There has been in fact a great strategic change in the world during the past year.  That precious intangible, the initiative, is becoming ours.  Our policy, not limited to mere reaction against crises provoked by others, is free to develop along lines of our choice not only abroad, but also at home.  As a major theme for American policy during the coming year, let our joint determination be to hold this new initiative and to use it.

We shall use this initiative to promote three broad purposes:  First, to protect the freedom of our people; second, to maintain a strong, growing economy; third, to concern ourselves with the human problems of the individual citizen.

Only by active concern for each of these purposes can we be sure that we are on the forward road to a better and a stronger America.  All my recommendations today are in furtherance of these three purposes.

I. FOREIGN AFFAIRS

American freedom is threatened so long as the world Communist conspiracy exists in its present scope, power and hostility.  More closely than ever before, American freedom is interlocked with the freedom of other people.  In the unity of the free world lies our best chance to reduce the Communist threat without war.  In the task of maintaining this unity and strengthening all its parts, the greatest responsibility falls naturally on those who, like ourselves, retain the most freedom and strength.

We shall, therefore, continue to advance the cause of freedom on foreign fronts.

In the Far East, we retain our vital interest in Korea.  We have negotiated with the Republic of Korea a mutual security pact, which develops our security system for the Pacific and which I shall promptly submit to the Senate for its consent to ratification.  We are prepared to meet any renewal of armed aggression in Korea.  We shall maintain indefinitely our bases in Okinawa.  I shall ask the Congress to authorize continued material assistance to hasten the successful conclusion of the struggle in Indo-china.  This assistance will also bring closer the day when the Associated States may enjoy the independence already assured by France.  We shall also continue military and economic aid to the Nationalist Government of China.

In South Asia, profound changes are taking place in free nations which are demonstrating their ability to progress through democratic methods.  They provide an inspiring contrast to the dictatorial methods and backward course of events in Communist China.  In these continuing efforts, the free peoples of South Asia can be assured of the support of the United States.

In the Middle East, where tensions and serious problems exist, we will show sympathetic and impartial friendship.

In Western Europe our policy rests firmly on the North Atlantic Treaty.  It will remain so based as far ahead as we can see.  Within its organization, the building of a united European community, including France and Germany, is vital to a free and self-reliant Europe.  This will be promoted by the European Defense Community which offers assurance of European security.  With the coming of unity to Western Europe, the assistance this Nation can render for the security of Europe and the free world will be multiplied in effectiveness.