting Presidential Directives. Their overarching theme is to provide a doctrinal basis—and the specific program to implement it—that tells the world that no potential adversary of the United States could ever conclude that the fruits of his aggression would be significant or worth the enormous costs of our retaliation. The Presidential Directives include: PD-18: An overview of our strategic objectives PD-37: Basic space policy PD-41: Civil Defense PD-53: Survivability and endurance for telecommunications PD-57: Mobilization planning PD-58: Continuity of Government PD-59: Countervailing Strategy for General War These policies have been devised to deter, first and foremost, Soviet aggression. As such they confront not only Soviet military forces but also Soviet military doctrine. By definition deterrence requires that we shape Soviet assessments about the risks of war—assessments they will make using their doctrine, not ours. But at the same time we in no way seek to emulate their doctrine. In particular, nothing in our policy contemplates that nuclear warfare could ever be a deliberate instrument for achieving our own goals of peace and freedom. Moreover, our policies are carefully devised to provide the greatest possible incentives and opportunities for future progress in arms control. Finally, our doctrinal evolution has been undertaken with appropriate consultation with our NATO Allies and others. We are fully consistent with NATO's strategy of flexible response. FORCES FOR NATO We are greatly accelerating our ability to reinforce Western Europe with massive ground and air forces in a crisis. We are undertaking a major modernization program for the Army's weapons and equipment, adding armor, firepower, and tactical mobility. We are prepositioning more heavy equipment in Europe to help us cope with attacks with little warning, and greatly strengthening our airlift and sealift capabilities. We are also improving our tactical air forces—buying about 1700 new fighter and attack aircraft over the next five years—and increasing the number of Air Force fighter wings ,by over 10 percent. We are working closely with our European allies to secure the Host Nation Support necessary to enable us to deploy more quickly a greater ratio of combat forces to the European theater at a lower cost to the United States. SECURITY ASSISTANCE As we move to enhance YOU.S. defense capabilities, we must not lose sight of the need to assist others in maintaining their own security and independence. Events since World War II, most recently in Southwest Asia, have amply demonstrated that YOU.S. security cannot exist in a vacuum, and that our own prospects for peace are closely tied to those of our friends. The security assistance programs which I am proposing for the coming fiscal year thus directly promote vital YOU.S. foreign policy and national security aims—and are integral parts of our efforts to improve and upgrade our own military forces. More specifically, these programs, which are part of our overall foreign aid request, promote YOU.S. security in two principal ways. First, they assist friendly and allied nations to develop the capability to defend themselves and maintain their own independence. An example during this past year was the timely support provided Thailand to help bolster that country's defenses against the large numbers of Soviet-backed Vietnamese troops ranged along its eastern frontier. In addition, over the years these programs have been important to the continued independence of other friends and allies such as Israel, Greece, Turkey and Korea. Second, security assistance constitutes an essential element in the broad cooperative relationships we have established with many nations which permit either YOU.S. bases on their territory or access by YOU.S. forces to their facilities. These programs have been particularly important with regard to the recently-concluded access agreements with various countries in the Persian Gulf and Indian Ocean regions and have been crucial to the protection of our interests throughout Southwest Asia. RAPID DEPLOYMENT FORCES We are systematically enhancing our ability to respond rapidly to non-NATO contingencies wherever required by our commitments or when our vital interests are threatened. The rapid deployment forces we are assembling will be extraordinarily flexible: They could range in size from a few ships or air squadrons to formations as large as 100,000 men, together with their support. Our forces will be prepared for rapid deployment to any region of strategic significance. Among the specific initiatives we are taking to help us respond to crises outside of Europe are: • the development of a new fleet of large cargo aircraft with intercontinental range; • the design and procurement of a force of Maritime Prepositioning Ships that will carry heavy equipment and supplies for three Marine Corps brigades; • the procurement of fast sealift ships to move large quantities of men and material quickly from the YOU.S. to overseas areas of deployment; • increasing training and exercise activities to ensure that our forces will be well prepared to deploy and operate in distant areas. In addition, our European allies have agreed on the importance of providing support to YOU.S. deployments to Southwest Asia. NAVAL FORCES Seapower is indispensable to our global position—in peace and also in war. Our shipbuilding program will sustain a 50-ship Navy in the 1990's and we will continue to build the most capable ships afloat. The program I have proposed will assure the ability of our Navy to operate in high threat areas, to maintain control of the seas and protect vital lines of communication-both military and economic-and to provide the strong maritime component of our rapid deployment forces. This is essential for operations in remote areas of the world, where we cannot predict far in advance the precise location of trouble, or preposition equipment on land. MILITARY PERSONNEL No matter how capable or advanced our weapons systems, our military security depends on the abilities, the training and the dedication of the people who serve in our armed forces. I am determined to recruit and to retain under any foreseeable circumstances an ample level of such skilled and experienced military personnel. This Administration has supported for FY 1981 the largest peacetime increase ever in military pay and allowances. We have enhanced our readiness and combat endurance by improving the Reserve Components. All reservists are assigned to units structured to complement and provide needed depth to our active forces. Some reserve personnel have also now been equipped with new equipment. MOBILIZATION PLANNING We have completed our first phase of mobilization planning—the first such Presidentially-directed effort since World War II. The government-wide exercise of our mobilization plans at the end of 1980 showed, first, that planning pays off and, second, that much more needs to be done. OUR INTELLIGENCE POSTURE Our national interests are critically dependent on a strong and effective intelligence capability. We will maintain and strengthen the intelligence capabilities needed to assure our national security. Maintenance of and continued improvements in our multi-faceted intelligence effort are essential if we are to cope successfully with the turbulence and uncertainties of today's world. The intelligence budget I have submitted to the Congress responds to our needs in a responsible way, providing for significant growth over the Fiscal Year 1981 budget. This growth will enable us to develop new technical means of intelligence collection while also assuring that the more traditional methods of intelligence work are also given proper stress. We must continue to integrate both modes of collection in our analyses. Regional Policies Every President for over three decades has recognized that America's interests are global and that we must pursue a global foreign policy. Two world wars have made clear our stake in Western Europe and the North Atlantic area. We are also inextricably linked with the Far East—politically, economically, and militarily. In both of these, the United States has a permanent presence and security commitments which would be automatically triggered. We have become increasingly conscious of our growing interests in a third area—the Middle East and the Persian Gulf area. We have vital stakes in other major regions of the world as well. We have long recognized that in an era of interdependence, our own security and prosperity depend upon a larger common effort with friends and allies throughout the world. THE ATLANTIC ALLIANCE At the outset of this Administration, I emphasized the primacy of our Atlantic 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. In recognition of the threat which the Soviet invasion of Afghanistan posed to Western interests in both Europe and Southwest Asia, NATO foreign and defense ministers have expressed full support for YOU.S. efforts to develop a capability to respond to a contingency in Southwest Asia and have approved an extensive program to help fill the gap which could be created by the diversion of YOU.S. forces to that region. The YOU.S. has not been alone in seeking to maintain stability in the Southwest Asia area and insure access to the needed resources there. The European nations with the capability to do so are improving their own forces in the region and providing greater economic and political support to the residents of the area. In the face of the potential danger posed by the Iran-Iraq conflict, we have developed coordination among the Western forces in the area of the Persian Gulf in order to be able to safeguard passage in that essential waterway. Concerning developments in and around Poland, the allies have achieved the highest level of cohesion and unity of purpose in making clear the effects on future East-West relations of a precipitous Soviet act there. The alliance has continued to build on the progress of the past three years in improving its conventional forces through the Long-Term Defense Program. Though economic conditions throughout Europe today are making its achievement difficult, the yearly real increase of 3 percent in defense spending remains a goal actively sought by the alliance. The NATO alliance also has moved forward during the past year with the implementation of its historic December 1979 decision to modernize its Theater Nuclear Force capabilities through deployment of improved Pershing ballistic missiles and ground launched cruise missiles in Europe. Our allies continue to cooperate actively with us in this important joint endeavor, whose purpose is to demonstrate convincingly to the Soviet Union the potential costs of a nuclear conflict in Europe. At the same time, we offered convincing evidence of our commitment to arms control in Europe by initiating preliminary consultations with the Soviet Union in Geneva on the subject of negotiated limits on long-range theater nuclear forces. Also, during 1980 we initiated and carried out a withdrawal from our nuclear weapons stockpile in Europe of 1,000 nuclear warheads. This successful drawdown in our nuclear stockpile was a further tangible demonstration of our commitment to the updating of our existing theater nuclear forces in Europe. In the NATO area, we continued to work closely with other countries in providing resources to help Turkey regain economic health. We regretted that massive political and internal security problems led the Turkish military to take over the government on September 12. The new Turkish authorities are making some progress in resolving those problems, and they have pledged an early return to civilian government. The tradition of the Turkish military gives us because to take that pledge seriously. We welcomed the reestablishment of Greece's links to the integrated military command structure of the Atlantic Alliance—a move which we had strongly encouraged—as a major step toward strengthening NATO's vital southern flank at a time of international crisis and tension in adjacent areas. Greek reintegration exemplifies the importance which the allies place on cooperating in the common defense and shows that the allies can make the difficult decisions necessary to insure their continued security. We also welcomed the resumption of the intercommunal talks on Cyprus. THE YOU.S. AND THE PACIFIC NATIONS The United States is a Pacific nation, as much as it is an Atlantic nation. Our interests in Asia are as important to us as our interests in Europe. Our trade with Asia is as great as our trade with Europe. During the past four years we have regained a strong, dynamic and flexible posture for the United States in this vital region. Our major alliances with Japan, Australia and New Zealand are now stronger than they ever have been, and together with the nations of western Europe, we have begun to form the basic political structure for dealing with international crises that affect us all. Japan, Australia and New Zealand have given us strong support in developing a strategy for responding to instability in the Persian Gulf. Normalization of YOU.S. relations with China has facilitated China's full entry into the international community and encouraged a constructive Chinese role in the Asia-Pacific region. Our relations with China have been rapidly consolidated over the past year through the conclusion of a series of bilateral agreements. We have established a pattern of frequent and frank consultations between our two governments, exemplified by a series of high-level visits and by regular exchanges at the working level, through which we have been able to identify increasingly broad areas of common interest on which we can cooperate. United States relations with the Association of Southeast Asian Nations (ASEAN) have also expanded dramatically in the past four years. ASEAN is now the focus for YOU.S. policy in Southeast Asia, and its cohesion and strength are essential to stability in this critical area and beyond. Soviet-supported Vietnamese aggression in Indochina has posed a major challenge to regional stability. In response, we have reiterated our security commitment to Thailand and have provided emergency security assistance for Thai forces facing a Vietnamese military threat along the Thai-Cambodian border. We have worked closely with ASEAN and the UN to press for withdrawal of Vietnamese forces from Cambodia and to encourage a political settlement in Cambodia which permits that nation to be governed by leaders of its own choice. We still look forward to the day when Cambodia peacefully can begin the process of rebuilding it social, economic and political institutions, after years of devastation and occupation. And, on humanitarian grounds and in support of our friends in the region, we have worked vigorously with international organizations to arrange relief and resettlement for the exodus of Indochinese refugees which threatened to overwhelm these nations. We have maintained our alliance with Korea and helped assure Korea's security during a difficult period of political transition. We have amended our military base agreement with the Philippines, ensuring stable access to these bases through 1991. The importance of our Philippine bases to the strategic flexibility of YOU.S. forces and our access to the Indian Ocean is self-evident. Finally, we are in the process of concluding a long negotiation establishing Micronesia's status as a freely associated state. We enter the 1980's with a firm strategic footing in East Asia and the Pacific, based on stable and productive YOU.S. relations with the majority of countries of the region. We have established a stable level of YOU.S. involvement in the region, appropriate to our own interests and to the interests of our friends and allies there. THE MIDDLE EAST AND SOUTHWEST ASIA The continuing Soviet occupation of Afghanistan and the dislocations caused by the Iraq-Iran war serve as constant reminders of the critical importance for us, and our allies, of a third strategic zone stretching across the Middle East, the Persian Gulf, and much of the Indian subcontinent. This Southwest Asian region has served as a key strategic and commercial link between East and West over the centuries. Today it produces two-thirds of the world's oil exports, providing most of the energy needs of our European allies and Japan. It has experienced almost continuous conflict between nations, internal instabilities in many countries, and regional rivalries, combined with very rapid economic and social change. And now the Soviet Union remains in occupation of one of these nations, ignoring world opinion which has called on it to get out. We have taken several measures to meet these challenges. MIDDLE EAST In the Middle East, our determination to consolidate what has already been achieved in the peace process—and to buttress that accomplishment with further progress toward a comprehensive peace settlement—must remain a central goal of our foreign policy. Pursuant to their peace treaty, Egypt and Israel have made steady progress in the normalization of their relations in a variety of fields, bringing the benefits of peace directly to their people. The new relationship between Egypt and Israel stands as an example of peaceful cooperation in an increasingly fragmented and turbulent region. Both President Sadat and Prime Minister Begin remain committed to the current negotiations to provide full autonomy to the inhabitants of the West Bank and Gaza. These negotiations have been complex and difficult, but they have already made significant progress, and it is vital that the two sides, with our assistance, see the process through to a successful conclusion. We also recognize the need to broaden the peace process to include other parties to the conflict and believe that a successful autonomy agreement is an essential first step toward this objective. We have also taken a number of steps to strengthen our bilateral relations with both Israel and Egypt. We share important strategic interests with both of these countries. We remain committed to Israel's security and are prepared to take concrete steps to support Israel whenever that security is threatened. PERSIAN GULF The Persian Gulf has been a vital crossroads for trade between Europe and Asia at many key moments in history. It has become essential in recent years for its supply of oil to the United States, our allies, and our friends. We have taken effective measures to control our own consumption of imported fuel, working in cooperation with the other key industrial nations of the world. However, there is little doubt that the healthy growth of our American and world economies will depend for many years on continued safe access to the Persian Gulf's oil production. The denial of these oil supplies would threaten not only our own but world security. The potent new threat from an advancing Soviet Union, against the background of regional instability of which it can take advantage, requires that we reinforce our ability to defend our regional friends and to protect the flow of oil. We are continuing to build on the strong political, economic, social and humanitarian ties which bind this government and the American people to friendly governments and peoples of the Persian Gulf. We have also embarked on a course to reinforce the trust and confidence our regional friends have in our ability to come to their assistance rapidly with American military force if needed. We have increased our naval presence in the Indian Ocean. We have created a Rapid Deployment Force which can move quickly to the Gulf—or indeed any other area of the world where outside aggression threatens. We have concluded several agreements with countries which are prepared to let us use their airports and naval facilities in an emergency. We have met requests for reasonable amounts of American weaponry from regional countries which are anxious to defend themselves. And we are discussing with a number of our area friends further ways we can help to improve their security and ours, both for the short and the longer term. SOUTH ASIA We seek a South Asia comprising sovereign and stable states, free of outside interference, which can strengthen their political institutions according to their own national genius and can develop their economies for the betterment of their people. The Soviet invasion of Afghanistan has posed a new challenge to this region, and particularly to neighboring Pakistan. We are engaged in a continuing dialogue with the Pakistan government concerning its development and security requirements and the economic burden imposed by Afghan refugees who have fled to Pakistan. We are participating with other aid consortium members in debt rescheduling and will continue to cooperate through the UNHCR in providing refugee assistance. We remain committed to Pakistan's territorial integrity and independence. Developments in the broad South/ Southwest Asian region have also lent a new importance to our relations with India, the largest and strongest power in the area. We share India's interest in a more constructive relationship. Indian policies and perceptions at times differ from our own, and we have established a candid dialogue with this sister democracy which seeks to avoid the misunderstandings which have sometimes complicated our ties. We attach major importance to strong economic assistance programs to the countries in the area, which include a majority of the poor of the non-Communist world. We believe that these programs will help achieve stability in the area, an objective we share with the countries in the region. Great progress has been achieved by these countries in increasing food production; international cooperation in harnessing the great river resources of South Asia would contribute further to this goal and help to increase energy production. We continue to give high priority to our non-proliferation goals in the area in the context of our broad global and regional priorities. The decision to continue supply of nuclear fuel to the Indian Tarapur reactors was sensitive to this effort. AFRICA The United States has achieved a new level of trust and cooperation with Africa. Our efforts, together with our allies, to achieve peace in southern Africa, our increased efforts to help the poorest countries in Africa to combat poverty, and our expanded efforts to promote trade and investment have led to growing respect for the YOU.S. and to cooperation in areas of vital interest to the United States. Africa is a continent of poor nations for the most part. It also contains many of the mineral resources vital for our economy. We have worked with Africa in a spirit of mutual cooperation to help the African nations solve their problems of poverty and to develop stronger ties between our private sector and African economies. Our assistance to Africa has more than doubled in the last four years. Equally important, we set in motion new mechanisms for private investment and trade. Nigeria is the largest country in Black Africa and the second largest oil supplier to the United States. During this Administration we have greatly expanded and improved our relationship with Nigeria and other West African states whose aspirations for a constitutional democratic order we share and support. This interest was manifested both symbolically and practically by the visit of Vice President Mondale to West Africa in July (1980) and the successful visit to Washington of the President of Nigeria in October. During Vice President Mondale's visit, a Joint Agricultural Consultative Committee was established, with the YOU.S. represented entirely by the private sector. This could herald a new role for the American private sector in helping solve the world's serious food shortages. I am pleased to say that our relations with Nigeria are at an all-time high, providing the foundation for an even stronger relationship in the years ahead. Another tenet of this Administration's approach to African problems has been encouragement and support for regional solutions to Africa's problems. We have supported initiatives by the Organization of African Unity to solve the protracted conflict in the western Sahara, Chad, and the Horn. In Chad, the world is watching with dismay as a country torn by a devastating civil war has become a fertile field for Libya's exploitation, thus demonstrating that threats to peace can come from forces within as well as without Africa. In southern Africa the United States continues to pursue a policy of encouraging peaceful development toward majority rule. In 1980, Southern Rhodesia became independent as Zimbabwe, a multiracial nation under a system of majority rule. Zimbabwean independence last April was the culmination of a long struggle within the country and diplomatic efforts involving Great Britain, African states neighboring Zimbabwe, and the United States. The focus of our efforts in pursuit of majority rule in southern Africa has now turned to Namibia. Negotiations are proceeding among concerned parties under the leadership of UN Secretary General Waldheim. This should lead to implementation of the UN plan for self-determination and independence for Namibia during 1981. If these negotiations are successfully concluded, sixty-five years of uncertainty over the status of the territory, including a seven-year-long war, will be ended. Common efforts to resolve the Zimbabwean and Namibian issues have brought the United States closer both to its Western allies—Great Britain, France, the Federal Republic of Germany, and Canada-and to African states such as Tanzania, Zambia, Mozambique, Angola, and Botswana, with whom relations have at some times in the past been difficult. The success of these common undertakings demonstrates that complex problems with sometimes bitter and bloody histories can be resolved peacefully through negotiation. In response to our active concern with issues of importance to Africans, African states have cooperated with us on issues of importance to our national interests. African states voted overwhelmingly in favor of the UN Resolution calling for release of the hostages, and for the UN Resolution condemning the Soviet invasion of Afghanistan. Two countries of Africa have signed access agreements with the YOU.S. allowing us use of naval and air facilities in the Indian Ocean. Africans have become increasingly vocal on human rights. African leaders have spoken out on the issue of political prisoners, and the OAU is drafting its own Charter on Human Rights. Three countries in Africa—Nigeria, Ghana, and Uganda—have returned to civilian rule during the past year. YOU.S. cooperation with Africa on all these matters represents a strong base on which we can build in future years. Liberia is a country of long-standing ties with the YOU.S. and the site of considerable YOU.S. investment and facilities. This past April a coup replaced the government and a period of political and economic uncertainty ensued. The YOU.S. acted swiftly to meet this situation. We, together with African leaders, urged the release of political prisoners, and many have been released; we provided emergency economic assistance to help avoid economic collapse, and helped to involve the IMF and the banking community to bring about economic stability; and we have worked closely with the new leaders to maintain Liberia's strong ties with the West and to protect America's vital interests. NORTH AFRICA In early 1979, following a Libyaninspired commando attack on a Tunisian provincial city, the YOU.S. responded promptly to Tunisia's urgent request for assistance, both by airlifting needed military equipment and by making clear our longstanding interest in the security and integrity of this friendly country. The YOU.S. remains determined to oppose other irresponsible Libyan aspirations. Despairing of a productive dialogue with the Libyan authorities, the YOU.S. closed down its embassy in Libya and later expelled six Libyan diplomats in Washington in order to deter an intimidation campaign against Libyan citizens in the YOU.S. YOU.S. relations with Algeria have improved, and Algeria has played an indispensable and effective role as intermediary between Iran and the YOU.S. over the hostage issue. The strengthening of our arms supply relationship with Morocco has helped to deal with attacks inside its internationally recognized frontiers and to strengthen its confidence in seeking a political settlement of the Western Sahara conflict. While not assuming a mediatory role, the YOU.S. encouraged all interested parties to turn their energies to a peaceful and sensible compromise resolution of the war in the Sahara and supported efforts by the Organization of African Unity toward that end. As the year drew to a close, the YOU.S. was encouraged by evolution in the attitudes of all sides, and is hopeful that their differences will be peacefully resolved in the year ahead so that the vast economic potential of North Africa can be developed for the well-being of the people living there. LATIN AMERICA AND THE CARIBBEAN The principles of our policies in this hemisphere have been clear and constant over the last four years. We support democracy and respect for human rights. We have struggled with many to help free the region of both repression and terrorism. We have respected ideological diversity and opposed outside intervention in purely internal affairs. We will act, though, in response to a request for assistance by a country threatened by external aggression. We support social and economic development within a democratic framework. We support the peaceful settlement of disputes. We strongly encourage regional cooperation and shared responsibilities within the hemisphere to all these ends, and we have eagerly and regularly sought the advice of the leaders of the region on a wide range of issues. Last November, I spoke to the General Assembly of the Organization of American States of a because that has been closest to my heart—human rights. It is an issue that has found its time in the hemisphere. The because is not mine alone, but an historic movement that will endure. At Riobamba, Ecuador, last September four Andean Pact countries, Costa Rica, and Panama broke new ground by adopting a "Code of Conduct," stating that joint action in defense of human rights does not violate the principles of nonintervention in the internal affairs of states in this hemisphere. The Organization of American States has twice condemned the coup that overturned the democratic process in Bolivia and the widespread abuse of human rights by the regime which seized power. The Inter-American Commission on Human Rights has gained world acclaim for its dispassionate reports. It completed two major country studies this year in addition to its annual report. In a resolution adopted without opposition, the OAS General Assembly in November strongly supported the work of the Commission. The American Convention on Human Rights is in force and an Inter-American Court has been created to judge human rights violations. This convention has been pending before the Senate for two years; I hope the United States this year will join the other nations of the hemisphere in ratifying a convention which embodies principles that are our tradition. The trend in favor of democracy has continued. During this past year, Peru inaugurated a democratically elected government. Brazil continues its process of liberalization. In Central America, Hondurans voted in record numbers in their first national elections in over eight years. In the Caribbean seven elections have returned governments firmly committed to the democratic traditions of the Commonwealth. Another major contribution to peace in the hemisphere is Latin America's own Treaty for the Prohibition of Nuclear Weapons. On behalf of the United States, I signed Protocol I of this Treaty in May of 1977 and sent it to the Senate for ratification. I urge that it be acted upon promptly by the Senate in order that it be brought into the widest possible effect in the Latin American region. Regional cooperation for development is gaining from Central America to the Andes, and throughout the Caribbean. The Caribbean Group for Cooperation in Economic Development, which we established with 29 other nations in 1977, has helped channel $750 million in external support for growth in the Caribbean. The recent meeting of the Chiefs of State of the Eastern Caribbean set a new precedent for cooperation in that region. Mexico and Venezuela jointly and Trinidad and Tobago separately have established oil facilities that will provide substantial assistance to their oil importing neighbors. The peace treaty between El Salvador and Honduras will hopefully stimulate Central America to move forward again toward economic integration. Formation of Caribbean/Central American Action, a private sector organization, has given a major impetus to improving people-to-people bonds and strengthening the role of private enterprise in the development of democratic societies. The Panama treaties have been in force for over a year. A new partnership has been created with Panama; it is a model for large and small nations. A longstanding issue that divided us from our neighbors has been resolved. The security of the canal has been enhanced. The canal is operating as well as ever, with traffic through it reaching record levels this year. Canal employees, American and Panamanian alike, have remained on the job and have found their living and working conditions virtually unchanged. In 1980, relations with Mexico continued to improve due in large measure to the effectiveness of the Coordinator for Mexican Affairs and the expanded use of the YOU.S.-Mexico Consultative Mechanism. By holding periodic meetings of its various working groups, we have been able to prevent mutual concerns from becoming political issues. The Secretary of State visited Mexico City in November, and, along with the Mexican Secretary of Foreign Relations, reviewed the performance of the Consultative Mechanism. The office of the Coordinator has ensured the implementation of my directive to all agencies to accord high priority to Mexican concerns. Trade with Mexico rose by almost 60 percent to nearly $30 billion, making that country our third largest trading partner. These are all encouraging development. Other problems remain, however. The impact of large-scale migration is affecting many countries in the hemisphere. The most serious manifestation was the massive, illegal exodus from Cuba last summer. The Cuban government unilaterally encouraged the disorderly and even deadly migration of 125,000 of its citizens in complete disregard for international law or the immigration laws of its neighbors. Migrations of this nature clearly require concerted action, and we have asked the OAS to explore means of dealing with similar situations which may occur in the future. We have a long-standing treaty with Colombia on Quita Sueno, Roncador, and Serrano which remains to be ratified by the Senate. In Central America, the future of Nicaragua is unclear. Recent tensions, the restrictions on the press and political activity, an inordinate Cuban presence in the country and the tragic killing by the security forces of a businessman well known for his democratic orientation, because us considerable concern. These are not encouraging developments. But those who seek a free society remain in the contest for their nation's destiny. They have asked us to help rebuild their country, and by our assistance, to demonstrate that the democratic nations do not intend to abandon Nicaragua to the Cubans. As long as those who intend to pursue their pluralistic goals play important roles in Nicaragua, it deserves our continuing support. In El Salvador, we have supported the efforts of the Junta to change the fundamental basis of an inequitable system and to give a stake in a new nation to those millions of people, who for so long, lived without hope or dignity. As the government struggles against those who would restore an old tyranny or impose a new one, the United States will continue to stand behind them. We have increased our aid to the Caribbean, an area vital to our national security, and we should continue to build close relations based on mutual respect and understanding, and common interests. As the nations of this hemisphere prepare to move further into the 1980's, I am struck by the depth of underlying commitment that there is to our common principles: non-intervention, peaceful settlement of disputes, cooperation for development, democracy and defense of basic human rights. I leave office satisfied that the political, economic, social and organizational basis for further progress with respect to all these principles have been substantially strengthened in the past four years. I am particularly reassured by the leadership by other nations of the hemisphere in advancing these principles. The success of our common task of improving the circumstances of all peoples and nations in the hemisphere can only be assured by the sharing of responsibility. I look forward to a hemisphere that at the end of this decade has proven itself anew as a leader in the promotion of both national and human dignity. THE INTERNATIONAL ECONOMY A growing defense effort and a vigorous foreign policy rest upon a strong economy here in the United States. And the strength of our own economy depends upon our ability to lead and compete in the international marketplace. ENERGY Last year, the war between Iraq and Iran led to the loss of nearly 4 million barrels of oil to world markets, the third major oil market disruption in the past seven years. This crisis has vividly demonstrated once again both the value of lessened dependence on oil imports and the continuing instability of the Persian Gulf area. Under the leadership of the United States, the 21 members of the International Energy Agency took collective action to ensure that the oil shortfall stemming from the Iran-Iraq war would not be aggravated by competition for scarce spot market supplies. We are also working together to see that those nations most seriously affected by the oil disruption—including our key NATO allies Turkey and Portugal—can get the oil they need. At the most recent IEA Ministerial meeting we joined the other members in pledging to take those policy measures necessary to slice our joint oil imports in the first quarter of 1981 by 2.2 million barrels. Our international cooperation efforts in the energy field are not limited to crisis management. At the Economic Summit meetings in Tokyo and Venice, the heads of government of the seven major industrial democracies agreed to a series of tough energy conservation and production goals. We are working together with all our allies and friends in this effort. Construction has begun on a commercial scale coal liquefaction plant in West Virginia co-financed by the United States, Japan and West Germany. An interagency task force has just reported to me on a series of measures we need to take to increase coal production and exports. This report builds on the work of the International Energy Agency's Coal Industry Advisory Board. With the assurances of a reliable United States steam coal supply at reasonable prices, many of the electric power plants to be built in the 1980's and 1990's can be coal-fired rather than oil-burning. We are working cooperatively with other nations to increase energy security in other areas as well. Joint research and development with our allies is underway in solar energy, nuclear power, industrial conservation and other areas. In addition, we are assisting rapidly industrializing nations to carefully assess their basic energy policy choices, and our development assistance program helps the developing countries to increase indigenous energy production to meet the energy needs of their poorest citizens. We support the proposal for a new World Bank energy affiliate to these same ends, whose fulfillment will contribute to a better global balance between energy supply and demand. INTERNATIONAL MONETARY POLICY Despite the rapid increase in oil costs, the policy measures we have taken to improve domestic economic performance have had a continued powerful effect on our external accounts and on the strength of the dollar. A strong dollar helps in the fight against inflation. There has also been considerable forward movement in efforts to improve the functioning of the international monetary system. The stability of the international system of payments and trade is important to the stability and good health of our own economy. We have given strong support to the innovative steps being taken by the International Monetary Fund and World Bank to help promote early adjustment to the difficult international economic problems. Recent agreement to increase quotas by fifty percent will ensure the IMF has sufficient resources to perform its central role in promoting adjustment and financing payments imbalances. The World Bank's new structural adjustment lending program will also make an important contribution to international efforts to help countries achieve a sustainable level of growth and development. SUGAR In 1980, Congress passed YOU.S. implementing legislation for the International Sugar Agreement, thus fulfilling a major commitment of this Administration. The agreement is an important element in our international commodity policy with farreaching implications for our relations with developing countries, particularly sugar producers in Latin America. Producers and consumers alike will benefit from a more stable market for this essential commodity. COFFEE At year's end, Congress approved implementing legislation permitting the YOU.S. to carry out fully its commitments under the International Coffee Agreement. Specifically, the legislation enables us to meet our part of an understanding negotiated last fall among members of the Agreement, which defends, by use of export quotas, a price range well below coffee prices of previous years and which commits major coffee producers to eliminate cartel arrangements that manipulated future markets to raise prices. The way is now open to a fully-functioning International Coffee Agreement which can help to stabilize this major world commodity market. The results will be positive for both consumers—who will be less likely to suffer from sharp increases in coffee prices—and producers—who can undertake future investment with assurance of greater protection against disruptive price fluctuations in their exports. NATURAL RUBBER In 1980, the International Natural Rubber Agreement entered into force provisionally. YOU.S. membership in this new body was approved overwhelmingly by the Senate last year. The natural rubber agreement is a model of its kind and should make a substantial contribution to a stable world market in this key industrial commodity. It is thus an excellent example of constructive steps to improve the operation of the world economy in ways which can benefit the developing and industrialized countries alike. In particular, the agreement has improved important YOU.S. relationships with the major natural rubber-producing countries of Southeast Asia. COMMON FUND The United States joined members of the United Nations Conference on Trade and Development, both developed and developing nations, in concluding Articles of Agreement in 1980 for a Common Fund to help international commodity agreements stabilize the prices of raw materials. ECONOMIC COOPERATION WITH DEVELOPING NATIONS Our relations with the developing nations are of major importance to the United States. The fabric of our relations with these countries has strong economic and political dimensions. They constitute the most rapidly growing markets for our exports, and are important sources of fuel and raw materials. Their political views are increasingly important, as demonstrated in their overwhelming condemnation of the Soviet invasion of Afghanistan. Our ability to work together with developing nations toward goals we have in common—their political independence, the resolution of regional tensions, and our growing ties of trade for example—require us to maintain the policy of active involvement with the developing world that we have pursued over the past four years. The actions we have taken in such areas as energy, trade, commodities, and international financial institutions are all important to the welfare of the developing countries. Another important way the United States can directly assist these countries and demonstrate our concern for their future is through our multilateral and bilateral foreign assistance program. The legislation which I will be submitting to you for FY 82 provides the authority and the funds to carry on this activity. Prompt Congressional action on this legislation is essential in order to attack such high priority global problems as food and energy, meet our treaty and base rights agreements, continue our peace efforts in the Middle East, provide economic and development support to countries in need, promote progress on North-South issues, protect Western interests, and counter Soviet influence. Our proposed FY 1982 bilateral development aid program is directly responsive to the agreement reached at the 1980 Venice Economic Summit that the major industrial nations should increase their aid for food and energy production and for family planning. We understand that other Summit countries plan similar responses. It is also important to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the International Financial Institutions. These multilateral programs enhance the efficiency of US contributions by combining them with those of many other donor countries to promote development; the proposed new World Bank affiliate to increase energy output in developing countries offers particular promise. All these types of aid benefit our longrun economic and political interests. Progress was made on a number of economic issues in negotiations throughout the UN system. However, in spite of lengthy efforts in the United Nations, agreement has not been reached on how to launch a process of Global Negotiations in which nations might collectively work to solve such important issues as energy, food, protectionism, and population pressures. The United States continues to believe that progress can best be made when nations focus on such specific problems, rather than on procedural and institutional questions. It will continue to work to move the North-South dialogue into a more constructive phase. FOOD—THE WAR ON HUNGER The War on Hunger must be a continuous urgent priority. Major portions of the world's population continue to be threatened by 'the specter of hunger and malnutrition. During the past year, some 150 million people in 36 African countries were faced with near disaster as the result of serious drought, induced food shortages. Our government, working in concert with the UN's Food and Agricultural Organization (FAO), helped to respond to that need. But the problems of hunger cannot be solved by short-term measures. We must continue to support those activities, bilateral and multilateral, which aim at improving food production especially in developing countries and assuring global food security. These measures are necessary to the maintenance of a stable and healthy world economy. I am pleased that negotiation of a new Food Aid Convention, which guarantees a minimum annual level of food assistance, was successfully concluded in March. The establishment of the International Emergency Wheat Reserve will enable the YOU.S. to meet its commitment under the new Convention to feed hungry people, even in times of short supply. Of immediate concern is the prospect of millions of Africans threatened by famine because of drought and civil disturbances. The YOU.S. plea for increased food aid resulted in the organization of an international pledging conference and we are hopeful that widespread starvation will be avoided. Good progress has been made since the Venice Economic Summit called for increased effort on this front. We and other donor countries have begun to assist poor countries develop long-term strategies to improve their food production. The World Bank will invest up to $4 billion in the next few years in improving the grain storage and food-handling capacity of countries prone to food shortages. Good progress has been made since the Tokyo Economic Summit called for increased effort on this front. The World Bank is giving this problem top priority, as are some other donor countries. The resources of the consultative Group on International Agricultural Research will be doubled over a five-year period. The work of our own Institute of Scientific and Technological Cooperation will further strengthen the search for relevant new agricultural technologies. The goal of freeing the world from hunger by the year 2000 should command the full support of all countries. The Human Dimension of Foreign Policy HUMAN RIGHTS The human rights policy of the United States has been an integral part of our overall foreign policy for the past several years. This policy serves the national interest of the United States in several important ways: by encouraging respect by governments for the basic rights of human beings, it promotes peaceful, constructive change, reduces the likelihood of internal pressures for violent change and for the exploitation of these by our adversaries, and thus directly serves our long-term interest in peace and stability; by matching espousal of fundamental American principles of freedom with specific foreign policy actions, we stand out in vivid contrast to our ideological adversaries; by our efforts to expand freedom elsewhere, we render our own freedom, and our own nation, more secure. Countries that respect human rights make stronger allies and better friends. Rather than attempt to dictate what system of government or institutions other countries should have, the YOU.S. supports, throughout the world, the internationally recognized human rights which all members of the United Nations have pledged themselves to respect. There is more than one model that can satisfy the continuing human reach for freedom and justice: 1980 has been a year of some disappointments, but has also seen some positive developments in the ongoing struggle for fulfillment of human rights throughout the world. In the year we have seen: • Free elections were held and democratic governments installed in Peru, Dominica, and Jamaica. Honduras held a free election for installation of a constituent assembly. An interim government was subsequently named pointing toward national presidential elections in 1981. Brazil continues on its course of political liberalization. • The "Charter of Conduct" signed in Riobamba, Ecuador, by Ecuador, Colombia, Venezuela, Peru, Costa Rica, Panama and Spain, affirms the importance of democracy and human rights for the Andean countries. • The Organization of American States, in its annual General Assembly, approved a resolution in support of the Inter-American Human Rights Commission's work. The resolution took note of the Commission's annual report, which described the status of human rights in Chile, El Salvador, Paraguay and Uruguay; and the special reports on Argentina and Haiti, which described human rights conditions as investigated during on-site inspections to these countries. • The awarding of the Nobel Prize for Peace to Adolfo Perez Esquivel of Argentina for his non-violent advocacy of human rights. • The United States was able to rejoin the International Labor Organization after an absence of two years, as that UN body reformed its procedures to return to its original purpose of strengthening employer-employee-government relations to insure human rights for the working people of the world. The United States, of course, cannot take credit for all these various developments. But we can take satisfaction in knowing that our policies encourage and perhaps influence them. Those who see a contradiction between our security and our humanitarian interests forget that the basis for a secure and stable society is the bond of trust between a government and its people. I profoundly believe that the future of our world is not to be found in authoritarianism: that wears the mask of order, or totalitarianism that wears the mask of justice. Instead, let us find our future in the human face of democracy, the human voice of individual liberty, the human hand of economic development. HUMANITARIAN AID The United States has continued to play its traditional role of safehaven for those who flee or are forced to flee their homes because of persecution or war. During 1980, the United States provided resettlement opportunities for 216,000 refugees from countries around the globe. In addition, the United States joined with other nations to provide relief to refugees in country of first asylum in Africa, the Middle East, and Asia. The great majority of refugee admissions continued to be from Indochina. During 1980, 168,000 Indochinese were resettled in the United States. Although refugee populations persist in camps in Southeast Asia, and refugees continue to flee Vietnam, Laos and Kampuchea, the flow is not as great as in the past. One factor in reducing the flow from Vietnam has been the successful negotiation and commencement of an Orderly Departure Program which permits us to process Vietnamese for resettlement in the United States with direct departure from H, Chi Minh Ville in an orderly fashion. The first group of 250 departed Vietnam for the United States in December, 1980. In addition to the refugees admitted last year, the United States accepted for entry into the United States 125,000 Cubans who were expelled by Fidel Castro. Federal and state authorities, as well as private voluntary agencies, responded with unprecedented vigor to coping with the unexpected influx of Cubans. Major relief efforts to aid refugees in countries of first asylum continued in several areas of the world. In December, 1980, thirty-two nations, meeting in New York City, agreed to contribute $65 million to the continuing famine relief program in Kampuchea. Due in great part to the generosity of the American people and the leadership exercised in the international arena by the United States, we have played the pivotal role in ameliorating massive suffering in Kampuchea. The United States has taken the lead among a group of donor countries who are providing relief to some two million refugees in the Horn of Africa who have been displaced by fighting in Ethiopia. YOU.S. assistance, primarily to Somalia, consists of $35 million worth of food and $18 million in cash and kind. Here again, United States efforts can in large part be credited with keeping hundreds of thousands of people alive. Another major international relief effort has been mounted in Pakistan. The United States is one of 25 countries plus the European Economic Community who have been helping the Government of Pakistan to cope with the problem of feeding and sheltering the more than one million refugees that have been generated by the Soviet invasion of Afghanistan. In April, 1980, the Congress passed the Refugee Act of 1980 which brought together, for the first time, in one piece of legislation the various threads of YOU.S. policy towards refugees. The law laid down a new, broader definition of the term refugee, established mechanisms for arriving at a level of refugee admissions through consultation with Congress, and established the Office of the United States Coordinator for Refugees. It cannot be ignored that the destructive and aggressive policies of the Soviet Union have added immeasurably to the suffering in these three tragic situations. The Control of Nuclear Weapons Together with our friends and allies, we are striving to build a world in which peoples with diverse interests can live freely and prosper. But all that humankind has achieved to date, all that we are seeking to accomplish, and human existence itself can be undone in an instant—in the catastrophe of a nuclear war. Thus one of the central objectives of my Administration has been to control the proliferation of nuclear weapons to those nations which do not have them, and their further development by the existing nuclear powers—notably the Soviet Union and the United States. NON-PROLIFERATION My Administration has been committed to stemming the spread of nuclear weapons. Nuclear proliferation would raise the spectre of the use of nuclear explosives in crucial, unstable regions of the world endangering not only our security and that of our Allies, but that of the whole world. Non-proliferation is not and. can not be a unilateral YOU.S. policy, nor should it be an issue of contention between the industrialized and developing states. The international non-proliferation effort requires the support of suppliers as well as importers of nuclear technology and materials. We have been proceeding on a number of fronts: • First, we have been seeking to encourage nations to accede to the Non-Proliferation Treaty. The YOU.S. is also actively encouraging other nations to accept full-scope safeguards on all of their nuclear activities and is asking other nuclear suppliers to adopt a full-scope safeguards requirement as a condition for future supply. • Second, the International Nuclear Fuel Cycle Evaluation (INFCE), which was completed in 1980, demonstrated that suppliers and recipients can work together on these technically complex and sensitive issues. While differences remain, the INFCE effort provides a broader international basis for national decisions which must balance energy needs with non-proliferation concerns. • Finally, we are working to encourage regional cooperation and restraint. Protocol I of the Treaty of Tlatelolco which will contribute to the lessening of nuclear dangers for our Latin American neighbors ought now to be ratified by the United States Senate. LIMITATIONS ON STRATEGIC ARMS I remain convinced that the SALT II Treaty is in our Nation's security interest and that it would add significantly to the control of nuclear weapons. I strongly support continuation of the SALT process and the negotiation of more far-reaching mutual restraints on nuclear weaponry. CONCLUSION We have new support in the world for our purposes of national independence and individual human dignity. We have a new will at home to do what is required to keep us the strongest nation on earth. We must move together into this decade with the strength which comes from realization of the dangers before us and from the confidence that together we can overcome them. JIMMY CARTER The White House, January 16, 1981.
to the congress of the united states the state of the union is sound our economy is recovering from a recession a national energy plan is in place and our dependence on foreign oil is decreasing we have been at peace for four uninterrupted years but our nation has serious problems inflation and unemployment are unacceptably high the world oil market is increasingly tight there are trouble spots throughout the world and 53 american hostages are being held in iran against international law and against every precept of human affairs however i firmly believe that as a result of the progress made in so many domestic and international areas over the past four years our nation is stronger wealthier more compassionate and freer than it was four years ago i am proud of that fact and i believe the congress should be proud as well for so much of what has been accomplished over the past four years has been due to the hard work insights and cooperation of congress i applaud the congress for its efforts and its achievements in this state of the union message i want to recount the achievements and progress of the last four years and to offer recommendations to the congress for this year while my term as president will end before the 97th congress begins its work in earnest i hope that my recommendations will serve as a guide for the direction this country should take so we build on the record of the past four years record of progress when i took office our nation faced a number of serious domestic and international problems no national energy policy existed and our dependence on foreign oil was rapidly increasing public trust in the integrity and openness of the government was low the federal government was operating inefficiently in administering essential programs and policies major social problems were being ignored or poorly addressed by the federal government our defense posture was declining as a result of a defense budget which was continuously shrinking in real terms the strength of the nato alliance needed to be bolstered tensions between israel and egypt threatened another middle east war and america resolve to oppose human rights violations was under serious question over the past 48 months clear progress has been made in solving the challenges we found in january of 1977 almost all of our comprehensive energy program have been enacted and the department of energy has been established to administer the program confidence in the government 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 14 reorganization initiatives have been proposed to the congress approved and implemented two new cabinet departments have been created to consolidate and streamline the government handling of energy and education problems inspectors general have been placed in each cabinet department to combat fraud waste and other abuses the regulatory process has been reformed through creation of the regulatory council implementation of executive order 12044 and its requirement for analyses elimination of unnecessary regulation and passage of the regulatory flexibility act procedures have been established to assure citizen participation in government and the airline trucking rail and communications industries are being deregulated critical social problems many long ignored by the federal government have been addressed directly an urban policy was developed and implemented to reverse the decline in our urban areas the social security system was refinanced to put it on a sound financial basis the full employment act was enacted federal assistance for education was expanded by more than 75 percent the minimum wage was increased to levels needed to ease the effects of inflation affirmative action has been pursued blacks hispanics and women have been appointed to senior government positions and to judgeships than at any other time in our history the era ratification deadline was extended to aid the ratification effort and minority business procurement by the federal government has more than doubled the nation first sectoral policies were put in place for the auto and steel industries with my administration demonstrating the value of cooperation between the government business and labor reversing previous trends real defense spending has increased every year since 1977 the real increase in fy 1980 defense spending is well above 3 percent and i expect fy 1981 defense spending to be even higher looking ahead the defense program i am proposing is premised on a real increase in defense spending over the next five years of 20 percent or more the nato alliance has proven its unity in responding to the situations in eastern europe and southwest asia and in agreeing on the issues to be addressed in the review of the helsinki final act currently underway in madrid the peace process in the middle east established at camp david and by the peace treaty between egypt and israel is being buttressed on two fronts steady progress in the normalization of relations in many fields and the commitment of both egypt and israel with united states assistance to see through to successful conclusion the autonomy negotiations for the west bank and gaza the panama canal treaties have been put into effect which has helped to improve relations with latin america we have continued this nation strong commitment to the pursuit of human rights throughout the world evenhandedly and objectively our commitment to a worldwide human rights policy has remained firm and many other countries have given high priority to it our resolve to oppose aggression such as the illegal invasion of the soviet union into afghanistan has been supported by tough action i ensuring economic strength economy during the last decade our nation has withstood a series of economic shocks unprecedented in peacetime the most dramatic of these has been the explosive increases of opec oil prices but we have also faced world commodity shortages natural disasters agricultural shortages and major challenges to world peace and security our ability to deal with these shocks has been impaired because of a decrease in the growth of productivity and the persistence of underlying inflationary forces built up over the past 15 years nevertheless the economy has proved to be remarkably resilient real output has grown at an average rate of 3 percent per year since i took office and employment has grown by 10 percent we have added about 8 million productive private sector jobs to the economy however unacceptably high most difficult economic problem i have this threatens the growth productivity and stability of our that we restrain the growth of the budget to the maximum extent consistent with national security and human compassion i have done so in my earlier budgets and in my fy budget however while restraint is essential to any appropriate economic policy high inflation can not be attributed solely to government spending the growth in budget outlays has been more the result of economic factors than the because of them we are now in the early stages of economic recovery following a short recession typically a period has been marked by vigorous economic growth aided by policy measures such as large tax cuts or big stimulation spending programs i have declined to recommend such actions to stimulate economic activity because the persistent inflationary pressures that beset our economy today dictate a restrained fiscal policy accordingly i am asking the congress to postpone until january 1 1982 the personal tax reductions i had earlier proposed to take effect on january 1 of this year however my 1982 budget proposes significant tax changes to increase the sources of financing for business investment while emphasizing the need for continued fiscal restraint this budget takes the first major step in a tax reduction program designed to increase capital formation the failure of our nation capital stock to grow at a rate that keeps pace with its labor force has clearly been one because of our productivity slowdown higher investment rates are also critically needed to meet our nation energy needs and to replace plants and equipment with new physical plants the level of investment that is called for will not occur in the absence of policies to encourage it therefore my budget proposes a major liberalization of tax allowances for depreciation as well as simplified depreciation accounting increasing the allowable rates by about 40 percent i am also proposing improvements in the investment tax credit making it refundable to meet the investment needs of firms with no current earnings these two proposals along with tax reductions for individuals will improve both economic efficiency and tax equity i urge the congress to enact legislation along the lines and timetable i have proposed the 1982 budget the fy 1982 budget i have sent to the congress continues our policy of prudence and restraint while the budget deficits during my term are higher than i would have liked their size is determined for the most part by economic conditions and in spite of these conditions the relative size of the deficit continues to decline in 1976 before i took office the budget deficit equalled 4 percent of gross national product it had been cut to percent in the 1980 fiscal year just ended my 1982 budget contains a deficit estimated to be less than 1 percent of our gross national product the rate of growth in federal spending has been held to a minimum nevertheless outlays are still rising more rapidly than many had anticipated the result of many powerful forces in our society we face a threat to our security as events in afghanistan the middle east and eastern europe make clear we have a steadily aging population and as a resuit the biggest single increase in the federal budget is the rising cost of retirement programs particularly social security we face other important domestic needs to continue responsibility for the disadvantaged to provide the capital needed by our cities and our transportation systems to protect our environment to revitalize american industry and to increase the export of american goods and services so essential to the creation of jobs and a trade surplus yet the federal government itself may not always be the proper source of such assistance for example it must not usurp functions if they can be more appropriately decided upon managed and financed by the private sector or by state and local governments my administration has always sought to consider the proper focus of responsibility for the most efficient resolution of problems we have also recognized the need to simplify the system of grants to state and local governments i have again proposed several grant consolidations in the 1982 budget including a new proposal that would consolidate several highway programs the pressures for growth in federal use of national resources are great my administration has initiated many new approaches to cope with these pressures we started a budget system and we began a system for controlling federal credit programs yet in spite of increasing needs to limit spending growth we have consistently adhered to these strong budget principles our nation armed forces must always stand sufficiently strong to deter aggression and to assure our security an effective national energy plan is essential to increase domestic production of oil and gas to encourage conservation of our scarce energy resources to stimulate conversion to more abundant fuels and to reduce our trade deficit the essential human needs for our citizens must be given the highest priority the federal government must lead the way in investment in the nation technological future the federal government has an obligation to nurture and protect our common resource birthright and sustenance of the american people my 1982 budget continues to support these principles it also proposes responsible tax reductions to encourage a more productive economy and adequate funding of our highest priority programs within an overall policy of constraint fiscal restraint must be continued in the years ahead budgets must be tight enough to convince those who set wages and prices that the federal government is serious about fighting inflation but not so tight as to choke off all growth careful budget policy should be supplemented by other measures designed to reduce inflation at lower cost in lost output and employment these other steps include measures to increase as the tax proposals included in my 1982 measures to increase competition and productivity in our economy voluntary incomes policies can also directly influence wages and prices in the direction of moderation and thereby bring inflation down faster and at lower cost to the economy through a incomes policy tip we could provide tax incentives for firms and workers to moderate their wage and price increases in the coming years control of federal expenditures can make possible periodic tax reductions the congress should therefore begin now to evaluate the potentialities of a tip program so that when the next round of tax reductions is appropriate a tip program will be seriously considered employment during the last four years we have given top priority to meeting the needs of workers and providing additional job opportunities to those who seek work since the end of 1976 almost 9 million new jobs have been added to the nation economy total employment has reached 97 million more jobs than ever before are held by women minorities and young people employment over the past four years has increased by for adult women for blacks and for hispanics employment of black teenagers increased by more than 5 reversing the decline that occurred in the previous eight years major initiatives launched by this administration helped bring about these accomplishments and have provided a solid foundation for employment and training policy in the 1980 in 1977 as part of the comprehensive economic stimulus program public service jobs were created a 1 billion youth employment initiative funded jobs the doubling of the job corps to slots began and i million summer youth jobs were 25 percent increase in 1978 the full employment act became law the 400 million private sector initiatives program was begun a targeted jobs tax credit for disadvantaged youth and others with special employment barriers was enacted the comprehensive employment and training act was reauthorized for four years in 1979 a 6 billion welfare reform proposal was introduced with funding for public service jobs welfare reform demonstration projects were launched in communities around the country the vice president initiated a nationwide review of youth unemployment in this country in 1980 the findings of the vice president task force revealed the major education and employment deficits that exist for poor and minority youngsters as a result a 2 billion youth education and jobs initiative was introduced to provide unemployed youth with the basic education and work experience they need to compete in the labor market of the 1980 as part of the economic revitalization program several steps were proposed to aid workers in high unemployment communities additional 13 weeks of unemployment benefits for the long term unemployed 600 million to train the disadvantaged and unemployed for new private sector jobs adjustment demonstrations to aid workers in declining industries the important title vii private sector initiatives program was reauthorized for an additional two years in addition to making significant progress in helping the disadvantaged and unemployed important gains were realized for all workers an historic national accord with organized labor made it possible for the views of working men and women to be heard as the nation economic and domestic policies were formulated the mine safety and health act brought about improved working conditions for the nation miners substantial reforms of the occupational safety and health administration were accomplished to help reduce unnecessary burdens on business and to focus on major health and safety problems the minimum wage was increased over a four year period from to an hour the black lung benefit reform act was signed into law attempts to weaken the act were defeated while substantial gains have been made in the last four years continued efforts are required to ensure that this progress is continued government must continue to make labor a full partner in the policy decisions that affect the interests of working men and women a broad bipartisan effort to combat youth unemployment must be sustained compassionate reform of the nation welfare system should be continued with employment opportunities provided for those able to work workers in declining industries should be provided new skills and help in finding employment trade over the past year the trade picture improved as a result of solid export gains in both manufactured and agricultural products agricultural exports reached a new record of over 40 billion while manufactured exports have grown by 24 percent to a record 144 billion in these areas the united states recorded significant surpluses of 24 billion and 19 billion respectively while our oil imports remained a major drain on our foreign exchange earnings that drain was somewhat moderated by a 19 percent decline in the volume of oil imports trade negotiators made significant progress over the past year in assuring effective implementation of the agreements negotiated during the tokyo round of multilateral trade negotiations agreements reached with the japanese government for example will assure that the united states will be able to expand its exports to the japanese market in such key areas as telecommunications equipment tobacco and lumber efforts by trade negotiators also helped to persuade a number of key developing countries to accept many of the codes negotiated during the multilateral trade negotiations this will assure that these countries will increasingly assume obligations under the international trading system a difficult world economic environment posed a challenge for the management of trade relations trade negotiators were called upon to manage serious sectoral problems in such areas as steel and helped to assure that chemical exports will have continued access to the european market close consultations with the private sector in the united states have enabled trade negotiators to pinpoint obstacles to trade in services and to build a basis for future negotiations services have been an increasingly important source of export earnings for the united states and the united states must assure continued and increased access to foreign markets the trade position of the united states has improved but vigorous efforts are needed in a number of areas to assure continued market access for exports particularly agricultural and high technology products in which the united states continues to have a strong competitive edge continued efforts are also needed to remove many domestic disincentives which now hamper export growth and we must ensure that countries do not manipulate investment or impose investment performance requirements which distort trade and cost us jobs in this country in short we must continue to seek that is the policy my administration has pursued from the beginning even in areas where foreign competition has clearly affected our domestic industry in the steel industry for instance we have put a trigger price mechanism into place to help prevent the dumping of steel that action has strengthened the domestic steel industry in the automobile industry we have resort to import strengthen the industry ability to modernize and compete effectively small business i have often said that there is nothing small about small business in america these firms account for nearly our gross national product over half of new technology and much more than half of the jobs created by industry because this sector of the economy is the very lifeblood of our national economy we have done much together to improve the competitive climate for smaller firms these concerted efforts have been an integral part of my program to revitalize the economy they include my campaign to shrink substantially the cash and time consuming red tape burden imposed on business they include my policy of ambitiously increasing the federal contracting dollars going to small firms especially those owned by women and minorities and they include my proposals to reinvigorate existing small businesses and assist the creation of new ones through tax reform financing assistance market expansion and support of product innovation many of my initiatives to facilitate the creation and growth of small businesses were made in response to the white house conference on small business which i convened my administration began the implementation of most of the ideas produced last year by that citizen advisory body others need to be addressed i have proposed the reconvening of the conference next year to review progress reassess priorities and set new goals in the interim i hope that the incoming administration and the new congress will work with the committee i have established to keep these business development ideas alive and help implement conference recommendations minority business one of the most successful developments of my administration has been the growth and strengthening of minority business this is the first administration to put the issue on the policy agenda as a matter of major importance to implement the results of our early efforts in this field i submitted legislation to congress designed to further the development of minority business we have reorganized the office of minority business into the minority business development administration in the department of commerce mbda has already proven to be a major factor in assisting minority businesses to achieve equitable competitive positions in the marketplace the federal government procurement from firms has nearly tripled since i took office federal deposits in banks have more than doubled and minority ownership of radio and television stations has nearly doubled the sba administered 8 a pilot program for procurement with the army proved to be successful and i recently expanded the number of agencies involved to include nasa and the departments of energy and transportation i firmly believe the critical path to full freedom and equality for america minorities rests with the ability of minority communities to participate competitively in the free enterprise system i believe the government has a fundamental responsibility to assist in the development of minority business and i hope the progress made in the last four years will continue ii creating energy security since i took office my highest legislative priorities have involved the reorientation and redirection of energy activities and for the first time to establish a coordinated national energy policy the struggle to achieve that policy has been long and difficult but the accomplishments of the past four years make clear that our country is finally serious about the problems caused by our overdependence on foreign oil our progress should not be lost we must rely on and encourage multiple forms of energy crude oil natural gas solar nuclear energy conservation the framework put in place over the last four years will enable us to do this national energy policy as a result of actions my administration and the congress have taken over the past four years our country finally has a national energy policy under my program of phased decontrol domestic crude oil price controls will end september 30 1981 as a result exploratory drilling activities have reached an high prices for new natural gas are being decontrolled under the natural gas policy natural gas production is now at an all time high the supply shortages of several years ago have been eliminated the windfall profits tax on crude oil has been enacted providing 227 billion over ten years for assistance to households increased mass transit funding and a massive investment in the production and development of alternative energy sources the synthetic fuels corporation has been established to help private companies build the facilities to produce energy from synthetic fuels solar energy funding has been quadrupled solar energy tax credits enacted and a solar energy and energy conservation bank has been established a route has been chosen to bring natural gas from the north slope of alaska to the lower 48 states coal production and consumption incentives have been increased and coal production is now at its highest level in history a gasoline rationing plan has been approved by congress for possible use in the event of a severe energy supply shortage or interruption gasohol production has been dramatically increased with a program being put in place to produce 500 million gallons of alcohol fuel by the end of this amount that could enable gasohol to meet the demand for 10 percent of all unleaded gasoline new energy conservation incentives have been provided for individuals businesses and communities and conservation has increased dramatically the has reduced oil imports by 25 2 million barrels per the past four years increased development of domestic energy sources although it is essential that the nation reduce its dependence on imported fossil fuels and complete the transition to reliance on domestic renewable sources of energy it is also important that this transition be accomplished in an orderly economic and environmentally sound manner to this end the administration has launched several initiatives leasing of oil and natural gas on federal lands particularly the outer continental shelf has been accelerated at the same time as the administration has reformed leasing procedures through the 1978 amendments to the outer continental shelf lands act in 1979 the interior department held six ocs lease sales the greatest number ever which resulted in federal receipts of billion another record the ocs leasing schedule was completed requiring 36 sales over the next five years since 1971 no general federal coal lease sales were suspended over the past four years the administration has completely revised the federal coal leasing program to bring it into compliance with the requirements of 1976 federal land planning and management act and other statutory provisions the program is designed to balance the competing interests that affect resource development on public lands and to ensure that adequate supplies of coal will be available to meet national needs as a result the first general competitive federal coal lease sale in ten years will be held this month in july 1980 i signed into law the energy security act of 1980 which established the synthetic fuels corporation the corporation is designed to spur the development of commercial technologies for production of synthetic fuels such as liquid and gaseous fuels from coal and the production of oil from oil shale the act provides the corporation with an initial 22 billion to accomplish these objectives the principal purpose of the legislation is to ensure that the nation will have available in the late 1980 the option to undertake commercial development of synthetic fuels if that becomes necessary the energy security act also provides significant incentives for the development of gasohol and biomass fuels thereby enhancing the nation supply of alternative energy sources commitment to a sustainable energy future the administration 1977 national energy plan marked an historic departure from the policies of previous administrations the plan stressed the importance of both energy production and conservation to achieving our ultimate national goal of relying primarily on secure sources of energy the national energy plan made energy conservation a cornerstone of our national energy policy in 1978 i initiated the administration solar domestic policy review this represented the first step towards widespread introduction of renewable energy sources into the nation economy as a result of the review i issued the 1979 solar message to congress the first such message in the nation history the message outlined the administration solar program and established an ambitious national goal for the year 2000 of obtaining 20 percent of this nation energy from solar and renewable sources the thrust of the federal solar program is to help industry develop solar energy sources by emphasizing basic research and development of solar technologies which are not currently economic such as photovoltaics which generate energy directly from the sun at the same time through tax incentives education and the solar energy and energy conservation bank the solar program seeks to encourage state and local governments industry and our citizens to expand their use of solar and renewable resource technologies currently available as a result of these policies and programs the energy efficiency of the american economy has improved markedly and investments in renewable energy sources have grown significantly it now takes 3¼ percent less energy to produce a constant dollar of gnp than it did in january 1977 this increase in efficiency represents a savings of over million barrels per day of oil equivalent about the level of total oil production now occurring in alaska over the same period federal support for conservation and solar energy has increased by more than 3000 percent to billion in fy 1981 including the tax credits for solar energy and energy conservation credits are expected to amount to billion in fy 1981 and billion in fy 1982 commitment to nuclear safety and security since january 1977 significant progress has been achieved in resolving three critical problems resulting from the use of nuclear energy radioactive waste management nuclear safety and weapons proliferation in 1977 the administration announced its nuclear nonproliferation policy and initiated the international fuel cycle evaluation in 1978 congress passed the nuclear nonproliferation act an historic piece of legislation in february 1980 the administration transmitted its nuclear waste management policy to the congress this policy was a major advance over all previous efforts the principal aspects of that policy are acknowledging the seriousness of the problem and the numerous technical and institutional issues adopting a technically and environmentally conservative approach to the first permanent repository and providing the states with significant involvement in nuclear waste disposal decisions by creating the state planning council while much of the plan can be and is being implemented administratively some new authorities are needed the congress should give early priority to enacting provisions for storage and the state planning council the accident at three mile island made the nation acutely aware of the safety risks posed by nuclear power plants in response the president established the kemeny commission to review the accident and make recommendations virtually all of the commission substantive recommendations were adopted by the administration and are now being implemented by the nuclear regulatory commission the congress adopted the president proposed plan for the nuclear regulatory commission and the nuclear safety oversight committee was established to ensure that the administration decisions were implemented nuclear safety will remain a vital concern in the years ahead we must continue to press ahead for the safe secure disposal of radioactive wastes and prevention of nuclear proliferation while significant growth in foreign demand for steam coal is foreseen congestion must be removed at major coal exporting ports such as hampton roads virginia and baltimore maryland my administration has worked through the interagency coal task force study to promote cooperation and coordination of resources between shippers railroads vessel and port operators and to determine the most appropriate federal role in expanding and modernizing coal export facilities including dredging deeper channels at selected ports as a result of the task force efforts administrative steps have been taken by the corps of engineers to reduce significantly the amount of time required for planning and economic review of port dredging proposals the administration has also recommended that the congress enact legislation to give the president generic authority to recommend appropriations for channel dredging activities private industry will of course play the major role in developing the united states coal export facilities but the government must continue to work to facilitate transportation to foreign markets iii enhancing basic human and social needs for too long prior to my administration many of our nation basic human and social needs were being ignored or handled insensitively by the federal government over the last four years we have significantly increased funding for many of the vital programs in these areas developed new programs where needs were unaddressed targeted federal support to those individuals and areas most in need of our assistance and removed barriers that have unnecessarily kept many disadvantaged citizens from obtaining aid for their most basic needs our record has produced clear progress in the effort to solve some of the country fundamental human and social problems my administration and the congress working together have demonstrated that government must and can meet our citizens basic human and social needs in a responsible and compassionate way but there is an unfinished agenda still before the congress if we are to meet our obligations to help all americans realize the dreams of sound health care decent housing effective social services a good education and a meaningful job important legislation still must be enacted national health insurance welfare reform child health assessment program are before the congress and i urge their passage health national health plan during my administration i proposed to congress a national health plan which will enable the country to reach the goal of comprehensive universal health care coverage the legislation i submitted lays the foundation for this comprehensive plan and addresses the most serious problems of health financing and delivery it is realistic and enactable it does not overpromise or overspend and as a result can be the solution to the thirty years of congressional battles on national health insurance my plan includes the following key features nearly 15 million additional poor would receive 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 including greater incentives for health maintenance organizations i urge the new 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 substantial financial burdens on the american taxpayers i hope the congress will see the need for and the benefits of my plan and work toward prompt enactment we can not afford further delay in this vital area health care cost control inflation in health care costs remains unacceptably high throughout my administration legislation to reduce health care cost inflation was one of my highest priorities but was not passed by the congress therefore my fy 1982 budget proposes sharing the responsibility for health care cost control with the private sector through voluntary hospital cost guidelines and intensified monitoring in the longer term the health care reimbursement system must be reformed we must move away from inflationary reimbursement and and toward a system of prospective reimbursement under which health care providers would operate within predetermined budgets this reimbursement reform is essential to ultimately control inflation in health care costs and will be a significant challenge to the new congress health promotion and disease prevention during my administration the surgeon general released healthy people a landmark report on health promotion and disease prevention the report signals the growing consensus that the nation 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 i urge the new congress to endorse the principles of healthy people and to adopt the recommendations to achieve its goals this will necessitate adoption of a broader concept of health care to include such areas as environmental health workplace health and safety commercial product safety traffic safety and health education promotion and information maternal and child health ensuring a healthy start in life for children remains not only a high priority of my administration but also one of the most cost effective forms of health care when i took office immunization levels for preventable childhood diseases had fallen to 70 as a result of a concerted nationwide effort during my administration i am pleased to report that now at least 90 of children under 15 and virtually all children are immunized in addition reported cases of measles and mumps are at their lowest levels ever under the national health plan i have proposed there would be no for prenatal and delivery services for all pregnant women and for acute care provided to infants in their first year of life these preventive services have extremely high returns in terms of improved newborn and child health under the child health assurance program chap legislation which i submitted to the congress and which passed the house an additional two million low income children under 18 would become eligible for medicaid benefits which would include special health assessments chap would also improve the continuity of care for the nearly 14 million children now eligible for medicaid an additional pregnant women would become eligible for prenatal care under the proposal i strongly urge the new congress to enact chap and thereby provide millions of needy children with essential health services the legislation has had strong bipartisan support which should continue as the details of the bill are completed i also urge the new congress to provide strong support for two highly successful ongoing programs the special supplemental food program for women infants and children wic and family planning the food supplements under wic have been shown to effectively prevent ill health and thereby reduce later medical costs the family planning program has been effective at reducing unwanted pregnancies among women and adolescents expansion of services to the poor and underserved during my administration health services to the poor and underserved have been dramatically increased the number of national health service corps nhsc assignees providing services in medically underserved communities has grown from 500 in 1977 to nearly in 1981 the population served by the nhsc has more than tripled since 1977 the number of community health centers providing services in high priority underserved areas has doubled during my administration and will serve an estimated six million people in 1981 i strongly urge the new congress to support these highly successful programs mental health one of the most significant health achievements during my administration was the recent passage of the mental health systems act which grew out of recommendations of my commission on mental health i join many others in my gratitude to the first lady for her tireless and effective contribution to the passage of this important legislation the act is designed to inaugurate a new era of federal and state partnership in the planning and provision of mental health services in addition the act specifically provides for prevention and sup port services to the chronically mentally ill to prevent unnecessary institutionalization and for the development of mental health services i urge the new congress to provide adequate support for the full and timely implementation of this act health protection with my active support the congress recently passed medigap legislation which provides for voluntary certification of health insurance policies supplemental to medicare to curb widespread abuses in this area in the area of toxic agent control legislation which i submitted to the congress recently passed this will provide for a to cover hazardous waste cleanup costs in the area of accidental injury control we have established automobile safety standards and increased enforcement activities with respect to the 55 mph speed limit by the end of the decade these actions are expected to save over lives and serious injuries each year i urge the new congress to continue strong support for all these activities food and nutrition building on the comprehensive reform of the food stamp program that i proposed and congress passed in 1977 my administration and the congress worked together in 1979 and 1980 to enact several other important changes in the program these changes will further simplify administration and reduce fraud and error will make the program more responsive to the needs of the elderly and disabled and will increase the cap on allowable program expenditures the food stamp act will expire at the end of fiscal 1981 it is essential that the new administration and the congress continue this program to ensure complete eradication of the debilitating malnutrition witnessed and documented among thousands of children in the 1960 drug abuse prevention at the beginning of my administration there were over a half million heroin addicts in the united states our continued emphasis on reducing the supply of heroin as well as providing treatment and rehabilitation to its victims has reduced the heroin addict population reduced the number of heroin overdose deaths by 80 and reduced the number of heroin related injuries by 50 we have also seen and encouraged a national movement of parents and citizens committed to reversing the very serious and disturbing trends of adolescent drug abuse drug abuse in many forms will continue to detract however from the quality of life of many americans to prevent that i see four great challenges in the years ahead first we must deal aggressively with the supplies of illegal drugs at their source through joint crop destruction programs with foreign nations and increased law enforcement and border interdiction second we must look to citizens and parents across the country to help educate the increasing numbers of american youth who are experimenting with drugs to the dangers of drug abuse education is a key factor in reducing drug abuse third we must focus our efforts on drug and alcohol abuse in the workplace for not only does this abuse contribute to low productivity but it also destroys the satisfaction and sense of purpose all americans can gain from the work experience fourth we need a change in attitude from an attitude which condones the casual use of drugs to one that recognizes the appropriate use of drugs for medical purposes and condemns the inappropriate and harmful abuse of drugs i hope the congress and the new administration will take action to meet each of these challenges education the american people have always recognized that education is one of the soundest investments they can make the dividends are reflected in every dimension of our national the strength of our economy and national security to the vitality of our music art and literature among the accomplishments that have given me the most satisfaction over the last four years are the contributions that my administration has been able to make to the of students and educators throughout the country this administration has collaborated successfully with the congress on landmark education legislation working with the congressional leadership my administration spotlighted the importance of education by creating a new department of education the department has given education a stronger voice at the federal level while at the same time reserving the actual control and operation of education to states localities and private institutions the department has successfully combined nearly 150 federal education programs into a cohesive streamlined organization that is more responsive to the needs of educators and students the department has made strides to cut red tape and paperwork and thereby to make the flow of federal dollars to school districts and institutions of higher education more efficient it is crucial that the department be kept intact and strengthened our collaboration with the congress has resulted in numerous other important legislative accomplishments for education a little over two years ago i signed into law on the same day two major benefiting elementary and secondary education and the other postsecondary education the education amendments of 1978 embodied nearly all of my administration proposals for improvements in the elementary and secondary education act including important new programs to improve students achievement in the basic skills and to aid school districts with exceptionally high concentrations of children from families the middle income student assistance act legislation jointly sponsored by this administration and the congressional leadership expanded eligibility for basic educational opportunity grants to approximately of the students enrolled in postsecondary education and made many more students eligible for the first time for other types of grants and loans just three and a half months ago my administration and the congress successfully concluded over two years of work on a major reauthorization bill that further expands benefits to postsecondary education reflected in the education amendments of 1980 are major administration recommendations for improvements in the higher education proposals for better loan access for students a new parent loan program simplified application procedures for student financial aid a strengthened federal commitment to developing colleges particularly the historically black institutions a new authorization for equipment and facilities modernization funding for the nation major research universities and revitalized international education programs supplementing these legislative accomplishments have been important administrative actions aimed at reducing paperwork and simplifying regulations associated with federal education programs we also launched major initiatives to reduce the backlog of defaulted student loans and otherwise to curb fraud abuse and waste in education programs to insure that the education enterprise is ready to meet the scientific and technological changes of the future we undertook a major study of the status of science and engineering education throughout the nation i hope that the findings from this report will serve as a springboard for needed reforms at all levels of education i am proud that this administration has been able to provide the financial means to realize many of our legislative and administrative goals compared to the previous administration last budget i have requested the largest overall increase in federal funding for education in our nation history my budget requests have been particularly sensitive to the needs of special populations like minorities women the educationally and economically disadvantaged the handicapped and students with limited ability at the same time i have requested significant increases for many programs designed to enhance the quality of american education including programs relating to important areas as diverse as international education research libraries museums and teacher centers last year i proposed to the congress a major legislative initiative that would direct 2 billion into education and job training programs designed to alleviate youth unemployment through improved linkages between the schools and the work place this legislation generated bipartisan support but unfortunately action on it was not completed in the final rushed days of the 96th congress i urge the new it undertakes broad efforts to strengthen the economy as well as more specific tasks like reauthorizing the vocational education make the needs of our nation unemployed youth a top priority for action only by combining a basic skills education program together with work training and employment incentives can we make substantial progress in eliminating one of the most severe social problems in our unemployment particularly among minorities i am proud of the progress already made through passage of the youth employment and demonstration project act of 1977 and the substantial increase in our investment in youth employment programs the new legislation would cap these efforts income security social security one of the highest priorities of my administration has been to continue the tradition of effectiveness and efficiency widely associated with the social security program and to assure present and future beneficiaries that they will receive their benefits as expected the earned benefits that are paid monthly to retired and disabled american workers and their families provide a significant measure of economic protection to millions of people who might otherwise face retirement or possible disability with fear i have enacted changes to improve the benefits of many social security beneficiaries during my years as president the last four years have presented a special set of concerns over the financial stability of the social security system shortly after taking office i proposed and congress enacted legislation to protect the stability of the old age and survivors trust fund and prevent the imminent exhaustion of the disability insurance trust fund and to correct a flaw in the benefit formula that was threatening the long run health of the entire social security system the actions taken by the congress at my request helped stabilize the system that legislation was later complemented by the disability insurance amendments of 1980 which further bolstered the disability insurance program and reduced certain inequities among beneficiaries my commitment to the essential retirement and disability protection provided to 35 million people each month has been demonstrated by the fact that without interruption those beneficiaries have continued to receive their social security benefits including annual cost of living increases changing and unpredictable economic circumstances require that we continue to monitor the financial stability of the social security system to correct anticipated strains on the system i proposed last year that the three funds be allowed to borrow from one another and i urge the congress again this year to adopt such interfund borrowing to further strengthen the social security system and provide a greater degree of assurance to beneficiaries given projected future economic uncertainties additional action should be taken among the additional financing options available are borrowing from the general fund financing half of the hospital insurance fund with general revenues and increasing the payroll tax rate the latter option is particularly unpalatable given the significant increase in the tax rate already mandated in law this administration continues to oppose cuts in basic social security benefits and taxing social security benefits the administration continues to support annual indexing of social security benefits welfare reform in 1979 i proposed a welfare reform package which offers solutions to some of the most urgent problems in our welfare system this proposal is embodied in two work and training opportunities act and the social welfare reform amendments act the house passed the second of these two proposals within the framework of our present welfare system my reform proposals offer achievable means to increase through work rather than welfare more adequate assistance to people unable to work the removal of inequities in coverage under current programs and fiscal relief needed by states and localities our current welfare system is long overdue for serious reform the system is wasteful and not fully effective the legislation i have proposed will help eliminate inequities by establishing a national minimum benefit and by directly relating benefit levels to the poverty threshold it will reduce program complexity which leads to inefficiency and waste by simplifying and coordinating administration among different programs i urge the congress to take action in this area along the lines i have recommended child welfare my administration has worked closely with the congress on legislation which is designed to improve greatly the child welfare services and foster care programs and to create a federal system of adoption assistance these improvements will be achieved with the recent enactment of 3434 the adoption assistance and child welfare act of 1980 the wellbeing of children in need of homes and their permanent placement have been a primary concern of my administration this legislation will ensure that children are not lost in the foster care system but instead will be returned to their families where possible or placed in permanent adoptive homes energy assistance in 1979 i proposed a program to provide an annual total of billion to low income households which are hardest hit by rising energy bills with the cooperation of congress we were able to move quickly to provide assistance to eligible households in time to meet their winter heating bills in response to the extreme heat conditions affecting many parts of the country during 1980 i directed the community services administration to make available over 27 million to assist individuals especially the elderly facing life threatening circumstances due to extreme heat congress amended and reauthorized the energy assistance program for fiscal year 1981 and provided billion to meet anticipated increasing need the need for a program to help low income households with rising energy expenses will not abate in the near future the energy assistance program should be reauthorized to meet those needs housing for the past 14 months high interest rates have had a severe impact on the nation housing market yet the current pressures and uncertainties should not obscure the achievements of the past four years working with the congress the regulatory agencies and the financial community my administration has brought about an expanded and steadier flow of funds into home mortgages deregulation of the interest rates payable by depository institutions the evolution of variable and renegotiated rate mortgages development of high yielding savings certificates and expansion of the secondary mortgage market have all increased housing ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose these actions will diminish the cyclically of the housing industry further we have secured legislation updating the federal government emergency authority to provide support for the housing industry through the program and creating a new section 235 housing stimulus program these tools will enable the federal government to deal quickly and effectively with serious distress in this critical industry we have also worked to expand homeownership opportunities for americans by using innovative financing mechanisms such as the graduated payment mortgage we have increased the access of middle income families to housing credit by revitalizing the section 235 program we have enabled nearly moderate income households to purchase new homes by reducing paperwork and regulation in federal programs and by working with state and local governments to ease the regulatory burden we have helped to hold down housing costs and produce affordable housing as a result of these governmentwide efforts 5 million more american families bought homes in the past four years than in any equivalent period in history and more than 7 million homes have begun construction during my administration 1 million more than in the previous four years we have devoted particular effort to meeting the housing needs of low and moderate income families in the past four years more than 1 million subsidized units have been made available for occupancy by lower income americans and more than assisted units have gone into construction in addition we have undertaken a series of measures to revitalize and preserve the nation 2 million units of public and assisted housing for fiscal year 1982 i am proposing to continue our commitment to lower income housing i am requesting funds to support units of section 8 and public housing maintaining these programs at the level provided by congress in fiscal 1981 while we have made progress in the past four years in the future there are reasons for concern home price inflation and high interest rates threaten to put homeownership out of reach for homebuyers lower income households the elderly and those dependent upon rental housing face rising rents low levels of rental housing construction by historic standards and the threat of displacement due to conversion to condominiums and other factors housing will face strong competition for investment capital from the industrial sector generally and the energy industries in particular to address these issues i appointed a presidential task force and advisory group last october while this effort will not proceed due to the election result i hope the incoming administration will proceed with a similar venture the most important action government can take to meet america housing needs is to restore stability to the economy and bring down the rate of inflation inflation has driven up home prices operating costs and interest rates market uncertainty about inflation has contributed to the instability in interest rates which has been an added burden to homebuilders and homebuyers alike by making a commitment to provide a framework for greater investment sustained economic growth and price stability my administration has begun the work of creating a healthy environment for housing transportation with the passage of the airline deregulation act of 1978 the motor carrier act of 1980 and the harley o staggers rail act of 1980 my administration working with the congress has initiated a new era of reduced regulation of transportation industries deregulation will lead to increased productivity and operating efficiencies in the industries involved and stimulate price and service competition to the benefit of consumers generally i urge the new administration to continue our efforts on behalf of deregulation legislation for the intercity passenger bus industry as well in the coming decade the most significant challenge facing the nation in transportation services will be to improve a deteriorating physical infrastructure of roadways railroads waterways and mass transit systems in order to conserve costly energy supplies while promoting effective transportation services highways our vast network of highways which account for 90 percent of travel and 80 percent by value of freight traffic goods movement is deteriorating if current trends continue a major proportion of the interstate pavement will have deteriorated by the end of the 1980 arresting the deterioration of the nation system of highways is a high priority objective for the 1980 we must reorient the federal mission from major new construction projects to the stewardship of the existing interstate highway system interstate gaps should be judged on the connections they make and on their compatibility with community needs during this decade highway investments will be needed to increase productivity particularly in the elimination of bottlenecks provide more efficient connections to ports and seek solutions to traffic demand my administration has therefore recommended redefining completion of the interstate system consolidating over 27 categorical assistance programs into nine and initiating a major repair and rehabilitation program for segments of the interstate system this effort should help maintain the condition and performance of the nation highways particularly the interstate and primary system provide a realistic means to complete the interstate system by 1990 ensure better program delivery through consolidation and assist urban revitalization in addition the congress must address the urgent funding problems of the highway trust fund and the need to generate greater revenues mass transit in the past decade the nation public transit systems ridership increased at an annual average of each year in the 1970 in 1979 continued increases in the cost of fuel are expected to make transit a growing part of the nation transportation system as a result my administration projected a ten year 43 billion program to increase mass transit capacity by 50 percent and promote more energy efficient vehicle uses in the next decade the first part of this proposal was the five year billion urban mass transportation administration reauthorization legislation i sent to the congress in march 1980 i urge the 97th congress to quickly enact this or similar legislation in 1981 my administration was also the first to have proposed and signed into law a nonurban formula grant program to assist rural areas and small communities with public transportation programs to end their dependence on the automobile promote energy conservation and efficiency and provide transportation services to impoverished rural communities a principal need of the 1980 will be maintaining mobility for all segments of the population in the face of severely increasing transportation costs and uncertainty of fuel supplies we must improve the flexibility of our transportation system and offer greater choice and diversity in transportation services while the private automobile will continue to be the principal means of transportation for many americans public transportation can become an increasingly attractive alternative we therefore want to explore a variety of paratransit modes various types of buses modern rapid transit regional rail systems and light rail systems highway planning and transit planning must be integrated and related to state regional district and neighborhood planning efforts now in place or emerging low density development and land use threaten the fiscal capacity of many communities to support needed services and infrastructure elderly and handicapped transportation transportation policies in the 1980 must pay increasing attention to the needs of the elderly and handicapped by 1990 the number of people over 65 will have grown from today 19 million to 27 million during the same period the number of who have difficulty using transit as well as autos including the expected to increase from 9 to 11 million making up percent of the population we must not retreat from a policy that affords a significant and growing portion of our population accessible public transportation while recognizing that the handicapped are a diverse group and will need flexible service where regular public transportation will not do the job railroads in addition the federal government must reassess the appropriate federal role of support for passenger and freight rail services such as amtrak and conrail our goal through federal assistance should be to maintain and enhance adequate rail service where it is not otherwise available to needy communities but federal subsidies must be closely scrutinized to be sure they are a stimulus to and not a replacement for private investment and initiative federal assistance can not mean permanent subsidies for unprofitable operations waterways and rural transportation there is a growing need in rural and small communities for improved transportation services rail freight service to many communities has declined as railroads abandon unproductive branch lines at the same time rural roads are often inadequate to handle large trucks the increased demand for harvest to harbor service has also placed an increased burden on rural transportation systems while bottlenecks along the mississippi river delay grain shipments to the gulf of mexico we have made some progress to further develop the nation waterways my administration began construction of a new foot lock at the site of lock and dam 26 on the mississippi river when opened in 1987 the new lock will have a capacity of 86 million tons per year an 18 percent increase over the present system the army corps of engineers has also undertaken studies to assess the feasibility of expanding the bonneville locks rehabilitation of john day lock was begun in 1980 and should be completed in 1982 my administration also supports the completion of the upper mississippi river master plan to determine the feasibility of constructing a second lock at alton illinois these efforts will help alleviate delays in transporting corn soybeans and other goods along the mississippi river to the gulf of mexico the department of transportation new small community and rural transportation policy will target federal assistance for passenger transportation roads and highways truck service and railroad freight service to rural areas this policy implements and expands upon the earlier white house initiative improving transportation in rural america announced in june 1979 and the president small community and rural development policy announced in december 1979 the congress should seek ways to balance rail branch line abandonment with the service needs of rural and farm communities provide financial assistance to rail branch line rehabilitation where appropriate assist shippers to adjust to rail branch line abandonment where it takes place and help make it possible for trucking firms to serve light density markets with dependable and efficient trucking services maritime policy during my administration i have sought to ensure that the maritime industry will not have to function at an unfair competitive disadvantage in the international market as i indicated in my maritime policy statement to the congress in july 1979 the american merchant marine is vital to our nation welfare and federal actions should promote rather than harm it in pursuit of this objective i signed into law the controlled carrier act of 1978 authorizing the federal maritime commission to regulate certain rate cutting practices of some carriers and recently signed a bilateral maritime agreement with the people republic of china that will expand the access of american ships to 20 specified chinese ports and set aside for ships a substantial share at least of the cargo between our countries this agreement should officially foster expanded and chinese shipping services linking the two countries and will provide further momentum to the growth of trade there is also a need to modernize and expand the dry bulk segment of our fleet our heavy dependence on foreign carriage of cargoes deprives the economy of seafaring and shipbuilding jobs adds to the deficit deprives the government of substantial tax revenues and leaves the united states dependent on shipping for a continued supply of raw materials to support the civil economy and war production in time of war i therefore sent to the congress proposed legislation to strengthen this woefully weak segment of the fleet by removing certain disincentives to construction of dry bulkers and their operation under registry enactment of this proposed legislation would establish the basis for accelerating the rebuilding of the dry bulk fleet toward a level commensurate with the position of the united states as the world leading bulk trading country during the past year the administration has stated its support for legislation that would provide specific federal assistance for the installation of engines in existing american ships and would strengthen this country shipbuilding mobilization base strengthening the fleet is important but we must also maintain our shipbuilding base for future ship construction provisions in existing laws calling for substantial or exclusive use of american flag vessels to carry cargoes generated by the government must be vigorously pursued i have therefore supported requirements that 50 percent of oil purchased for the strategic petroleum reserve be transported in vessels that the cargo preference act be applied to materials furnished for the assisted construction of air bases in israel and to cargoes transported pursuant to the chrysler corporation loan guarantee act in addition the deep seabed hard mineral resources act requires that at least one ore carrier per mine site be a vessel much has been done and much remains to be done the fy 1982 budget includes a 107 million authorization for construction differential subsidy cds funds which added to the unobligated cds balance of 100 million from 1980 and the recently enacted 135 million 1981 authorization will provide an average of 171 million in cds funds in 1981 and 1982 coal export policy while significant growth in foreign demand for steam coal is foreseen congestion at major coal exporting ports such as hampton roads virginia and baltimore maryland could delay and impede exports my administration has worked through the interagency coal task force study which i created to promote cooperation and coordination of resources between shippers railroads vessel and port operators and to determine the most appropriate federal role in expanding and modernizing coal export facilities including dredging deeper channels at selected ports some progress has already been made in addition to action taken by transshippers to reduce the number of coal classifications used whenever possible by the norfolk and western railroad to upgrade its computer capability to quickly inventory its coal cars in its yards and by the chessie railroad which is reactivating pier 15 in newport news and has established a berth near its curtis bay pier in baltimore to decrease delays in vessel berthing public activities will include a million plan developed by the state of pennsylvania and conrail to increase conrail coal handling capacity at philadelphia a proposal by the state of virginia to construct a steam coal port on the craney island disposal area in portsmouth harbor plans by mobile alabama which operates the only publicly owned coal terminal in the to enlarge its capacity at mcduffie island to 10 million tons ground storage and 100 car unit train unloading capability development at new orleans of steam coal facilities that are expected to add over 20 million tons of annual capacity by 1983 and the corps of engineers working with other interested federal agencies will determine which ports should be dredged to what depth and on what schedule in order to accommodate larger coal carrying vessels private industry will of course play a major role in developing the united states coal export facilities the new administration should continue to work to eliminate transportation bottlenecks that impede our access to foreign markets special needs women the past four years have been years of rapid advancement for women our focus has been to provide american women with a full range of opportunities and to make them a part of the mainstream of every aspect of our national life and leadership i have appointed a record number of women to judgeships and to top government posts fully 22 percent of all my appointees are women and i nominated 41 of the 46 women who sit on the federal bench today for the first time in our history women occupy policymaking positions at the highest level of every federal agency and department and have demonstrated their ability to serve our citizens well we have strengthened the rights of employed women by consolidating and strengthening enforcement of sex discrimination laws under the eeoc by expanding employment rights of pregnant women through the pregnancy disability bill and by increasing federal employment opportunities for women through civil service reform and and employment by executive order i created the first national program to provide women businessowners with technical assistance grants loans and improved access to federal contracts we have been sensitive to the needs of women who are homemakers i established an office of families within hhs and sponsored the white house conference on families we initiated a program targeting ceta funds to help displaced homemakers the social security system was amended to eliminate the widow penalty and a comprehensive study of discriminatory provisions and possible changes was presented to congress legislation was passed to give divorced spouses of foreign service officers rights to share in pension benefits we created an office on domestic violence within hhs to coordinate the 12 agencies that now have domestic violence relief programs and to distribute information on the problem and the services available to victims despite a stringent budget for fy 1981 the administration consistently supported the women educational equity act and family planning activities as well as other programs that affect women such as food stamps wic and social security we have been concerned not only about the american woman opportunities but ensuring equality for women around the world in november 1980 i sent to the senate the convention on the elimination of all forms of discrimination against women this united nations document is the most comprehensive and detailed international agreement which seeks the advancement of women on women issues i have sought the counsel of men and women in and out of government and from all regions of our country i established two president advisory committee for women and the interdepartmental task force on advise me on these issues the mandate for both groups expired on december 31 but they have left behind a comprehensive review of the status of women in our society today that review provides excellent guidance for the work remaining in our battle against sex discrimination even though we have made progress much remains on the agenda for women i remain committed to the equal rights amendment and will continue to work for its passage it is essential to the goal of bringing america women fully into the mainstream of american life that the era be ratified the efforts begun for women in employment business and education should be continued and strengthened money should be available to states to establish programs to help the victims of domestic violence congress should pass a national health care plan and a welfare reform program and these measures should reflect the needs of women the talents of women should continue to be used to the fullest inside and outside of government and efforts should continue to see that they have the widest range of opportunities and options handicapped i hope that my administration will be remembered in this area for leading the way toward full civil fights for handicapped americans when i took office no federal agency had yet issued 504 regulations as i leave office this first step by every major agency and department in the federal government is almost complete but it is only a first step the years ahead will require steadfast dedication by the president to protect and promote these precious rights in the classroom in the workplace and in all public facilities so that handicapped individuals may join the american mainstream and contribute to the fullest their resources and talents to our economic and social life just as we supported in an unprecedented way the civil rights of disabled persons in schools and in the workplace other initiatives in health as our immunization and nutrition programs for young children and new intense efforts to reverse spinal cord injury must continue so that the incidence of disability continues to decline this year is the international year of disabled persons we are organizing activities to celebrate and promote this important commemorative year within the government as well as in cooperation with private sector efforts in this country and around the world the international year will give our country the opportunity to recognize the talents and capabilities of our fellow citizens with disabilities we can also share our rehabilitation and treatment skills with other countries and learn from them as well i am proud that the united states leads the world in mainstreaming and treating disabled people however we have a long way to go before all psychological and physical barriers to disabled people are torn down and they can be full participants in our american way of life we must pledge our full commitment to this goal during the international year families because of my concern for american families my administration convened last year the first white house conference on families which involved seven national hearings over 506 state and local events three white house conferences and the direct participation of more than citizens the conference reaffirmed the centrality of families in our lives and nation but documented problems american families face as well we also established the office of families within the department of health and human services to review government policies and programs that affect families i expect the departments and agencies within the executive branch of the federal government as well as members of congress corporate and business leaders and state and local officials across the country to study closely the recommendations of the white house conference and implement them appropriately as public policy is developed and implemented by the federal government cognizance of the work of the conference should be taken as a pragmatic and essential step the conference has done a good job of establishing an agenda for action to assure that the policies of the federal government are more sensitive in their impact on families i hope the congress will review and seriously consider the conference recommendations older americans my administration has taken great strides toward solving the difficult problems faced by older americans early in my term we worked successfully with the congress to assure adequate revenues for the social security trust funds and last year the strength of the social security system was strengthened by legislation i proposed to permit borrowing among the separate trust funds i have also signed into law legislation prohibiting employers from requiring retirement prior to age 70 and removing mandatory retirement for most federal employees in addition my administration worked very closely with congress to amend the older americans act in a way that has already improved administration of its housing social services food delivery and employment programs this year i will be submitting to congress a budget which again demonstrates my commitment to programs for the elderly it will include as my previous budgets have increased funding for nutrition senior centers and home health care and will focus added resources on the needs of older americans with the 1981 white house conference on aging approaching i hope the new administration will make every effort to assure an effective and useful conference this conference should enable older americans to voice their concerns and give us guidance in our continued efforts to ensure the quality of life so richly deserved by our senior citizens refugees we can not hope to build a just and humane society at home if we ignore the humanitarian claims of refugees their lives at stake who have nowhere else to turn our country can be proud that hundreds of thousands of people around the world would risk everything they their own come to our country this administration initiated and implemented the first comprehensive reform of our refugee and immigration policies in over 25 years we also established the first refugee coordination office in the department of state under the leadership of a special ambassador and coordinator for refugee affairs and programs the new legislation and the coordinator office will bring common sense and consolidation to our nation previously fragmented inconsistent and in many ways outdated refugee and immigration policies with the unexpected arrival of thousands of cubans and haitians who sought refuge in our country last year outside of our regular immigration and refugee admissions process our country and its government were tested in being compassionate and responsive to a major human emergency because we had taken steps to reorganize our refugee programs we met that test successfully i am proud that the american people responded to this crisis with their traditional good will and hospitality also we would never have been able to handle this unprecedented emergency without the efforts of the private resettlement agencies who have always been there to help refugees in crises immigrants to this country always contribute more toward making our country stronger than they ever take from the system i am confident that the newest arrivals to our country will carry on this tradition while we must remain committed to aiding and assisting those who come to our shores at the same time we must uphold our immigration and refugee policies and provide adequate enforcement resources as a result of our enforcement policy the illegal flow from cuba has been halted and an orderly process has been initiated to make certain that our refugee and immigration laws are honored this year the select commission on immigration and refugee policy will complete its work and forward its advice and recommendations i hope that the recommendations will be carefully considered by the new administration and the congress for it is clear that we must take additional action to keep our immigration policy responsive to emergencies and ever changing times veterans this country and its leadership has a continuing and unique obligation to the men and women who served their nation in the armed forces and help maintain or restore peace in the world my commitment to evidenced by my characterized by a conscientious and consistent emphasis in these general areas first we have worked to honor the vietnam veteran during my administration and under the leadership of va administrator max cleland i was proud to lead our country in an overdue acknowledgement of our nation gratitude to the men and women who served their country during the bitter war in southeast asia their homecoming was deferred and seemed doomed to be ignored our country has matured in the last four years and at long last we were able to separate the war from the warrior and honor these veterans but with our acknowledgement of their service goes an understanding that some vietnam veterans have unique needs and problems my administration was able to launch a long sought after psychological readjustment and outreach program unprecedented in its popularity sensitivity and success this program must be continued the administration has also grappled with the difficult questions posed by some veterans who served in southeast asia and were exposed to potentially harmful substances including the herbicide known as agent orange we have launched scientific inquiries that should answer many veterans questions about their health and should provide the basis for establishing sound compensation policy we can not rest until their concerns are dealt with in a sensitive expeditious and compassionate fashion second we have focused the va health care system in the needs of the disabled veteran we initiated and are implementing the first reform of the va vocational rehabilitation system since its inception in 1943 also my administration was the first to seek a increase for the recipients of va compensation every year my last budget also makes such a request the administration also launched the disabled veterans outreach program in the department of labor which has successfully placed disabled veterans in jobs services provided by the va health care system will be further targeted to the special needs of disabled veterans during the coming year third the va health care largest in the free maintained its independence and high quality during my administration we have made the system more efficient and have therefore treated more veterans than ever before by concentrating on care and through modern management improvements as the median age of the american veteran population increases we must concentrate on further changes within the va system to keep it independent and to serve as a model to the nation and to the world as a center for research treatment and rehabilitation government assistance general aid to state and local governments since taking office i have been strongly committed to strengthening the fiscal and economic condition of our nation state and local governments i have accomplished this goal by encouraging economic development of local communities and by supporting the general revenue sharing and other essential programs to states and localities during my administration total to state and local governments have increased by more than 40 68 billion in fiscal year 1977 to 96 billion in fiscal year 1981 this significant increase in aid has allowed states and localities to maintain services that are essential to their citizens without imposing onerous tax burdens it also has allowed us to establish an unprecedented partnership between the leaders of the federal government and state and local government elected officials general revenue sharing last year congress enacted legislation that extends the general revenue sharing program for three more ears this program is the cornerstone of our efforts to maintain the fiscal health of our nation local government it will provide billion in each of the next three years to cities counties and towns this program is essential to the continued ability of our local governments to provide essential police fire and sanitation services this legislation renewing grs will be the cornerstone of 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 am grateful that congress moved quickly to assure that our nation localities can begin the 1980 in sound fiscal condition assistance last year i proposed that congress enact a 1 billion fiscal assistance program to protect states and localities from unexpected changes in the national economy this program unfortunately was not enacted by the full congress i therefore have not included funding for aid in my fiscal year 1982 budget nevertheless i urge congress to enact a permanent program so that states and cities can be protected during the next economic downturn urban policy three 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 sixteen of these bills have now been signed into law economic development one of the principal goals of my domestic policy has been to strengthen the private sector economic base of our nation 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 since that time we have created the urban development action grant udag program and substantially expanded the economic development programs in the commerce department my fy 1982 budget requests more than billion for economic development grants loans and interest subsidies and almost billion for loan guarantees approximately 60 percent of these funds will be spent in our nation urban areas in addition we have extended the 10 percent investment credit to include rehabilitation of existing industrial facilities as well as new construction i continue to believe that the development of private sector investment and jobs is the key to revitalizing our nation economically depressed urban and rural areas to ensure that the necessary economic development goes forward the congress must continue to provide strong support for the udag program and the programs for the economic development administration those programs provide a foundation for the economic development of our nation in the 1980 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 last year congress reauthorized both the cdbg and udag programs the cdbg program was reauthorized for three more years with annual funding increases of 150 million and the udag program was extended for three years at the current funding level of 675 million annually my 1982 budget requests full funding for both of these programs these actions should help our nation cities and counties to continue the progress they have made in the last three years neighborhoods during my administration we have taken numerous positive steps to achieve a full partnership of neighborhood organizations and government at all levels we have successfully fought against red lining and housing discrimination we created innovative self help funding and technical resource transfer mechanisms we have created unique methods of access for neighborhood organizations to have a participating role in federal and state government neighborhood based organizations are the threshold of the american community the federal government will need to develop more innovative and practical ways for neighborhood based organizations to successfully participate in the identification and solution of local and neighborhood concerns full partnership will only be achieved with the knowing participation of leaders of government business education and unions neither state nor federal solutions imposed from on high will suffice neighborhoods are the fabric and soul of this great land neighborhoods define the weave that has been used to create a permanent fabric the federal government must take every opportunity to provide access and influence to the individuals and organizations affected at the neighborhood level rural policy since the beginning of my administration i have been committed to improving the effectiveness with which the federal government deals with the problems and needs of a rapidly changing rural america the rapid growth of some rural areas has placed a heavy strain on communities and their resources there are also persistent problems of poverty and economic stagnation in other parts of rural america some rural areas continue to lose population as they have for the past several decades in december 1979 i announced the small community and rural development policy it was the culmination of several years work and was designed to address the varying needs of our rural population in 1980 my administration worked with the congress to pass the rural development policy act of 1980 which when fully implemented will allow us to meet the needs of rural people and their communities more effectively and more efficiently as a result of the policy and the accompanying legislation we have created the position of under secretary of agriculture for small community and rural development to provide overall leadership established a white house working group to assist in the implementation of the policy worked with more than 40 governors to form state rural development councils to work in partnership with the white house working group and the federal agencies to better deliver state and federal programs to rural areas directed the white house working group to annually review existing and proposed policies programs and budget levels to determine their adequacy in meeting rural needs and the fulfilling of the policy objectives and principles this effort on the part of my administration and the congress has resulted in a landmark policy for the first time rural affairs has received the prominence it has always deserved it is a policy that can truly help alleviate the diverse and differing problems rural america will face in the 1980 with the help and dedication of a great many people around the country who are concerned with rural affairs we have constructed a mechanism for dealing effectively with rural problems there is now a great opportunity to successfully combine federal efforts with the efforts of rural community leaders and residents it is my hope this spirit of cooperation and record of accomplishment will be continued in the coming years consumers in september 1979 i signed an executive order designed to strengthen and coordinate federal consumer programs and to establish procedures to improve and facilitate consumer participation in government forty federal agencies have adopted programs to comply with the requirements of the order these programs will improve complaint handling provide better information to consumers enhance opportunities for public participation in government proceedings and assure that the consumer point of view is considered in all programs policies and regulations while substantial progress has been made in assuring a consumer presence in federal agencies work must continue to meet fully the goals of the executive order close monitoring of agency compliance with the requirements of the order is necessary continued evaluation to assure that the programs are effective and making maximum use of available resources is also essential as a complement to these initiatives efforts to provide financial assistance in regulatory proceedings to citizen groups small businesses and others whose participation is limited by their economic circumstances must continue to be pursued it is essential that consumer representatives in government pay particular attention to the needs and interests of consumers and minorities the office of consumer affairs publication people power what communities are doing to counter inflation catalogues some of the ways that government and the private sector can assist the less powerful in our society to help themselves new ways should be found to help foster this new people movement which is founded on the principle of science and technology science and technology contribute immeasurably to the lives of all americans our high standard of living is largely the product of the technology that surrounds us in the home or factory our good health is due in large part to our ever increasing scientific understanding our national security is assured by the application of technology and our environment is protected by the use of science and technology indeed our vision of the future is often largely defined by the bounty that we anticipate science and technology will bring the federal government has a special role to play in science and technology although the fruits of scientific achievements surround us it is often difficult to predict the benefits that will arise from a given scientific venture and these benefits even if predictable do not usually lead to ownership rights accordingly the government has a special obligation to support science as an investment in our future my administration has sought to reverse a decline in funding despite the need for fiscal restraint real support of basic research has grown nearly 11 during my term in office and my administration has sought to increase the support of research in the variety of mission agencies in this way we can harness the american genius for innovation to meet the economic energy health and security challenges that confront our nation international relations and national security science and technology are becoming increasingly important elements of our national security and foreign policies this is especially so in the current age of sophisticated defense systems and of growing dependence among all countries on modern technology for all aspects of their economic strength for these reasons scientific and technological considerations have been integral elements of the administration decisionmaking on such national security and foreign policy issues as the modernization of our strategic weaponry arms control technology transfer the growing bilateral relationship with china and our relations with the developing world four themes have shaped policy in international scientific and technological cooperation pursuit of new international initiatives to advance our own research and development objectives development and strengthening of scientific exchange to bridge politically ideological and cultural divisions between this country and other countries formulation of programs and institutional relations to help developing countries use science and technology beneficially and cooperation with other nations to manage technologies with local impact at my direction my science and technology adviser has actively pursued international programs in support of these four themes we have given special attention to scientific and technical relations with china to new forms of scientific and technical cooperation with japan to cooperation with mexico other latin american and caribbean countries and several states in black america africa and to the proposed institute for scientific and technological cooperation in particular our cooperation with developing countries reflects the importance that each of them has placed on the relationship between economic growth and scientific and technological capability it also reflects their view that the great strength of the in science and technology makes close relations with the technical community an especially productive means of enhancing this capability scientific and technological assistance is a key linkage between the and the developing world a linkage that has been in the past and one which we must continue to work to strengthen space policy the administration has established a framework for a strong and evolving space program for the 1980 the administration space policy reaffirmed the separation of military space systems and the open civil space program and at the same time provided new guidance on technology transfer between the civil and military programs the civil space program centers on three basic tenets first our space policy will reflect a balanced strategy of applications science and technology development second activities will be pursued when they can be uniquely or more efficiently accomplished in space third a premature commitment to a high challenge initiative of the complexity of apollo is inappropriate as the shuttle development phases down however there will be added flexibility to consider new space applications space science and new space exploration activities technology development the shuttle dominates our technology development effort and correctly so it represents one of the most sophisticated technological challenges ever undertaken and as a result has encountered technical problems nonetheless the first manned orbital flight is now scheduled for march 1981 i have been pleased to support strongly the necessary funds for the shuttle throughout my administration space applications since 1972 the has conducted experimental civil remote sensing through landsat satellites thereby realizing many successful applications recognizing this fact i directed the implementation of an operational civil land satellite remote sensing system with the operational management responsibility in commerce national oceanic and atmospheric administration in addition because ocean observations from space can meet common civil and military data requirements a national oceanic satellite system has been proposed as a major fy 1981 new start space science exploration the goals of this administration policy in space science have been to 1 continue a vigorous program of planetary exploration to understand the origin and evolution of the solar system 2 utilize the space telescope and satellites to usher in a new era of astronomy 3 develop a better understanding of the sun and its interaction with the terrestrial environment and 4 utilize the shuttle and spacelab to conduct basic research that complements life science investigations district of columbia washington is home to both the federal government and to more than half a million american citizens i have worked to improve the relationship between the federal establishment and the government of the district of columbia in order to further the goals and spirit of home rule the city controls more of its own destiny than was the case four years ago yet despite the close cooperation between my administration and that of mayor barry we have not yet seen the necessary number of states ratify the constitutional amendment granting full voting representation in the congress to the citizens of this city it is my hope that this inequity will be rectified the country and the people who inhabit washington deserve no less the arts the arts are a precious national resource federal support for the arts has been enhanced during my administration by expanding government funding and services to arts institutions individual artists scholars and teachers through the national endowment for the arts we have broadened its scope and reach to a more diverse population we have also reactivated the federal council on the arts and humanities it is my hope that during the coming years the new administration and the congress will continue support of institutions promoting development and understanding of the arts encourage business participants in a comprehensive effort to achieve a truly mixed economy of support for the arts explore a variety of mechanisms to nurture the creative talent of our citizens and build audiences for their work support strong active national endowments for the arts seek greater recognition for the rich cultural tradition of the nation minorities provide grants for the arts in low income neighborhoods the humanities in recently reauthorizing federal appropriations for the national endowment for the humanities the congress has once again reaffirmed that the encouragement and support of national progress and scholarship in the humanities while primarily a matter for private and local initiative is also an appropriate matter of concern to the federal government and that a high civilization must not limit its efforts to science and technology alone but must give full value and support to the other great branches of man scholarly and cultural activity in order to achieve a better understanding of the past a better analysis of the present and a better view of the future i believe we are in agreement that the humanities illuminate the values underlying important personal social and national questions raised in our society by its multiple links to and increasing dependence on technology and by the diverse heritage of our many regions and ethnic groups the humanities cast light on the broad issue of the role in a society of men and women of imagination and individuals who through their own example define the spirit of the age and in so doing move nations our government support for the humanities within the framework laid down by the congress is a recognition of their essential nourishment of the life of the mind and vital enrichment of our national life i will be proposing an increase in funding this year sufficient to enable the endowment to maintain the same level of support offered our citizens in fiscal year 1981 in the allocation of this funding special emphasis will be given to humanities education in the nation schools in response to the great needs that have arisen in this area scholarly research designed to increase our understanding of the cultures traditions and historical forces at work in other nations and in our own drawing attention to the physical disintegration of the raw material of our cultural manuscripts periodicals and other to the development of techniques to prevent the destruction and to preserve those materials and the dissemination of quality programming in the humanities to increasingly large american audiences through the use of radio and television the dominant effort in the endowment expenditures will be a commitment to strengthen and promulgate scholarly excellence and achievement in work in the humanities in our schools colleges universities libraries museums and other cultural institutions as well as in the work of individual scholars or collaborative groups engaged in advanced research in the humanities in making its grants the endowment will increase its emphasis on techniques which stimulate support for the humanities from sources in order to reinforce our tradition of private philanthropy in this field and to insure and expand the financial viability of our cultural institutions and life insular areas i have been firmly committed to for puerto rico the virgin islands guam american samoa and the northern mariana islands and have vigorously supported the realization of whatever political status aspirations are democratically chosen by their peoples this principle was the keystone of the comprehensive territorial policy i sent the congress last year i am pleased that most of the legislative elements of that policy were endorsed by the 96th congress the unique cultures fragile economies and locations of our caribbean and pacific islands are distinct assets to the united states which require the sensitive application of policy the united states government should pursue initiatives begun by my administration and the congress to stimulate insular economic development enhance treatment under federal programs eliminating current inequities provide vitally needed special assistance and coordinate and rationalize policies these measures will result in greater and balanced growth in particular i hope that the new congress will support funding for fiscal management comprehensive planning and other technical assistance for the territories as well as create the commission i have proposed to review the applicability of all federal laws to the insular areas and make recommendations for appropriate modification iv removing governmental waste and inefficiency one of my major commitments has been to restore public faith in our federal government by cutting out waste and inefficiency in the past four years we have made dramatic advances toward this goal many of them previously considered impossible to achieve where government rules and operations were unnecessary they have been eliminated as with airline rail trucking and financial deregulation where government functions are needed they have been streamlined through such landmark measures as the civil service reform act of 1978 i hope that the new administration and the congress will keep up the momentum we have established for effective and responsible change in this area of crucial public concern civil service reform in march 1978 i submitted the civil service reform act to congress i called it the centerpiece of my efforts to reform and reorganize the government with bipartisan support from congress the bill passed and i am pleased to say that implementation is running well ahead of the statutory schedule throughout the service we are putting into place the means to assure that reward and retention are based on performance and not simply on length of time on the job in the first real test of the reform act 98 percent of the eligible managers joined the senior executive service choosing to relinquish job protections for the challenge and potential reward of this new corps of top executives though the act does not require several of its key elements to be in operation for another year some federal agencies already have established merit pay systems for managers and most agencies are well on their way to establishing new performance standards for all their employees all have paid out or are now in the process of paying out performance bonuses earned by outstanding members of the senior executive service dismissals have increased by 10 percent and dismissals specifically for inadequate job performance have risen 1500 percent since the act was adopted finally we have established a fully independent merit systems protection board and special counsel to protect the rights of and other federal employees faced with threats to their rights in 1981 civil service reform faces critical agencies must have fully functioning performance appraisal systems for all employees and merit pay systems for compensating the government managers performance bonuses for members of the senior executive service will surely receive scrutiny if this attention is balanced and constructive it can only enhance the chances for ultimate success of our bipartisan commitment to the revolutionary and crucial concept regulatory reform during the past four years we have made tremendous progress in regulatory reform we have discarded old economic regulations that prevented competition and raised consumer costs and we have imposed strong management principles on the regulatory programs the country needs cutting paperwork and other wasteful burdens the challenge for the future is to continue the progress in both areas without crippling vital health and safety programs our economic deregulation program has achieved major successes in five areas airlines the airline deregulation act is generating healthy competition saving billions in fares and making the airlines more efficient the act provides that in 1985 the cab itself will go out of existence trucking the trucking deregulation bill opens the industry to competition and allows truckers wide latitude on the routes they drive and the goods they haul the bill also phases out most of the old law immunity for setting rates the congressional budget office estimates these reforms will save as much as 8 billion per year and cut as much as half a percentage point from the inflation rate railroads overregulation has stifled railroad management initiative service and competitive pricing the new legislation gives the railroads the freedom they need to rebuild a strong efficient railroad industry financial institutions with the help of the congress over the past four years we have achieved two major pieces of financial reform which has provided the basis for the most farreaching changes in the financial services industry since the 1930 the international banking act of 1978 was designed to reduce the advantages that foreign banks operating in the united states possessed in comparison to domestic banks the depository institutions deregulation and monetary control act adopted last march provides for the phased elimination of a variety of barriers to financial institutions and freedom to offer services to and attract the savings of consumers especially small savers recently i submitted to the congress my administration recommendations for the phased liberalization of restrictions on geographic expansion by commercial banks last year the administration and financial regulatory agencies proposed legislation to permit the interstate acquisition of failing depository institutions in view of the difficult outlook for some depository institutions i strongly urge the congress to take prompt favorable action on the failing bank legislation telecommunications while congress did not pass legislation in this area the federal communications commission has taken dramatic action to open all aspects of communications to competition and to eliminate regulations in the areas where competition made them obsolete the public is benefitting from an explosion of competition and new services while these initiatives represent dramatic progress in economic deregulation continued work is needed i urge congress to act on communications legislation and to consider other proposed deregulation measures such as legislation on the bus industry in addition the regulatory commissions must maintain their commitment to competition as the best regulator of all the other part of my reform program covers the regulations that are needed to protect the health safety and welfare of our citizens for these regulations my administration has created a management program to cut costs without sacrificing goals under my executive order 12044 we required agencies to analyze the costs of their major new rules and consider alternative as performance standards and voluntary may make rules less costly and more flexible we created the regulatory analysis review group in the white house to analyze the most costly proposed new rules and find ways to improve them the regulatory council was established to provide the first listing of upcoming rules and eliminate overlapping and conflicting regulations agencies have launched sunset programs to weed out outmoded old regulations we have acted to encourage public participation in regulatory decisionmaking these steps have already saved billions of dollars in regulatory costs and slashed thousands of outmoded regulations we are moving steadily toward a regulatory system that provides needed protections fairly predictably and at minimum cost i urge congress to continue on this steady path and resist the simplistic solutions that have been proposed as alternatives proposals like legislative veto and increased judicial review will add another layer to the regulatory process making it more cumbersome and inefficient the right approach to reform is to improve the individual they need to ensure that the regulatory agencies implement those statutes sensibly paperwork reduction the federal government imposes a huge paperwork burden on business local government and the private sector many of these forms are needed for vital government functions but others are duplicative overly complex or obsolete during my administration we cut the paperwork burden by 15 percent and we created procedures to continue this progress the new paperwork reduction act centralizes in omb oversight of all agencies information requirements and strengthens omb authority to eliminate needless forms the paperwork budget process which i established by executive order applies the discipline of the budget process to the hours of reporting time imposed on the public forcing agencies to scrutinize all their forms each year with effective implementation these steps should allow further substantial paperwork cuts in the years ahead tightening standards for governmental efficiency and integrity to develop a foundation to carry out energy policy we consolidated scattered energy programs and launched the synthetic fuels corporation to give education the priority it deserves and at the same time reduce hhs to more manageable size i gave education a seat at the cabinet table to create a stronger system for attacking waste and fraud i reorganized audit and investigative functions by putting an inspector general in major agencies since i took office we have submitted 14 reorganization initiatives and had them all approved by congress we have saved hundreds of millions of dollars through the adoption of businesslike cash management principles and set strict standards for personal financial disclosure and conflict of interest avoidance by high federal officials to streamline the structure of the government we have secured approval of 14 reorganization initiatives improving the efficiency of the most important sectors of the government including energy education and civil rights enforcement we have eliminated more than 300 advisory committees as well as other agencies boards and commissions which were obsolete or ineffective independent inspectors general have been appointed in major agencies to attack fraud and waste more than a billion dollars of questionable transactions have been identified through their audit activities the adoption of cash management and debt collection initiatives will save over 1 billion by streamlining the processing of receipts by controlling disbursements more carefully and by reducing idle cash balances finally this administration has set strict standards for personal financial disclosure and conflict of interest avoidance by high federal officials to elevate the level of public trust in the government protecting basic rights and liberties i am extremely proud of the advances we have made in ensuring equality and protecting the basic freedoms of all americans the equal employment opportunity commission eeoc and the office of federal contract compliance ofccp have been reorganized and strengthened and a permanent civil rights unit has been established in omb to avoid fragmented inconsistent and duplicative enforcement of civil rights laws three agencies have been given coordinative and responsibilities in discrete areas eeoc for all activities hud for all those relating to housing and the department of justice for all other areas with the enactment of the right to financial privacy act and a bill limiting police search of newsrooms we have begun to establish a sound comprehensive privacy program ratification of the equal rights amendment must be aggressively pursued only one year remains in which to obtain ratification by three additional states the congress must give early attention to a number of important bills which remain these bills would strengthen the laws against discrimination in housing until it is enacted the 1968 civil rights act promise of equal access to housing will remain unfulfilled establish a charter for the fbi and the intelligence agencies the failure to define in law the duties and responsibilities of these agencies has made possible some of the abuses which have occurred in recent years establish privacy safeguards for medical research bank insurance and credit records and provide special protection for election fund transfer systems equal rights amendment i remain committed as strongly as possible to the ratification of the equal rights amendment as a result of our efforts in 1978 the equal rights amendment deadline for ratification was extended for three years we have now one year 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 although the congress has no official role in the ratification process at this point you do have the ability to affect public opinion and the support of state legislators for the amendment i urge members from states which have not yet ratified the equal rights amendment to use their influence to secure ratification i will continue my own efforts to help ensure ratification of the equal rights amendment martin luther king 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 i hope the congress will enact legislation this year that will achieve this goal fair housing the fair housing act amendments of 1980 passed the house of representatives by an overwhelming bipartisan majority only to die in the senate at the close of the 96th congress the leaders of both parties have pledged to make the enactment of fair housing legislation a top priority of the incoming congress the need is pressing and a strengthened federal enforcement effort must be the primary method of resolution criminal code the federal criminal laws are often archaic frequently contradictory and imprecise and clearly in need of revision and codification the new administration should continue the work which has been begun to develop a federal criminal code which simplifies and clarifies our criminal laws while maintaining our basic civil liberties and protections privacy as our public and private institutions collect more and more information and as communications and computer technologies advance we must act to protect the personal privacy of our citizens in the past four years we acted on the report of the privacy commission and established a national privacy policy we worked with congress to pass legislation restricting wiretaps and law enforcement access to bank records and to reporters files we reduced the number of personal files held by the government and restricted the transfer of personal information among federal agencies we also worked with the organization for economic cooperation and development to establish international guidelines to protect the privacy of personal information that is transferred across borders vi protecting and developing our natural resources two of our nation most precious natural resources are our environment and our vast agricultural capacity from the beginning of my administration i have worked with the congress to enhance and protect as well as develop our natural resources in the environmental areas i have been especially concerned about the importance of balancing the need for resource development with preserving a clean environment and have taken numerous actions to foster this goal in the agricultural area i have taken the steps needed to improve farm incomes and to increase our agricultural production to record levels that progress must be continued in the 1980 environment preserving the quality of our environment has been among the most important objectives of my administration and of the congress as a result of these shared commitments and the dedicated efforts of many members of the congress and my administration we have achieved several historic accomplishments protection of alaska lands passage of the alaska national interest lands conservation act was one of the most important conservation actions of this century at stake was the fate of millions of acres of beautiful land outstanding and unique wildlife populations native cultures and the opportunity to ensure that future generations of americans would be able to enjoy the benefits of these nationally significant resources as a result of the leadership commitment and persistence of my administration and the congressional leadership the alaska lands bill was signed into law last december the act adds 97 million acres of new parks and refuges more than doubling the size of our national park and national wildlife refuge systems the bill triples the size of our national wilderness system increasing its size by 56 million acres and by adding 25 river segments to the wild and scenic river system the bill almost doubles the fiver mileage in that system the alaska lands act reaffirms our commitment to the environment and strikes a balance between protecting areas of great beauty and allowing development of alaska oil gas mineral and timber resources protection of natural resources in addition to the alaska lands act over the past four years we have been able to expand significantly the national wilderness and parks systems in 1978 the congress passed the historic omnibus parks act which made 12 additions to the national park system the act also established the first two national trails since the national trails system act was passed in 1968 then in 1980 as a result of my 1979 environmental message the federal land management agencies have established almost 300 new national recreational trails with the completion of the rare ii process which eliminated the uncertainty surrounding the status of millions of acres of land we called for over 15 million acres of new wilderness in the nation national forest in 1980 the congress established about million acres of wilderness in the lower 48 states in addition the administration recommended legislation to protect lake tahoe and through and executive order has already established a mechanism to help ensure the lake protection finally in 1980 the administration established the channel islands marine sanctuary administration actions over the past four years stressed the importance of providing federal support only for water resource projects that are economically and environmentally sound this policy should have a major and lasting influence on the federal government role in water resource development and management the administration actions to recommend to the congress only economically and environmentally sound water resource projects for funding resulted not only in our opposing uneconomic projects but the first administration proposal of new project starts in 4 years one of the most significant water policy actions of the past four years was the administration june 6 1978 water policy reform message to the congress this message established a new national water resources policy with the following objectives to give priority emphasis to water conservation to consider environmental requirements and values more fully and along with economic factors in the planning and management of water projects and programs to enhance cooperation between state and federal agencies in water resources planning and management in addition the executive office of the president established 11 policy decision criteria to evaluate the proposed federal water projects the water resources council developed and adopted a new set of principles and standards for water projects which is binding on all federal construction agencies and improved regulations were developed to implement the national historic preservation act and the fish and wildlife coordination act as a result water resource projects must be determined to be economically sound before the administration will recommend authorization or appropriation over the years ahead this policy will help to reduce wasteful federal spending by targeting federal funds to the highest priority water resource projects in the pursuit of this policy however we can not lose sight of the vital role that sound water resource projects play in providing irrigation power and flood control we must also recognize the special needs of particular regions of the country in evaluating the need for additional projects addressing global resource and environmental problems the global 2000 report to the president prepared in response to my 1977 environment message is the first of its kind never before has our government or any government taken such a comprehensive look at the interrelated global issues of resources population and environment the report conclusions are important they point to a rapid increase in population and human needs through the year 2000 while at the same time a decline in the earth capacity to meet those nations of the world act decisively to alter current trends the united states has contributed actively to a series of un conferences on the environment population and resources and is preparing for the 1981 conference on new and renewable sources of energy following my 1977 environmental message the administration development assistance programs have added emphasis to natural resource management and environmental protection my 1979 environmental message called attention to the alarming loss of world forests particularly in the tropics an interagency task force on tropical forests has developed a government program to encourage conservation and wise management of tropical forests the administration is encouraging action by other nations and world organizations to the same purpose the united states is a world leader in wildlife conservation and the assessment of environmental effects of government actions the january 5 1979 executive order directing government agencies to consider the effects of their major actions abroad is another example of this leadership commitment to control of pollution and hazardous chemicals over the past four years there has been steady progress towards cleaner air and water sustained by the commitment of congress and the administration to these important national objectives in addition the administration has developed several new pollution compliance approaches such as alternative and innovative waste water treatment projects the bubble concept the offset policy and permit consolidation all of which are designed to reduce regulatory burdens on the private sector one of the most pressing problems to come to light in the past four years has been improper hazardous waste disposal the administration has moved on three fronts first we proposed the oil hazardous substances and hazardous waste response liability and compensation act the superfund bill to provide comprehensive authority and billion in funds to clean up abandoned hazardous waste disposal sites in november 1980 the congress passed a superfund bill which i signed into law second the administration established a hazardous waste enforcement strike force to ensure that when available responsible parties are required to clean up sites posing dangers to public health and to the environment to date 50 lawsuits have been brought by the strike force third regulations implementing subtitle c of the resource conservation and recovery act were issued the regulations establish comprehensive controls for hazardous waste and together with vigorous enforcement will help to ensure that love canal will not be repeated the future for the future we can not we must that we are charged with the stewardship of an irreplaceable environment and natural heritage our children and our children children are dependent upon our maintaining our commitment to preserving and enhancing the quality of our environment it is my hope that when our descendants look back on the 1980 they will be able to affirm that we kept our commitment to the restoration of environmental quality that we protected the public health from the continuing dangers of toxic chemicals from pollution from hazardous and radioactive waste and that we made our communities safer healthier and better places to live that we preserved america wilderness areas and particularly its last great frontier alaska for the benefit of all americans in perpetuity that we put this nation on a path to a sustainable energy future one based increasingly on renewable resources and on energy conservation that we moved to protect america countryside and coastland from mismanagement and irresponsibility that we redirected the management of the nation water resources toward water conservation sound development and environmental protection that we faced squarely such worldwide problems as the destruction of forests acid rain carbon dioxide and nuclear proliferation and that we protected the habitat and the existence of our own species on this earth agriculture the farm economy the farm economy is sound and its future is bright agriculture remains a major bulwark of the nation economy and an even more important factor in the world food system the demand for america agricultural abundance here and abroad continues to grow in the the strength of this demand is expected to press hard against supplies resulting in continued price strength the health and vitality of agriculture represents a significant departure from the situation that existed when i came to office four years ago in january 1977 the farm economy was in serious trouble farm prices and farm income were failing rapidly grain prices were at their lowest levels in years and steadily falling livestock producers in their fourth straight year of record losses were liquidating breeding herds at an unparalleled rate dairy farmers were losing money on every hundredweight of milk they produced sugar prices were in a nosedive through a combination of improvements in old established programs and the adoption of new approaches where innovation and change were needed my administration turned this situation around commodity prices have steadily risen farm income turned upward farm exports set new records each year increasing over 80 percent for the four year period livestock producers began rebuilding their herds dairy farmers began to earn a profit again recent policy initiatives several major agricultural policy initiatives have been undertaken over the past year some are the culmination of policy proposals made earlier in this administration others are measures taken to help farmers offset the impact of rapid inflation in production costs in combination they represent a significant strengthening of our nation food and agricultural policy these initiatives include food security reserve the congress authorized formation of a 4 million ton food grain reserve for use in international food assistance this reserve makes it possible for the united states to stand behind its food aid commitment to food deficit nations even during periods of short supplies and high prices this corrects a serious fault in our past food assistance policy comprehensive crop insurance the congress also authorized a significant new crop insurance program during 1980 this measure provides farmers with an important new program tool for sharing the economic risks that are inherent to agriculture when fully operational it will replace a hodgepodge of disaster programs that suffered from numerous shortcomings special loan rates another legislative measure passed late in the 2nd session of the 96th congress authorizes the secretary of agriculture to provide higher loan rates to farmers who enter their grain in the grain reserve this additional incentive to participate will further strengthen the reserve increased loan prices in july 1980 i administratively raised loan prices for wheat feedgrains and soybeans to help offset the effects of a serious squeeze at the same time the release and call prices for the grain reserve were adjusted upward higher target prices the agricultural adjustment act of 1980 raised the target prices for wheat and feed grain crops this change corrected for shortcomings in the adjustment formula contained in the food and agriculture act of 1977 future agenda the food and agricultural policies adopted by this administration over the past four years including those described above will provide a firm foundation for future governmental actions in this field expiration of the food and agriculture act of 1977 later this year will require early attention by the congress with relatively minor changes most of the authorities contained in the 1977 act should be extended in their present form the grain reserve has proven to be a particularly effective means of stabilizing grain markets and should be preserved in essentially its present form beyond this it will be important for the congress to keep a close eye on developments in the farm sector as noted above some of the actions i took last year were for the purpose of providing relief from the squeeze facing farmers should these pressures continue further actions might be required my administration has devoted particular attention to the issues of world hunger agricultural land use and the future structure of american agriculture i encourage the congress and the next administration to review the results of these landmark enquiries and where deemed appropriate to act on their recommendations following a careful review of the situation i recently extended the suspension of grain sales to the soviet union i am satisfied that this action has served its purpose effectively and fairly however as long as this suspension must remain in effect it will be important for the next administration and the congress to take whatever actions are necessary to ensure that the burden does not fall unfairly on our nation farmers this has been a key feature of my administration policy and it should be maintained vii foreign policy from the time i assumed office four years ago this month i have stressed the need for this country to assert a leading role in a world undergoing the most extensive and intensive change in human history my policies have been directed in particular at three areas of change the steady growth and increased projection abroad of soviet military that has grown faster than our own over the past two decades the overwhelming dependence of western nations which now increasingly includes the united states on vital oil supplies from the middle east the pressures of change in many nations of the developing world in iran and uncertainty about the future stability of many developing countries as a result of those fundamental facts we face some of the most serious challenges in the history of this nation the soviet invasion of afghanistan is a threat to global peace to 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 oil importing nation and thus for the entire global economy the continuing holding of american hostages in iran is both an affront to civilized people everywhere and a serious impediment to meeting the threat to 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 our alliances with the world 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 settlement our relations with china are growing closer providing a major new dimension in our policy in asia and the world across southern africa from rhodesia to namibia we are helping with the peaceful transition to majority rule in a context of respect for minority as well as majority rights we have worked domestically and with our allies to respond to an uncertain energy situation by conservation and diversification of energy supplies based on internationally agreed targets we have unambiguously demonstrated our commitment to defend western interests in southwest asia and we have significantly increased our ability to do so and over the past four years the has developed an energy program which is comprehensive and ambitious new institutions have been established such as the synthetic fuels corporation and solar bank price decontrol for oil and gas is proceeding american consumers have risen to the challenge and we have experienced real improvements in consumption patterns the central challenge for us today is to our steadfastness of purpose we are no longer tempted by isolationism but we must also learn to deal effectively with the contradictions 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 six basic goals for america in the world over the 1980 first we will continue as we have over the past four 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 second 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 third 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 and through the preservation of an open multilateral trading system fourth we will continue vigorously to support the process of building democratic institutions and improving human rights protection around the world we are deeply convinced that the future lies not with dictatorship but democracy fifth we remain deeply committed to the process of mutual and verifiable arms control particularly to the effort to prevent the spread and further development of nuclear weapons our decision to defer but not abandon our efforts to secure ratification of the salt ii treaty reflects our firm conviction that the united states has a profound national security interest in the constraints on soviet nuclear forces which only that treaty can provide sixth we must continue to look ahead in order to evaluate and respond to resource environment and population challenges through the end of this century one very immediate and pressing objective that is uppermost on our minds and those of the american people is the release of our hostages in iran we have no basic quarrel with the nation the revolution or the people of iran the threat to them comes not from american policy but from soviet actions in the region we are prepared to work with the government of iran to develop a new and mutually beneficial relationship but that will not be possible so long as iran continues to hold americans hostages in defiance of the world community and civilized behavior they must be released unharmed we have thus far pursued a measured program of peaceful diplomatic and economic steps in an attempt to resolve this issue without resorting to other remedies available to us under international law this reflects the deep respect of our nation for the rule of law and for the safety of our people being held and our belief that a great power bears a responsibility to use its strength in a measured and judicious manner but our patience is not unlimited and our concern for the of our fellow citizens grows each day enhancing national military strength the maintenance of national security is my first concern as it has been for every president before me we must have both the military power and the political will to deter our adversaries and to support our friends and allies we must pay whatever price is required to remain the strongest nation in the world that price has increased as the military power of our major adversary has grown and its readiness to use that power been made all too evident in afghanistan the real increases in defense spending therefore probably will be higher than previously projected protecting our security may require a larger share of our national wealth in the future the 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 invasion of afghanistan and the imposition of a puppet 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 the communization of eastern europe after world war ii the soviets have sent combat forces into an area that was not previously under their control into a and sovereign state the destruction of the independence of the afghanistan government and the occupation by the soviet union have altered the strategic situation in that part of the world in a very ominous fashion it has significantly shortened the striking distance to the indian ocean and the persian gulf for the soviet union it has also eliminated a buffer between the soviet union and pakistan and presented a new threat to iran these two countries are now far more vulnerable to soviet political intimidation if that intimidation were to prove effective the soviet union could control an area of vital strategic and economic significance to the survival of western europe the far east and ultimately the united states it has now been over a year since the soviet invasion of afghanistan dealt a major blow to relations and the entire international system the response has proven to be serious and it has been increasingly effective imposing real and sustained costs on the ussr economy and international image meanwhile we have encouraged and supported efforts to reach a political settlement in afghanistan which would lead to a withdrawal of soviet forces from that country and meet the interests of all concerned it is soviet intransigence that has kept those efforts from bearing fruit meanwhile an overwhelming november resolution of the united nations general assembly on afghanistan has again made clear that the world has not and will not forget afghanistan and our response continues to make it clear that soviet use of force in pursuit of its international objectives is incompatible with the notion of bilateral communication relations remain strained by the continued soviet presence in afghanistan by growing soviet military capabilities and by the soviets apparent willingness to use those capabilities without respect for the most basic norms of international behavior but the relationship remains the single most important element in determining whether there will be war or peace and so despite serious strains in our relations we have maintained a dialogue with the soviet union over the past year through this dialogue we have ensured against bilateral misunderstandings and miscalculations which might escalate out of control and have managed to avoid the injection of superpower rivalries into areas of tension like the conflict poland now as was the case a year ago the prospect of soviet use of force threatens the international order the soviet union has completed preparations for a possible military intervention against poland although the situation in poland has shown signs of stabilizing recently soviet forces remain in a high state of readiness and they could move into poland on short notice we continue to believe that the polish people should be allowed to work out their internal problems themselves without outside interference and we have made clear to the soviet leadership that any intervention in poland would have severe and prolonged consequences for detente and relations in particular defense budget for many years the soviets have steadily increased their real defense spending expanded their strategic forces strengthened their forces in europe and asia and enhanced their capability for projecting military force around the world directly or through the use of proxies afghanistan dramatizes the vastly increased military power of the soviet union the soviet union has built a war machine far beyond any reasonable requirements for their own defense and security in contrast our own defense spending declined in real terms every year from 1968 through 1976 we have reversed this decline in our own effort every year since 1976 there has been a real increase in our defense our lead has encouraged increases by our allies with the support of the congress we must and will make an even greater effort in the years ahead the fiscal year 1982 budget would increase funding authority for defense to more than 196 billion this amount together with a supplemental request for fy 1981 of about 6 billion will more than meet my administration pledge for a sustained growth of 3 percent in real expenditures and provides for 5 percent in program growth in fy 1982 and beyond the trends we mean to correct 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 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 it upgrades our forces so that the military balance between nato and the warsaw pact will continue to deter the outbreak of or europe it provides us the ability to come quickly to the aid of friends and allies around the globe 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 force four more poseidon submarines backfitted with new mile trident i missiles began deployments in 1980 nine trident submarines have been authorized through 1981 and we propose one more each year the new missile program to enhance our intercontinental ballistic missile force continues to make progress technical refinements in the basing design over the last year will result in operational benefits lower costs and reduced environmental impact the program continues to be an essential ingredient in our strategic survivability endurance secure command and control and the capability to threaten targets the soviets hold dear 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 strategic doctrine this administration systematic contributions to the necessary evolution of strategic doctrine began in 1977 when i commissioned a comprehensive net assessment from that base a number of thorough investigations of specific topics continued i should emphasize that the need for an evolutionary doctrine is driven not by any change in our basic remains peace and freedom for all mankind rather the need for change is driven by the inexorable buildup of soviet military power and the increasing propensity of soviet leaders to use this power in coercion and outright aggression to impose their will on others i have codified our evolving strategic doctrine in a number of interrelated and mutually supporting presidential directives their overarching theme is to provide a doctrinal the specific program to implement tells the world that no potential adversary of the united states could ever conclude that the fruits of his aggression would be significant or worth the enormous costs of our retaliation the presidential directives include an overview of our strategic objectives basic space policy civil defense survivability and endurance for telecommunications mobilization planning continuity of government countervailing strategy for general war these policies have been devised to deter first and foremost soviet aggression as such they confront not only soviet military forces but also soviet military doctrine by definition deterrence requires that we shape soviet assessments about the risks of they will make using their doctrine not ours but at the same time we in no way seek to emulate their doctrine in particular nothing in our policy contemplates that nuclear warfare could ever be a deliberate instrument for achieving our own goals of peace and freedom moreover our policies are carefully devised to provide the greatest possible incentives and opportunities for future progress in arms control finally our doctrinal evolution has been undertaken with appropriate consultation with our nato allies and others we are fully consistent with nato strategy of flexible response forces for nato we are greatly accelerating our ability to reinforce western europe with massive ground and air forces in a crisis we are undertaking a major modernization program for the army 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 percent we are working closely with our european allies to secure the host nation support necessary to enable us to deploy more quickly a greater ratio of combat forces to the european theater at a lower cost to the united states security assistance as we move to enhance defense capabilities we must not lose sight of the need to assist others in maintaining their own security and independence events since world war ii most recently in southwest asia have amply demonstrated that security can not exist in a vacuum and that our own prospects for peace are closely tied to those of our friends the security assistance programs which i am proposing for the coming fiscal year thus directly promote vital foreign policy and national security are integral parts of our efforts to improve and upgrade our own military forces more specifically these programs which are part of our overall foreign aid request promote security in two principal ways first they assist friendly and allied nations to develop the capability to defend themselves and maintain their own independence an example during this past year was the timely support provided thailand to help bolster that country defenses against the large numbers of vietnamese troops ranged along its eastern frontier in addition over the years these programs have been important to the continued independence of other friends and allies such as israel greece turkey and korea second security assistance constitutes an essential element in the broad cooperative relationships we have established with many nations which permit either bases on their territory or access by forces to their facilities these programs have been particularly important with regard to the access agreements with various countries in the persian gulf and indian ocean regions and have been crucial to the protection of our interests throughout southwest asia rapid deployment forces we are systematically enhancing our ability to respond rapidly to 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 the development of a new fleet of large cargo aircraft with intercontinental range the design and procurement of a force of maritime prepositioning ships that will carry heavy equipment and supplies for three marine corps brigades the procurement of fast sealift ships to move large quantities of men and material quickly from the to overseas areas of deployment increasing training and exercise activities to ensure that our forces will be well prepared to deploy and operate in distant areas in addition our european allies have agreed on the importance of providing support to deployments to southwest asia naval forces seapower 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 this administration has supported for fy 1981 the largest peacetime increase ever in military pay and allowances we have enhanced our readiness and combat endurance by improving the reserve components all reservists are assigned to units structured to complement and provide needed depth to our active forces some reserve personnel have also now been equipped with new equipment mobilization planning we have completed our first phase of mobilization first such effort since world war ii the exercise of our mobilization plans at the end of 1980 showed first that planning pays off and second that much more needs to be done our intelligence posture our national interests are critically dependent on a strong and effective intelligence capability we will maintain and strengthen the intelligence capabilities needed to assure our national security maintenance of and continued improvements in our 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 1981 budget this growth will enable us to develop new technical means of intelligence collection while also assuring that the more traditional methods of intelligence work are also given proper stress we must continue to integrate both modes of collection in our analyses regional policies every president for over three decades has recognized that america interests are global and that we must pursue a global foreign policy two world wars have made clear our stake in western europe and the north atlantic area we are also inextricably linked with the far 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 atlantic 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 in recognition of the threat which the soviet invasion of afghanistan posed to western interests in both europe and southwest asia nato foreign and defense ministers have expressed full support for efforts to develop a capability to respond to a contingency in southwest asia and have approved an extensive program to help fill the gap which could be created by the diversion of forces to that region the has not been alone in seeking to maintain stability in the southwest asia area and insure access to the needed resources there the european nations with the capability to do so are improving their own forces in the region and providing greater economic and political support to the residents of the area in the face of the potential danger posed by the conflict we have developed coordination among the western forces in the area of the persian gulf in order to be able to safeguard passage in that essential waterway concerning developments in and around poland the allies have achieved the highest level of cohesion and unity of purpose in making clear the effects on future relations of a precipitous soviet act there the alliance has continued to build on the progress of the past three years in improving its conventional forces through the defense program though economic conditions throughout europe today are making its achievement difficult the yearly real increase of 3 percent in defense spending remains a goal actively sought by the alliance the nato alliance also has moved forward during the past year with the implementation of its historic december 1979 decision to modernize its theater nuclear force capabilities through deployment of improved pershing ballistic missiles and ground launched cruise missiles in europe our allies continue to cooperate actively with us in this important joint endeavor whose purpose is to demonstrate convincingly to the soviet union the potential costs of a nuclear conflict in europe at the same time we offered convincing evidence of our commitment to arms control in europe by initiating preliminary consultations with the soviet union in geneva on the subject of negotiated limits on theater nuclear forces also during 1980 we initiated and carried out a withdrawal from our nuclear weapons stockpile in europe of nuclear warheads this successful drawdown in our nuclear stockpile was a further tangible demonstration of our commitment to the updating of our existing theater nuclear forces in europe in the nato area we continued to work closely with other countries in providing resources to help turkey regain economic health we regretted that massive political and internal security problems led the turkish military to take over the government on september 12 the new turkish authorities are making some progress in resolving those problems and they have pledged an early return to civilian government the tradition of the turkish military gives us because to take that pledge seriously we welcomed the reestablishment of greece links to the integrated military command structure of the atlantic move which we had strongly a major step toward strengthening nato vital southern flank at a time of international crisis and tension in adjacent areas greek reintegration exemplifies the importance which the allies place on cooperating in the common defense and shows that the allies can make the difficult decisions necessary to insure their continued security we also welcomed the resumption of the intercommunal talks on cyprus the and the pacific nations the united states is a pacific nation as much as it is an atlantic nation our interests in asia are as important to us as our interests in europe our trade with asia is as great as our trade with europe during the past four years we have regained a strong dynamic and flexible posture for the united states in this vital region our major alliances with japan australia and new zealand are now stronger than they ever have been and together with the nations of western europe we have begun to form the basic political structure for dealing with international crises that affect us all japan australia and new zealand have given us strong support in developing a strategy for responding to instability in the persian gulf normalization of relations with china has facilitated china full entry into the international community and encouraged a constructive chinese role in the region our relations with china have been rapidly consolidated over the past year through the conclusion of a series of bilateral agreements we have established a pattern of frequent and frank consultations between our two governments exemplified by a series of visits and by regular exchanges at the working level through which we have been able to identify increasingly broad areas of common interest on which we can cooperate united states relations with the association of southeast asian nations asean have also expanded dramatically in the past four years asean is now the focus for policy in southeast asia and its cohesion and strength are essential to stability in this critical area and beyond vietnamese aggression in indochina has posed a major challenge to regional stability in response we have reiterated our security commitment to thailand and have provided emergency security assistance for thai forces facing a vietnamese military threat along the border we have worked closely with asean and the un to press for withdrawal of vietnamese forces from cambodia and to encourage a political settlement in cambodia which permits that nation to be governed by leaders of its own choice we still look forward to the day when cambodia peacefully can begin the process of rebuilding it social economic and political institutions after years of devastation and occupation and on humanitarian grounds and in support of our friends in the region we have worked vigorously with international organizations to arrange relief and resettlement for the exodus of indochinese refugees which threatened to overwhelm these nations we have maintained our alliance with korea and helped assure korea security during a difficult period of political transition we have amended our military base agreement with the philippines ensuring stable access to these bases through 1991 the importance of our philippine bases to the strategic flexibility of forces and our access to the indian ocean is finally we are in the process of concluding a long negotiation establishing micronesia status as a freely associated state we enter the 1980 with a firm strategic footing in east asia and the pacific based on stable and productive relations with the majority of countries of the region we have established a stable level of involvement in the region appropriate to our own interests and to the interests of our friends and allies there the middle east and southwest asia the continuing soviet occupation of afghanistan and the dislocations caused by the war serve as constant reminders of the critical importance for us and our allies of a third strategic zone stretching across the middle east the persian gulf and much of the indian subcontinent this southwest asian region has served as a key strategic and commercial link between east and west over the centuries today it produces of the world oil exports providing most of the energy needs of our european allies and japan it has experienced almost continuous conflict between nations internal instabilities in many countries and regional rivalries combined with very rapid economic and social change and now the soviet union remains in occupation of one of these nations ignoring world opinion which has called on it to get out we have taken several measures to meet these challenges middle east in the middle east our determination to consolidate what has already been achieved in the peace to buttress that accomplishment with further progress toward a comprehensive peace remain a central goal of our foreign policy pursuant to their peace treaty egypt and israel have made steady progress in the normalization of their relations in a variety of fields bringing the benefits of peace directly to their people the new relationship between egypt and israel stands as an example of peaceful cooperation in an increasingly fragmented and turbulent region both president sadat and prime minister begin remain committed to the current negotiations to provide full autonomy to the inhabitants of the west bank and gaza these negotiations have been complex and difficult but they have already made significant progress and it is vital that the two sides with our assistance see the process through to a successful conclusion we also recognize the need to broaden the peace process to include other parties to the conflict and believe that a successful autonomy agreement is an essential first step toward this objective we have also taken a number of steps to strengthen our bilateral relations with both israel and egypt we share important strategic interests with both of these countries we remain committed to israel security and are prepared to take concrete steps to support israel whenever that security is threatened persian gulf the persian gulf has been a vital crossroads for trade between europe and asia at many key moments in history it has become essential in recent years for its supply of oil to the united states our allies and our friends we have taken effective measures to control our own consumption of imported fuel working in cooperation with the other key industrial nations of the world however there is little doubt that the healthy growth of our american and world economies will depend for many years on continued safe access to the persian gulf oil production the denial of these oil supplies would threaten not only our own but world security the potent new threat from an advancing soviet union against the background of regional instability of which it can take advantage requires that we reinforce our ability to defend our regional friends and to protect the flow of oil we are continuing to build on the strong political economic social and humanitarian ties which bind this government and the american people to friendly governments and peoples of the persian gulf we have also embarked on a course to reinforce the trust and confidence our regional friends have in our ability to come to their assistance rapidly with american military force if needed we have increased our naval presence in the indian ocean we have created a rapid deployment force which can move quickly to the indeed any other area of the world where outside aggression threatens we have concluded several agreements with countries which are prepared to let us use their airports and naval facilities in an emergency we have met requests for reasonable amounts of american weaponry from regional countries which are anxious to defend themselves and we are discussing with a number of our area friends further ways we can help to improve their security and ours both for the short and the longer term south asia we seek a south asia comprising sovereign and stable states free of outside interference which can strengthen their political institutions according to their own national genius and can develop their economies for the betterment of their people the soviet invasion of afghanistan has posed a new challenge to this region and particularly to neighboring pakistan we are engaged in a continuing dialogue with the pakistan government concerning its development and security requirements and the economic burden imposed by afghan refugees who have fled to pakistan we are participating with other aid consortium members in debt rescheduling and will continue to cooperate through the unhcr in providing refugee assistance we remain committed to pakistan territorial integrity and independence developments in the broad southwest asian region have also lent a new importance to our relations with india the largest and strongest power in the area we share india interest in a more constructive relationship indian policies and perceptions at times differ from our own and we have established a candid dialogue with this sister democracy which seeks to avoid the misunderstandings which have sometimes complicated our ties we attach major importance to strong economic assistance programs to the countries in the area which include a majority of the poor of the world we believe that these programs will help achieve stability in the area an objective we share with the countries in the region great progress has been achieved by these countries in increasing food production international cooperation in harnessing the great river resources of south asia would contribute further to this goal and help to increase energy production we continue to give high priority to our goals in the area in the context of our broad global and regional priorities the decision to continue supply of nuclear fuel to the indian tarapur reactors was sensitive to this effort africa the united states has achieved a new level of trust and cooperation with africa our efforts together with our allies to achieve peace in southern africa our increased efforts to help the poorest countries in africa to combat poverty and our expanded efforts to promote trade and investment have led to growing respect for the and to cooperation in areas of vital interest to the united states africa is a continent of poor nations for the most part it also contains many of the mineral resources vital for our economy we have worked with africa in a spirit of mutual cooperation to help the african nations solve their problems of poverty and to develop stronger ties between our private sector and african economies our assistance to africa has more than doubled in the last four years equally important we set in motion new mechanisms for private investment and trade nigeria is the largest country in black africa and the second largest oil supplier to the united states during this administration we have greatly expanded and improved our relationship with nigeria and other west african states whose aspirations for a constitutional democratic order we share and support this interest was manifested both symbolically and practically by the visit of vice president mondale to west africa in july 1980 and the successful visit to washington of the president of nigeria in october during vice president mondale visit a joint agricultural consultative committee was established with the represented entirely by the private sector this could herald a new role for the american private sector in helping solve the world serious food shortages i am pleased to say that our relations with nigeria are at an high providing the foundation for an even stronger relationship in the years ahead another tenet of this administration approach to african problems has been encouragement and support for regional solutions to africa problems we have supported initiatives by the organization of african unity to solve the protracted conflict in the western sahara chad and the horn in chad the world is watching with dismay as a country torn by a devastating civil war has become a fertile field for libya exploitation thus demonstrating that threats to peace can come from forces within as well as without africa in southern africa the united states continues to pursue a policy of encouraging peaceful development toward majority rule in 1980 southern rhodesia became independent as zimbabwe a multiracial nation under a system of majority rule zimbabwean independence last april was the culmination of a long struggle within the country and diplomatic efforts involving great britain african states neighboring zimbabwe and the united states the focus of our efforts in pursuit of majority rule in southern africa has now turned to namibia negotiations are proceeding among concerned parties under the leadership of un secretary general waldheim this should lead to implementation of the un plan for and independence for namibia during 1981 if these negotiations are successfully concluded years of uncertainty over the status of the territory including a war will be ended common efforts to resolve the zimbabwean and namibian issues have brought the united states closer both to its western britain france the federal republic of germany and to african states such as tanzania zambia mozambique angola and botswana with whom relations have at some times in the past been difficult the success of these common undertakings demonstrates that complex problems with sometimes bitter and bloody histories can be resolved peacefully through negotiation in response to our active concern with issues of importance to africans african states have cooperated with us on issues of importance to our national interests african states voted overwhelmingly in favor of the un resolution calling for release of the hostages and for the un resolution condemning the soviet invasion of afghanistan two countries of africa have signed access agreements with the allowing us use of naval and air facilities in the indian ocean africans have become increasingly vocal on human rights african leaders have spoken out on the issue of political prisoners and the oau is drafting its own charter on human rights three countries in ghana and returned to civilian rule during the past year cooperation with africa on all these matters represents a strong base on which we can build in future years liberia is a country of ties with the and the site of considerable investment and facilities this past april a coup replaced the government and a period of political and economic uncertainty ensued the acted swiftly to meet this situation we together with african leaders urged the release of political prisoners and many have been released we provided emergency economic assistance to help avoid economic collapse and helped to involve the imf and the banking community to bring about economic stability and we have worked closely with the new leaders to maintain liberia strong ties with the west and to protect america vital interests north africa in early 1979 following a libyaninspired commando attack on a tunisian provincial city the responded promptly to tunisia urgent request for assistance both by airlifting needed military equipment and by making clear our longstanding interest in the security and integrity of this friendly country the remains determined to oppose other irresponsible libyan aspirations despairing of a productive dialogue with the libyan authorities the closed down its embassy in libya and later expelled six libyan diplomats in washington in order to deter an intimidation campaign against libyan citizens in the relations with algeria have improved and algeria has played an indispensable and effective role as intermediary between iran and the over the hostage issue the strengthening of our arms supply relationship with morocco has helped to deal with attacks inside its internationally recognized frontiers and to strengthen its confidence in seeking a political settlement of the western sahara conflict while not assuming a mediatory role the encouraged all interested parties to turn their energies to a peaceful and sensible compromise resolution of the war in the sahara and supported efforts by the organization of african unity toward that end as the year drew to a close the was encouraged by evolution in the attitudes of all sides and is hopeful that their differences will be peacefully resolved in the year ahead so that the vast economic potential of north africa can be developed for the of the people living there latin america and the caribbean the principles of our policies in this hemisphere have been clear and constant over the last four years we support democracy and respect for human rights we have struggled with many to help free the region of both repression and terrorism we have respected ideological diversity and opposed outside intervention in purely internal affairs we will act though in response to a request for assistance by a country threatened by external aggression we support social and economic development within a democratic framework we support the peaceful settlement of disputes we strongly encourage regional cooperation and shared responsibilities within the hemisphere to all these ends and we have eagerly and regularly sought the advice of the leaders of the region on a wide range of issues last november i spoke to the general assembly of the organization of american states of a because that has been closest to my rights it is an issue that has found its time in the hemisphere the because is not mine alone but an historic movement that will endure at riobamba ecuador last september four andean pact countries costa rica and panama broke new ground by adopting a code of conduct stating that joint action in defense of human rights does not violate the principles of nonintervention in the internal affairs of states in this hemisphere the organization of american states has twice condemned the coup that overturned the democratic process in bolivia and the widespread abuse of human rights by the regime which seized power the commission on human rights has gained world acclaim for its dispassionate reports it completed two major country studies this year in addition to its annual report in a resolution adopted without opposition the oas general assembly in november strongly supported the work of the commission the american convention on human rights is in force and an court has been created to judge human rights violations this convention has been pending before the senate for two years i hope the united states this year will join the other nations of the hemisphere in ratifying a convention which embodies principles that are our tradition the trend in favor of democracy has continued during this past year peru inaugurated a democratically elected government brazil continues its process of liberalization in central america hondurans voted in record numbers in their first national elections in over eight years in the caribbean seven elections have returned governments firmly committed to the democratic traditions of the commonwealth another major contribution to peace in the hemisphere is latin america own treaty for the prohibition of nuclear weapons on behalf of the united states i signed protocol i of this treaty in may of 1977 and sent it to the senate for ratification i urge that it be acted upon promptly by the senate in order that it be brought into the widest possible effect in the latin american region regional cooperation for development is gaining from central america to the andes and throughout the caribbean the caribbean group for cooperation in economic development which we established with 29 other nations in 1977 has helped channel 750 million in external support for growth in the caribbean the recent meeting of the chiefs of state of the eastern caribbean set a new precedent for cooperation in that region mexico and venezuela jointly and trinidad and tobago separately have established oil facilities that will provide substantial assistance to their oil importing neighbors the peace treaty between el salvador and honduras will hopefully stimulate central america to move forward again toward economic integration formation of american action a private sector organization has given a major impetus to improving bonds and strengthening the role of private enterprise in the development of democratic societies the panama treaties have been in force for over a year a new partnership has been created with panama it is a model for large and small nations a longstanding issue that divided us from our neighbors has been resolved the security of the canal has been enhanced the canal is operating as well as ever with traffic through it reaching record levels this year canal employees american and panamanian alike have remained on the job and have found their living and working conditions virtually unchanged in 1980 relations with mexico continued to improve due in large measure to the effectiveness of the coordinator for mexican affairs and the expanded use of the consultative mechanism by holding periodic meetings of its various working groups we have been able to prevent mutual concerns from becoming political issues the secretary of state visited mexico city in november and along with the mexican secretary of foreign relations reviewed the performance of the consultative mechanism the office of the coordinator has ensured the implementation of my directive to all agencies to accord high priority to mexican concerns trade with mexico rose by almost 60 percent to nearly 30 billion making that country our third largest trading partner these are all encouraging development other problems remain however the impact of migration is affecting many countries in the hemisphere the most serious manifestation was the massive illegal exodus from cuba last summer the cuban government unilaterally encouraged the disorderly and even deadly migration of of its citizens in complete disregard for international law or the immigration laws of its neighbors migrations of this nature clearly require concerted action and we have asked the oas to explore means of dealing with similar situations which may occur in the future we have a treaty with colombia on quita sueno roncador and serrano which remains to be ratified by the senate in central america the future of nicaragua is unclear recent tensions the restrictions on the press and political activity an inordinate cuban presence in the country and the tragic killing by the security forces of a businessman well known for his democratic orientation because us considerable concern these are not encouraging developments but those who seek a free society remain in the contest for their nation destiny they have asked us to help rebuild their country and by our assistance to demonstrate that the democratic nations do not intend to abandon nicaragua to the cubans as long as those who intend to pursue their pluralistic goals play important roles in nicaragua it deserves our continuing support in el salvador we have supported the efforts of the junta to change the fundamental basis of an inequitable system and to give a stake in a new nation to those millions of people who for so long lived without hope or dignity as the government struggles against those who would restore an old tyranny or impose a new one the united states will continue to stand behind them we have increased our aid to the caribbean an area vital to our national security and we should continue to build close relations based on mutual respect and understanding and common interests as the nations of this hemisphere prepare to move further into the 1980 i am struck by the depth of underlying commitment that there is to our common principles peaceful settlement of disputes cooperation for development democracy and defense of basic human rights i leave office satisfied that the political economic social and organizational basis for further progress with respect to all these principles have been substantially strengthened in the past four years i am particularly reassured by the leadership by other nations of the hemisphere in advancing these principles the success of our common task of improving the circumstances of all peoples and nations in the hemisphere can only be assured by the sharing of responsibility i look forward to a hemisphere that at the end of this decade has proven itself anew as a leader in the promotion of both national and human dignity the international economy a growing defense effort and a vigorous foreign policy rest upon a strong economy here in the united states and the strength of our own economy depends upon our ability to lead and compete in the international marketplace energy last year the war between iraq and iran led to the loss of nearly 4 million barrels of oil to world markets the third major oil market disruption in the past seven years this crisis has vividly demonstrated once again both the value of lessened dependence on oil imports and the continuing instability of the persian gulf area under the leadership of the united states the 21 members of the international energy agency took collective action to ensure that the oil shortfall stemming from the war would not be aggravated by competition for scarce spot market supplies we are also working together to see that those nations most seriously affected by the oil our key nato allies turkey and get the oil they need at the most recent iea ministerial meeting we joined the other members in pledging to take those policy measures necessary to slice our joint oil imports in the first quarter of 1981 by million barrels our international cooperation efforts in the energy field are not limited to crisis management at the economic summit meetings in tokyo and venice the heads of government of the seven major industrial democracies agreed to a series of tough energy conservation and production goals we are working together with all our allies and friends in this effort construction has begun on a commercial scale coal liquefaction plant in west virginia by the united states japan and west germany an interagency task force has just reported to me on a series of measures we need to take to increase coal production and exports this report builds on the work of the international energy agency coal industry advisory board with the assurances of a reliable united states steam coal supply at reasonable prices many of the electric power plants to be built in the 1980 and 1990 can be rather than we are working cooperatively with other nations to increase energy security in other areas as well joint research and development with our allies is underway in solar energy nuclear power industrial conservation and other areas in addition we are assisting rapidly industrializing nations to carefully assess their basic energy policy choices and our development assistance program helps the developing countries to increase indigenous energy production to meet the energy needs of their poorest citizens we support the proposal for a new world bank energy affiliate to these same ends whose fulfillment will contribute to a better global balance between energy supply and demand international monetary policy despite the rapid increase in oil costs the policy measures we have taken to improve domestic economic performance have had a continued powerful effect on our external accounts and on the strength of the dollar a strong dollar helps in the fight against inflation there has also been considerable forward movement in efforts to improve the functioning of the international monetary system the stability of the international system of payments and trade is important to the stability and good health of our own economy we have given strong support to the innovative steps being taken by the international monetary fund and world bank to help promote early adjustment to the difficult international economic problems recent agreement to increase quotas by fifty percent will ensure the imf has sufficient resources to perform its central role in promoting adjustment and financing payments imbalances the world bank new structural adjustment lending program will also make an important contribution to international efforts to help countries achieve a sustainable level of growth and development sugar in 1980 congress passed implementing legislation for the international sugar agreement thus fulfilling a major commitment of this administration the agreement is an important element in our international commodity policy with farreaching implications for our relations with developing countries particularly sugar producers in latin america producers and consumers alike will benefit from a more stable market for this essential commodity coffee at year end congress approved implementing legislation permitting the to carry out fully its commitments under the international coffee agreement specifically the legislation enables us to meet our part of an understanding negotiated last fall among members of the agreement which defends by use of export quotas a price range well below coffee prices of previous years and which commits major coffee producers to eliminate cartel arrangements that manipulated future markets to raise prices the way is now open to a international coffee agreement which can help to stabilize this major world commodity market the results will be positive for both will be less likely to suffer from sharp increases in coffee can undertake future investment with assurance of greater protection against disruptive price fluctuations in their exports natural rubber in 1980 the international natural rubber agreement entered into force provisionally membership in this new body was approved overwhelmingly by the senate last year the natural rubber agreement is a model of its kind and should make a substantial contribution to a stable world market in this key industrial commodity it is thus an excellent example of constructive steps to improve the operation of the world economy in ways which can benefit the developing and industrialized countries alike in particular the agreement has improved important relationships with the major natural countries of southeast asia common fund the united states joined members of the united nations conference on trade and development both developed and developing nations in concluding articles of agreement in 1980 for a common fund to help international commodity agreements stabilize the prices of raw materials economic cooperation with developing nations our relations with the developing nations are of major importance to the united states the fabric of our relations with these countries has strong economic and political dimensions they constitute the most rapidly growing markets for our exports and are important sources of fuel and raw materials their political views are increasingly important as demonstrated in their overwhelming condemnation of the soviet invasion of afghanistan our ability to work together with developing nations toward goals we have in political independence the resolution of regional tensions and our growing ties of trade for us to maintain the policy of active involvement with the developing world that we have pursued over the past four years the actions we have taken in such areas as energy trade commodities and international financial institutions are all important to the welfare of the developing countries another important way the united states can directly assist these countries and demonstrate our concern for their future is through our multilateral and bilateral foreign assistance program the legislation which i will be submitting to you for fy 82 provides the authority and the funds to carry on this activity prompt congressional action on this legislation is essential in order to attack such high priority global problems as food and energy meet our treaty and base rights agreements continue our peace efforts in the middle east provide economic and development support to countries in need promote progress on issues protect western interests and counter soviet influence our proposed fy 1982 bilateral development aid program is directly responsive to the agreement reached at the 1980 venice economic summit that the major industrial nations should increase their aid for food and energy production and for family planning we understand that other summit countries plan similar responses it is also important to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the international financial institutions these multilateral programs enhance the efficiency of us contributions by combining them with those of many other donor countries to promote development the proposed new world bank affiliate to increase energy output in developing countries offers particular promise all these types of aid benefit our longrun economic and political interests progress was made on a number of economic issues in negotiations throughout the un system however in spite of lengthy efforts in the united nations agreement has not been reached on how to launch a process of global negotiations in which nations might collectively work to solve such important issues as energy food protectionism and population pressures the united states continues to believe that progress can best be made when nations focus on such specific problems rather than on procedural and institutional questions it will continue to work to move the dialogue into a more constructive phase war on hunger the war on hunger must be a continuous urgent priority major portions of the world population continue to be threatened by specter of hunger and malnutrition during the past year some 150 million people in 36 african countries were faced with near disaster as the result of serious drought induced food shortages our government working in concert with the un food and agricultural organization fao helped to respond to that need but the problems of hunger can not be solved by measures we must continue to support those activities bilateral and multilateral which aim at improving food production especially in developing countries and assuring global food security these measures are necessary to the maintenance of a stable and healthy world economy i am pleased that negotiation of a new food aid convention which guarantees a minimum annual level of food assistance was successfully concluded in march the establishment of the international emergency wheat reserve will enable the to meet its commitment under the new convention to feed hungry people even in times of short supply of immediate concern is the prospect of millions of africans threatened by famine because of drought and civil disturbances the plea for increased food aid resulted in the organization of an international pledging conference and we are hopeful that widespread starvation will be avoided good progress has been made since the venice economic summit called for increased effort on this front we and other donor countries have begun to assist poor countries develop strategies to improve their food production the world bank will invest up to 4 billion in the next few years in improving the grain storage and capacity of countries prone to food shortages good progress has been made since the tokyo economic summit called for increased effort on this front the world bank is giving this problem top priority as are some other donor countries the resources of the consultative group on international agricultural research will be doubled over a period the work of our own institute of scientific and technological cooperation will further strengthen the search for relevant new agricultural technologies the goal of freeing the world from hunger by the year 2000 should command the full support of all countries the human dimension of foreign policy human rights the human rights policy of the united states has been an integral part of our overall foreign policy for the past several years this policy serves the national interest of the united states in several important ways by encouraging respect by governments for the basic rights of human beings it promotes peaceful constructive change reduces the likelihood of internal pressures for violent change and for the exploitation of these by our adversaries and thus directly serves our interest in peace and stability by matching espousal of fundamental american principles of freedom with specific foreign policy actions we stand out in vivid contrast to our ideological adversaries by our efforts to expand freedom elsewhere we render our own freedom and our own nation more secure countries that respect human rights make stronger allies and better friends rather than attempt to dictate what system of government or institutions other countries should have the supports throughout the world the internationally recognized human rights which all members of the united nations have pledged themselves to respect there is more than one model that can satisfy the continuing human reach for freedom and justice 1980 has been a year of some disappointments but has also seen some positive developments in the ongoing struggle for fulfillment of human rights throughout the world in the year we have seen free elections were held and democratic governments installed in peru dominica and jamaica honduras held a free election for installation of a constituent assembly an interim government was subsequently named pointing toward national presidential elections in 1981 brazil continues on its course of political liberalization the charter of conduct signed in riobamba ecuador by ecuador colombia venezuela peru costa rica panama and spain affirms the importance of democracy and human rights for the andean countries the organization of american states in its annual general assembly approved a resolution in support of the human rights commission work the resolution took note of the commission annual report which described the status of human rights in chile el salvador paraguay and uruguay and the special reports on argentina and haiti which described human rights conditions as investigated during inspections to these countries the awarding of the nobel prize for peace to adolfo perez esquivel of argentina for his advocacy of human rights the united states was able to rejoin the international labor organization after an absence of two years as that un body reformed its procedures to return to its original purpose of strengthening relations to insure human rights for the working people of the world the united states of course can not take credit for all these various developments but we can take satisfaction in knowing that our policies encourage and perhaps influence them those who see a contradiction between our security and our humanitarian interests forget that the basis for a secure and stable society is the bond of trust between a government and its people i profoundly believe that the future of our world is not to be found in authoritarianism that wears the mask of order or totalitarianism that wears the mask of justice instead let us find our future in the human face of democracy the human voice of individual liberty the human hand of economic development humanitarian aid the united states has continued to play its traditional role of safehaven for those who flee or are forced to flee their homes because of persecution or war during 1980 the united states provided resettlement opportunities for refugees from countries around the globe in addition the united states joined with other nations to provide relief to refugees in country of first asylum in africa the middle east and asia the great majority of refugee admissions continued to be from indochina during 1980 indochinese were resettled in the united states although refugee populations persist in camps in southeast asia and refugees continue to flee vietnam laos and kampuchea the flow is not as great as in the past one factor in reducing the flow from vietnam has been the successful negotiation and commencement of an orderly departure program which permits us to process vietnamese for resettlement in the united states with direct departure from h chi minh ville in an orderly fashion the first group of 250 departed vietnam for the united states in december 1980 in addition to the refugees admitted last year the united states accepted for entry into the united states cubans who were expelled by fidel castro federal and state authorities as well as private voluntary agencies responded with unprecedented vigor to coping with the unexpected influx of cubans major relief efforts to aid refugees in countries of first asylum continued in several areas of the world in december 1980 nations meeting in new york city agreed to contribute 65 million to the continuing famine relief program in kampuchea due in great part to the generosity of the american people and the leadership exercised in the international arena by the united states we have played the pivotal role in ameliorating massive suffering in kampuchea the united states has taken the lead among a group of donor countries who are providing relief to some two million refugees in the horn of africa who have been displaced by fighting in ethiopia assistance primarily to somalia consists of 35 million worth of food and 18 million in cash and kind here again united states efforts can in large part be credited with keeping hundreds of thousands of people alive another major international relief effort has been mounted in pakistan the united states is one of 25 countries plus the european economic community who have been helping the government of pakistan to cope with the problem of feeding and sheltering the more than one million refugees that have been generated by the soviet invasion of afghanistan in april 1980 the congress passed the refugee act of 1980 which brought together for the first time in one piece of legislation the various threads of policy towards refugees the law laid down a new broader definition of the term refugee established mechanisms for arriving at a level of refugee admissions through consultation with congress and established the office of the united states coordinator for refugees it 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 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 my administration has been committed to stemming the spread of nuclear weapons nuclear proliferation would raise the spectre of the use of nuclear explosives in crucial unstable regions of the world endangering not only our security and that of our allies but that of the whole world is not and can not be a unilateral policy nor should it be an issue of contention between the industrialized and developing states the international effort requires the support of suppliers as well as importers of nuclear technology and materials we have been proceeding on a number of fronts first we have been seeking to encourage nations to accede to the treaty the is also actively encouraging other nations to accept safeguards on all of their nuclear activities and is asking other nuclear suppliers to adopt a safeguards requirement as a condition for future supply second the international nuclear fuel cycle evaluation infce which was completed in 1980 demonstrated that suppliers and recipients can work together on these technically complex and sensitive issues while differences remain the infce effort provides a broader international basis for national decisions which must balance energy needs with concerns finally we are working to encourage regional cooperation and restraint protocol i of the treaty of tlatelolco which will contribute to the lessening of nuclear dangers for our latin american neighbors ought now to be ratified by the united states senate limitations on strategic arms i remain convinced that the salt ii treaty is in our nation security interest and that it would add significantly to the control of nuclear weapons i strongly support continuation of the salt process and the negotiation of more mutual restraints on nuclear weaponry conclusion we have new support in the world for our purposes of national independence and individual human dignity we have a new will at home to do what is required to keep us the strongest nation on earth we must move together into this decade with the strength which comes from realization of the dangers before us and from the confidence that together we can overcome them jimmy carter the white house january 16 1981
congress united states state union sound economy recovering recession national energy plan place dependence foreign oil decreasing peace four uninterrupted years nation serious problems inflation unemployment unacceptably high world oil market increasingly tight trouble spots throughout world 53 american hostages held iran international law every precept human affairs however firmly believe result progress made many domestic international areas past four years nation stronger wealthier compassionate freer four years ago proud fact believe congress proud well much accomplished past four years due hard work insights cooperation congress applaud congress efforts achievements state union message want recount achievements progress last four years offer recommendations congress year term president end 97th congress begins work earnest hope recommendations serve guide direction country take build record past four years record progress took office nation faced number serious domestic international problems national energy policy existed dependence foreign oil rapidly increasing public trust integrity openness government low federal government operating inefficiently administering essential programs policies major social problems ignored poorly addressed federal government defense posture declining result defense budget continuously shrinking real terms strength nato alliance needed bolstered tensions israel egypt threatened another middle east war america resolve oppose human rights violations serious question past 48 months clear progress made solving challenges found january 1977 almost comprehensive energy program enacted department energy established administer program confidence government integrity restored respect government openness fairness renewed government made effective efficient civil service system completely reformed first time century 14 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 regulatory process reformed creation regulatory council implementation executive order 12044 requirement analyses elimination unnecessary regulation passage regulatory flexibility act procedures established assure citizen participation government airline trucking rail communications industries deregulated critical social problems many long ignored federal government addressed directly urban policy developed implemented reverse decline urban areas social security system refinanced put sound financial basis full employment act enacted federal assistance education expanded 75 percent 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 nation first sectoral policies put place auto steel industries administration demonstrating value cooperation government business labor reversing previous trends real defense spending increased every year since 1977 real increase fy 1980 defense spending well 3 percent expect fy 1981 defense spending even higher looking ahead defense program proposing premised real increase defense spending next five years 20 percent nato alliance proven unity responding situations eastern europe southwest asia agreeing issues addressed review helsinki final act currently underway madrid peace process middle east established camp david peace treaty egypt israel buttressed two fronts steady progress normalization relations many fields commitment egypt israel united states assistance see successful conclusion autonomy negotiations west bank gaza panama canal treaties put effect helped improve relations latin america continued nation strong commitment pursuit human rights throughout world evenhandedly objectively commitment worldwide human rights policy remained firm many countries given high priority resolve oppose aggression illegal invasion soviet union afghanistan supported tough action ensuring economic strength economy last decade nation withstood series economic shocks unprecedented peacetime dramatic explosive increases opec oil prices also faced world commodity shortages natural disasters agricultural shortages major challenges world peace security ability deal shocks impaired decrease growth productivity persistence underlying inflationary forces built past 15 years nevertheless economy proved remarkably resilient real output grown average rate 3 percent per year since took office employment grown 10 percent added 8 million productive private sector jobs economy however unacceptably high difficult economic problem threatens growth productivity stability restrain growth budget maximum extent consistent national security human compassion done earlier budgets fy budget however restraint essential appropriate economic policy high inflation attributed solely government spending growth budget outlays result economic factors early stages economic recovery following short recession typically period marked vigorous economic growth aided policy measures large tax cuts big stimulation spending programs declined recommend actions stimulate economic activity persistent inflationary pressures beset economy today dictate restrained fiscal policy accordingly asking congress postpone january 1 1982 personal tax reductions earlier proposed take effect january 1 year however 1982 budget proposes significant tax changes increase sources financing business investment emphasizing need continued fiscal restraint budget takes first major step tax reduction program designed increase capital formation failure nation capital stock grow rate keeps pace labor force clearly one productivity slowdown higher investment rates also critically needed meet nation energy needs replace plants equipment new physical plants level investment called occur absence policies encourage therefore budget proposes major liberalization tax allowances depreciation well simplified depreciation accounting increasing allowable rates 40 percent also proposing improvements investment tax credit making refundable meet investment needs firms current earnings two proposals along tax reductions individuals improve economic efficiency tax equity urge congress enact legislation along lines timetable proposed 1982 budget fy 1982 budget sent congress continues policy prudence restraint budget deficits term higher would liked size determined part economic conditions spite conditions relative size deficit continues decline 1976 took office budget deficit equalled 4 percent gross national product cut percent 1980 fiscal year ended 1982 budget contains deficit estimated less 1 percent gross national product rate growth federal spending held minimum nevertheless outlays still rising rapidly many anticipated result many powerful forces society face threat security events afghanistan middle east eastern europe make clear steadily aging population resuit biggest single increase federal budget rising cost retirement programs particularly social security face important domestic needs continue responsibility disadvantaged provide capital needed cities transportation systems protect environment revitalize american industry increase export american goods services essential creation jobs trade surplus yet federal government may always proper source assistance example must usurp functions appropriately decided upon managed financed private sector state local governments administration always sought consider proper focus responsibility efficient resolution problems also recognized need simplify system grants state local governments proposed several grant consolidations 1982 budget including new proposal would consolidate several highway programs pressures growth federal use national resources great administration initiated many new approaches cope pressures started budget system began system controlling federal credit programs yet spite increasing needs limit spending growth consistently adhered strong budget principles nation armed forces must always stand sufficiently strong deter aggression assure security effective national energy plan essential increase domestic production oil gas encourage conservation scarce energy resources stimulate conversion abundant fuels reduce trade deficit essential human needs citizens must given highest priority federal government must lead way investment nation technological future federal government obligation nurture protect common resource birthright sustenance american people 1982 budget continues support principles also proposes responsible tax reductions encourage productive economy adequate funding highest priority programs within overall policy constraint fiscal restraint must continued years ahead budgets must tight enough convince set wages prices federal government serious fighting inflation tight choke growth careful budget policy supplemented measures designed reduce inflation lower cost lost output employment steps include measures increase tax proposals included 1982 measures increase competition productivity economy voluntary incomes policies also directly influence wages prices direction moderation thereby bring inflation faster lower cost economy incomes policy tip could provide tax incentives firms workers moderate wage price increases coming years control federal expenditures make possible periodic tax reductions congress therefore begin evaluate potentialities tip program next round tax reductions appropriate tip program seriously considered employment last four years given top priority meeting needs workers providing additional job opportunities seek work since end 1976 almost 9 million new jobs added nation economy total employment reached 97 million jobs ever held women minorities young people employment past four years increased adult women blacks hispanics employment black teenagers increased 5 reversing decline occurred previous eight years major initiatives launched administration helped bring accomplishments provided solid foundation employment training policy 1980 1977 part comprehensive economic stimulus program public service jobs created 1 billion youth employment initiative funded jobs doubling job corps slots began million summer youth jobs 25 percent increase 1978 full employment act became law 400 million private sector initiatives program begun targeted jobs tax credit disadvantaged youth others special employment barriers enacted comprehensive employment training act reauthorized four years 1979 6 billion welfare reform proposal introduced funding public service jobs welfare reform demonstration projects launched communities around country vice president initiated nationwide review youth unemployment country 1980 findings vice president task force revealed major education employment deficits exist poor minority youngsters result 2 billion youth education jobs initiative introduced provide unemployed youth basic education work experience need compete labor market 1980 part economic revitalization program several steps proposed aid workers high unemployment communities additional 13 weeks unemployment benefits long term unemployed 600 million train disadvantaged unemployed new private sector jobs adjustment demonstrations aid workers declining industries important title vii private sector initiatives program reauthorized additional two years addition making significant progress helping disadvantaged unemployed important gains realized workers historic national accord organized labor made possible views working men women heard nation economic domestic policies formulated mine safety health act brought improved working conditions nation miners substantial reforms occupational safety health administration accomplished help reduce unnecessary burdens business focus major health safety problems minimum wage increased four year period hour black lung benefit reform act signed law attempts weaken act defeated substantial gains made last four years continued efforts required ensure progress continued government must continue make labor full partner policy decisions affect interests working men women broad bipartisan effort combat youth unemployment must sustained compassionate reform nation welfare system continued employment opportunities provided able work workers declining industries provided new skills help finding employment trade past year trade picture improved result solid export gains manufactured agricultural products agricultural exports reached new record 40 billion manufactured exports grown 24 percent record 144 billion areas united states recorded significant surpluses 24 billion 19 billion respectively oil imports remained major drain foreign exchange earnings drain somewhat moderated 19 percent decline volume oil imports trade negotiators made significant progress past year assuring effective implementation agreements negotiated tokyo round multilateral trade negotiations agreements reached japanese government example assure united states able expand exports japanese market key areas telecommunications equipment tobacco lumber efforts trade negotiators also helped persuade number key developing countries accept many codes negotiated multilateral trade negotiations assure countries increasingly assume obligations international trading system difficult world economic environment posed challenge management trade relations trade negotiators called upon manage serious sectoral problems areas steel helped assure chemical exports continued access european market close consultations private sector united states enabled trade negotiators pinpoint obstacles trade services build basis future negotiations services increasingly important source export earnings united states united states must assure continued increased access foreign markets trade position united states improved vigorous efforts needed number areas assure continued market access exports particularly agricultural high technology products united states continues strong competitive edge continued efforts also needed remove many domestic disincentives hamper export growth must ensure countries manipulate investment impose investment performance requirements distort trade cost us jobs country short must continue seek policy administration pursued beginning even areas foreign competition clearly affected domestic industry steel industry instance put trigger price mechanism place help prevent dumping steel action strengthened domestic steel industry automobile industry resort import strengthen industry ability modernize compete effectively small business often said nothing small small business america firms account nearly gross national product half new technology much half jobs created industry sector economy lifeblood national economy done much together improve competitive climate smaller firms concerted efforts integral part program revitalize economy include campaign shrink substantially cash time consuming red tape burden imposed business include policy ambitiously increasing federal contracting dollars going small firms especially owned women minorities include proposals reinvigorate existing small businesses assist creation new ones tax reform financing assistance market expansion support product innovation many initiatives facilitate creation growth small businesses made response white house conference small business convened administration began implementation ideas produced last year citizen advisory body others need addressed proposed reconvening conference next year review progress reassess priorities set new goals interim hope incoming administration new congress work committee established keep business development ideas alive help implement conference recommendations minority business one successful developments administration growth strengthening minority business first administration put issue policy agenda matter major importance implement results early efforts field submitted legislation congress designed development minority business reorganized office minority business minority business development administration department commerce mbda already proven major factor assisting minority businesses achieve equitable competitive positions marketplace federal government procurement firms nearly tripled since took office federal deposits banks doubled minority ownership radio television stations nearly doubled sba administered 8 pilot program procurement army proved successful recently expanded number agencies involved include nasa departments energy transportation firmly believe critical path full freedom equality america minorities rests ability minority communities participate competitively free enterprise system believe government fundamental responsibility assist development minority business hope progress made last four years continue ii creating energy security since took office highest legislative priorities involved reorientation redirection energy activities first time establish coordinated national energy policy struggle achieve policy long difficult accomplishments past four years make clear country finally serious problems caused overdependence foreign oil progress lost must rely encourage multiple forms energy crude oil natural gas solar nuclear energy conservation framework put place last four years enable us national energy policy result actions administration congress taken past four years country finally national energy policy program phased decontrol domestic crude oil price controls end september 30 1981 result exploratory drilling activities reached high prices new natural gas decontrolled natural gas policy natural gas production time high supply shortages several years ago eliminated windfall profits tax crude oil enacted providing 227 billion ten years assistance households increased mass transit funding massive investment production development alternative energy sources synthetic fuels corporation established help private companies build facilities produce energy synthetic fuels solar energy funding quadrupled solar energy tax credits enacted solar energy energy conservation bank established route chosen bring natural gas north slope alaska lower 48 states coal production consumption incentives increased coal production highest level history gasoline rationing plan approved congress possible use event severe energy supply shortage interruption gasohol production dramatically increased program put place produce 500 million gallons alcohol fuel end amount could enable gasohol meet demand 10 percent unleaded gasoline new energy conservation incentives provided individuals businesses communities conservation increased dramatically reduced oil imports 25 2 million barrels per past four years increased development domestic energy sources although essential nation reduce dependence imported fossil fuels complete transition reliance domestic renewable sources energy also important transition accomplished orderly economic environmentally sound manner end administration launched several initiatives leasing oil natural gas federal lands particularly outer continental shelf accelerated time administration reformed leasing procedures 1978 amendments outer continental shelf lands act 1979 interior department held six ocs lease sales greatest number ever resulted federal receipts billion another record ocs leasing schedule completed requiring 36 sales next five years since 1971 general federal coal lease sales suspended past four years administration completely revised federal coal leasing program bring compliance requirements 1976 federal land planning management act statutory provisions program designed balance competing interests affect resource development public lands ensure adequate supplies coal available meet national needs result first general competitive federal coal lease sale ten years held month july 1980 signed law energy security act 1980 established synthetic fuels corporation corporation designed spur development commercial technologies production synthetic fuels liquid gaseous fuels coal production oil oil shale act provides corporation initial 22 billion accomplish objectives principal purpose legislation ensure nation available late 1980 option undertake commercial development synthetic fuels becomes necessary energy security act also provides significant incentives development gasohol biomass fuels thereby enhancing nation supply alternative energy sources commitment sustainable energy future administration 1977 national energy plan marked historic departure policies previous administrations plan stressed importance energy production conservation achieving ultimate national goal relying primarily secure sources energy national energy plan made energy conservation cornerstone national energy policy 1978 initiated administration solar domestic policy review represented first step towards widespread introduction renewable energy sources nation economy result review issued 1979 solar message congress first message nation history message outlined administration solar program established ambitious national goal year 2000 obtaining 20 percent nation energy solar renewable sources thrust federal solar program help industry develop solar energy sources emphasizing basic research development solar technologies currently economic photovoltaics generate energy directly sun time tax incentives education solar energy energy conservation bank solar program seeks encourage state local governments industry citizens expand use solar renewable resource technologies currently available result policies programs energy efficiency american economy improved markedly investments renewable energy sources grown significantly takes 3¼ percent less energy produce constant dollar gnp january 1977 increase efficiency represents savings million barrels per day oil equivalent level total oil production occurring alaska period federal support conservation solar energy increased 3000 percent billion fy 1981 including tax credits solar energy energy conservation credits expected amount billion fy 1981 billion fy 1982 commitment nuclear safety security since january 1977 significant progress achieved resolving three critical problems resulting use nuclear energy radioactive waste management nuclear safety weapons proliferation 1977 administration announced nuclear nonproliferation policy initiated international fuel cycle evaluation 1978 congress passed nuclear nonproliferation act historic piece legislation february 1980 administration transmitted nuclear waste management policy congress policy major advance previous efforts principal aspects policy acknowledging seriousness problem numerous technical institutional issues adopting technically environmentally conservative approach first permanent repository providing states significant involvement nuclear waste disposal decisions creating state planning council much plan implemented administratively new authorities needed congress give early priority enacting provisions storage state planning council accident three mile island made nation acutely aware safety risks posed nuclear power plants response president established kemeny commission review accident make recommendations virtually commission substantive recommendations adopted administration implemented nuclear regulatory commission congress adopted president proposed plan nuclear regulatory commission nuclear safety oversight committee established ensure administration decisions implemented nuclear safety remain vital concern years ahead must continue press ahead safe secure disposal radioactive wastes prevention nuclear proliferation significant growth foreign demand steam coal foreseen congestion must removed major coal exporting ports hampton roads virginia baltimore maryland administration worked interagency coal task force study promote cooperation coordination resources shippers railroads vessel port operators determine appropriate federal role expanding modernizing coal export facilities including dredging deeper channels selected ports result task force efforts administrative steps taken corps engineers reduce significantly amount time required planning economic review port dredging proposals administration also recommended congress enact legislation give president generic authority recommend appropriations channel dredging activities private industry course play major role developing united states coal export facilities government must continue work facilitate transportation foreign markets iii enhancing basic human social needs long prior administration many nation basic human social needs ignored handled insensitively federal government last four 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 record 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 important legislation still must enacted national health insurance welfare reform child health assessment program congress urge passage health national health plan administration 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 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 including greater incentives health maintenance organizations urge new congress compare plan either little improve health care needs americans need programs would impose substantial financial burdens american taxpayers hope congress see need benefits plan work toward prompt enactment afford delay vital area health care cost control inflation health care costs remains unacceptably high throughout administration legislation reduce health care cost inflation one highest priorities passed congress therefore fy 1982 budget proposes sharing responsibility health care cost control private sector voluntary hospital cost guidelines intensified monitoring longer term health care reimbursement system must reformed must move away inflationary reimbursement toward system prospective reimbursement health care providers would operate within predetermined budgets reimbursement reform essential ultimately control inflation health care costs significant challenge new congress health promotion disease prevention administration 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 urge new congress endorse principles healthy people adopt recommendations achieve goals necessitate adoption broader concept health care include areas environmental health workplace health safety commercial product safety traffic safety 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 would prenatal delivery services pregnant women acute care provided infants first year life preventive services extremely high returns terms improved newborn child health child health assurance program chap legislation submitted congress passed house additional two million low income children 18 would become eligible medicaid benefits would include special health assessments chap would also improve continuity care nearly 14 million children eligible medicaid additional pregnant women would become eligible prenatal care proposal strongly urge new congress enact chap thereby provide millions needy children essential health services legislation strong bipartisan support continue details bill completed also urge new congress provide strong support two highly successful ongoing programs special supplemental food program women infants children wic family planning food supplements wic shown effectively prevent ill health thereby reduce later medical costs family planning program effective reducing unwanted pregnancies among women adolescents expansion services poor underserved administration health services poor underserved dramatically increased number national health service corps nhsc assignees providing services medically underserved communities grown 500 1977 nearly 1981 population served nhsc tripled since 1977 number community health centers providing services high priority underserved areas doubled administration serve estimated six million people 1981 strongly urge new congress support highly successful programs mental health one significant health achievements administration recent passage mental health systems act grew recommendations commission mental health join many others gratitude first lady tireless effective contribution passage important legislation act designed inaugurate new era federal state partnership planning provision mental health services addition act specifically provides prevention sup port services chronically mentally ill prevent unnecessary institutionalization development mental health services urge new congress provide adequate support full timely implementation act health protection active support congress recently passed medigap legislation provides voluntary certification health insurance policies supplemental medicare curb widespread abuses area area toxic agent control legislation submitted congress recently passed provide cover hazardous waste cleanup costs area accidental injury control established automobile safety standards increased enforcement activities respect 55 mph speed limit end decade actions expected save lives serious injuries year urge new congress continue strong support activities food nutrition building comprehensive reform food stamp program proposed congress passed 1977 administration congress worked together 1979 1980 enact several important changes program changes simplify administration reduce fraud error make program responsive needs elderly disabled increase cap allowable program expenditures food stamp act expire end fiscal 1981 essential new administration congress continue program ensure complete eradication debilitating malnutrition witnessed documented among thousands children 1960 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 also seen encouraged national movement parents citizens committed reversing serious disturbing trends adolescent drug abuse drug abuse many forms continue detract however quality life many americans prevent see four great challenges years ahead first must deal aggressively supplies illegal drugs source joint crop destruction programs foreign nations increased law enforcement border interdiction second must look citizens parents across country help educate increasing numbers american youth experimenting drugs dangers drug abuse education key factor reducing drug abuse third must focus efforts drug alcohol abuse workplace abuse contribute low productivity also destroys satisfaction sense purpose americans gain work experience fourth need change attitude attitude condones casual use drugs one recognizes appropriate use drugs medical purposes condemns inappropriate harmful abuse drugs hope congress new administration take action meet challenges education american people always recognized education one soundest investments make dividends reflected every dimension national strength economy national security vitality music art literature among accomplishments given satisfaction last four years contributions administration able make students educators throughout country administration collaborated successfully congress landmark education legislation working congressional leadership administration spotlighted importance education creating new department education department given education stronger voice federal level time reserving actual control operation education states localities private institutions department successfully combined nearly 150 federal education programs cohesive streamlined organization responsive needs educators students department made strides cut red tape paperwork thereby make flow federal dollars school districts institutions higher education efficient crucial department kept intact strengthened collaboration congress resulted numerous important legislative accomplishments education little two years ago signed law day two major benefiting elementary secondary education postsecondary education education amendments 1978 embodied nearly administration proposals improvements elementary secondary education act including important new programs improve students achievement basic skills aid school districts exceptionally high concentrations children families middle income student assistance act legislation jointly sponsored administration congressional leadership expanded eligibility basic educational opportunity grants approximately students enrolled postsecondary education made many students eligible first time types grants loans three half months ago administration congress successfully concluded two years work major reauthorization bill expands benefits postsecondary education reflected education amendments 1980 major administration recommendations improvements higher education proposals better loan access students new parent loan program simplified application procedures student financial aid strengthened federal commitment developing colleges particularly historically black institutions new authorization equipment facilities modernization funding nation major research universities revitalized international education programs supplementing legislative accomplishments important administrative actions aimed reducing paperwork simplifying regulations associated federal education programs also launched major initiatives reduce backlog defaulted student loans otherwise curb fraud abuse waste education programs insure education enterprise ready meet scientific technological changes future undertook major study status science engineering education throughout nation hope findings report serve springboard needed reforms levels education proud administration able provide financial means realize many legislative administrative goals compared previous administration last budget requested largest overall increase federal funding education nation history budget requests particularly sensitive needs special populations like minorities women educationally economically disadvantaged handicapped students limited ability time requested significant increases many programs designed enhance quality american education including programs relating important areas diverse international education research libraries museums teacher centers last year proposed congress major legislative initiative would direct 2 billion education job training programs designed alleviate youth unemployment improved linkages schools work place legislation generated bipartisan support unfortunately action completed final rushed days 96th congress urge new undertakes broad efforts strengthen economy well specific tasks like reauthorizing vocational education make needs nation unemployed youth top priority action combining basic skills education program together work training employment incentives make substantial progress eliminating one severe social problems unemployment particularly among minorities proud progress already made passage youth employment demonstration project act 1977 substantial increase investment youth employment programs new legislation would cap efforts income security social security one highest priorities administration continue tradition effectiveness efficiency widely associated social security program assure present future beneficiaries receive benefits expected earned benefits paid monthly retired disabled american workers families provide significant measure economic protection millions people might otherwise face retirement possible disability fear enacted changes improve benefits many social security beneficiaries years president last four years presented special set concerns financial stability social security system shortly taking office proposed congress enacted legislation protect stability old age survivors trust fund prevent imminent exhaustion disability insurance trust fund correct flaw benefit formula threatening long run health entire social security system actions taken congress request helped stabilize system legislation later complemented disability insurance amendments 1980 bolstered disability insurance program reduced certain inequities among beneficiaries commitment essential retirement disability protection provided 35 million people month demonstrated fact without interruption beneficiaries continued receive social security benefits including annual cost living increases changing unpredictable economic circumstances require continue monitor financial stability social security system correct anticipated strains system proposed last year three funds allowed borrow one another urge congress year adopt interfund borrowing strengthen social security system provide greater degree assurance beneficiaries given projected future economic uncertainties additional action taken among additional financing options available borrowing general fund financing half hospital insurance fund general revenues increasing payroll tax rate latter option particularly unpalatable given significant increase tax rate already mandated law administration continues oppose cuts basic social security benefits taxing social security benefits administration continues support annual indexing social security benefits welfare reform 1979 proposed welfare reform package offers solutions urgent problems welfare system proposal embodied two work training opportunities act social welfare reform amendments act house passed second two proposals 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 urge congress take action area along lines recommended child welfare administration worked closely congress legislation designed improve greatly child welfare services foster care programs create federal system adoption assistance improvements achieved recent enactment 3434 adoption assistance child welfare act 1980 wellbeing children need homes permanent placement primary concern administration legislation ensure children lost foster care system instead returned families possible placed permanent adoptive homes energy assistance 1979 proposed program provide annual total billion low income households hardest hit rising energy bills cooperation congress able move quickly provide assistance eligible households time meet winter heating bills response extreme heat conditions affecting many parts country 1980 directed community services administration make available 27 million assist individuals especially elderly facing life threatening circumstances due extreme heat congress amended reauthorized energy assistance program fiscal year 1981 provided billion meet anticipated increasing need need program help low income households rising energy expenses abate near future energy assistance program reauthorized meet needs housing past 14 months high interest rates severe impact nation housing market yet current pressures uncertainties obscure achievements past four years working congress regulatory agencies financial community administration brought expanded steadier flow funds home mortgages deregulation interest rates payable depository institutions evolution variable renegotiated rate mortgages development high yielding savings certificates expansion secondary mortgage market increased housing ability attract capital assured mortgage money would cut interest rates rose actions diminish cyclically housing industry secured legislation updating federal government emergency authority provide support housing industry program creating new section 235 housing stimulus program tools enable federal government deal quickly effectively serious distress critical industry also worked expand homeownership opportunities americans using innovative financing mechanisms graduated payment mortgage increased access middle income families housing credit revitalizing section 235 program enabled nearly moderate income households purchase new homes reducing paperwork regulation federal programs working state local governments ease regulatory burden helped hold housing costs produce affordable housing result governmentwide efforts 5 million american families bought homes past four years equivalent period history 7 million homes begun construction administration 1 million previous four years devoted particular effort meeting housing needs low moderate income families past four years 1 million subsidized units made available occupancy lower income americans assisted units gone construction addition undertaken series measures revitalize preserve nation 2 million units public assisted housing fiscal year 1982 proposing continue commitment lower income housing requesting funds support units section 8 public housing maintaining programs level provided congress fiscal 1981 made progress past four years future reasons concern home price inflation high interest rates threaten put homeownership reach homebuyers lower income households elderly dependent upon rental housing face rising rents low levels rental housing construction historic standards threat displacement due conversion condominiums factors housing face strong competition investment capital industrial sector generally energy industries particular address issues appointed presidential task force advisory group last october effort proceed due election result hope incoming administration proceed similar venture important action government take meet america housing needs restore stability economy bring rate inflation inflation driven home prices operating costs interest rates market uncertainty inflation contributed instability interest rates added burden homebuilders homebuyers alike making commitment provide framework greater investment sustained economic growth price stability administration begun work creating healthy environment housing transportation passage airline deregulation act 1978 motor carrier act 1980 harley staggers rail act 1980 administration working congress initiated new era reduced regulation transportation industries deregulation lead increased productivity operating efficiencies industries involved stimulate price service competition benefit consumers generally urge new administration continue efforts behalf deregulation legislation intercity passenger bus industry well coming decade significant challenge facing nation transportation services improve deteriorating physical infrastructure roadways railroads waterways mass transit systems order conserve costly energy supplies promoting effective transportation services highways vast network highways account 90 percent travel 80 percent value freight traffic goods movement deteriorating current trends continue major proportion interstate pavement deteriorated end 1980 arresting deterioration nation system highways high priority objective 1980 must reorient federal mission major new construction projects stewardship existing interstate highway system interstate gaps judged connections make compatibility community needs decade highway investments needed increase productivity particularly elimination bottlenecks provide efficient connections ports seek solutions traffic demand administration therefore recommended redefining completion interstate system consolidating 27 categorical assistance programs nine initiating major repair rehabilitation program segments interstate system effort help maintain condition performance nation highways particularly interstate primary system provide realistic means complete interstate system 1990 ensure better program delivery consolidation assist urban revitalization addition congress must address urgent funding problems highway trust fund need generate greater revenues mass transit past decade nation public transit systems ridership increased annual average year 1970 1979 continued increases cost fuel expected make transit growing part nation transportation system result administration projected ten year 43 billion program increase mass transit capacity 50 percent promote energy efficient vehicle uses next decade first part proposal five year billion urban mass transportation administration reauthorization legislation sent congress march 1980 urge 97th congress quickly enact similar legislation 1981 administration also first proposed signed law nonurban formula grant program assist rural areas small communities public transportation programs end dependence automobile promote energy conservation efficiency provide transportation services impoverished rural communities principal need 1980 maintaining mobility segments population face severely increasing transportation costs uncertainty fuel supplies must improve flexibility transportation system offer greater choice diversity transportation services private automobile continue principal means transportation many americans public transportation become increasingly attractive alternative therefore want explore variety paratransit modes various types buses modern rapid transit regional rail systems light rail systems highway planning transit planning must integrated related state regional district neighborhood planning efforts place emerging low density development land use threaten fiscal capacity many communities support needed services infrastructure elderly handicapped transportation transportation policies 1980 must pay increasing attention needs elderly handicapped 1990 number people 65 grown today 19 million 27 million period number difficulty using transit well autos including expected increase 9 11 million making percent population must retreat policy affords significant growing portion population accessible public transportation recognizing handicapped diverse group need flexible service regular public transportation job railroads addition federal government must reassess appropriate federal role support passenger freight rail services amtrak conrail goal federal assistance maintain enhance adequate rail service otherwise available needy communities federal subsidies must closely scrutinized sure stimulus replacement private investment initiative federal assistance mean permanent subsidies unprofitable operations waterways rural transportation growing need rural small communities improved transportation services rail freight service many communities declined railroads abandon unproductive branch lines time rural roads often inadequate handle large trucks increased demand harvest harbor service also placed increased burden rural transportation systems bottlenecks along mississippi river delay grain shipments gulf mexico made progress develop nation waterways administration began construction new foot lock site lock dam 26 mississippi river opened 1987 new lock capacity 86 million tons per year 18 percent increase present system army corps engineers also undertaken studies assess feasibility expanding bonneville locks rehabilitation john day lock begun 1980 completed 1982 administration also supports completion upper mississippi river master plan determine feasibility constructing second lock alton illinois efforts help alleviate delays transporting corn soybeans goods along mississippi river gulf mexico department transportation new small community rural transportation policy target federal assistance passenger transportation roads highways truck service railroad freight service rural areas policy implements expands upon earlier white house initiative improving transportation rural america announced june 1979 president small community rural development policy announced december 1979 congress seek ways balance rail branch line abandonment service needs rural farm communities provide financial assistance rail branch line rehabilitation appropriate assist shippers adjust rail branch line abandonment takes place help make possible trucking firms serve light density markets dependable efficient trucking services maritime policy administration sought ensure maritime industry function unfair competitive disadvantage international market indicated maritime policy statement congress july 1979 american merchant marine vital nation welfare federal actions promote rather harm pursuit objective signed law controlled carrier act 1978 authorizing federal maritime commission regulate certain rate cutting practices carriers recently signed bilateral maritime agreement people republic china expand access american ships 20 specified chinese ports set aside ships substantial share least cargo countries agreement officially foster expanded chinese shipping services linking two countries provide momentum growth trade also need modernize expand dry bulk segment fleet heavy dependence foreign carriage cargoes deprives economy seafaring shipbuilding jobs adds deficit deprives government substantial tax revenues leaves united states dependent shipping continued supply raw materials support civil economy war production time war therefore sent congress proposed legislation strengthen woefully weak segment fleet removing certain disincentives construction dry bulkers operation registry enactment proposed legislation would establish basis accelerating rebuilding dry bulk fleet toward level commensurate position united states world leading bulk trading country past year administration stated support legislation would provide specific federal assistance installation engines existing american ships would strengthen country shipbuilding mobilization base strengthening fleet important must also maintain shipbuilding base future ship construction provisions existing laws calling substantial exclusive use american flag vessels carry cargoes generated government must vigorously pursued therefore supported requirements 50 percent oil purchased strategic petroleum reserve transported vessels cargo preference act applied materials furnished assisted construction air bases israel cargoes transported pursuant chrysler corporation loan guarantee act addition deep seabed hard mineral resources act requires least one ore carrier per mine site vessel much done much remains done fy 1982 budget includes 107 million authorization construction differential subsidy cds funds added unobligated cds balance 100 million 1980 recently enacted 135 million 1981 authorization provide average 171 million cds funds 1981 1982 coal export policy significant growth foreign demand steam coal foreseen congestion major coal exporting ports hampton roads virginia baltimore maryland could delay impede exports administration worked interagency coal task force study created promote cooperation coordination resources shippers railroads vessel port operators determine appropriate federal role expanding modernizing coal export facilities including dredging deeper channels selected ports progress already made addition action taken transshippers reduce number coal classifications used whenever possible norfolk western railroad upgrade computer capability quickly inventory coal cars yards chessie railroad reactivating pier 15 newport news established berth near curtis bay pier baltimore decrease delays vessel berthing public activities include million plan developed state pennsylvania conrail increase conrail coal handling capacity philadelphia proposal state virginia construct steam coal port craney island disposal area portsmouth harbor plans mobile alabama operates publicly owned coal terminal enlarge capacity mcduffie island 10 million tons ground storage 100 car unit train unloading capability development new orleans steam coal facilities expected add 20 million tons annual capacity 1983 corps engineers working interested federal agencies determine ports dredged depth schedule order accommodate larger coal carrying vessels private industry course play major role developing united states coal export facilities new administration continue work eliminate transportation bottlenecks impede access foreign markets special needs women past four years years rapid advancement women focus provide american women full range opportunities make part mainstream every aspect national life leadership appointed record number women judgeships top government posts fully 22 percent appointees women nominated 41 46 women sit federal bench today first time history women occupy policymaking positions highest level every federal agency department demonstrated ability serve citizens well strengthened rights employed women consolidating strengthening enforcement sex discrimination laws eeoc expanding employment rights pregnant women pregnancy disability bill increasing federal employment opportunities women civil service reform employment executive order created first national program provide women businessowners technical assistance grants loans improved access federal contracts sensitive needs women homemakers established office families within hhs sponsored white house conference families initiated program targeting ceta funds help displaced homemakers social security system amended eliminate widow penalty comprehensive study discriminatory provisions possible changes presented congress legislation passed give divorced spouses foreign service officers rights share pension benefits created office domestic violence within hhs coordinate 12 agencies domestic violence relief programs distribute information problem services available victims despite stringent budget fy 1981 administration consistently supported women educational equity act family planning activities well programs affect women food stamps wic social security concerned american woman opportunities ensuring equality women around world november 1980 sent senate convention elimination forms discrimination women united nations document comprehensive detailed international agreement seeks advancement women women issues sought counsel men women government regions country established two president advisory committee women interdepartmental task force advise issues mandate groups expired december 31 left behind comprehensive review status women society today review provides excellent guidance work remaining battle sex discrimination even though made progress much remains agenda women remain committed equal rights amendment continue work passage essential goal bringing america women fully mainstream american life era ratified efforts begun women employment business education continued strengthened money available states establish programs help victims domestic violence congress pass national health care plan welfare reform program measures reflect needs women talents women continue used fullest inside outside government efforts continue see widest range opportunities options handicapped hope administration remembered area leading way toward full civil fights handicapped americans took office federal agency yet issued 504 regulations leave office first step every major agency department federal government almost complete first step years ahead require steadfast dedication president protect promote precious rights classroom workplace public facilities handicapped individuals may join american mainstream contribute fullest resources talents economic social life supported unprecedented way civil rights disabled persons schools workplace initiatives health immunization nutrition programs young children new intense efforts reverse spinal cord injury must continue incidence disability continues decline year international year disabled persons organizing activities celebrate promote important commemorative year within government well cooperation private sector efforts country around world international year give country opportunity recognize talents capabilities fellow citizens disabilities also share rehabilitation treatment skills countries learn well proud united states leads world mainstreaming treating disabled people however long way go psychological physical barriers disabled people torn full participants american way life must pledge full commitment goal international year families concern american families administration convened last year first white house conference families involved seven national hearings 506 state local events three white house conferences direct participation citizens conference reaffirmed centrality families lives nation documented problems american families face well also established office families within department health human services review government policies programs affect families expect departments agencies within executive branch federal government well members congress corporate business leaders state local officials across country study closely recommendations white house conference implement appropriately public policy developed implemented federal government cognizance work conference taken pragmatic essential step conference done good job establishing agenda action assure policies federal government sensitive impact families hope congress review seriously consider conference recommendations older americans administration taken great strides toward solving difficult problems faced older americans early term worked successfully congress assure adequate revenues social security trust funds last year strength social security system strengthened legislation proposed permit borrowing among separate trust funds also signed law legislation prohibiting employers requiring retirement prior age 70 removing mandatory retirement federal employees addition 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 previous budgets increased funding nutrition senior centers home health care focus added resources needs older americans 1981 white house conference aging approaching hope new administration make every effort assure effective useful conference conference enable older americans voice concerns give us guidance continued efforts ensure quality life richly deserved senior citizens refugees hope build humane society home ignore humanitarian claims refugees lives stake nowhere else turn country proud hundreds thousands people around world would risk everything come country administration initiated implemented first comprehensive reform refugee immigration policies 25 years also established first refugee coordination office department state leadership special ambassador coordinator refugee affairs programs new legislation coordinator office bring common sense consolidation nation previously fragmented inconsistent many ways outdated refugee immigration policies unexpected arrival thousands cubans haitians sought refuge country last year outside regular immigration refugee admissions process country government tested compassionate responsive major human emergency taken steps reorganize refugee programs met test successfully proud american people responded crisis traditional good hospitality also would never able handle unprecedented emergency without efforts private resettlement agencies always help refugees crises immigrants country always contribute toward making country stronger ever take system confident newest arrivals country carry tradition must remain committed aiding assisting come shores time must uphold immigration refugee policies provide adequate enforcement resources result enforcement policy illegal flow cuba halted orderly process initiated make certain refugee immigration laws honored year select commission immigration refugee policy complete work forward advice recommendations hope recommendations carefully considered new administration congress clear must take additional action keep immigration policy responsive emergencies ever changing times veterans country leadership continuing unique obligation men women served nation armed forces help maintain restore peace world commitment evidenced characterized conscientious consistent emphasis general areas first worked honor vietnam veteran administration leadership va administrator max cleland proud lead country overdue acknowledgement nation gratitude men women served country bitter war southeast asia homecoming deferred seemed doomed ignored country matured last four years long last able separate war warrior honor veterans acknowledgement service goes understanding vietnam veterans unique needs problems administration able launch long sought psychological readjustment outreach program unprecedented popularity sensitivity success program must continued administration also grappled difficult questions posed veterans served southeast asia exposed potentially harmful substances including herbicide known agent orange launched scientific inquiries answer many veterans questions health provide basis establishing sound compensation policy rest concerns dealt sensitive expeditious compassionate fashion second focused va health care system needs disabled veteran initiated implementing first reform va vocational rehabilitation system since inception 1943 also administration first seek increase recipients va compensation every year last budget also makes request administration also launched disabled veterans outreach program department labor successfully placed disabled veterans jobs services provided va health care system targeted special needs disabled veterans coming year third va health care largest free maintained independence high quality administration made system efficient therefore treated veterans ever concentrating care modern management improvements median age american veteran population increases must concentrate changes within va system keep independent serve model nation world center research treatment rehabilitation government assistance general aid state local governments since taking office strongly committed strengthening fiscal economic condition nation state local governments accomplished goal encouraging economic development local communities supporting general revenue sharing essential programs states localities administration total state local governments increased 40 68 billion fiscal year 1977 96 billion fiscal year 1981 significant increase aid allowed states localities maintain services essential citizens without imposing onerous tax burdens also allowed us establish unprecedented partnership leaders federal government state local government elected officials general revenue sharing last year congress enacted legislation extends general revenue sharing program three ears program cornerstone efforts maintain fiscal health nation local government provide billion next three years cities counties towns program essential continued ability local governments provide essential police fire sanitation services legislation renewing grs cornerstone government relations 1980 policy emphasize need levels government cooperate order meet needs fiscally strained cities counties also emphasize important role grs play forging partnership grateful congress moved quickly assure nation localities begin 1980 sound fiscal condition assistance last year proposed congress enact 1 billion fiscal assistance program protect states localities unexpected changes national economy program unfortunately enacted full congress therefore included funding aid fiscal year 1982 budget nevertheless urge congress enact permanent program states cities protected next economic downturn urban policy three 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 sixteen bills signed law 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 since time created urban development action grant udag program substantially expanded economic development programs commerce department fy 1982 budget requests billion economic development grants loans interest subsidies almost billion loan guarantees approximately 60 percent funds spent nation urban areas addition extended 10 percent investment credit include rehabilitation existing industrial facilities well new construction continue believe development private sector investment jobs key revitalizing nation economically depressed urban rural areas ensure necessary economic development goes forward congress must continue provide strong support udag program programs economic development administration programs 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 last year congress reauthorized cdbg udag programs cdbg program reauthorized three years annual funding increases 150 million udag program extended three years current funding level 675 million annually 1982 budget requests full funding programs actions help nation cities counties continue progress made last three years neighborhoods administration taken numerous positive steps achieve full partnership neighborhood organizations government levels successfully fought red lining housing discrimination created innovative self help funding technical resource transfer mechanisms created unique methods access neighborhood organizations participating role federal state government neighborhood based organizations threshold american community federal government need develop innovative practical ways neighborhood based organizations successfully participate identification solution local neighborhood concerns full partnership achieved knowing participation leaders government business education unions neither state federal solutions imposed high suffice neighborhoods fabric soul great land neighborhoods define weave used create permanent fabric federal government must take every opportunity provide access influence individuals organizations affected neighborhood level rural policy since beginning administration committed improving effectiveness federal government deals problems needs rapidly changing rural america rapid growth rural areas placed heavy strain communities resources also persistent problems poverty economic stagnation parts rural america rural areas continue lose population past several decades december 1979 announced small community rural development policy culmination several years work designed address varying needs rural population 1980 administration worked congress pass rural development policy act 1980 fully implemented allow us meet needs rural people communities effectively efficiently result policy accompanying legislation created position secretary agriculture small community rural development provide overall leadership established white house working group assist implementation policy worked 40 governors form state rural development councils work partnership white house working group federal agencies better deliver state federal programs rural areas directed white house working group annually review existing proposed policies programs budget levels determine adequacy meeting rural needs fulfilling policy objectives principles effort part administration congress resulted landmark policy first time rural affairs received prominence always deserved policy truly help alleviate diverse differing problems rural america face 1980 help dedication great many people around country concerned rural affairs constructed mechanism dealing effectively rural problems great opportunity successfully combine federal efforts efforts rural community leaders residents hope spirit cooperation record accomplishment continued coming years consumers september 1979 signed executive order designed strengthen coordinate federal consumer programs establish procedures improve facilitate consumer participation government forty federal agencies adopted programs comply requirements order programs improve complaint handling provide better information consumers enhance opportunities public participation government proceedings assure consumer point view considered programs policies regulations substantial progress made assuring consumer presence federal agencies work must continue meet fully goals executive order close monitoring agency compliance requirements order necessary continued evaluation assure programs effective making maximum use available resources also essential complement initiatives efforts provide financial assistance regulatory proceedings citizen groups small businesses others whose participation limited economic circumstances must continue pursued essential consumer representatives government pay particular attention needs interests consumers minorities office consumer affairs publication people power communities counter inflation catalogues ways government private sector assist less powerful society help new ways found help foster new people movement founded principle science technology science technology contribute immeasurably lives americans high standard living largely product technology surrounds us home factory good health due large part ever increasing scientific understanding national security assured application technology environment protected use science technology indeed vision future often largely defined bounty anticipate science technology bring federal government special role play science technology although fruits scientific achievements surround us often difficult predict benefits arise given scientific venture benefits even predictable usually lead ownership rights accordingly government special obligation support science investment future administration sought reverse decline funding despite need fiscal restraint real support basic research grown nearly 11 term office administration sought increase support research variety mission agencies way harness american genius innovation meet economic energy health security challenges confront nation international relations national security science technology becoming increasingly important elements national security foreign policies especially current age sophisticated defense systems growing dependence among countries modern technology aspects economic strength reasons scientific technological considerations integral elements administration decisionmaking national security foreign policy issues modernization strategic weaponry arms control technology transfer growing bilateral relationship china relations developing world four themes shaped policy international scientific technological cooperation pursuit new international initiatives advance research development objectives development strengthening scientific exchange bridge politically ideological cultural divisions country countries formulation programs institutional relations help developing countries use science technology beneficially cooperation nations manage technologies local impact direction science technology adviser actively pursued international programs support four themes given special attention scientific technical relations china new forms scientific technical cooperation japan cooperation mexico latin american caribbean countries several states black america africa proposed institute scientific technological cooperation particular cooperation developing countries reflects importance placed relationship economic growth scientific technological capability also reflects view great strength science technology makes close relations technical community especially productive means enhancing capability scientific technological assistance key linkage developing world linkage past one must continue work strengthen space policy administration established framework strong evolving space program 1980 administration space policy reaffirmed separation military space systems open civil space program time provided new guidance technology transfer civil military programs civil space program centers three basic tenets first space policy reflect balanced strategy applications science technology development second activities pursued uniquely efficiently accomplished space third premature commitment high challenge initiative complexity apollo inappropriate shuttle development phases however added flexibility consider new space applications space science new space exploration activities technology development shuttle dominates technology development effort correctly represents one sophisticated technological challenges ever undertaken result encountered technical problems nonetheless first manned orbital flight scheduled march 1981 pleased support strongly necessary funds shuttle throughout administration space applications since 1972 conducted experimental civil remote sensing landsat satellites thereby realizing many successful applications recognizing fact directed implementation operational civil land satellite remote sensing system operational management responsibility commerce national oceanic atmospheric administration addition ocean observations space meet common civil military data requirements national oceanic satellite system proposed major fy 1981 new start space science exploration goals administration policy space science 1 continue vigorous program planetary exploration understand origin evolution solar system 2 utilize space telescope satellites usher new era astronomy 3 develop better understanding sun interaction terrestrial environment 4 utilize shuttle spacelab conduct basic research complements life science investigations district columbia washington home federal government half million american citizens worked improve relationship federal establishment government district columbia order goals spirit home rule city controls destiny case four years ago yet despite close cooperation administration mayor barry yet seen necessary number states ratify constitutional amendment granting full voting representation congress citizens city hope inequity rectified country people inhabit washington deserve less arts arts precious national resource federal support arts enhanced administration expanding government funding services arts institutions individual artists scholars teachers national endowment arts broadened scope reach diverse population also reactivated federal council arts humanities hope coming years new administration congress continue support institutions promoting development understanding arts encourage business participants comprehensive effort achieve truly mixed economy support arts explore variety mechanisms nurture creative talent citizens build audiences work support strong active national endowments arts seek greater recognition rich cultural tradition nation minorities provide grants arts low income neighborhoods humanities recently reauthorizing federal appropriations national endowment humanities congress reaffirmed encouragement support national progress scholarship humanities primarily matter private local initiative also appropriate matter concern federal government high civilization must limit efforts science technology alone must give full value support great branches man scholarly cultural activity order achieve better understanding past better analysis present better view future believe agreement humanities illuminate values underlying important personal social national questions raised society multiple links increasing dependence technology diverse heritage many regions ethnic groups humanities cast light broad issue role society men women imagination individuals example define spirit age move nations government support humanities within framework laid congress recognition essential nourishment life mind vital enrichment national life proposing increase funding year sufficient enable endowment maintain level support offered citizens fiscal year 1981 allocation funding special emphasis given humanities education nation schools response great needs arisen area scholarly research designed increase understanding cultures traditions historical forces work nations drawing attention physical disintegration raw material cultural manuscripts periodicals development techniques prevent destruction preserve materials dissemination quality programming humanities increasingly large american audiences use radio television dominant effort endowment expenditures commitment strengthen promulgate scholarly excellence achievement work humanities schools colleges universities libraries museums cultural institutions well work individual scholars collaborative groups engaged advanced research humanities making grants endowment increase emphasis techniques stimulate support humanities sources order reinforce tradition private philanthropy field insure expand financial viability cultural institutions life insular areas firmly committed puerto rico virgin islands guam american samoa northern mariana islands vigorously supported realization whatever political status aspirations democratically chosen peoples principle keystone comprehensive territorial policy sent congress last year pleased legislative elements policy endorsed 96th congress unique cultures fragile economies locations caribbean pacific islands distinct assets united states require sensitive application policy united states government pursue initiatives begun administration congress stimulate insular economic development enhance treatment federal programs eliminating current inequities provide vitally needed special assistance coordinate rationalize policies measures result greater balanced growth particular hope new congress support funding fiscal management comprehensive planning technical assistance territories well create commission proposed review applicability federal laws insular areas make recommendations appropriate modification iv removing governmental waste inefficiency one major commitments restore public faith federal government cutting waste inefficiency past four years made dramatic advances toward goal many previously considered impossible achieve government rules operations unnecessary eliminated airline rail trucking financial deregulation government functions needed streamlined landmark measures civil service reform act 1978 hope new administration congress keep momentum established effective responsible change area crucial public concern civil service reform march 1978 submitted civil service reform act congress called centerpiece efforts reform reorganize government bipartisan support congress bill passed pleased say implementation running well ahead statutory schedule throughout service putting place means assure reward retention based performance simply length time job first real test reform act 98 percent eligible managers joined senior executive service choosing relinquish job protections challenge potential reward new corps top executives though act require several key elements operation another year federal agencies already established merit pay systems managers agencies well way establishing new performance standards employees paid process paying performance bonuses earned outstanding members senior executive service dismissals increased 10 percent dismissals specifically inadequate job performance risen 1500 percent since act adopted finally established fully independent merit systems protection board special counsel protect rights federal employees faced threats rights 1981 civil service reform faces critical agencies must fully functioning performance appraisal systems employees merit pay systems compensating government managers performance bonuses members senior executive service surely receive scrutiny attention balanced constructive enhance chances ultimate success bipartisan commitment revolutionary crucial concept regulatory reform past four years made tremendous progress regulatory reform discarded old economic regulations prevented competition raised consumer costs imposed strong management principles regulatory programs country needs cutting paperwork wasteful burdens challenge future continue progress areas without crippling vital health safety programs economic deregulation program achieved major successes five areas airlines airline deregulation act generating healthy competition saving billions fares making airlines efficient act provides 1985 cab go existence trucking trucking deregulation bill opens industry competition allows truckers wide latitude routes drive goods haul bill also phases old law immunity setting rates congressional budget office estimates reforms save much 8 billion per year cut much half percentage point inflation rate railroads overregulation stifled railroad management initiative service competitive pricing new legislation gives railroads freedom need rebuild strong efficient railroad industry financial institutions help congress past four years achieved two major pieces financial reform provided basis farreaching changes financial services industry since 1930 international banking act 1978 designed reduce advantages foreign banks operating united states possessed comparison domestic banks depository institutions deregulation monetary control act adopted last march provides phased elimination variety barriers financial institutions freedom offer services attract savings consumers especially small savers recently submitted congress administration recommendations phased liberalization restrictions geographic expansion commercial banks last year administration financial regulatory agencies proposed legislation permit interstate acquisition failing depository institutions view difficult outlook depository institutions strongly urge congress take prompt favorable action failing bank legislation telecommunications congress pass legislation area federal communications commission taken dramatic action open aspects communications competition eliminate regulations areas competition made obsolete public benefitting explosion competition new services initiatives represent dramatic progress economic deregulation continued work needed urge congress act communications legislation consider proposed deregulation measures legislation bus industry addition regulatory commissions must maintain commitment competition best regulator part reform program covers regulations needed protect health safety welfare citizens regulations administration created management program cut costs without sacrificing goals executive order 12044 required agencies analyze costs major new rules consider alternative performance standards voluntary may make rules less costly flexible created regulatory analysis review group white house analyze costly proposed new rules find ways improve regulatory council established provide first listing upcoming rules eliminate overlapping conflicting regulations agencies launched sunset programs weed outmoded old regulations acted encourage public participation regulatory decisionmaking steps already saved billions dollars regulatory costs slashed thousands outmoded regulations moving steadily toward regulatory system provides needed protections fairly predictably minimum cost urge congress continue steady path resist simplistic solutions proposed alternatives proposals like legislative veto increased judicial review add another layer regulatory process making cumbersome inefficient right approach reform improve individual need ensure regulatory agencies implement statutes sensibly paperwork reduction federal government imposes huge paperwork burden business local government private sector many forms needed vital government functions others duplicative overly complex obsolete administration cut paperwork burden 15 percent created procedures continue progress new paperwork reduction act centralizes omb oversight agencies information requirements strengthens omb authority eliminate needless forms paperwork budget process established executive order applies discipline budget process hours reporting time imposed public forcing agencies scrutinize forms year effective implementation steps allow substantial paperwork cuts years ahead tightening standards governmental efficiency integrity develop foundation carry energy policy consolidated scattered energy programs launched synthetic fuels corporation give education priority deserves time reduce hhs manageable size gave education seat cabinet table create stronger system attacking waste fraud reorganized audit investigative functions putting inspector general major agencies since took office submitted 14 reorganization initiatives approved congress saved hundreds millions dollars adoption businesslike cash management principles set strict standards personal financial disclosure conflict interest avoidance high federal officials streamline structure government secured approval 14 reorganization initiatives improving efficiency important sectors government including energy education civil rights enforcement eliminated 300 advisory committees well agencies boards commissions obsolete ineffective independent inspectors general appointed major agencies attack fraud waste billion dollars questionable transactions identified audit activities adoption cash management debt collection initiatives save 1 billion streamlining processing receipts controlling disbursements carefully reducing idle cash balances finally administration set strict standards personal financial disclosure conflict interest avoidance high federal officials elevate level public trust government protecting basic rights liberties extremely proud advances made ensuring equality protecting basic freedoms americans equal employment opportunity commission eeoc office federal contract compliance ofccp reorganized strengthened permanent civil rights unit established omb avoid fragmented inconsistent duplicative enforcement civil rights laws three agencies given coordinative responsibilities discrete areas eeoc activities hud relating housing department justice areas enactment right financial privacy act bill limiting police search newsrooms begun establish sound comprehensive privacy program ratification equal rights amendment must aggressively pursued one year remains obtain ratification three additional states congress must give early attention number important bills remain bills would strengthen laws discrimination housing enacted 1968 civil rights act promise equal access housing remain unfulfilled establish charter fbi intelligence agencies failure define law duties responsibilities agencies made possible abuses occurred recent years establish privacy safeguards medical research bank insurance credit records provide special protection election fund transfer systems equal rights amendment remain committed strongly possible ratification equal rights amendment result efforts 1978 equal rights amendment deadline ratification extended three years one year three states left afford delay marshalling resources efforts obtain ratification three additional states although congress official role ratification process point ability affect public opinion support state legislators amendment urge members states yet ratified equal rights amendment use influence secure ratification continue efforts help ensure ratification equal rights amendment 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 hope congress enact legislation year achieve goal fair housing fair housing act amendments 1980 passed house representatives overwhelming bipartisan majority die senate close 96th congress leaders parties pledged make enactment fair housing legislation top priority incoming congress need pressing strengthened federal enforcement effort must primary method resolution criminal code federal criminal laws often archaic frequently contradictory imprecise clearly need revision codification new administration continue work begun develop federal criminal code simplifies clarifies criminal laws maintaining basic civil liberties protections privacy public private institutions collect information communications computer technologies advance must act protect personal privacy citizens past four years acted report privacy commission established national privacy policy worked congress pass legislation restricting wiretaps law enforcement access bank records reporters files reduced number personal files held government restricted transfer personal information among federal agencies also worked organization economic cooperation development establish international guidelines protect privacy personal information transferred across borders vi protecting developing natural resources two nation precious natural resources environment vast agricultural capacity beginning administration worked congress enhance protect well develop natural resources environmental areas especially concerned importance balancing need resource development preserving clean environment taken numerous actions foster goal agricultural area taken steps needed improve farm incomes increase agricultural production record levels progress must continued 1980 environment preserving quality environment among important objectives administration congress result shared commitments dedicated efforts many members congress administration achieved several historic accomplishments protection alaska lands passage alaska national interest lands conservation act one important conservation actions century stake fate millions acres beautiful land outstanding unique wildlife populations native cultures opportunity ensure future generations americans would able enjoy benefits nationally significant resources result leadership commitment persistence administration congressional leadership alaska lands bill signed law last december act adds 97 million acres new parks refuges doubling size national park national wildlife refuge systems bill triples size national wilderness system increasing size 56 million acres adding 25 river segments wild scenic river system bill almost doubles fiver mileage system alaska lands act reaffirms commitment environment strikes balance protecting areas great beauty allowing development alaska oil gas mineral timber resources protection natural resources addition alaska lands act past four years able expand significantly national wilderness parks systems 1978 congress passed historic omnibus parks act made 12 additions national park system act also established first two national trails since national trails system act passed 1968 1980 result 1979 environmental message federal land management agencies established almost 300 new national recreational trails completion rare ii process eliminated uncertainty surrounding status millions acres land called 15 million acres new wilderness nation national forest 1980 congress established million acres wilderness lower 48 states addition administration recommended legislation protect lake tahoe executive order already established mechanism help ensure lake protection finally 1980 administration established channel islands marine sanctuary administration actions past four years stressed importance providing federal support water resource projects economically environmentally sound policy major lasting influence federal government role water resource development management administration actions recommend congress economically environmentally sound water resource projects funding resulted opposing uneconomic projects first administration proposal new project starts 4 years one significant water policy actions past four years administration june 6 1978 water policy reform message congress message established new national water resources policy following objectives give priority emphasis water conservation consider environmental requirements values fully along economic factors planning management water projects programs enhance cooperation state federal agencies water resources planning management addition executive office president established 11 policy decision criteria evaluate proposed federal water projects water resources council developed adopted new set principles standards water projects binding federal construction agencies improved regulations developed implement national historic preservation act fish wildlife coordination act result water resource projects must determined economically sound administration recommend authorization appropriation years ahead policy help reduce wasteful federal spending targeting federal funds highest priority water resource projects pursuit policy however lose sight vital role sound water resource projects play providing irrigation power flood control must also recognize special needs particular regions country evaluating need additional projects addressing global resource environmental problems global 2000 report president prepared response 1977 environment message first kind never government government taken comprehensive look interrelated global issues resources population environment report conclusions important point rapid increase population human needs year 2000 time decline earth capacity meet nations world act decisively alter current trends united states contributed actively series un conferences environment population resources preparing 1981 conference new renewable sources energy following 1977 environmental message administration development assistance programs added emphasis natural resource management environmental protection 1979 environmental message called attention alarming loss world forests particularly tropics interagency task force tropical forests developed government program encourage conservation wise management tropical forests administration encouraging action nations world organizations purpose united states world leader wildlife conservation assessment environmental effects government actions january 5 1979 executive order directing government agencies consider effects major actions abroad another example leadership commitment control pollution hazardous chemicals past four years steady progress towards cleaner air water sustained commitment congress administration important national objectives addition administration developed several new pollution compliance approaches alternative innovative waste water treatment projects bubble concept offset policy permit consolidation designed reduce regulatory burdens private sector one pressing problems come light past four years improper hazardous waste disposal administration moved three fronts first proposed oil hazardous substances hazardous waste response liability compensation act superfund bill provide comprehensive authority billion funds clean abandoned hazardous waste disposal sites november 1980 congress passed superfund bill signed law second administration established hazardous waste enforcement strike force ensure available responsible parties required clean sites posing dangers public health environment date 50 lawsuits brought strike force third regulations implementing subtitle c resource conservation recovery act issued regulations establish comprehensive controls hazardous waste together vigorous enforcement help ensure love canal repeated future future must charged stewardship irreplaceable environment natural heritage children children children dependent upon maintaining commitment preserving enhancing quality environment hope descendants look back 1980 able affirm kept commitment restoration environmental quality protected public health continuing dangers toxic chemicals pollution hazardous radioactive waste made communities safer healthier better places live preserved america wilderness areas particularly last great frontier alaska benefit americans perpetuity put nation path sustainable energy future one based increasingly renewable resources energy conservation moved protect america countryside coastland mismanagement irresponsibility redirected management nation water resources toward water conservation sound development environmental protection faced squarely worldwide problems destruction forests acid rain carbon dioxide nuclear proliferation protected habitat existence species earth agriculture farm economy farm economy sound future bright agriculture remains major bulwark nation economy even important factor world food system demand america agricultural abundance abroad continues grow strength demand expected press hard supplies resulting continued price strength health vitality agriculture represents significant departure situation existed came office four years ago january 1977 farm economy serious trouble farm prices farm income failing rapidly grain prices lowest levels years steadily falling livestock producers fourth straight year record losses liquidating breeding herds unparalleled rate dairy farmers losing money every hundredweight milk produced sugar prices nosedive combination improvements old established programs adoption new approaches innovation change needed administration turned situation around commodity prices steadily risen farm income turned upward farm exports set new records year increasing 80 percent four year period livestock producers began rebuilding herds dairy farmers began earn profit recent policy initiatives several major agricultural policy initiatives undertaken past year culmination policy proposals made earlier administration others measures taken help farmers offset impact rapid inflation production costs combination represent significant strengthening nation food agricultural policy initiatives include food security reserve congress authorized formation 4 million ton food grain reserve use international food assistance reserve makes possible united states stand behind food aid commitment food deficit nations even periods short supplies high prices corrects serious fault past food assistance policy comprehensive crop insurance congress also authorized significant new crop insurance program 1980 measure provides farmers important new program tool sharing economic risks inherent agriculture fully operational replace hodgepodge disaster programs suffered numerous shortcomings special loan rates another legislative measure passed late 2nd session 96th congress authorizes secretary agriculture provide higher loan rates farmers enter grain grain reserve additional incentive participate strengthen reserve increased loan prices july 1980 administratively raised loan prices wheat feedgrains soybeans help offset effects serious squeeze time release call prices grain reserve adjusted upward higher target prices agricultural adjustment act 1980 raised target prices wheat feed grain crops change corrected shortcomings adjustment formula contained food agriculture act 1977 future agenda food agricultural policies adopted administration past four years including described provide firm foundation future governmental actions field expiration food agriculture act 1977 later year require early attention congress relatively minor changes authorities contained 1977 act extended present form grain reserve proven particularly effective means stabilizing grain markets preserved essentially present form beyond important congress keep close eye developments farm sector noted actions took last year purpose providing relief squeeze facing farmers pressures continue actions might required administration devoted particular attention issues world hunger agricultural land use future structure american agriculture encourage congress next administration review results landmark enquiries deemed appropriate act recommendations following careful review situation recently extended suspension grain sales soviet union satisfied action served purpose effectively fairly however long suspension must remain effect important next administration congress take whatever actions necessary ensure burden fall unfairly nation farmers key feature administration policy maintained vii foreign policy time assumed office four 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 iran uncertainty future stability many developing 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 oil importing nation thus entire global economy continuing holding american hostages iran affront civilized people everywhere serious impediment meeting threat 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 worked domestically allies respond uncertain energy situation conservation diversification energy supplies based internationally agreed targets unambiguously demonstrated commitment defend western interests southwest asia significantly increased ability past four years developed energy program comprehensive ambitious new institutions established synthetic fuels corporation solar bank price decontrol oil gas proceeding american consumers risen challenge experienced real improvements consumption patterns central challenge us today steadfastness purpose longer tempted isolationism must also learn deal effectively contradictions 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 six basic goals america world 1980 first continue past four years build america military strength allies friends neither soviet union nation reason question sustain strongest flexible defense forces second pursue active diplomacy world friends resolve disputes peaceful means make aggressor pay heavy price third strive resolve pressing international economic energy continue pursue still larger objective global economic growth expanded trade development assistance preservation open multilateral trading system fourth continue vigorously support process building democratic institutions improving human rights protection around world deeply convinced future lies dictatorship democracy fifth 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 sixth must continue look ahead order evaluate respond resource environment population challenges end century 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 hostages 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 first concern every president 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 real increases defense spending therefore probably higher previously projected protecting security may require larger share national wealth future relationship demonstrating soviet union across broad front pay heavy price aggression terms relationship throughout last decades relations mixture cooperation competition soviet invasion afghanistan imposition puppet 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 communization eastern europe world war ii soviets sent combat forces area previously control sovereign state destruction independence afghanistan government occupation soviet union altered strategic situation part world ominous fashion significantly shortened striking distance indian ocean persian gulf soviet union also eliminated buffer soviet union pakistan presented new threat iran two countries far vulnerable soviet political intimidation intimidation prove effective soviet union could control area vital strategic economic significance survival western europe far east ultimately united states year since soviet invasion afghanistan dealt major blow relations entire international system response proven serious increasingly effective imposing real sustained costs ussr economy international image meanwhile encouraged supported efforts reach political settlement afghanistan would lead withdrawal soviet forces country meet interests concerned soviet intransigence kept efforts bearing fruit meanwhile overwhelming november resolution united nations general assembly afghanistan made clear world forget afghanistan response continues make clear soviet use force pursuit international objectives incompatible notion bilateral communication relations remain strained continued soviet presence afghanistan growing soviet military capabilities soviets apparent willingness use capabilities without respect basic norms international behavior relationship remains single important element determining whether war peace despite serious strains relations maintained dialogue soviet union past year dialogue ensured bilateral misunderstandings miscalculations might escalate control managed avoid injection superpower rivalries areas tension like conflict poland case year ago prospect soviet use force threatens international order soviet union completed preparations possible military intervention poland although situation poland shown signs stabilizing recently soviet forces remain high state readiness could move poland short notice continue believe polish people allowed work internal problems without outside interference made clear soviet leadership intervention poland would severe prolonged consequences detente relations particular 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 1982 budget would increase funding authority defense 196 billion amount together supplemental request fy 1981 6 billion meet administration pledge sustained growth 3 percent real expenditures provides 5 percent program growth fy 1982 beyond 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 upgrades forces military balance nato warsaw pact continue deter outbreak europe 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 force four poseidon submarines backfitted new mile trident missiles began deployments 1980 nine trident submarines authorized 1981 propose one year new missile program enhance intercontinental ballistic missile force continues make progress technical refinements basing design last year result operational benefits lower costs reduced environmental impact program continues essential ingredient strategic survivability endurance secure command control capability threaten targets soviets hold dear 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 strategic doctrine administration systematic contributions necessary evolution strategic doctrine began 1977 commissioned comprehensive net assessment base number thorough investigations specific topics continued emphasize need evolutionary doctrine driven change basic remains peace freedom mankind rather need change driven inexorable buildup soviet military power increasing propensity soviet leaders use power coercion outright aggression impose others codified evolving strategic doctrine number interrelated mutually supporting presidential directives overarching theme provide doctrinal specific program implement tells world potential adversary united states could ever conclude fruits aggression would significant worth enormous costs retaliation presidential directives include overview strategic objectives basic space policy civil defense survivability endurance telecommunications mobilization planning continuity government countervailing strategy general war policies devised deter first foremost soviet aggression confront soviet military forces also soviet military doctrine definition deterrence requires shape soviet assessments risks make using doctrine time way seek emulate doctrine particular nothing policy contemplates nuclear warfare could ever deliberate instrument achieving goals peace freedom moreover policies carefully devised provide greatest possible incentives opportunities future progress arms control finally doctrinal evolution undertaken appropriate consultation nato allies others fully consistent nato strategy flexible response 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 percent working closely european allies secure host nation support necessary enable us deploy quickly greater ratio combat forces european theater lower cost united states security assistance move enhance defense capabilities must lose sight need assist others maintaining security independence events since world war ii recently southwest asia amply demonstrated security exist vacuum prospects peace closely tied friends security assistance programs proposing coming fiscal year thus directly promote vital foreign policy national security integral parts efforts improve upgrade military forces specifically programs part overall foreign aid request promote security two principal ways first assist friendly allied nations develop capability defend maintain independence example past year timely support provided thailand help bolster country defenses large numbers vietnamese troops ranged along eastern frontier addition years programs important continued independence friends allies israel greece turkey korea second security assistance constitutes essential element broad cooperative relationships established many nations permit either bases territory access forces facilities programs particularly important regard access agreements various countries persian gulf indian ocean regions crucial protection interests throughout southwest asia 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 new fleet large cargo aircraft intercontinental range design procurement force maritime prepositioning ships carry heavy equipment supplies three marine corps brigades procurement fast sealift ships move large quantities men material quickly overseas areas deployment increasing training exercise activities ensure forces well prepared deploy operate distant areas addition european allies agreed importance providing support deployments southwest asia naval forces seapower 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 administration supported fy 1981 largest peacetime increase ever military pay allowances 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 completed first phase mobilization first effort since world war ii exercise mobilization plans end 1980 showed first planning pays second much needs done intelligence posture national interests critically dependent strong effective intelligence capability maintain strengthen 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 1981 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 regional policies every president three decades recognized america interests global must pursue global foreign policy two world wars made clear stake western europe north atlantic 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 atlantic relationship country national security agenda made important progress toward making atlantic alliance still effective changing security environment recognition threat soviet invasion afghanistan posed western interests europe southwest asia nato foreign defense ministers expressed full support efforts develop capability respond contingency southwest asia approved extensive program help fill gap could created diversion forces region alone seeking maintain stability southwest asia area insure access needed resources european nations capability improving forces region providing greater economic political support residents area face potential danger posed conflict developed coordination among western forces area persian gulf order able safeguard passage essential waterway concerning developments around poland allies achieved highest level cohesion unity purpose making clear effects future relations precipitous soviet act alliance continued build progress past three years improving conventional forces defense program though economic conditions throughout europe today making achievement difficult yearly real increase 3 percent defense spending remains goal actively sought alliance nato alliance also moved forward past year implementation historic december 1979 decision modernize theater nuclear force capabilities deployment improved pershing ballistic missiles ground launched cruise missiles europe allies continue cooperate actively us important joint endeavor whose purpose demonstrate convincingly soviet union potential costs nuclear conflict europe time offered convincing evidence commitment arms control europe initiating preliminary consultations soviet union geneva subject negotiated limits theater nuclear forces also 1980 initiated carried withdrawal nuclear weapons stockpile europe nuclear warheads successful drawdown nuclear stockpile tangible demonstration commitment updating existing theater nuclear forces europe nato area continued work closely countries providing resources help turkey regain economic health regretted massive political internal security problems led turkish military take government september 12 new turkish authorities making progress resolving problems pledged early return civilian government tradition turkish military gives us take pledge seriously welcomed reestablishment greece links integrated military command structure atlantic move strongly major step toward strengthening nato vital southern flank time international crisis tension adjacent areas greek reintegration exemplifies importance allies place cooperating common defense shows allies make difficult decisions necessary insure continued security also welcomed resumption intercommunal talks cyprus pacific nations united states pacific nation much atlantic nation interests asia important us interests europe trade asia great trade europe past four years regained strong dynamic flexible posture united states vital region major alliances japan australia new zealand stronger ever together nations western europe begun form basic political structure dealing international crises affect us japan australia new zealand given us strong support developing strategy responding instability persian gulf normalization relations china facilitated china full entry international community encouraged constructive chinese role region relations china rapidly consolidated past year conclusion series bilateral agreements established pattern frequent frank consultations two governments exemplified series visits regular exchanges working level able identify increasingly broad areas common interest cooperate united states relations association southeast asian nations asean also expanded dramatically past four years asean focus policy southeast asia cohesion strength essential stability critical area beyond vietnamese aggression indochina posed major challenge regional stability response reiterated security commitment thailand provided emergency security assistance thai forces facing vietnamese military threat along border worked closely asean un press withdrawal vietnamese forces cambodia encourage political settlement cambodia permits nation governed leaders choice still look forward day cambodia peacefully begin process rebuilding social economic political institutions years devastation occupation humanitarian grounds support friends region worked vigorously international organizations arrange relief resettlement exodus indochinese refugees threatened overwhelm nations maintained alliance korea helped assure korea security difficult period political transition amended military base agreement philippines ensuring stable access bases 1991 importance philippine bases strategic flexibility forces access indian ocean finally process concluding long negotiation establishing micronesia status freely associated state enter 1980 firm strategic footing east asia pacific based stable productive relations majority countries region established stable level involvement region appropriate interests interests friends allies middle east southwest asia continuing soviet occupation afghanistan dislocations caused war serve constant reminders critical importance us allies third strategic zone stretching across middle east persian gulf much indian subcontinent southwest asian region served key strategic commercial link east west centuries today produces world oil exports providing energy needs european allies japan experienced almost continuous conflict nations internal instabilities many countries regional rivalries combined rapid economic social change soviet union remains occupation one nations ignoring world opinion called get taken several measures meet challenges middle east middle east determination consolidate already achieved peace buttress accomplishment progress toward comprehensive peace remain central goal foreign policy pursuant peace treaty egypt israel made steady progress normalization relations variety fields bringing benefits peace directly people new relationship egypt israel stands example peaceful cooperation increasingly fragmented turbulent region president sadat prime minister begin remain committed current negotiations provide full autonomy inhabitants west bank gaza negotiations complex difficult already made significant progress vital two sides assistance see process successful conclusion also recognize need broaden peace process include parties conflict believe successful autonomy agreement essential first step toward objective also taken number steps strengthen bilateral relations israel egypt share important strategic interests countries remain committed israel security prepared take concrete steps support israel whenever security threatened persian gulf persian gulf vital crossroads trade europe asia many key moments history become essential recent years supply oil united states allies friends taken effective measures control consumption imported fuel working cooperation key industrial nations world however little doubt healthy growth american world economies depend many years continued safe access persian gulf oil production denial oil supplies would threaten world security potent new threat advancing soviet union background regional instability take advantage requires reinforce ability defend regional friends protect flow oil continuing build strong political economic social humanitarian ties bind government american people friendly governments peoples persian gulf also embarked course reinforce trust confidence regional friends ability come assistance rapidly american military force needed increased naval presence indian ocean created rapid deployment force move quickly indeed area world outside aggression threatens concluded several agreements countries prepared let us use airports naval facilities emergency met requests reasonable amounts american weaponry regional countries anxious defend discussing number area friends ways help improve security short longer term south asia seek south asia comprising sovereign stable states free outside interference strengthen political institutions according national genius develop economies betterment people soviet invasion afghanistan posed new challenge region particularly neighboring pakistan engaged continuing dialogue pakistan government concerning development security requirements economic burden imposed afghan refugees fled pakistan participating aid consortium members debt rescheduling continue cooperate unhcr providing refugee assistance remain committed pakistan territorial integrity independence developments broad southwest asian region also lent new importance relations india largest strongest power area share india interest constructive relationship indian policies perceptions times differ established candid dialogue sister democracy seeks avoid misunderstandings sometimes complicated ties attach major importance strong economic assistance programs countries area include majority poor world believe programs help achieve stability area objective share countries region great progress achieved countries increasing food production international cooperation harnessing great river resources south asia would contribute goal help increase energy production continue give high priority goals area context broad global regional priorities decision continue supply nuclear fuel indian tarapur reactors sensitive effort africa united states achieved new level trust cooperation africa efforts together allies achieve peace southern africa increased efforts help poorest countries africa combat poverty expanded efforts promote trade investment led growing respect cooperation areas vital interest united states africa continent poor nations part also contains many mineral resources vital economy worked africa spirit mutual cooperation help african nations solve problems poverty develop stronger ties private sector african economies assistance africa doubled last four years equally important set motion new mechanisms private investment trade nigeria largest country black africa second largest oil supplier united states administration greatly expanded improved relationship nigeria west african states whose aspirations constitutional democratic order share support interest manifested symbolically practically visit vice president mondale west africa july 1980 successful visit washington president nigeria october vice president mondale visit joint agricultural consultative committee established represented entirely private sector could herald new role american private sector helping solve world serious food shortages pleased say relations nigeria high providing foundation even stronger relationship years ahead another tenet administration approach african problems encouragement support regional solutions africa problems supported initiatives organization african unity solve protracted conflict western sahara chad horn chad world watching dismay country torn devastating civil war become fertile field libya exploitation thus demonstrating threats peace come forces within well without africa southern africa united states continues pursue policy encouraging peaceful development toward majority rule 1980 southern rhodesia became independent zimbabwe multiracial nation system majority rule zimbabwean independence last april culmination long struggle within country diplomatic efforts involving great britain african states neighboring zimbabwe united states focus efforts pursuit majority rule southern africa turned namibia negotiations proceeding among concerned parties leadership un secretary general waldheim lead implementation un plan independence namibia 1981 negotiations successfully concluded years uncertainty status territory including war ended common efforts resolve zimbabwean namibian issues brought united states closer western britain france federal republic germany african states tanzania zambia mozambique angola botswana relations times past difficult success common undertakings demonstrates complex problems sometimes bitter bloody histories resolved peacefully negotiation response active concern issues importance africans african states cooperated us issues importance national interests african states voted overwhelmingly favor un resolution calling release hostages un resolution condemning soviet invasion afghanistan two countries africa signed access agreements allowing us use naval air facilities indian ocean africans become increasingly vocal human rights african leaders spoken issue political prisoners oau drafting charter human rights three countries ghana returned civilian rule past year cooperation africa matters represents strong base build future years liberia country ties site considerable investment facilities past april coup replaced government period political economic uncertainty ensued acted swiftly meet situation together african leaders urged release political prisoners many released provided emergency economic assistance help avoid economic collapse helped involve imf banking community bring economic stability worked closely new leaders maintain liberia strong ties west protect america vital interests north africa early 1979 following libyaninspired commando attack tunisian provincial city responded promptly tunisia urgent request assistance airlifting needed military equipment making clear longstanding interest security integrity friendly country remains determined oppose irresponsible libyan aspirations despairing productive dialogue libyan authorities closed embassy libya later expelled six libyan diplomats washington order deter intimidation campaign libyan citizens relations algeria improved algeria played indispensable effective role intermediary iran hostage issue strengthening arms supply relationship morocco helped deal attacks inside internationally recognized frontiers strengthen confidence seeking political settlement western sahara conflict assuming mediatory role encouraged interested parties turn energies peaceful sensible compromise resolution war sahara supported efforts organization african unity toward end year drew close encouraged evolution attitudes sides hopeful differences peacefully resolved year ahead vast economic potential north africa developed people living latin america caribbean principles policies hemisphere clear constant last four years support democracy respect human rights struggled many help free region repression terrorism respected ideological diversity opposed outside intervention purely internal affairs act though response request assistance country threatened external aggression support social economic development within democratic framework support peaceful settlement disputes strongly encourage regional cooperation shared responsibilities within hemisphere ends eagerly regularly sought advice leaders region wide range issues last november spoke general assembly organization american states closest rights issue found time hemisphere mine alone historic movement endure riobamba ecuador last september four andean pact countries costa rica panama broke new ground adopting code conduct stating joint action defense human rights violate principles nonintervention internal affairs states hemisphere organization american states twice condemned coup overturned democratic process bolivia widespread abuse human rights regime seized power commission human rights gained world acclaim dispassionate reports completed two major country studies year addition annual report resolution adopted without opposition oas general assembly november strongly supported work commission american convention human rights force court created judge human rights violations convention pending senate two years hope united states year join nations hemisphere ratifying convention embodies principles tradition trend favor democracy continued past year peru inaugurated democratically elected government brazil continues process liberalization central america hondurans voted record numbers first national elections eight years caribbean seven elections returned governments firmly committed democratic traditions commonwealth another major contribution peace hemisphere latin america treaty prohibition nuclear weapons behalf united states signed protocol treaty may 1977 sent senate ratification urge acted upon promptly senate order brought widest possible effect latin american region regional cooperation development gaining central america andes throughout caribbean caribbean group cooperation economic development established 29 nations 1977 helped channel 750 million external support growth caribbean recent meeting chiefs state eastern caribbean set new precedent cooperation region mexico venezuela jointly trinidad tobago separately established oil facilities provide substantial assistance oil importing neighbors peace treaty el salvador honduras hopefully stimulate central america move forward toward economic integration formation american action private sector organization given major impetus improving bonds strengthening role private enterprise development democratic societies panama treaties force year new partnership created panama model large small nations longstanding issue divided us neighbors resolved security canal enhanced canal operating well ever traffic reaching record levels year canal employees american panamanian alike remained job found living working conditions virtually unchanged 1980 relations mexico continued improve due large measure effectiveness coordinator mexican affairs expanded use consultative mechanism holding periodic meetings various working groups able prevent mutual concerns becoming political issues secretary state visited mexico city november along mexican secretary foreign relations reviewed performance consultative mechanism office coordinator ensured implementation directive agencies accord high priority mexican concerns trade mexico rose almost 60 percent nearly 30 billion making country third largest trading partner encouraging development problems remain however impact migration affecting many countries hemisphere serious manifestation massive illegal exodus cuba last summer cuban government unilaterally encouraged disorderly even deadly migration citizens complete disregard international law immigration laws neighbors migrations nature clearly require concerted action asked oas explore means dealing similar situations may occur future treaty colombia quita sueno roncador serrano remains ratified senate central america future nicaragua unclear recent tensions restrictions press political activity inordinate cuban presence country tragic killing security forces businessman well known democratic orientation us considerable concern encouraging developments seek free society remain contest nation destiny asked us help rebuild country assistance demonstrate democratic nations intend abandon nicaragua cubans long intend pursue pluralistic goals play important roles nicaragua deserves continuing support el salvador supported efforts junta change fundamental basis inequitable system give stake new nation millions people long lived without hope dignity government struggles would restore old tyranny impose new one united states continue stand behind increased aid caribbean area vital national security continue build close relations based mutual respect understanding common interests nations hemisphere prepare move 1980 struck depth underlying commitment common principles peaceful settlement disputes cooperation development democracy defense basic human rights leave office satisfied political economic social organizational basis progress respect principles substantially strengthened past four years particularly reassured leadership nations hemisphere advancing principles success common task improving circumstances peoples nations hemisphere assured sharing responsibility look forward hemisphere end decade proven anew leader promotion national human dignity international economy growing defense effort vigorous foreign policy rest upon strong economy united states strength economy depends upon ability lead compete international marketplace energy last year war iraq iran led loss nearly 4 million barrels oil world markets third major oil market disruption past seven years crisis vividly demonstrated value lessened dependence oil imports continuing instability persian gulf area leadership united states 21 members international energy agency took collective action ensure oil shortfall stemming war would aggravated competition scarce spot market supplies also working together see nations seriously affected oil key nato allies turkey get oil need recent iea ministerial meeting joined members pledging take policy measures necessary slice joint oil imports first quarter 1981 million barrels international cooperation efforts energy field limited crisis management economic summit meetings tokyo venice heads government seven major industrial democracies agreed series tough energy conservation production goals working together allies friends effort construction begun commercial scale coal liquefaction plant west virginia united states japan west germany interagency task force reported series measures need take increase coal production exports report builds work international energy agency coal industry advisory board assurances reliable united states steam coal supply reasonable prices many electric power plants built 1980 1990 rather working cooperatively nations increase energy security areas well joint research development allies underway solar energy nuclear power industrial conservation areas addition assisting rapidly industrializing nations carefully assess basic energy policy choices development assistance program helps developing countries increase indigenous energy production meet energy needs poorest citizens support proposal new world bank energy affiliate ends whose fulfillment contribute better global balance energy supply demand international monetary policy despite rapid increase oil costs policy measures taken improve domestic economic performance continued powerful effect external accounts strength dollar strong dollar helps fight inflation also considerable forward movement efforts improve functioning international monetary system stability international system payments trade important stability good health economy given strong support innovative steps taken international monetary fund world bank help promote early adjustment difficult international economic problems recent agreement increase quotas fifty percent ensure imf sufficient resources perform central role promoting adjustment financing payments imbalances world bank new structural adjustment lending program also make important contribution international efforts help countries achieve sustainable level growth development sugar 1980 congress passed implementing legislation international sugar agreement thus fulfilling major commitment administration agreement important element international commodity policy farreaching implications relations developing countries particularly sugar producers latin america producers consumers alike benefit stable market essential commodity coffee year end congress approved implementing legislation permitting carry fully commitments international coffee agreement specifically legislation enables us meet part understanding negotiated last fall among members agreement defends use export quotas price range well coffee prices previous years commits major coffee producers eliminate cartel arrangements manipulated future markets raise prices way open international coffee agreement help stabilize major world commodity market results positive less likely suffer sharp increases coffee undertake future investment assurance greater protection disruptive price fluctuations exports natural rubber 1980 international natural rubber agreement entered force provisionally membership new body approved overwhelmingly senate last year natural rubber agreement model kind make substantial contribution stable world market key industrial commodity thus excellent example constructive steps improve operation world economy ways benefit developing industrialized countries alike particular agreement improved important relationships major natural countries southeast asia common fund united states joined members united nations conference trade development developed developing nations concluding articles agreement 1980 common fund help international commodity agreements stabilize prices raw materials economic cooperation developing nations relations developing nations major importance united states fabric relations countries strong economic political dimensions constitute rapidly growing markets exports important sources fuel raw materials political views increasingly important demonstrated overwhelming condemnation soviet invasion afghanistan ability work together developing nations toward goals political independence resolution regional tensions growing ties trade us maintain policy active involvement developing world pursued past four years actions taken areas energy trade commodities international financial institutions important welfare developing countries another important way united states directly assist countries demonstrate concern future multilateral bilateral foreign assistance program legislation submitting fy 82 provides authority funds carry activity prompt congressional action legislation essential order attack high priority global problems food energy 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 proposed fy 1982 bilateral development aid program directly responsive agreement reached 1980 venice economic summit major industrial nations increase aid food energy production family planning understand summit countries plan similar responses also important honor international agreements multilateral assistance authorizing appropriating funds international financial institutions multilateral programs enhance efficiency us contributions combining many donor countries promote development proposed new world bank affiliate increase energy output developing countries offers particular promise types aid benefit longrun economic political interests progress made number economic issues negotiations throughout un system however spite lengthy efforts united nations agreement reached launch process global negotiations nations might collectively work solve important issues energy food protectionism population pressures united states continues believe progress best made nations focus specific problems rather procedural institutional questions continue work move dialogue constructive phase war hunger war hunger must continuous urgent priority major portions world population continue threatened specter hunger malnutrition past year 150 million people 36 african countries faced near disaster result serious drought induced food shortages government working concert un food agricultural organization fao helped respond need problems hunger solved measures must continue support activities bilateral multilateral aim improving food production especially developing countries assuring global food security measures necessary maintenance stable healthy world economy pleased negotiation new food aid convention guarantees minimum annual level food assistance successfully concluded march establishment international emergency wheat reserve enable meet commitment new convention feed hungry people even times short supply immediate concern prospect millions africans threatened famine drought civil disturbances plea increased food aid resulted organization international pledging conference hopeful widespread starvation avoided good progress made since venice economic summit called increased effort front donor countries begun assist poor countries develop strategies improve food production world bank invest 4 billion next years improving grain storage capacity countries prone food shortages 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 human rights policy united states integral part overall foreign policy past several years policy serves national interest united states several important ways encouraging respect governments basic rights human beings promotes peaceful constructive change reduces likelihood internal pressures violent change exploitation adversaries thus directly serves interest peace stability matching espousal fundamental american principles freedom specific foreign policy actions stand vivid contrast ideological adversaries efforts expand freedom elsewhere render freedom nation secure countries respect human rights make stronger allies better friends rather attempt dictate system government institutions countries supports throughout world internationally recognized human rights members united nations pledged respect one model satisfy continuing human reach freedom justice 1980 year disappointments also seen positive developments ongoing struggle fulfillment human rights throughout world year seen free elections held democratic governments installed peru dominica jamaica honduras held free election installation constituent assembly interim government subsequently named pointing toward national presidential elections 1981 brazil continues course political liberalization charter conduct signed riobamba ecuador ecuador colombia venezuela peru costa rica panama spain affirms importance democracy human rights andean countries organization american states annual general assembly approved resolution support human rights commission work resolution took note commission annual report described status human rights chile el salvador paraguay uruguay special reports argentina haiti described human rights conditions investigated inspections countries awarding nobel prize peace adolfo perez esquivel argentina advocacy human rights united states able rejoin international labor organization absence two years un body reformed procedures return original purpose strengthening relations insure human rights working people world united states course take credit various developments take satisfaction knowing policies encourage perhaps influence see contradiction security humanitarian interests forget basis secure stable society bond trust government people profoundly believe future world found authoritarianism wears mask order totalitarianism wears mask justice instead let us find future human face democracy human voice individual liberty human hand economic development humanitarian aid united states continued play traditional role safehaven flee forced flee homes persecution war 1980 united states provided resettlement opportunities refugees countries around globe addition united states joined nations provide relief refugees country first asylum africa middle east asia great majority refugee admissions continued indochina 1980 indochinese resettled united states although refugee populations persist camps southeast asia refugees continue flee vietnam laos kampuchea flow great past one factor reducing flow vietnam successful negotiation commencement orderly departure program permits us process vietnamese resettlement united states direct departure h chi minh ville orderly fashion first group 250 departed vietnam united states december 1980 addition refugees admitted last year united states accepted entry united states cubans expelled fidel castro federal state authorities well private voluntary agencies responded unprecedented vigor coping unexpected influx cubans major relief efforts aid refugees countries first asylum continued several areas world december 1980 nations meeting new york city agreed contribute 65 million continuing famine relief program kampuchea due great part generosity american people leadership exercised international arena united states played pivotal role ameliorating massive suffering kampuchea united states taken lead among group donor countries providing relief two million refugees horn africa displaced fighting ethiopia assistance primarily somalia consists 35 million worth food 18 million cash kind united states efforts large part credited keeping hundreds thousands people alive another major international relief effort mounted pakistan united states one 25 countries plus european economic community helping government pakistan cope problem feeding sheltering one million refugees generated soviet invasion afghanistan april 1980 congress passed refugee act 1980 brought together first time one piece legislation various threads policy towards refugees law laid new broader definition term refugee established mechanisms arriving level refugee admissions consultation congress established office united states coordinator refugees ignored destructive aggressive policies soviet union added immeasurably suffering three tragic situations 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 administration committed stemming spread nuclear weapons nuclear proliferation would raise spectre use nuclear explosives crucial unstable regions world endangering security allies whole world unilateral policy issue contention industrialized developing states international effort requires support suppliers well importers nuclear technology materials proceeding number fronts first seeking encourage nations accede treaty also actively encouraging nations accept safeguards nuclear activities asking nuclear suppliers adopt safeguards requirement condition future supply second international nuclear fuel cycle evaluation infce completed 1980 demonstrated suppliers recipients work together technically complex sensitive issues differences remain infce effort provides broader international basis national decisions must balance energy needs concerns finally working encourage regional cooperation restraint protocol treaty tlatelolco contribute lessening nuclear dangers latin american neighbors ought ratified united states senate limitations strategic arms remain convinced salt ii treaty nation security interest would add significantly control nuclear weapons strongly support continuation salt process negotiation mutual restraints nuclear weaponry conclusion 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 16 1981
congress united state state union sound economy recover recession national energy plan place dependence foreign oil decrease peace four uninterrupted year nation serious problem inflation unemployment unacceptably high world oil market increasingly tight trouble spot throughout world 53 american hostage hold iran international law every precept human affair however firmly believe result progress make many domestic international area past four year nation strong wealthy compassionate freer four year ago proud fact believe congress proud well much accomplish past four year due hard work insight cooperation congress applaud congress effort achievement state union message want recount achievement progress last four year offer recommendation congress year term president end 97th congress begin work earnest hope recommendation serve guide direction country take build record past four year record progress take office nation face number serious domestic international problem national energy policy exist dependence foreign oil rapidly increase public trust integrity openness government low federal government operate inefficiently administer essential program policy major social problem ignore poorly address federal government defense posture decline result defense budget continuously shrink real term strength nato alliance need bolster tension israel egypt threaten another middle east war america resolve oppose human right violation serious question past 48 month clear progress make solve challenge find january 1977 almost comprehensive energy program enact department energy establish administer program confidence government integrity restore respect government openness fairness renew government make effective efficient civil service system completely reform first time century 14 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 regulatory process reform creation regulatory council implementation executive order 12044 requirement analysis elimination unnecessary regulation passage regulatory flexibility act procedure establish assure citizen participation government airline trucking rail communication industry deregulate critical social problem many long ignored federal government address directly urban policy develop implemented reverse decline urban area social security system refinance put sound financial basis full employment act enact federal assistance education expand 75 percent 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 nation first sectoral policy put place auto steel industry administration demonstrate value cooperation government business labor reverse previous trend real defense spending increase every year since 1977 real increase fy 1980 defense spending well 3 percent expect fy 1981 defense spending even higher look ahead defense program proposing premise real increase defense spend next five year 20 percent nato alliance proven unity respond situation eastern europe southwest asia agree issue address review helsinki final act currently underway madrid peace process middle east establish camp david peace treaty egypt israel buttress two front steady progress normalization relation many field commitment egypt israel united state assistance see successful conclusion autonomy negotiation west bank gaza panama canal treaty put effect help improve relation latin america continued nation strong commitment pursuit human right throughout world evenhandedly objectively commitment worldwide human right policy remain firm many country give high priority resolve oppose aggression illegal invasion soviet union afghanistan support tough action ensure economic strength economy last decade nation withstood series economic shock unprecedented peacetime dramatic explosive increase opec oil price also face world commodity shortages natural disaster agricultural shortage major challenge world peace security ability deal shock impair decrease growth productivity persistence underlie inflationary force build past 15 year nevertheless economy prove remarkably resilient real output grow average rate 3 percent per year since take office employment grow 10 percent add 8 million productive private sector job economy however unacceptably high difficult economic problem threaten growth productivity stability restrain growth budget maximum extent consistent national security human compassion do earlier budget fy budget however restraint essential appropriate economic policy high inflation attribute solely government spend growth budget outlays result economic factor early stage economic recovery follow short recession typically period mark vigorous economic growth aid policy measure large tax cut big stimulation spending program decline recommend action stimulate economic activity persistent inflationary pressure beset economy today dictate restrain fiscal policy accordingly ask congress postpone january 1 1982 personal tax reduction earlier propose take effect january 1 year however 1982 budget propose significant tax change increase source finance business investment emphasize need continued fiscal restraint budget take first major step tax reduction program design increase capital formation failure nation capital stock grow rate keep pace labor force clearly one productivity slowdown high investment rate also critically need meet nation energy need replace plant equipment new physical plant level investment call occur absence policy encourage therefore budget propose major liberalization tax allowance depreciation well simplify depreciation account increase allowable rate 40 percent also propose improvement investment tax credit make refundable meet investment need firm current earnings two proposal along tax reduction individual improve economic efficiency tax equity urge congress enact legislation along line timetable proposed 1982 budget fy 1982 budget send congress continue policy prudence restraint budget deficit term high would like size determine part economic condition spite condition relative size deficit continue decline 1976 take office budget deficit equal 4 percent gross national product cut percent 1980 fiscal year end 1982 budget contains deficit estimate less 1 percent gross national product rate growth federal spending hold minimum nevertheless outlay still rise rapidly many anticipate result many powerful force society face threat security event afghanistan middle east eastern europe make clear steadily age population resuit big single increase federal budget rise cost retirement program particularly social security face important domestic need continue responsibility disadvantage provide capital need city transportation system protect environment revitalize american industry increase export american good service essential creation job trade surplus yet federal government may always proper source assistance example must usurp function appropriately decide upon manage financed private sector state local government administration always seek consider proper focus responsibility efficient resolution problem also recognize need simplify system grant state local government propose several grant consolidation 1982 budget include new proposal would consolidate several highway program pressure growth federal use national resource great administration initiate many new approach cope pressure start budget system begin system control federal credit program yet spite increase need limit spending growth consistently adhere strong budget principle nation arm force must always stand sufficiently strong deter aggression assure security effective national energy plan essential increase domestic production oil gas encourage conservation scarce energy resource stimulate conversion abundant fuel reduce trade deficit essential human need citizen must give high priority federal government must lead way investment nation technological future federal government obligation nurture protect common resource birthright sustenance american people 1982 budget continue support principle also propose responsible tax reduction encourage productive economy adequate funding high priority program within overall policy constraint fiscal restraint must continue year ahead budget must tight enough convince set wage price federal government serious fight inflation tight choke growth careful budget policy supplement measure design reduce inflation low cost lose output employment step include measure increase tax proposal include 1982 measure increase competition productivity economy voluntary income policy also directly influence wage price direction moderation thereby bring inflation faster low cost economy incomes policy tip could provide tax incentive firm worker moderate wage price increase come year control federal expenditure make possible periodic tax reduction congress therefore begin evaluate potentiality tip program next round tax reduction appropriate tip program seriously consider employment last four year give top priority meeting need worker provide additional job opportunity seek work since end 1976 almost 9 million new job add nation economy total employment reach 97 million job ever hold woman minority young people employment past four year increase adult woman black hispanic employment black teenager increase 5 reverse decline occur previous eight year major initiative launch administration help bring accomplishment provide solid foundation employment training policy 1980 1977 part comprehensive economic stimulus program public service job create 1 billion youth employment initiative fund job double job corps slot begin million summer youth job 25 percent increase 1978 full employment act become law 400 million private sector initiatives program begin target job tax credit disadvantage youth others special employment barrier enact comprehensive employment training act reauthorized four year 1979 6 billion welfare reform proposal introduce fund public service job welfare reform demonstration project launch community around country vice president initiate nationwide review youth unemployment country 1980 finding vice president task force reveal major education employment deficit exist poor minority youngster result 2 billion youth education job initiative introduce provide unemployed youth basic education work experience need compete labor market 1980 part economic revitalization program several step propose aid worker high unemployment community additional 13 week unemployment benefit long term unemployed 600 million train disadvantage unemployed new private sector job adjustment demonstration aid worker decline industry important title vii private sector initiatives program reauthorized additional two year addition make significant progress help disadvantage unemployed important gain realize worker historic national accord organize labor make possible view work men woman hear nation economic domestic policy formulate mine safety health act bring improved working condition nation miner substantial reform occupational safety health administration accomplish help reduce unnecessary burden business focus major health safety problem minimum wage increase four year period hour black lung benefit reform act sign law attempt weaken act defeat substantial gain make last four year continue effort require ensure progress continued government must continue make labor full partner policy decision affect interest work men woman broad bipartisan effort combat youth unemployment must sustain compassionate reform nation welfare system continue employment opportunity provide able work worker decline industry provide new skill help find employment trade past year trade picture improve result solid export gain manufacture agricultural product agricultural export reach new record 40 billion manufacture export grown 24 percent record 144 billion area united state record significant surplus 24 billion 19 billion respectively oil import remain major drain foreign exchange earnings drain somewhat moderated 19 percent decline volume oil import trade negotiator make significant progress past year assure effective implementation agreement negotiated tokyo round multilateral trade negotiation agreement reach japanese government example assure united state able expand export japanese market key area telecommunication equipment tobacco lumber effort trade negotiator also help persuade number key develop country accept many code negotiated multilateral trade negotiation assure country increasingly assume obligation international trading system difficult world economic environment pose challenge management trade relation trade negotiator call upon manage serious sectoral problem area steel help assure chemical export continue access european market close consultation private sector unite state enable trade negotiator pinpoint obstacle trade service build basis future negotiation service increasingly important source export earnings united state united state must assure continue increased access foreign market trade position united state improve vigorous effort need number area assure continued market access export particularly agricultural high technology product united state continue strong competitive edge continue effort also need remove many domestic disincentive hamper export growth must ensure country manipulate investment impose investment performance requirement distort trade cost u job country short must continue seek policy administration pursue begin even area foreign competition clearly affect domestic industry steel industry instance put trigger price mechanism place help prevent dump steel action strengthen domestic steel industry automobile industry resort import strengthen industry ability modernize compete effectively small business often say nothing small small business america firm account nearly gross national product half new technology much half job create industry sector economy lifeblood national economy do much together improve competitive climate small firm concert effort integral part program revitalize economy include campaign shrink substantially cash time consume red tape burden impose business include policy ambitiously increase federal contracting dollar go small firm especially own woman minority include proposal reinvigorate exist small business assist creation new one tax reform finance assistance market expansion support product innovation many initiative facilitate creation growth small business make response white house conference small business convene administration begin implementation idea produce last year citizen advisory body others need address propose reconvene conference next year review progress reassess priority set new goal interim hope incoming administration new congress work committee establish keep business development idea alive help implement conference recommendation minority business one successful development administration growth strengthen minority business first administration put issue policy agenda matter major importance implement result early effort field submit legislation congress design development minority business reorganize office minority business minority business development administration department commerce mbda already proven major factor assist minority business achieve equitable competitive position marketplace federal government procurement firm nearly triple since take office federal deposit bank double minority ownership radio television station nearly double sba administer 8 pilot program procurement army prove successful recently expand number agency involve include nasa department energy transportation firmly believe critical path full freedom equality america minority rest ability minority community participate competitively free enterprise system believe government fundamental responsibility assist development minority business hope progress make last four year continue ii create energy security since take office high legislative priority involve reorientation redirection energy activity first time establish coordinate national energy policy struggle achieve policy long difficult accomplishment past four year make clear country finally serious problem cause overdependence foreign oil progress lose must rely encourage multiple form energy crude oil natural gas solar nuclear energy conservation framework put place last four year enable u national energy policy result action administration congress take past four year country finally national energy policy program phase decontrol domestic crude oil price control end september 30 1981 result exploratory drilling activity reach high price new natural gas decontrol natural gas policy natural gas production time high supply shortages several year ago eliminate windfall profit tax crude oil enact provide 227 billion ten year assistance household increase mass transit fund massive investment production development alternative energy source synthetic fuel corporation establish help private company build facility produce energy synthetic fuel solar energy funding quadruple solar energy tax credit enact solar energy energy conservation bank establish route chosen bring natural gas north slope alaska low 48 state coal production consumption incentive increase coal production high level history gasoline rationing plan approve congress possible use event severe energy supply shortage interruption gasohol production dramatically increase program put place produce 500 million gallon alcohol fuel end amount could enable gasohol meet demand 10 percent unleaded gasoline new energy conservation incentive provide individual business community conservation increase dramatically reduce oil import 25 2 million barrel per past four year increase development domestic energy source although essential nation reduce dependence import fossil fuel complete transition reliance domestic renewable source energy also important transition accomplish orderly economic environmentally sound manner end administration launch several initiative lease oil natural gas federal land particularly outer continental shelf accelerate time administration reform lease procedure 1978 amendment out continental shelf land act 1979 interior department hold six ocs lease sale great number ever result federal receipt billion another record ocs lease schedule complete require 36 sale next five year since 1971 general federal coal lease sale suspend past four year administration completely revise federal coal lease program bring compliance requirement 1976 federal land plan management act statutory provision program design balance compete interest affect resource development public land ensure adequate supply coal available meet national need result first general competitive federal coal lease sale ten year hold month july 1980 sign law energy security act 1980 establish synthetic fuel corporation corporation design spur development commercial technology production synthetic fuel liquid gaseous fuel coal production oil oil shale act provide corporation initial 22 billion accomplish objective principal purpose legislation ensure nation available late 1980 option undertake commercial development synthetic fuel becomes necessary energy security act also provide significant incentive development gasohol biomass fuel thereby enhance nation supply alternative energy source commitment sustainable energy future administration 1977 national energy plan mark historic departure policy previous administration plan stress importance energy production conservation achieve ultimate national goal rely primarily secure source energy national energy plan make energy conservation cornerstone national energy policy 1978 initiated administration solar domestic policy review represent first step towards widespread introduction renewable energy source nation economy result review issue 1979 solar message congress first message nation history message outline administration solar program establish ambitious national goal year 2000 obtain 20 percent nation energy solar renewable source thrust federal solar program help industry develop solar energy source emphasize basic research development solar technology currently economic photovoltaics generate energy directly sun time tax incentive education solar energy energy conservation bank solar program seek encourage state local government industry citizen expand use solar renewable resource technology currently available result policy program energy efficiency american economy improve markedly investment renewable energy source grow significantly take 3¼ percent less energy produce constant dollar gnp january 1977 increase efficiency represent saving million barrel per day oil equivalent level total oil production occur alaska period federal support conservation solar energy increase 3000 percent billion fy 1981 include tax credit solar energy energy conservation credit expect amount billion fy 1981 billion fy 1982 commitment nuclear safety security since january 1977 significant progress achieve resolve three critical problem result use nuclear energy radioactive waste management nuclear safety weapon proliferation 1977 administration announce nuclear nonproliferation policy initiate international fuel cycle evaluation 1978 congress pass nuclear nonproliferation act historic piece legislation february 1980 administration transmit nuclear waste management policy congress policy major advance previous effort principal aspect policy acknowledge seriousness problem numerous technical institutional issue adopt technically environmentally conservative approach first permanent repository provide state significant involvement nuclear waste disposal decision create state planning council much plan implement administratively new authority need congress give early priority enact provision storage state planning council accident three mile island make nation acutely aware safety risk pose nuclear power plant response president establish kemeny commission review accident make recommendation virtually commission substantive recommendation adopt administration implement nuclear regulatory commission congress adopt president propose plan nuclear regulatory commission nuclear safety oversight committee establish ensure administration decision implement nuclear safety remain vital concern year ahead must continue press ahead safe secure disposal radioactive waste prevention nuclear proliferation significant growth foreign demand steam coal foreseen congestion must remove major coal export port hampton road virginia baltimore maryland administration work interagency coal task force study promote cooperation coordination resource shipper railroad vessel port operator determine appropriate federal role expand modernize coal export facility include dredge deep channel select port result task force effort administrative step take corps engineer reduce significantly amount time require planning economic review port dredge proposal administration also recommend congress enact legislation give president generic authority recommend appropriation channel dredge activity private industry course play major role develop united state coal export facility government must continue work facilitate transportation foreign market iii enhance basic human social need long prior administration many nation basic human social need ignore handle insensitively federal government last four 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 record 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 important legislation still must enact national health insurance welfare reform child health assessment program congress urge passage health national health plan administration 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 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 include great incentive health maintenance organization urge new congress compare plan either little improve health care need american need program would impose substantial financial burden american taxpayer hope congress see need benefit plan work toward prompt enactment afford delay vital area health care cost control inflation health care cost remain unacceptably high throughout administration legislation reduce health care cost inflation one high priority pass congress therefore fy 1982 budget propose share responsibility health care cost control private sector voluntary hospital cost guideline intensify monitoring long term health care reimbursement system must reform must move away inflationary reimbursement toward system prospective reimbursement health care provider would operate within predetermined budget reimbursement reform essential ultimately control inflation health care cost significant challenge new congress health promotion disease prevention administration 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 urge new congress endorse principle healthy people adopt recommendation achieve goal necessitate adoption broad concept health care include area environmental health workplace health safety commercial product safety traffic safety 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 would prenatal delivery service pregnant woman acute care provide infant first year life preventive service extremely high return term improve newborn child health child health assurance program chap legislation submit congress pass house additional two million low income child 18 would become eligible medicaid benefit would include special health assessment chap would also improve continuity care nearly 14 million child eligible medicaid additional pregnant woman would become eligible prenatal care proposal strongly urge new congress enact chap thereby provide million needy child essential health service legislation strong bipartisan support continue detail bill complete also urge new congress provide strong support two highly successful ongoing program special supplemental food program woman infants child wic family planning food supplement wic show effectively prevent ill health thereby reduce later medical cost family plan program effective reducing unwanted pregnancy among woman adolescent expansion service poor underserved administration health service poor underserved dramatically increase number national health service corp nhsc assignees provide service medically underserved community grow 500 1977 nearly 1981 population serve nhsc triple since 1977 number community health center provide service high priority underserved area double administration serve estimate six million people 1981 strongly urge new congress support highly successful program mental health one significant health achievement administration recent passage mental health system act grow recommendation commission mental health join many others gratitude first lady tireless effective contribution passage important legislation act design inaugurate new era federal state partnership plan provision mental health service addition act specifically provide prevention sup port service chronically mentally ill prevent unnecessary institutionalization development mental health service urge new congress provide adequate support full timely implementation act health protection active support congress recently pass medigap legislation provide voluntary certification health insurance policy supplemental medicare curb widespread abuse area area toxic agent control legislation submit congress recently pass provide cover hazardous waste cleanup cost area accidental injury control establish automobile safety standard increase enforcement activity respect 55 mph speed limit end decade action expect save life serious injury year urge new congress continue strong support activity food nutrition building comprehensive reform food stamp program propose congress pass 1977 administration congress work together 1979 1980 enact several important change program change simplify administration reduce fraud error make program responsive need elderly disabled increase cap allowable program expenditure food stamp act expire end fiscal 1981 essential new administration congress continue program ensure complete eradication debilitate malnutrition witness document among thousand child 1960 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 also see encourage national movement parent citizen commit reverse serious disturb trend adolescent drug abuse drug abuse many form continue detract however quality life many american prevent see four great challenge year ahead first must deal aggressively supply illegal drug source joint crop destruction program foreign nation increase law enforcement border interdiction second must look citizen parent across country help educate increase number american youth experiment drug danger drug abuse education key factor reduce drug abuse third must focus effort drug alcohol abuse workplace abuse contribute low productivity also destroy satisfaction sense purpose american gain work experience fourth need change attitude attitude condones casual use drug one recognizes appropriate use drug medical purpose condemn inappropriate harmful abuse drug hope congress new administration take action meet challenge education american people always recognize education one soundest investment make dividend reflect every dimension national strength economy national security vitality music art literature among accomplishment give satisfaction last four year contribution administration able make student educator throughout country administration collaborate successfully congress landmark education legislation work congressional leadership administration spotlight importance education create new department education department give education strong voice federal level time reserve actual control operation education state locality private institution department successfully combine nearly 150 federal education program cohesive streamlined organization responsive need educator student department make stride cut red tape paperwork thereby make flow federal dollar school district institution high education efficient crucial department keep intact strengthened collaboration congress result numerous important legislative accomplishment education little two year ago sign law day two major benefit elementary secondary education postsecondary education education amendment 1978 embody nearly administration proposal improvement elementary secondary education act include important new program improve student achievement basic skill aid school district exceptionally high concentration child family middle income student assistance act legislation jointly sponsor administration congressional leadership expand eligibility basic educational opportunity grant approximately student enrol postsecondary education make many student eligible first time type grant loan three half month ago administration congress successfully conclude two year work major reauthorization bill expand benefit postsecondary education reflect education amendment 1980 major administration recommendation improvements high education proposal well loan access student new parent loan program simplify application procedure student financial aid strengthen federal commitment develop college particularly historically black institution new authorization equipment facility modernization fund nation major research university revitalize international education program supplement legislative accomplishment important administrative action aim reduce paperwork simplify regulation associate federal education program also launch major initiative reduce backlog defaulted student loan otherwise curb fraud abuse waste education program insure education enterprise ready meet scientific technological change future undertook major study status science engineering education throughout nation hope finding report serve springboard need reform level education proud administration able provide financial mean realize many legislative administrative goal compare previous administration last budget request large overall increase federal funding education nation history budget request particularly sensitive need special population like minority woman educationally economically disadvantage handicapped student limited ability time request significant increase many program design enhance quality american education include program relate important area diverse international education research libraries museums teacher center last year propose congress major legislative initiative would direct 2 billion education job training program design alleviate youth unemployment improve linkage school work place legislation generate bipartisan support unfortunately action complete final rush day 96th congress urge new undertakes broad effort strengthen economy well specific task like reauthorizing vocational education make need nation unemployed youth top priority action combine basic skill education program together work train employment incentive make substantial progress eliminate one severe social problem unemployment particularly among minority proud progress already make passage youth employment demonstration project act 1977 substantial increase investment youth employment program new legislation would cap effort income security social security one high priority administration continue tradition effectiveness efficiency widely associate social security program assure present future beneficiary receive benefit expect earned benefit pay monthly retire disabled american worker family provide significant measure economic protection million people might otherwise face retirement possible disability fear enact change improve benefit many social security beneficiary year president last four year present special set concern financial stability social security system shortly take office propose congress enact legislation protect stability old age survivor trust fund prevent imminent exhaustion disability insurance trust fund correct flaw benefit formula threaten long run health entire social security system action take congress request help stabilize system legislation later complement disability insurance amendment 1980 bolster disability insurance program reduce certain inequity among beneficiary commitment essential retirement disability protection provide 35 million people month demonstrate fact without interruption beneficiary continue receive social security benefit include annual cost living increase change unpredictable economic circumstance require continue monitor financial stability social security system correct anticipate strain system propose last year three fund allow borrow one another urge congress year adopt interfund borrow strengthen social security system provide great degree assurance beneficiary give projected future economic uncertainty additional action take among additional financing option available borrow general fund financing half hospital insurance fund general revenue increase payroll tax rate latter option particularly unpalatable give significant increase tax rate already mandate law administration continue oppose cut basic social security benefit tax social security benefit administration continue support annual index social security benefit welfare reform 1979 propose welfare reform package offer solution urgent problem welfare system proposal embody two work training opportunity act social welfare reform amendment act house pass second two proposal 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 urge congress take action area along line recommend child welfare administration work closely congress legislation design improve greatly child welfare service foster care program create federal system adoption assistance improvement achieve recent enactment 3434 adoption assistance child welfare act 1980 wellbeing child need home permanent placement primary concern administration legislation ensure child lose foster care system instead return family possible placed permanent adoptive home energy assistance 1979 propose program provide annual total billion low income household hard hit rise energy bill cooperation congress able move quickly provide assistance eligible household time meet winter heat bill response extreme heat condition affect many part country 1980 direct community service administration make available 27 million assist individual especially elderly face life threaten circumstance due extreme heat congress amend reauthorized energy assistance program fiscal year 1981 provide billion meet anticipate increase need need program help low income household rise energy expense abate near future energy assistance program reauthorized meet need housing past 14 month high interest rate severe impact nation housing market yet current pressure uncertainty obscure achievement past four year work congress regulatory agency financial community administration bring expand steadier flow fund home mortgage deregulation interest rate payable depository institution evolution variable renegotiated rate mortgage development high yielding saving certificate expansion secondary mortgage market increase housing ability attract capital assure mortgage money would cut interest rate rise action diminish cyclically housing industry secure legislation update federal government emergency authority provide support housing industry program create new section 235 housing stimulus program tool enable federal government deal quickly effectively serious distress critical industry also work expand homeownership opportunity americans use innovative financing mechanism graduate payment mortgage increase access middle income family housing credit revitalize section 235 program enable nearly moderate income household purchase new home reduce paperwork regulation federal program work state local government ease regulatory burden help hold housing cost produce affordable housing result governmentwide effort 5 million american family buy home past four year equivalent period history 7 million home begin construction administration 1 million previous four year devote particular effort meet housing need low moderate income family past four year 1 million subsidized unit make available occupancy lower income american assist unit go construction addition undertaken series measure revitalize preserve nation 2 million unit public assist housing fiscal year 1982 proposing continue commitment low income housing request fund support unit section 8 public housing maintain program level provide congress fiscal 1981 make progress past four year future reason concern home price inflation high interest rate threaten put homeownership reach homebuyers low income household elderly dependent upon rental housing face rise rent low level rental housing construction historic standard threat displacement due conversion condominium factor housing face strong competition investment capital industrial sector generally energy industry particular address issue appoint presidential task force advisory group last october effort proceed due election result hope incoming administration proceed similar venture important action government take meet america housing need restore stability economy bring rate inflation inflation drive home price operate cost interest rate market uncertainty inflation contribute instability interest rate add burden homebuilder homebuyers alike make commitment provide framework great investment sustain economic growth price stability administration begin work create healthy environment housing transportation passage airline deregulation act 1978 motor carrier act 1980 harley stagger rail act 1980 administration work congress initiate new era reduce regulation transportation industry deregulation lead increase productivity operate efficiency industry involve stimulate price service competition benefit consumer generally urge new administration continue effort behalf deregulation legislation intercity passenger bus industry well come decade significant challenge face nation transportation service improve deteriorate physical infrastructure roadways railroad waterway mass transit system order conserve costly energy supply promote effective transportation service highways vast network highway account 90 percent travel 80 percent value freight traffic good movement deteriorate current trend continue major proportion interstate pavement deteriorate end 1980 arrest deterioration nation system highways high priority objective 1980 must reorient federal mission major new construction project stewardship exist interstate highway system interstate gap judge connection make compatibility community need decade highway investment need increase productivity particularly elimination bottleneck provide efficient connection port seek solution traffic demand administration therefore recommend redefine completion interstate system consolidate 27 categorical assistance program nine initiate major repair rehabilitation program segment interstate system effort help maintain condition performance nation highways particularly interstate primary system provide realistic mean complete interstate system 1990 ensure good program delivery consolidation assist urban revitalization addition congress must address urgent funding problem highway trust fund need generate great revenue mass transit past decade nation public transit system ridership increased annual average year 1970 1979 continue increase cost fuel expect make transit grow part nation transportation system result administration project ten year 43 billion program increase mass transit capacity 50 percent promote energy efficient vehicle use next decade first part proposal five year billion urban mass transportation administration reauthorization legislation send congress march 1980 urge 97th congress quickly enact similar legislation 1981 administration also first propose sign law nonurban formula grant program assist rural area small community public transportation program end dependence automobile promote energy conservation efficiency provide transportation service impoverish rural community principal need 1980 maintain mobility segment population face severely increase transportation cost uncertainty fuel supply must improve flexibility transportation system offer great choice diversity transportation service private automobile continue principal mean transportation many american public transportation become increasingly attractive alternative therefore want explore variety paratransit modes various type bus modern rapid transit regional rail system light rail system highway plan transit planning must integrate related state regional district neighborhood planning effort place emerge low density development land use threaten fiscal capacity many community support need service infrastructure elderly handicap transportation transportation policy 1980 must pay increase attention need elderly handicap 1990 number people 65 grown today 19 million 27 million period number difficulty use transit well autos include expect increase 9 11 million make percent population must retreat policy affords significant grow portion population accessible public transportation recognize handicap diverse group need flexible service regular public transportation job railroad addition federal government must reassess appropriate federal role support passenger freight rail service amtrak conrail goal federal assistance maintain enhance adequate rail service otherwise available needy community federal subsidy must closely scrutinized sure stimulus replacement private investment initiative federal assistance mean permanent subsidy unprofitable operation waterways rural transportation grow need rural small community improve transportation service rail freight service many community decline railroad abandon unproductive branch line time rural road often inadequate handle large truck increase demand harvest harbor service also place increase burden rural transportation system bottleneck along mississippi river delay grain shipment gulf mexico make progress develop nation waterway administration begin construction new foot lock site lock dam 26 mississippi river open 1987 new lock capacity 86 million ton per year 18 percent increase present system army corp engineer also undertaken study assess feasibility expand bonneville lock rehabilitation john day lock begin 1980 complete 1982 administration also support completion upper mississippi river master plan determine feasibility construct second lock alton illinois effort help alleviate delay transport corn soybean good along mississippi river gulf mexico department transportation new small community rural transportation policy target federal assistance passenger transportation road highways truck service railroad freight service rural area policy implement expand upon early white house initiative improve transportation rural america announce june 1979 president small community rural development policy announce december 1979 congress seek way balance rail branch line abandonment service need rural farm community provide financial assistance rail branch line rehabilitation appropriate assist shipper adjust rail branch line abandonment take place help make possible trucking firm serve light density market dependable efficient trucking service maritime policy administration seek ensure maritime industry function unfair competitive disadvantage international market indicate maritime policy statement congress july 1979 american merchant marine vital nation welfare federal action promote rather harm pursuit objective sign law control carrier act 1978 authorize federal maritime commission regulate certain rate cutting practice carrier recently sign bilateral maritime agreement people republic china expand access american ship 20 specify chinese port set aside ships substantial share least cargo country agreement officially foster expand chinese shipping service link two country provide momentum growth trade also need modernize expand dry bulk segment fleet heavy dependence foreign carriage cargo deprive economy seafaring shipbuilding job add deficit deprives government substantial tax revenue leave united state dependent ship continued supply raw material support civil economy war production time war therefore send congress propose legislation strengthen woefully weak segment fleet remove certain disincentive construction dry bulkers operation registry enactment propose legislation would establish basis accelerate rebuild dry bulk fleet toward level commensurate position unite state world lead bulk trading country past year administration state support legislation would provide specific federal assistance installation engines exist american ship would strengthen country shipbuilding mobilization base strengthen fleet important must also maintain shipbuilding base future ship construction provision exist law call substantial exclusive use american flag vessel carry cargo generate government must vigorously pursue therefore supported requirement 50 percent oil purchase strategic petroleum reserve transport vessel cargo preference act apply material furnish assisted construction air base israel cargo transport pursuant chrysler corporation loan guarantee act addition deep seabed hard mineral resource act require least one ore carrier per mine site vessel much do much remain do fy 1982 budget include 107 million authorization construction differential subsidy cd fund add unobligated cd balance 100 million 1980 recently enact 135 million 1981 authorization provide average 171 million cd fund 1981 1982 coal export policy significant growth foreign demand steam coal foreseen congestion major coal export port hampton road virginia baltimore maryland could delay impede export administration work interagency coal task force study create promote cooperation coordination resource shipper railroad vessel port operator determine appropriate federal role expand modernize coal export facility include dredge deep channel select port progress already make addition action take transshippers reduce number coal classification use whenever possible norfolk western railroad upgrade computer capability quickly inventory coal car yard chessie railroad reactivate pier 15 newport news establish berth near curtis bay pier baltimore decrease delay vessel berth public activity include million plan develop state pennsylvania conrail increase conrail coal handle capacity philadelphia proposal state virginia construct steam coal port craney island disposal area portsmouth harbor plan mobile alabama operate publicly own coal terminal enlarge capacity mcduffie island 10 million ton ground storage 100 car unit train unloading capability development new orleans steam coal facility expect add 20 million ton annual capacity 1983 corp engineer work interested federal agency determine port dredge depth schedule order accommodate large coal carry vessel private industry course play major role develop united state coal export facility new administration continue work eliminate transportation bottleneck impede access foreign market special need woman past four year year rapid advancement woman focus provide american woman full range opportunity make part mainstream every aspect national life leadership appoint record number woman judgeship top government post fully 22 percent appointee woman nominate 41 46 woman sit federal bench today first time history woman occupy policymaking position high level every federal agency department demonstrate ability serve citizen well strengthen right employ woman consolidate strengthen enforcement sex discrimination law eeoc expand employment right pregnant woman pregnancy disability bill increase federal employment opportunity woman civil service reform employment executive order create first national program provide woman businessowners technical assistance grant loan improved access federal contract sensitive need woman homemaker establish office family within hhs sponsor white house conference family initiate program target ceta fund help displace homemaker social security system amend eliminate widow penalty comprehensive study discriminatory provision possible change present congress legislation pass give divorce spouse foreign service officer right share pension benefit create office domestic violence within hhs coordinate 12 agency domestic violence relief program distribute information problem service available victim despite stringent budget fy 1981 administration consistently support woman educational equity act family planning activity well program affect woman food stamp wic social security concerned american woman opportunity ensure equality woman around world november 1980 sent senate convention elimination form discrimination woman united nation document comprehensive detail international agreement seek advancement woman woman issue seek counsel men woman government region country establish two president advisory committee woman interdepartmental task force advise issue mandate group expire december 31 leave behind comprehensive review status woman society today review provide excellent guidance work remain battle sex discrimination even though make progress much remain agenda woman remain committed equal right amendment continue work passage essential goal bring america woman fully mainstream american life era ratify effort begin woman employment business education continue strengthened money available state establish program help victim domestic violence congress pass national health care plan welfare reform program measure reflect need woman talent woman continue use full inside outside government effort continue see wide range opportunity option handicap hope administration remember area lead way toward full civil fight handicap american take office federal agency yet issue 504 regulation leave office first step every major agency department federal government almost complete first step year ahead require steadfast dedication president protect promote precious right classroom workplace public facility handicap individual may join american mainstream contribute full resource talent economic social life support unprecedented way civil right disable person school workplace initiatives health immunization nutrition program young child new intense effort reverse spinal cord injury must continue incidence disability continue decline year international year disable person organize activity celebrate promote important commemorative year within government well cooperation private sector effort country around world international year give country opportunity recognize talent capability fellow citizen disability also share rehabilitation treatment skill country learn well proud united state lead world mainstreaming treat disabled people however long way go psychological physical barrier disable people tear full participant american way life must pledge full commitment goal international year family concern american family administration convene last year first white house conference family involve seven national hearing 506 state local event three white house conference direct participation citizen conference reaffirm centrality family live nation document problem american family face well also establish office family within department health human service review government policy program affect family expect department agency within executive branch federal government well member congress corporate business leader state local official across country study closely recommendation white house conference implement appropriately public policy develop implement federal government cognizance work conference take pragmatic essential step conference do good job establish agenda action assure policy federal government sensitive impact family hope congress review seriously consider conference recommendation older american administration take great stride toward solve difficult problem face old american early term work successfully congress assure adequate revenue social security trust fund last year strength social security system strengthen legislation propose permit borrow among separate trust fund also sign law legislation prohibit employer require retirement prior age 70 remove mandatory retirement federal employee addition 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 previous budget increase fund nutrition senior center home health care focus add resource need old american 1981 white house conference age approach hope new administration make every effort assure effective useful conference conference enable old american voice concern give u guidance continue effort ensure quality life richly deserve senior citizen refugee hope build humane society home ignore humanitarian claim refugees life stake nowhere else turn country proud hundred thousand people around world would risk everything come country administration initiate implement first comprehensive reform refugee immigration policy 25 year also establish first refugee coordination office department state leadership special ambassador coordinator refugee affair program new legislation coordinator office bring common sense consolidation nation previously fragment inconsistent many way outdated refugee immigration policy unexpected arrival thousand cuban haitian seek refuge country last year outside regular immigration refugee admission process country government test compassionate responsive major human emergency take step reorganize refugee program meet test successfully proud american people respond crisis traditional good hospitality also would never able handle unprecedented emergency without effort private resettlement agency always help refugee crisis immigrant country always contribute toward make country strong ever take system confident new arrival country carry tradition must remain committed aid assist come shore time must uphold immigration refugee policy provide adequate enforcement resource result enforcement policy illegal flow cuba halt orderly process initiate make certain refugee immigration law honor year select commission immigration refugee policy complete work forward advice recommendation hope recommendation carefully consider new administration congress clear must take additional action keep immigration policy responsive emergency ever change time veterans country leadership continue unique obligation men woman serve nation arm force help maintain restore peace world commitment evidence characterize conscientious consistent emphasis general area first work honor vietnam veteran administration leadership va administrator max cleland proud lead country overdue acknowledgement nation gratitude men woman serve country bitter war southeast asia homecoming defer seem doomed ignored country mature last four year long last able separate war warrior honor veteran acknowledgement service go understanding vietnam veteran unique need problem administration able launch long seek psychological readjustment outreach program unprecedented popularity sensitivity success program must continue administration also grapple difficult question pose veteran serve southeast asia expose potentially harmful substance include herbicide know agent orange launch scientific inquiry answer many veteran question health provide basis establish sound compensation policy rest concern deal sensitive expeditious compassionate fashion second focus va health care system need disabled veteran initiate implement first reform va vocational rehabilitation system since inception 1943 also administration first seek increase recipient va compensation every year last budget also make request administration also launch disabled veteran outreach program department labor successfully place disabled veteran job service provide va health care system target special need disabled veteran come year third va health care large free maintain independence high quality administration make system efficient therefore treat veteran ever concentrate care modern management improvement median age american veteran population increase must concentrate change within va system keep independent serve model nation world center research treatment rehabilitation government assistance general aid state local government since take office strongly commit strengthen fiscal economic condition nation state local government accomplish goal encourage economic development local community support general revenue share essential program state locality administration total state local government increase 40 68 billion fiscal year 1977 96 billion fiscal year 1981 significant increase aid allow state locality maintain service essential citizen without impose onerous tax burden also allow u establish unprecedented partnership leader federal government state local government elect official general revenue share last year congress enact legislation extend general revenue share program three ears program cornerstone effort maintain fiscal health nation local government provide billion next three year city county towns program essential continue ability local government provide essential police fire sanitation service legislation renew grs cornerstone government relation 1980 policy emphasize need level government cooperate order meet need fiscally strain city county also emphasize important role grs play forge partnership grateful congress move quickly assure nation locality begin 1980 sound fiscal condition assistance last year propose congress enact 1 billion fiscal assistance program protect state locality unexpected change national economy program unfortunately enact full congress therefore include funding aid fiscal year 1982 budget nevertheless urge congress enact permanent program state city protect next economic downturn urban policy three 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 sixteen bill sign law 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 since time create urban development action grant udag program substantially expand economic development program commerce department fy 1982 budget request billion economic development grant loan interest subsidy almost billion loan guarantee approximately 60 percent fund spent nation urban area addition extend 10 percent investment credit include rehabilitation exist industrial facility well new construction continue believe development private sector investment job key revitalize nation economically depressed urban rural area ensure necessary economic development go forward congress must continue provide strong support udag program program economic development administration program 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 last year congress reauthorized cdbg udag program cdbg program reauthorized three year annual funding increase 150 million udag program extend three year current funding level 675 million annually 1982 budget request full funding program action help nation city county continue progress make last three year neighborhood administration take numerous positive step achieve full partnership neighborhood organization government level successfully fought red line housing discrimination create innovative self help funding technical resource transfer mechanism create unique method access neighborhood organization participate role federal state government neighborhood base organization threshold american community federal government need develop innovative practical way neighborhood base organization successfully participate identification solution local neighborhood concern full partnership achieve know participation leader government business education union neither state federal solution impose high suffice neighborhood fabric soul great land neighborhood define weave use create permanent fabric federal government must take every opportunity provide access influence individual organization affect neighborhood level rural policy since begin administration commit improve effectiveness federal government deal problem need rapidly change rural america rapid growth rural area place heavy strain community resource also persistent problem poverty economic stagnation part rural america rural area continue lose population past several decade december 1979 announce small community rural development policy culmination several year work design address vary needs rural population 1980 administration work congress pass rural development policy act 1980 fully implement allow u meet needs rural people community effectively efficiently result policy accompany legislation create position secretary agriculture small community rural development provide overall leadership establish white house work group assist implementation policy work 40 governor form state rural development council work partnership white house work group federal agency well deliver state federal program rural area direct white house work group annually review exist propose policy program budget level determine adequacy meeting rural need fulfil policy objective principle effort part administration congress result landmark policy first time rural affair receive prominence always deserve policy truly help alleviate diverse differ problem rural america face 1980 help dedication great many people around country concerned rural affair construct mechanism deal effectively rural problem great opportunity successfully combine federal effort effort rural community leader resident hope spirit cooperation record accomplishment continue come year consumer september 1979 sign executive order design strengthen coordinate federal consumer program establish procedure improve facilitate consumer participation government forty federal agency adopt program comply requirement order program improve complaint handling provide good information consumer enhance opportunity public participation government proceeding assure consumer point view consider program policy regulation substantial progress make assure consumer presence federal agency work must continue meet fully goal executive order close monitoring agency compliance requirement order necessary continue evaluation assure program effective make maximum use available resource also essential complement initiative effort provide financial assistance regulatory proceeding citizen group small business others whose participation limit economic circumstance must continue pursue essential consumer representative government pay particular attention need interest consumer minority office consumer affair publication people power community counter inflation catalogue way government private sector assist less powerful society help new way find help foster new people movement found principle science technology science technology contribute immeasurably live american high standard live largely product technology surround u home factory good health due large part ever increase scientific understanding national security assure application technology environment protect use science technology indeed vision future often largely defined bounty anticipate science technology bring federal government special role play science technology although fruit scientific achievement surround u often difficult predict benefit arise give scientific venture benefit even predictable usually lead ownership right accordingly government special obligation support science investment future administration seek reverse decline funding despite need fiscal restraint real support basic research grow nearly 11 term office administration seek increase support research variety mission agency way harness american genius innovation meet economic energy health security challenge confront nation international relation national security science technology become increasingly important element national security foreign policy especially current age sophisticated defense system grow dependence among country modern technology aspect economic strength reason scientific technological consideration integral element administration decisionmaking national security foreign policy issue modernization strategic weaponry arm control technology transfer grow bilateral relationship china relation develop world four theme shaped policy international scientific technological cooperation pursuit new international initiative advance research development objective development strengthen scientific exchange bridge politically ideological cultural division country country formulation program institutional relation help develop country use science technology beneficially cooperation nation manage technology local impact direction science technology adviser actively pursue international program support four theme give special attention scientific technical relation china new form scientific technical cooperation japan cooperation mexico latin american caribbean country several state black america africa propose institute scientific technological cooperation particular cooperation develop country reflect importance place relationship economic growth scientific technological capability also reflect view great strength science technology make close relation technical community especially productive mean enhance capability scientific technological assistance key linkage develop world linkage past one must continue work strengthen space policy administration establish framework strong evolving space program 1980 administration space policy reaffirm separation military space system open civil space program time provide new guidance technology transfer civil military program civil space program center three basic tenet first space policy reflect balance strategy application science technology development second activity pursue uniquely efficiently accomplished space third premature commitment high challenge initiative complexity apollo inappropriate shuttle development phase however added flexibility consider new space application space science new space exploration activity technology development shuttle dominate technology development effort correctly represent one sophisticated technological challenge ever undertake result encounter technical problem nonetheless first man orbital flight schedule march 1981 pleased support strongly necessary fund shuttle throughout administration space application since 1972 conducted experimental civil remote sense landsat satellite thereby realize many successful application recognize fact direct implementation operational civil land satellite remote sense system operational management responsibility commerce national oceanic atmospheric administration addition ocean observation space meet common civil military data requirement national oceanic satellite system propose major fy 1981 new start space science exploration goal administration policy space science 1 continue vigorous program planetary exploration understand origin evolution solar system 2 utilize space telescope satellite usher new era astronomy 3 develop well understand sun interaction terrestrial environment 4 utilize shuttle spacelab conduct basic research complement life science investigation district columbia washington home federal government half million american citizen work improve relationship federal establishment government district columbia order goal spirit home rule city control destiny case four year ago yet despite close cooperation administration mayor barry yet see necessary number state ratify constitutional amendment grant full voting representation congress citizen city hope inequity rectified country people inhabit washington deserve less art art precious national resource federal support art enhance administration expand government funding service arts institution individual artist scholars teacher national endowment art broaden scope reach diverse population also reactivate federal council art humanity hope come year new administration congress continue support institution promote development understand art encourage business participant comprehensive effort achieve truly mixed economy support art explore variety mechanisms nurture creative talent citizen build audience work support strong active national endowment art seek great recognition rich cultural tradition nation minority provide grant art low income neighborhood humanity recently reauthorizing federal appropriation national endowment humanity congress reaffirm encouragement support national progress scholarship humanity primarily matter private local initiative also appropriate matter concern federal government high civilization must limit effort science technology alone must give full value support great branch man scholarly cultural activity order achieve good understand past good analysis present well view future believe agreement humanity illuminate value underlie important personal social national question raise society multiple link increase dependence technology diverse heritage many region ethnic group humanity cast light broad issue role society men woman imagination individual example define spirit age move nation government support humanity within framework lay congress recognition essential nourishment life mind vital enrichment national life propose increase funding year sufficient enable endowment maintain level support offer citizen fiscal year 1981 allocation fund special emphasis give humanity education nation school response great need arisen area scholarly research design increase understand culture tradition historical force work nation draw attention physical disintegration raw material cultural manuscript periodical development technique prevent destruction preserve material dissemination quality programming humanity increasingly large american audience use radio television dominant effort endowment expenditures commitment strengthen promulgate scholarly excellence achievement work humanity school college university library museums cultural institution well work individual scholar collaborative group engage advanced research humanity make grant endowment increase emphasis technique stimulate support humanity source order reinforce tradition private philanthropy field insure expand financial viability cultural institution life insular area firmly commit puerto rico virgin islands guam american samoa northern mariana islands vigorously support realization whatever political status aspiration democratically choose people principle keystone comprehensive territorial policy send congress last year please legislative element policy endorse 96th congress unique culture fragile economy location caribbean pacific island distinct asset united state require sensitive application policy unite states government pursue initiatives begin administration congress stimulate insular economic development enhance treatment federal program eliminate current inequity provide vitally need special assistance coordinate rationalize policy measure result great balanced growth particular hope new congress support fund fiscal management comprehensive planning technical assistance territory well create commission propose review applicability federal law insular area make recommendation appropriate modification iv remove governmental waste inefficiency one major commitment restore public faith federal government cut waste inefficiency past four year make dramatic advance toward goal many previously consider impossible achieve government rule operation unnecessary eliminate airline rail truck financial deregulation government function need streamlined landmark measure civil service reform act 1978 hope new administration congress keep momentum establish effective responsible change area crucial public concern civil service reform march 1978 submit civil service reform act congress call centerpiece effort reform reorganize government bipartisan support congress bill pass pleased say implementation run well ahead statutory schedule throughout service put place mean assure reward retention base performance simply length time job first real test reform act 98 percent eligible manager join senior executive service choose relinquish job protection challenge potential reward new corp top executive though act require several key element operation another year federal agency already establish merit pay system manager agency well way establish new performance standard employee pay process pay performance bonus earn outstanding member senior executive service dismissal increase 10 percent dismissal specifically inadequate job performance risen 1500 percent since act adopt finally establish fully independent merit system protection board special counsel protect right federal employee face threat right 1981 civil service reform face critical agency must fully function performance appraisal system employee merit pay system compensate government manager performance bonuses member senior executive service surely receive scrutiny attention balance constructive enhance chance ultimate success bipartisan commitment revolutionary crucial concept regulatory reform past four year make tremendous progress regulatory reform discard old economic regulation prevent competition raise consumer cost impose strong management principle regulatory program country need cut paperwork wasteful burden challenge future continue progress area without cripple vital health safety program economic deregulation program achieve major success five area airline airline deregulation act generate healthy competition save billion fare make airline efficient act provide 1985 cab go existence trucking truck deregulation bill open industry competition allow trucker wide latitude route drive good haul bill also phase old law immunity set rate congressional budget office estimate reform save much 8 billion per year cut much half percentage point inflation rate railroad overregulation stifle railroad management initiative service competitive pricing new legislation give railroad freedom need rebuild strong efficient railroad industry financial institution help congress past four year achieve two major piece financial reform provide basis farreaching change financial service industry since 1930 international banking act 1978 design reduce advantage foreign bank operate united state possess comparison domestic bank depository institution deregulation monetary control act adopt last march provide phased elimination variety barrier financial institution freedom offer service attract saving consumer especially small saver recently submit congress administration recommendation phase liberalization restriction geographic expansion commercial bank last year administration financial regulatory agency propose legislation permit interstate acquisition fail depository institution view difficult outlook depository institution strongly urge congress take prompt favorable action fail bank legislation telecommunication congress pass legislation area federal communication commission take dramatic action open aspect communication competition eliminate regulation area competition make obsolete public benefit explosion competition new service initiatives represent dramatic progress economic deregulation continue work need urge congress act communication legislation consider propose deregulation measure legislation bus industry addition regulatory commission must maintain commitment competition best regulator part reform program cover regulation need protect health safety welfare citizen regulation administration create management program cut cost without sacrifice goal executive order 12044 require agency analyze cost major new rule consider alternative performance standard voluntary may make rule less costly flexible create regulatory analysis review group white house analyze costly propose new rule find way improve regulatory council establish provide first list upcoming rule eliminate overlap conflict regulation agency launch sunset program weed outmode old regulation act encourage public participation regulatory decisionmaking step already save billion dollar regulatory cost slash thousand outmoded regulation move steadily toward regulatory system provide needed protection fairly predictably minimum cost urge congress continue steady path resist simplistic solution propose alternative proposal like legislative veto increase judicial review add another layer regulatory process make cumbersome inefficient right approach reform improve individual need ensure regulatory agency implement statute sensibly paperwork reduction federal government imposes huge paperwork burden business local government private sector many form need vital government function others duplicative overly complex obsolete administration cut paperwork burden 15 percent create procedure continue progress new paperwork reduction act centralize omb oversight agency information requirement strengthen omb authority eliminate needless form paperwork budget process establish executive order applies discipline budget process hour report time impose public forcing agency scrutinize form year effective implementation step allow substantial paperwork cut year ahead tighten standard governmental efficiency integrity develop foundation carry energy policy consolidate scatter energy program launch synthetic fuel corporation give education priority deserve time reduce hhs manageable size give education seat cabinet table create stronger system attack waste fraud reorganize audit investigative function put inspector general major agency since take office submit 14 reorganization initiative approve congress save hundred million dollar adoption businesslike cash management principle set strict standard personal financial disclosure conflict interest avoidance high federal official streamline structure government secure approval 14 reorganization initiative improve efficiency important sector government include energy education civil right enforcement eliminate 300 advisory committee well agency board commission obsolete ineffective independent inspector general appoint major agency attack fraud waste billion dollar questionable transaction identify audit activity adoption cash management debt collection initiative save 1 billion streamline processing receipt control disbursement carefully reduce idle cash balance finally administration set strict standard personal financial disclosure conflict interest avoidance high federal official elevate level public trust government protect basic right liberty extremely proud advance make ensure equality protect basic freedom american equal employment opportunity commission eeoc office federal contract compliance ofccp reorganize strengthen permanent civil right unit establish omb avoid fragment inconsistent duplicative enforcement civil right law three agency give coordinative responsibility discrete area eeoc activity hud relate housing department justice area enactment right financial privacy act bill limit police search newsroom begin establish sound comprehensive privacy program ratification equal right amendment must aggressively pursue one year remain obtain ratification three additional state congress must give early attention number important bill remain bill would strengthen law discrimination housing enact 1968 civil right act promise equal access housing remain unfulfilled establish charter fbi intelligence agency failure define law duty responsibilities agency make possible abuse occur recent year establish privacy safeguard medical research bank insurance credit record provide special protection election fund transfer system equal right amendment remain committed strongly possible ratification equal right amendment result effort 1978 equal right amendment deadline ratification extend three year one year three state leave afford delay marshal resource effort obtain ratification three additional state although congress official role ratification process point ability affect public opinion support state legislator amendment urge member state yet ratify equal right amendment use influence secure ratification continue effort help ensure ratification equal right amendment 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 hope congress enact legislation year achieve goal fair housing fair housing act amendment 1980 pass house representative overwhelm bipartisan majority die senate close 96th congress leader party pledge make enactment fair housing legislation top priority incoming congress need press strengthen federal enforcement effort must primary method resolution criminal code federal criminal law often archaic frequently contradictory imprecise clearly need revision codification new administration continue work begin develop federal criminal code simplifies clarify criminal law maintain basic civil liberty protection privacy public private institution collect information communication computer technology advance must act protect personal privacy citizen past four year act report privacy commission establish national privacy policy work congress pas legislation restrict wiretap law enforcement access bank record reporter file reduce number personal file hold government restrict transfer personal information among federal agency also work organization economic cooperation development establish international guideline protect privacy personal information transfer across border vi protect develop natural resource two nation precious natural resource environment vast agricultural capacity begin administration work congress enhance protect well develop natural resource environmental area especially concerned importance balance need resource development preserve clean environment take numerous action foster goal agricultural area take step need improve farm income increase agricultural production record level progress must continue 1980 environment preserve quality environment among important objective administration congress result share commitment dedicate effort many member congress administration achieve several historic accomplishment protection alaska land passage alaska national interest land conservation act one important conservation action century stake fate million acres beautiful land outstanding unique wildlife population native culture opportunity ensure future generation american would able enjoy benefit nationally significant resource result leadership commitment persistence administration congressional leadership alaska land bill sign law last december act add 97 million acre new park refuges double size national park national wildlife refuge system bill triple size national wilderness system increase size 56 million acre add 25 river segment wild scenic river system bill almost double five mileage system alaska land act reaffirms commitment environment strike balance protect area great beauty allow development alaska oil gas mineral timber resource protection natural resource addition alaska land act past four year able expand significantly national wilderness park system 1978 congress pass historic omnibus park act make 12 addition national park system act also establish first two national trail since national trail system act pass 1968 1980 result 1979 environmental message federal land management agency establish almost 300 new national recreational trail completion rare ii process eliminate uncertainty surround status million acre land call 15 million acre new wilderness nation national forest 1980 congress establish million acre wilderness low 48 state addition administration recommend legislation protect lake tahoe executive order already establish mechanism help ensure lake protection finally 1980 administration establish channel islands marine sanctuary administration action past four year stress importance provide federal support water resource project economically environmentally sound policy major last influence federal government role water resource development management administration action recommend congress economically environmentally sound water resource project fund result oppose uneconomic project first administration proposal new project start 4 year one significant water policy action past four year administration june 6 1978 water policy reform message congress message establish new national water resource policy follow objective give priority emphasis water conservation consider environmental requirement value fully along economic factor plan management water project program enhance cooperation state federal agency water resource plan management addition executive office president establish 11 policy decision criterion evaluate propose federal water project water resource council develop adopt new set principle standard water project bind federal construction agency improve regulation develop implement national historic preservation act fish wildlife coordination act result water resource project must determine economically sound administration recommend authorization appropriation year ahead policy help reduce wasteful federal spending target federal fund high priority water resource project pursuit policy however lose sight vital role sound water resource project play provide irrigation power flood control must also recognize special need particular region country evaluate need additional project address global resource environmental problem global 2000 report president prepare response 1977 environment message first kind never government government take comprehensive look interrelate global issue resource population environment report conclusion important point rapid increase population human need year 2000 time decline earth capacity meet nation world act decisively alter current trend united state contribute actively series un conference environment population resource prepare 1981 conference new renewable source energy follow 1977 environmental message administration development assistance program add emphasis natural resource management environmental protection 1979 environmental message call attention alarm loss world forest particularly tropics interagency task force tropical forest develop government program encourage conservation wise management tropical forest administration encourage action nation world organization purpose united state world leader wildlife conservation assessment environmental effect government action january 5 1979 executive order direct government agency consider effect major action abroad another example leadership commitment control pollution hazardous chemical past four year steady progress towards cleaner air water sustain commitment congress administration important national objective addition administration develop several new pollution compliance approach alternative innovative waste water treatment project bubble concept offset policy permit consolidation design reduce regulatory burden private sector one pressing problem come light past four year improper hazardous waste disposal administration move three front first propose oil hazardous substance hazardous waste response liability compensation act superfund bill provide comprehensive authority billion fund clean abandon hazardous waste disposal sit november 1980 congress pass superfund bill sign law second administration establish hazardous waste enforcement strike force ensure available responsible party require clean site pose danger public health environment date 50 lawsuit bring strike force third regulation implement subtitle c resource conservation recovery act issue regulation establish comprehensive control hazardous waste together vigorous enforcement help ensure love canal repeat future future must charge stewardship irreplaceable environment natural heritage child child child dependent upon maintain commitment preserve enhance quality environment hope descendant look back 1980 able affirm keep commitment restoration environmental quality protect public health continue danger toxic chemical pollution hazardous radioactive waste make community safer healthy good place live preserve america wilderness area particularly last great frontier alaska benefit american perpetuity put nation path sustainable energy future one base increasingly renewable resource energy conservation move protect america countryside coastland mismanagement irresponsibility redirect management nation water resource toward water conservation sound development environmental protection face squarely worldwide problem destruction forest acid rain carbon dioxide nuclear proliferation protect habitat existence specie earth agriculture farm economy farm economy sound future bright agriculture remain major bulwark nation economy even important factor world food system demand america agricultural abundance abroad continue grow strength demand expect press hard supply result continued price strength health vitality agriculture represent significant departure situation exist come office four year ago january 1977 farm economy serious trouble farm price farm income fail rapidly grain price low level year steadily fall livestock producer fourth straight year record loss liquidate breeding herd unparalleled rate dairy farmer lose money every hundredweight milk produce sugar price nosedive combination improvement old establish program adoption new approach innovation change need administration turn situation around commodity price steadily rise farm income turn upward farm export set new record year increase 80 percent four year period livestock producer begin rebuild herd dairy farmer begin earn profit recent policy initiatives several major agricultural policy initiative undertaken past year culmination policy proposal make early administration others measure take help farmer offset impact rapid inflation production cost combination represent significant strengthen nation food agricultural policy initiative include food security reserve congress authorize formation 4 million ton food grain reserve use international food assistance reserve make possible united state stand behind food aid commitment food deficit nation even period short supply high price correct serious fault past food assistance policy comprehensive crop insurance congress also authorize significant new crop insurance program 1980 measure provide farmer important new program tool share economic risk inherent agriculture fully operational replace hodgepodge disaster program suffer numerous shortcoming special loan rate another legislative measure pass late 2nd session 96th congress authorizes secretary agriculture provide high loan rate farmer enter grain grain reserve additional incentive participate strengthen reserve increase loan price july 1980 administratively raise loan price wheat feedgrains soybean help offset effect serious squeeze time release call price grain reserve adjust upward high target price agricultural adjustment act 1980 raise target price wheat feed grain crop change correct shortcoming adjustment formula contain food agriculture act 1977 future agenda food agricultural policy adopt administration past four year include describe provide firm foundation future governmental action field expiration food agriculture act 1977 late year require early attention congress relatively minor change authority contain 1977 act extend present form grain reserve proven particularly effective mean stabilize grain market preserve essentially present form beyond important congress keep close eye development farm sector note action take last year purpose provide relief squeeze face farmer pressure continue action might require administration devote particular attention issue world hunger agricultural land use future structure american agriculture encourage congress next administration review result landmark enquiry deem appropriate act recommendation follow careful review situation recently extend suspension grain sale soviet union satisfy action serve purpose effectively fairly however long suspension must remain effect important next administration congress take whatever action necessary ensure burden fall unfairly nation farmer key feature administration policy maintain vii foreign policy time assume office four 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 iran uncertainty future stability many develop 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 oil import nation thus entire global economy continue hold american hostage iran affront civilized people everywhere serious impediment meeting threat 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 work domestically ally respond uncertain energy situation conservation diversification energy supply base internationally agree target unambiguously demonstrate commitment defend western interest southwest asia significantly increase ability past four year develop energy program comprehensive ambitious new institution establish synthetic fuel corporation solar bank price decontrol oil gas proceeding american consumer rise challenge experienced real improvement consumption pattern 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 six basic goal america world 1980 first continue past four year build america military strength ally friends neither soviet union nation reason question sustain strongest flexible defense force second pursue active diplomacy world friends resolve dispute peaceful mean make aggressor pay heavy price third strive resolve press international economic energy continue pursue still large objective global economic growth expand trade development assistance preservation open multilateral trading system fourth continue vigorously support process build democratic institution improve human right protection around world deeply convinced future lie dictatorship democracy fifth 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 sixth must continue look ahead order evaluate respond resource environment population challenge end century 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 first concern every president 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 real increase defense spending therefore probably higher previously project protect security may require large share national wealth future relationship demonstrate soviet union across broad front pay heavy price aggression term relationship throughout last decade relation mixture cooperation competition soviet invasion afghanistan imposition puppet 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 communization eastern europe world war ii soviet send combat force area previously control sovereign state destruction independence afghanistan government occupation soviet union alter strategic situation part world ominous fashion significantly shorten strike distance indian ocean persian gulf soviet union also eliminate buffer soviet union pakistan present new threat iran two country far vulnerable soviet political intimidation intimidation prove effective soviet union could control area vital strategic economic significance survival western europe far east ultimately united state year since soviet invasion afghanistan dealt major blow relation entire international system response proven serious increasingly effective impose real sustained cost ussr economy international image meanwhile encourage support effort reach political settlement afghanistan would lead withdrawal soviet force country meet interest concern soviet intransigence keep effort bear fruit meanwhile overwhelming november resolution unite nation general assembly afghanistan make clear world forget afghanistan response continue make clear soviet use force pursuit international objective incompatible notion bilateral communication relation remain strained continued soviet presence afghanistan grow soviet military capability soviet apparent willingness use capability without respect basic norms international behavior relationship remain single important element determine whether war peace despite serious strain relation maintain dialogue soviet union past year dialogue ensure bilateral misunderstanding miscalculation might escalate control manage avoid injection superpower rivalry area tension like conflict poland case year ago prospect soviet use force threaten international order soviet union complete preparation possible military intervention poland although situation poland show sign stabilize recently soviet force remain high state readiness could move poland short notice continue believe polish people allow work internal problem without outside interference make clear soviet leadership intervention poland would severe prolonged consequence detente relation particular 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 1982 budget would increase funding authority defense 196 billion amount together supplemental request fy 1981 6 billion meet administration pledge sustain growth 3 percent real expenditure provide 5 percent program growth fy 1982 beyond 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 upgrades force military balance nato warsaw pact continue deter outbreak europe 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 force four poseidon submarine backfitted new mile trident missile begin deployment 1980 nine trident submarine authorize 1981 propose one year new missile program enhance intercontinental ballistic missile force continue make progress technical refinement base design last year result operational benefit low cost reduce environmental impact program continue essential ingredient strategic survivability endurance secure command control capability threaten target soviet hold dear 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 strategic doctrine administration systematic contribution necessary evolution strategic doctrine begin 1977 commissioned comprehensive net assessment base number thorough investigation specific topic continue emphasize need evolutionary doctrine drive change basic remain peace freedom mankind rather need change drive inexorable buildup soviet military power increase propensity soviet leader use power coercion outright aggression impose others codify evolve strategic doctrine number interrelate mutually support presidential directive overarch theme provide doctrinal specific program implement tell world potential adversary united state could ever conclude fruit aggression would significant worth enormous cost retaliation presidential directive include overview strategic objective basic space policy civil defense survivability endurance telecommunication mobilization plan continuity government countervail strategy general war policy devise deter first foremost soviet aggression confront soviet military force also soviet military doctrine definition deterrence require shape soviet assessment risk make use doctrine time way seek emulate doctrine particular nothing policy contemplates nuclear warfare could ever deliberate instrument achieve goal peace freedom moreover policy carefully devise provide great possible incentive opportunity future progress arm control finally doctrinal evolution undertaken appropriate consultation nato ally others fully consistent nato strategy flexible response 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 percent work closely european ally secure host nation support necessary enable u deploy quickly great ratio combat force european theater low cost united state security assistance move enhance defense capability must lose sight need assist others maintain security independence event since world war ii recently southwest asia amply demonstrated security exist vacuum prospect peace closely tie friend security assistance program propose come fiscal year thus directly promote vital foreign policy national security integral part effort improve upgrade military force specifically program part overall foreign aid request promote security two principal way first assist friendly allied nation develop capability defend maintain independence example past year timely support provide thailand help bolster country defense large number vietnamese troop range along eastern frontier addition year program important continue independence friend ally israel greece turkey korea second security assistance constitute essential element broad cooperative relationship establish many nation permit either base territory access force facility program particularly important regard access agreement various country persian gulf indian ocean region crucial protection interest throughout southwest asia 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 new fleet large cargo aircraft intercontinental range design procurement force maritime prepositioning ship carry heavy equipment supply three marine corp brigade procurement fast sealift ship move large quantity men material quickly overseas area deployment increase training exercise activity ensure force well prepared deploy operate distant area addition european ally agree importance provide support deployment southwest asia naval force seapower 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 administration support fy 1981 large peacetime increase ever military pay allowance 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 complete first phase mobilization first effort since world war ii exercise mobilization plan end 1980 show first planning pay second much need do intelligence posture national interest critically dependent strong effective intelligence capability maintain strengthen 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 1981 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 regional policy every president three decade recognize america interest global must pursue global foreign policy two world war make clear stake western europe north atlantic 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 atlantic relationship country national security agenda make important progress toward make atlantic alliance still effective change security environment recognition threat soviet invasion afghanistan pose western interest europe southwest asia nato foreign defense minister express full support effort develop capability respond contingency southwest asia approve extensive program help fill gap could create diversion force region alone seek maintain stability southwest asia area insure access need resource european nation capability improve force region provide great economic political support resident area face potential danger pose conflict develop coordination among western force area persian gulf order able safeguard passage essential waterway concern development around poland ally achieve high level cohesion unity purpose make clear effect future relation precipitous soviet act alliance continue build progress past three year improve conventional force defense program though economic condition throughout europe today make achievement difficult yearly real increase 3 percent defense spending remain goal actively seek alliance nato alliance also move forward past year implementation historic december 1979 decision modernize theater nuclear force capability deployment improve pershing ballistic missile ground launch cruise missile europe ally continue cooperate actively u important joint endeavor whose purpose demonstrate convincingly soviet union potential cost nuclear conflict europe time offer convincing evidence commitment arm control europe initiate preliminary consultation soviet union geneva subject negotiate limit theater nuclear force also 1980 initiate carry withdrawal nuclear weapon stockpile europe nuclear warhead successful drawdown nuclear stockpile tangible demonstration commitment update exist theater nuclear force europe nato area continue work closely country provide resource help turkey regain economic health regret massive political internal security problem lead turkish military take government september 12 new turkish authority make progress resolve problem pledge early return civilian government tradition turkish military give u take pledge seriously welcome reestablishment greece link integrate military command structure atlantic move strongly major step toward strengthen nato vital southern flank time international crisis tension adjacent area greek reintegration exemplifies importance ally place cooperate common defense show ally make difficult decision necessary insure continue security also welcome resumption intercommunal talk cyprus pacific nation united state pacific nation much atlantic nation interest asia important u interest europe trade asia great trade europe past four year regain strong dynamic flexible posture united state vital region major alliance japan australia new zealand strong ever together nation western europe begin form basic political structure deal international crisis affect u japan australia new zealand give u strong support develop strategy respond instability persian gulf normalization relation china facilitate china full entry international community encourage constructive chinese role region relation china rapidly consolidate past year conclusion series bilateral agreement establish pattern frequent frank consultation two government exemplified series visit regular exchange work level able identify increasingly broad area common interest cooperate united state relation association southeast asian nation asean also expand dramatically past four year asean focus policy southeast asia cohesion strength essential stability critical area beyond vietnamese aggression indochina pose major challenge regional stability response reiterate security commitment thailand provide emergency security assistance thai force face vietnamese military threat along border work closely asean un press withdrawal vietnamese force cambodia encourage political settlement cambodia permit nation govern leader choice still look forward day cambodia peacefully begin process rebuild social economic political institution year devastation occupation humanitarian ground support friend region work vigorously international organization arrange relief resettlement exodus indochinese refugee threaten overwhelm nation maintain alliance korea help assure korea security difficult period political transition amend military base agreement philippine ensure stable access base 1991 importance philippine base strategic flexibility force access indian ocean finally process conclude long negotiation establish micronesia status freely associate state enter 1980 firm strategic foot east asia pacific base stable productive relation majority country region establish stable level involvement region appropriate interest interest friends ally middle east southwest asia continue soviet occupation afghanistan dislocation cause war serve constant reminder critical importance u ally third strategic zone stretch across middle east persian gulf much indian subcontinent southwest asian region serve key strategic commercial link east west century today produce world oil export provide energy need european ally japan experience almost continuous conflict nation internal instability many country regional rivalry combine rapid economic social change soviet union remain occupation one nation ignore world opinion call get take several measure meet challenge middle east middle east determination consolidate already achieve peace buttress accomplishment progress toward comprehensive peace remain central goal foreign policy pursuant peace treaty egypt israel make steady progress normalization relation variety field bring benefit peace directly people new relationship egypt israel stand example peaceful cooperation increasingly fragmented turbulent region president sadat prime minister begin remain committed current negotiation provide full autonomy inhabitant west bank gaza negotiation complex difficult already make significant progress vital two side assistance see process successful conclusion also recognize need broaden peace process include party conflict believe successful autonomy agreement essential first step toward objective also take number step strengthen bilateral relation israel egypt share important strategic interest country remain committed israel security prepare take concrete step support israel whenever security threaten persian gulf persian gulf vital crossroad trade europe asia many key moment history become essential recent year supply oil unite state ally friends take effective measure control consumption import fuel work cooperation key industrial nation world however little doubt healthy growth american world economy depend many year continue safe access persian gulf oil production denial oil supply would threaten world security potent new threat advance soviet union background regional instability take advantage require reinforce ability defend regional friend protect flow oil continue build strong political economic social humanitarian tie bind government american people friendly government people persian gulf also embark course reinforce trust confidence regional friend ability come assistance rapidly american military force need increased naval presence indian ocean create rapid deployment force move quickly indeed area world outside aggression threatens conclude several agreement country prepare let u use airport naval facility emergency meet request reasonable amount american weaponry regional country anxious defend discuss number area friends way help improve security short long term south asia seek south asia comprise sovereign stable state free outside interference strengthen political institution accord national genius develop economy betterment people soviet invasion afghanistan pose new challenge region particularly neighboring pakistan engage continue dialogue pakistan government concern development security requirement economic burden impose afghan refugee flee pakistan participate aid consortium member debt reschedule continue cooperate unhcr provide refugee assistance remain committed pakistan territorial integrity independence development broad southwest asian region also lend new importance relation india large strong power area share india interest constructive relationship indian policy perception time differ establish candid dialogue sister democracy seek avoid misunderstanding sometimes complicate tie attach major importance strong economic assistance program country area include majority poor world believe program help achieve stability area objective share country region great progress achieve country increase food production international cooperation harness great river resource south asia would contribute goal help increase energy production continue give high priority goal area context broad global regional priority decision continue supply nuclear fuel indian tarapur reactor sensitive effort africa united state achieve new level trust cooperation africa effort together ally achieve peace southern africa increase effort help poorest country africa combat poverty expand effort promote trade investment lead grow respect cooperation area vital interest unite state africa continent poor nation part also contain many mineral resource vital economy work africa spirit mutual cooperation help african nation solve problem poverty develop strong tie private sector african economy assistance africa double last four year equally important set motion new mechanism private investment trade nigeria large country black africa second large oil supplier unite state administration greatly expand improved relationship nigeria west african state whose aspiration constitutional democratic order share support interest manifest symbolically practically visit vice president mondale west africa july 1980 successful visit washington president nigeria october vice president mondale visit joint agricultural consultative committee establish represent entirely private sector could herald new role american private sector help solve world serious food shortage please say relation nigeria high provide foundation even strong relationship year ahead another tenet administration approach african problem encouragement support regional solution africa problem support initiative organization african unity solve protract conflict western sahara chad horn chad world watch dismay country torn devastate civil war become fertile field libya exploitation thus demonstrate threat peace come force within well without africa southern africa united state continue pursue policy encourage peaceful development toward majority rule 1980 southern rhodesia become independent zimbabwe multiracial nation system majority rule zimbabwean independence last april culmination long struggle within country diplomatic effort involve great britain african state neighbor zimbabwe united state focus effort pursuit majority rule southern africa turn namibia negotiation proceed among concerned party leadership un secretary general waldheim lead implementation un plan independence namibia 1981 negotiation successfully conclude year uncertainty status territory include war end common effort resolve zimbabwean namibian issue bring united state closer western britain france federal republic germany african state tanzania zambia mozambique angola botswana relation time past difficult success common undertakings demonstrates complex problem sometimes bitter bloody history resolve peacefully negotiation response active concern issue importance african african state cooperate u issue importance national interest african state vote overwhelmingly favor un resolution call release hostage un resolution condemn soviet invasion afghanistan two country africa signed access agreement allow u use naval air facility indian ocean african become increasingly vocal human right african leader spoken issue political prisoner oau draft charter human right three country ghana return civilian rule past year cooperation africa matter represent strong base build future year liberia country tie site considerable investment facility past april coup replace government period political economic uncertainty ensue act swiftly meet situation together african leader urge release political prisoner many release provide emergency economic assistance help avoid economic collapse help involve imf banking community bring economic stability work closely new leader maintain liberia strong tie west protect america vital interest north africa early 1979 follow libyaninspired commando attack tunisian provincial city respond promptly tunisia urgent request assistance airlift need military equipment make clear longstanding interest security integrity friendly country remain determined oppose irresponsible libyan aspiration despair productive dialogue libyan authority close embassy libya later expel six libyan diplomat washington order deter intimidation campaign libyan citizen relation algeria improve algeria play indispensable effective role intermediary iran hostage issue strengthen arm supply relationship morocco help deal attack inside internationally recognize frontier strengthen confidence seek political settlement western sahara conflict assume mediatory role encourage interested party turn energy peaceful sensible compromise resolution war sahara support effort organization african unity toward end year draw close encouraged evolution attitude side hopeful difference peacefully resolve year ahead vast economic potential north africa develop people live latin america caribbean principle policy hemisphere clear constant last four year support democracy respect human right struggle many help free region repression terrorism respect ideological diversity oppose outside intervention purely internal affair act though response request assistance country threaten external aggression support social economic development within democratic framework support peaceful settlement dispute strongly encourage regional cooperation share responsibility within hemisphere end eagerly regularly sought advice leader region wide range issue last november speak general assembly organization american state close right issue find time hemisphere mine alone historic movement endure riobamba ecuador last september four andean pact country costa rica panama break new ground adopt code conduct state joint action defense human right violate principle nonintervention internal affair state hemisphere organization american state twice condemn coup overturn democratic process bolivia widespread abuse human right regime seize power commission human right gain world acclaim dispassionate report complete two major country study year addition annual report resolution adopt without opposition oas general assembly november strongly support work commission american convention human right force court create judge human right violation convention pending senate two year hope united state year join nation hemisphere ratify convention embodies principles tradition trend favor democracy continue past year peru inaugurate democratically elected government brazil continue process liberalization central america honduran vote record number first national election eight year caribbean seven election return government firmly commit democratic tradition commonwealth another major contribution peace hemisphere latin america treaty prohibition nuclear weapon behalf united state sign protocol treaty may 1977 sent senate ratification urge act upon promptly senate order bring wide possible effect latin american region regional cooperation development gain central america andes throughout caribbean caribbean group cooperation economic development establish 29 nation 1977 help channel 750 million external support growth caribbean recent meeting chief state eastern caribbean set new precedent cooperation region mexico venezuela jointly trinidad tobago separately establish oil facility provide substantial assistance oil import neighbor peace treaty el salvador honduras hopefully stimulate central america move forward toward economic integration formation american action private sector organization give major impetus improve bond strengthen role private enterprise development democratic society panama treaty force year new partnership create panama model large small nation longstanding issue divide u neighbor resolve security canal enhance canal operating well ever traffic reach record level year canal employee american panamanian alike remain job find live work condition virtually unchanged 1980 relation mexico continue improve due large measure effectiveness coordinator mexican affair expand use consultative mechanism hold periodic meeting various work group able prevent mutual concern become political issue secretary state visit mexico city november along mexican secretary foreign relation review performance consultative mechanism office coordinator ensure implementation directive agency accord high priority mexican concern trade mexico rise almost 60 percent nearly 30 billion make country third large trading partner encourage development problem remain however impact migration affect many country hemisphere serious manifestation massive illegal exodus cuba last summer cuban government unilaterally encourage disorderly even deadly migration citizen complete disregard international law immigration law neighbor migration nature clearly require concerted action ask oas explore mean deal similar situation may occur future treaty colombia quita sueno roncador serrano remain ratified senate central america future nicaragua unclear recent tension restriction press political activity inordinate cuban presence country tragic kill security force businessman well know democratic orientation u considerable concern encourage development seek free society remain contest nation destiny ask u help rebuild country assistance demonstrate democratic nation intend abandon nicaragua cuban long intend pursue pluralistic goal play important role nicaragua deserve continue support el salvador support effort junta change fundamental basis inequitable system give stake new nation million people long live without hope dignity government struggle would restore old tyranny impose new one united state continue stand behind increase aid caribbean area vital national security continue build close relation base mutual respect understanding common interest nation hemisphere prepare move 1980 strike depth underlying commitment common principle peaceful settlement dispute cooperation development democracy defense basic human right leave office satisfy political economic social organizational basis progress respect principle substantially strengthen past four year particularly reassure leadership nation hemisphere advance principle success common task improve circumstance people nation hemisphere assure share responsibility look forward hemisphere end decade proven anew leader promotion national human dignity international economy grow defense effort vigorous foreign policy rest upon strong economy united state strength economy depend upon ability lead compete international marketplace energy last year war iraq iran lead loss nearly 4 million barrel oil world market third major oil market disruption past seven year crisis vividly demonstrate value lessen dependence oil import continue instability persian gulf area leadership unite state 21 member international energy agency take collective action ensure oil shortfall stem war would aggravate competition scarce spot market supply also work together see nation seriously affect oil key nato ally turkey get oil need recent iea ministerial meeting join member pledge take policy measure necessary slice joint oil import first quarter 1981 million barrel international cooperation effort energy field limit crisis management economic summit meeting tokyo venice head government seven major industrial democracy agree series tough energy conservation production goal work together ally friends effort construction begin commercial scale coal liquefaction plant west virginia united state japan west germany interagency task force report series measure need take increase coal production export report build work international energy agency coal industry advisory board assurances reliable united state steam coal supply reasonable price many electric power plant build 1980 1990 rather work cooperatively nation increase energy security area well joint research development ally underway solar energy nuclear power industrial conservation area addition assist rapidly industrialize nation carefully assess basic energy policy choice development assistance program help develop country increase indigenous energy production meet energy need poorest citizen support proposal new world bank energy affiliate end whose fulfillment contribute well global balance energy supply demand international monetary policy despite rapid increase oil cost policy measure take improve domestic economic performance continue powerful effect external account strength dollar strong dollar help fight inflation also considerable forward movement effort improve function international monetary system stability international system payment trade important stability good health economy give strong support innovative step take international monetary fund world bank help promote early adjustment difficult international economic problem recent agreement increase quota fifty percent ensure imf sufficient resource perform central role promote adjustment financing payment imbalance world bank new structural adjustment lending program also make important contribution international effort help country achieve sustainable level growth development sugar 1980 congress pass implement legislation international sugar agreement thus fulfil major commitment administration agreement important element international commodity policy farreaching implication relation develop country particularly sugar producer latin america producer consumer alike benefit stable market essential commodity coffee year end congress approve implementing legislation permit carry fully commitment international coffee agreement specifically legislation enable u meet part understand negotiate last fall among member agreement defend use export quota price range well coffee price previous year commit major coffee producer eliminate cartel arrangement manipulate future market raise price way open international coffee agreement help stabilize major world commodity market result positive less likely suffer sharp increase coffee undertake future investment assurance great protection disruptive price fluctuation export natural rubber 1980 international natural rubber agreement enter force provisionally membership new body approve overwhelmingly senate last year natural rubber agreement model kind make substantial contribution stable world market key industrial commodity thus excellent example constructive step improve operation world economy way benefit develop industrialized country alike particular agreement improve important relationship major natural country southeast asia common fund united state join member united nation conference trade development develop develop nation conclude article agreement 1980 common fund help international commodity agreement stabilize price raw material economic cooperation develop nation relation develop nation major importance united state fabric relation country strong economic political dimension constitute rapidly grow market export important source fuel raw material political view increasingly important demonstrate overwhelming condemnation soviet invasion afghanistan ability work together develop nation toward goal political independence resolution regional tension grow tie trade u maintain policy active involvement develop world pursue past four year action take area energy trade commodity international financial institution important welfare develop country another important way united state directly assist country demonstrate concern future multilateral bilateral foreign assistance program legislation submit fy 82 provide authority fund carry activity prompt congressional action legislation essential order attack high priority global problem food energy 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 propose fy 1982 bilateral development aid program directly responsive agreement reach 1980 venice economic summit major industrial nation increase aid food energy production family plan understand summit country plan similar response also important honor international agreement multilateral assistance authorize appropriate fund international financial institution multilateral program enhance efficiency u contribution combine many donor country promote development propose new world bank affiliate increase energy output develop country offer particular promise type aid benefit longrun economic political interest progress make number economic issue negotiation throughout un system however spite lengthy effort unite nation agreement reach launch process global negotiation nation might collectively work solve important issue energy food protectionism population pressure united state continue believe progress best make nation focus specific problem rather procedural institutional question continue work move dialogue constructive phase war hunger war hunger must continuous urgent priority major portion world population continue threaten specter hunger malnutrition past year 150 million people 36 african country face near disaster result serious drought induce food shortage government work concert un food agricultural organization fao help respond need problem hunger solve measure must continue support activity bilateral multilateral aim improve food production especially develop country assure global food security measure necessary maintenance stable healthy world economy pleased negotiation new food aid convention guarantee minimum annual level food assistance successfully conclude march establishment international emergency wheat reserve enable meet commitment new convention feed hungry people even time short supply immediate concern prospect million african threaten famine drought civil disturbance plea increase food aid result organization international pledging conference hopeful widespread starvation avoid good progress make since venice economic summit call increase effort front donor country begin assist poor country develop strategy improve food production world bank invest 4 billion next year improve grain storage capacity country prone food shortage 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 human right policy united state integral part overall foreign policy past several year policy serve national interest unite state several important way encourage respect government basic right human being promote peaceful constructive change reduces likelihood internal pressure violent change exploitation adversary thus directly serve interest peace stability match espousal fundamental american principle freedom specific foreign policy action stand vivid contrast ideological adversary effort expand freedom elsewhere render freedom nation secure country respect human right make strong ally well friend rather attempt dictate system government institution country support throughout world internationally recognize human right member united nation pledge respect one model satisfy continue human reach freedom justice 1980 year disappointment also see positive development ongoing struggle fulfillment human right throughout world year see free election hold democratic government instal peru dominica jamaica honduras hold free election installation constituent assembly interim government subsequently name point toward national presidential election 1981 brazil continue course political liberalization charter conduct sign riobamba ecuador ecuador colombia venezuela peru costa rica panama spain affirms importance democracy human right andean country organization american state annual general assembly approve resolution support human right commission work resolution take note commission annual report describe status human right chile el salvador paraguay uruguay special report argentina haiti describe human right condition investigate inspection country award nobel prize peace adolfo perez esquivel argentina advocacy human right unite state able rejoin international labor organization absence two year un body reform procedure return original purpose strengthen relation insure human right work people world united state course take credit various development take satisfaction know policy encourage perhaps influence see contradiction security humanitarian interest forget basis secure stable society bond trust government people profoundly believe future world find authoritarianism wear mask order totalitarianism wear mask justice instead let u find future human face democracy human voice individual liberty human hand economic development humanitarian aid united state continue play traditional role safehaven flee force flee home persecution war 1980 united state provide resettlement opportunity refugees country around globe addition united state join nation provide relief refugee country first asylum africa middle east asia great majority refugee admission continue indochina 1980 indochinese resettle united state although refugee population persist camp southeast asia refugee continue flee vietnam lao kampuchea flow great past one factor reduce flow vietnam successful negotiation commencement orderly departure program permit u process vietnamese resettlement united state direct departure h chi minh ville orderly fashion first group 250 depart vietnam united state december 1980 addition refugee admit last year unite state accept entry united state cuban expel fidel castro federal state authority well private voluntary agency respond unprecedented vigor cop unexpected influx cuban major relief effort aid refugee country first asylum continued several area world december 1980 nation meet new york city agree contribute 65 million continue famine relief program kampuchea due great part generosity american people leadership exercise international arena united state play pivotal role ameliorate massive suffering kampuchea united state take lead among group donor country provide relief two million refugee horn africa displace fight ethiopia assistance primarily somalia consist 35 million worth food 18 million cash kind united state effort large part credit keep hundred thousand people alive another major international relief effort mount pakistan united state one 25 country plus european economic community help government pakistan cope problem feeding shelter one million refugee generate soviet invasion afghanistan april 1980 congress pass refugee act 1980 bring together first time one piece legislation various thread policy towards refugees law lay new broad definition term refugee establish mechanism arrive level refugee admission consultation congress establish office united state coordinator refugee ignore destructive aggressive policy soviet union add immeasurably suffer three tragic situation 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 administration commit stem spread nuclear weapon nuclear proliferation would raise spectre use nuclear explosive crucial unstable region world endanger security ally whole world unilateral policy issue contention industrialize develop state international effort require support supplier well importer nuclear technology material proceed number front first seek encourage nation accede treaty also actively encouraging nation accept safeguard nuclear activity ask nuclear supplier adopt safeguard requirement condition future supply second international nuclear fuel cycle evaluation infce complete 1980 demonstrate supplier recipient work together technically complex sensitive issue difference remain infce effort provide broad international basis national decision must balance energy need concern finally work encourage regional cooperation restraint protocol treaty tlatelolco contribute lessen nuclear danger latin american neighbor ought ratify united state senate limitation strategic arm remain convinced salt ii treaty nation security interest would add significantly control nuclear weapon strongly support continuation salt process negotiation mutual restraint nuclear weaponry conclusion 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 16 1981