We must not face a future in which we can no longer help our friends, such as Angola, even in limited and carefully controlled ways.  We must not lose all capacity to respond short of military intervention.

Some hasty actions of the Congress during the past year—­most recently in respect to Angola—­were, in my view, very shortsighted.  Unfortunately, they are still very much on the minds of our allies and our adversaries.

A strong defense posture gives weight to our values and our views in international negotiations.  It assures the vigor of our alliances.  And it sustains our efforts to promote settlements of international conflicts.  Only from a position of strength can we negotiate a balanced agreement to limit the growth of nuclear arms.  Only a balanced agreement will serve our interests and minimize the threat of nuclear confrontation.

The defense budget I will submit to the Congress for fiscal year 1977 will show an essential increase over the current year.  It provides for real growth in purchasing power over this year’s defense budget, which includes the cost of the all-volunteer force.

We are continuing to make economies to enhance the efficiency of our military forces.  But the budget I will submit represents the necessity of American strength for the real world in which we live.

As conflict and rivalry persist in the world, our United States intelligence capabilities must be the best in the world.

The crippling of our foreign intelligence services increases the danger of American involvement in direct armed conflict.  Our adversaries are encouraged to attempt new adventures while our own ability to monitor events and to influence events short of military action is undermined.  Without effective intelligence capability, the United States stands blindfolded and hobbled.

In the near future, I will take actions to reform and strengthen our intelligence community.  I ask for your positive cooperation.  It is time to go beyond sensationalism and ensure an effective, responsible, and responsive intelligence capability.

Tonight I have spoken about our problems at home and abroad.  I have recommended policies that will meet the challenge of our third century.  I have no doubt that our Union will endure, better, stronger, and with more individual freedom.  We can see forward only dimly—­1 year, 5 years, a generation perhaps.  Like our forefathers, we know that if we meet the challenges of our own time with a common sense of purpose and conviction, if we remain true to our Constitution and to our ideals, then we can know that the future will be better than the past.

I see America today crossing a threshold, not just because it is our Bicentennial but because we have been tested in adversity.  We have taken a new look at what we want to be and what we want our Nation to become.

I see America resurgent, certain once again that life will be better for our children than it is for us, seeking strength that cannot be counted in megatons and riches that cannot be eroded by inflation.