The central challenge for us today is to our steadfastedness 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.