As the leader of the West and as a country that has become great and rich because of economic freedom, America must be an unrelenting advocate of free trade.  As some nations are tempted to turn to protectionism, our strategy cannot be to follow them, but to lead the way toward freer trade.  To this end, in May of this year America will host an economic summit meeting in Williamsburg, Virginia.

As we begin our third year, we have put in place a defense program that redeems the neglect of the past decade.  We have developed a realistic military strategy to deter threats to peace and to protect freedom if deterrence fails.  Our Armed Forces are finally properly paid; after years of neglect are well trained and becoming better equipped and supplied.  And the American uniform is once again worn with pride.  Most of the major systems needed for modernizing our defenses are already underway, and we will be addressing one key system, the MX missile, in consultation with the Congress in a few months.

America’s foreign policy is once again based on bipartisanship, on realism, strength, full partnership, in consultation with our allies, and constructive negotiation with potential adversaries.  From the Middle East to southern Africa to Geneva, American diplomats are taking the initiative to make peace and lower arms levels.  We should be proud of our role as peacemakers.

In the Middle East last year, the United States played the major role in ending the tragic fighting in Lebanon and negotiated the withdrawal of the PLO from Beirut.

Last September, I outlined principles to carry on the peace process begun so promisingly at Camp David.  All the people of the Middle East should know that in the year ahead we will not flag in our efforts to build on that foundation to bring them the blessings of peace.

In Central America and the Caribbean Basin, we are likewise engaged in a partnership for peace, prosperity, and democracy.  Final passage of the remaining portions of our Caribbean Basin Initiative, which passed the House last year, is one of this administration’s top legislative priorities for 1983.

The security and economic assistance policies of this administration in Latin America and elsewhere are based on realism and represent a critical investment in the future of the human race.  This undertaking is a joint responsibility of the executive and legislative branches, and I’m counting on the cooperation and statesmanship of the Congress to help us meet this essential foreign policy goal.

At the heart of our strategy for peace is our relationship with the Soviet Union.  The past year saw a change in Soviet leadership.  We’re prepared for a positive change in Soviet-American relations.  But the Soviet Union must show by deeds as well as words a sincere commitment to respect the rights and sovereignty of the family of nations.  Responsible members of the world community do not threaten or invade their neighbors.  And they restrain their allies from aggression.