The continuing Soviet occupation of Afghanistan and the dislocations caused by the Iraq-Iran war serve as constant reminders of the critical importance for us, and our allies, of a third strategic zone stretching across the Middle East, the Persian Gulf, and much of the Indian subcontinent.  This Southwest Asian region has served as a key strategic and commercial link between East and West over the centuries.  Today it produces two-thirds of the world’s oil exports, providing most of the energy needs of our European allies and Japan.  It has experienced almost continuous conflict between nations, internal instabilities in many countries, and regional rivalries, combined with very rapid economic and social change.  And now the Soviet Union remains in occupation of one of these nations, ignoring world opinion which has called on it to get out.

We have taken several measures to meet these challenges.

MIDDLE EAST

In the Middle East, our determination to consolidate what has already been achieved in the peace process—­and to buttress that accomplishment with further progress toward a comprehensive peace settlement—­must remain a central goal of our foreign policy.  Pursuant to their peace treaty, Egypt and Israel have made steady progress in the normalization of their relations in a variety of fields, bringing the benefits of peace directly to their people.  The new relationship between Egypt and Israel stands as an example of peaceful cooperation in an increasingly fragmented and turbulent region.

Both President Sadat and Prime Minister Begin remain committed to the current negotiations to provide full autonomy to the inhabitants of the West Bank and Gaza.  These negotiations have been complex and difficult, but they have already made significant progress, and it is vital that the two sides, with our assistance, see the process through to a successful conclusion.  We also recognize the need to broaden the peace process to include other parties to the conflict and believe that a successful autonomy agreement is an essential first step toward this objective.

We have also taken a number of steps to strengthen our bilateral relations with both Israel and Egypt.  We share important strategic interests with both of these countries.

We remain committed to Israel’s security and are prepared to take concrete steps to support Israel whenever that security is threatened.

PERSIAN GULF

The Persian Gulf has been a vital crossroads for trade between Europe and Asia at many key moments in history.  It has become essential in recent years for its supply of oil to the United States, our allies, and our friends.  We have taken effective measures to control our own consumption of imported fuel, working in cooperation with the other key industrial / nations of the world.  However, there is little doubt that the healthy growth of our American and world economies will depend for many years on continued safe access to the Persian Gulf’s oil production.  The denial of these oil supplies would threaten not only our own but world security.