As a result of those fundamental facts, we face some of the most serious challenges in the history of this nation.  The Soviet invasion of Afghanistan is a threat to global peace, to East-West relations, and to regional stable flow of oil.  As the unprecedented relations, an and overwhelming vote in the General Assembly demonstrated, countries across the world, and particularly the nonaligned, regard the Soviet invasion as a threat to their independence and security.  Turmoil within the region adjacent to the Persian Gulf poses risks for the security and prosperity of every oil importing nation and thus for the entire global economy.  The continuing holding of American hostages in Iran is both an affront to civilized people everywhere, and a serious impediment to meeting the self-evident threat to widely-shared common interests, including those of Iran.

But as we focus our most urgent efforts on pressing problems, we will continue to pursue the benefits that only change can bring.  For it always has been the essence of America that we want to move on, we understand that prosperity, progress and most of all peace cannot be had by standing still.  A world of nations striving to preserve their independence, and of peoples aspiring for economic development and political freedom, is not a world hostile to the ideals and interests of the United States.  We face powerful adversaries, but we have strong friends and dependable allies.  We have common interests with the vast majority of the world’s nations and peoples.

There have been encouraging developments in recent years, as well as matters requiring continued vigilance and concern: 

—­Our alliances with the world’s most advanced and democratic states from Western Europe through Japan are stronger than ever.

—­We have helped to bring about a dramatic improvement in relations between Egypt and Israel and an historic step towards a comprehensive Arab-Israeli settlement.

—­Our relations with China are growing closer, providing a major new dimension in our policy in Asia and the world.

—­Across southern Africa from Rhodesia to Namibia we are helping with the peaceful transition to majority rule in a context of respect for minority as well as majority rights.

—­We have worked domestically and with our allies to respond to an uncertain energy situation by conservation and diversification of energy supplies based on internationally agreed targets.

—­We have unambiguously demonstrated our commitment to defend Western interests in Southwest Asia, and we have significantly increased our ability to do so.

—­And over the past four years the U.S. has developed an energy program which is comprehensive and ambitious.  New institutions have been established such as the Synthetic Fuels Corporation and Solar Bank.  Price decontrol for oil and gas is proceeding.  American consumers have risen to the challenge, and we have experienced real improvements in consumption patterns.