 The only thing that would make me happier is if there were twice as many of you. There are here. It's good seeing you all again this week. When I was up on the Hill Tuesday night I appreciated very much your very warm welcome. I know it wasn't you that was reading the newspapers, but I'd like to salute Majority Leader Howard Baker and House Republican Leader Bob Michael for their leadership in the 97th Congress as well as their central role in development and enactment of our pressing policy initiatives this year. We have a great Republican leadership team in both houses. And we all know the severity of the problems that we face and the demand for bipartisan action. The key for that to happen is that all of us as Republicans work together and stick together. Now I know you've been hearing from Dave Stockman about the fiscal 84 budget. You didn't tell him that I would give all the details, did you? No, but there are several points that I'd like to make. First, the budget that I will submit on Monday is, as I referred to it the other night, it is fair, it is prudent, and it is realistic. Second, the goal is a sustained economic recovery with jobs for all who want to work. And I certainly think that in the last 24 hours we have heard news that indicates that those goals are reachable and we're on our way to them. The announcements last night of the automobile industry and the indefinite layoffs that are now being canceled, General Motors, the figure is 21,400 that they're recalling to work. I just talked to the governor of Missouri and there in St. Louis, Christ was bringing back about 2,500 for a plant there, but every one of the companies is increasing in the number of employees. But we have to get the runaway spending under control to bring the federal deficits down. And our 4-point budget freeze and reform plan will result in $558 billion in deficit reductions between 1984 and 1988. Without reducing the baseline deficits between $200 and $300 billion, we will threaten economic recovery. And third taken as a whole, the budget that I will propose for the next fiscal year will increase no more, as I said, than the rate of inflation. In other words, the federal government will hold the line on real spending. And fourth, our plan addresses with fairness the largest single cause of structural deficit problem. And that is the growth of the so-called uncontrollable spending programs that have increased by 400% since 1970. Fifth, we will adjust the program to restore America's defenses by proposing $55 billion in defense savings over the next five years, which Cap Weinberger assures us will not diminish our ability to negotiate arms reductions or endanger our security. I saw on television last night a former or a member of the former administration who was asked a single question and who said that we were spending unwisely and we didn't have a strategic plan. We have a strategic plan and we know exactly what we're doing. And what we're doing is trying to correct a situation that had been left over the preceding years that we were here that endangered this country's safety and had weakened us with regard to the feeling of dependency on us of our allies. They didn't believe any longer that we could be counted on. And I might point out also that the five-year budget program for defense that my predecessor had suddenly decided upon in the election year, we're looking at very closely because he couldn't buy the things that he said we needed for the figure that he put out as his budget figure. And we'll be able to substantiate that with some figures very shortly. But we have made reductions. We have already reduced more than that 55 billion up until this point so that every effort has been made and is continuing to be made to do that. But we do have a strategic plan that will meet the threatening points that we're faced with that will enable us to keep the seas open for the trade that we must have, the strategic metals, the energy sources and so forth that we're dependent on the sea lanes for. And we're going to, as I say, ensure the reduction and eventual elimination of deficits over the next several years. We're going to propose the other point that I know that many of you have questions about is the standby tax, which will be limited to no more than 1% already in the press. I've seen that suggested as 10%. It's a 1% that it would be of gross national product. It would not start until fiscal 86 and it would not start. It wouldn't last incidentally once in place for more than three years. And it would start only if the Congress has first approved the spending freeze and the budget control programs that we have suggested. It is an insurance policy for the future. It would also only be imposed. There are more conditions if the deficit or 86 was 2.5% or more above or of the gross national product. And also, we would have to be definitely beyond the point of in recovery from a recession because you don't add taxes when you're coming out of a recession as we are. And all of these things and others would have to be met before that tax would go into operation. And the seventh point is we will oppose any efforts to undo the basic tax reform that we've enacted, the third 10% installment and the indexing. Now, to those people who don't lay the blame for the situation of the recession on the deficits on defense, why they lay them on our tax cuts. Well, let me just tell you that our tax cuts reduced as they were over what we originally proposed and then increased by others who wanted to hang Christmas tree ornaments on the bill actually do little more than offset the tax increases, including bracket creep that had been set in place before we got here in 1977 and the tax changes then. As a matter of fact, if it were not for our tax cuts over these next several years to 1988, the people of America would have $750 billion more taken out of their pockets by the already in place tax cuts and bracket creep. And we have headed that off with what we've done. Have I said it correctly, Don? All right. I'm still getting used to billions instead of millions when I talk. But we must have those two continuing tax bills, I think, as a part of the recovery from recession. Now, let me conclude by saying that I recognize what we've accomplished during the past two years has been made possible in large measure by the leadership and the teamwork of the people that are gathered in this room. And I hope we will continue to stand together, to work together this year to assure a strong and sustained economic growth. I know that you're aware of the latest figures and the economic indicators that were released today for the eighth month out of the last nine. They're up once again. I should order by the gross a toy that was just given to me that I have on my desk. It is a little plastic model of the entrance to a tunnel with the railroad tracks converging as they go back toward the back end of the tunnel. And then you can touch a little switch and a little light goes on back there at the end of the tunnel. I think the light is on at the end of the tunnel, very much on. As a matter of fact, it's even halfway up toward the front. But I'm going to get down from here now and turn this podium over to at least Don Regan or were you still to finish? Secretary Don Regan, and I know they'll take your questions on this, but again, I just have to say, look at one major thing that we've accomplished in just these two years, all of us together. Those of you who have been here for a long time know that you spent most of your time when the Congress was in session fighting a rearguard action to head off expansion and further larding of the budget with their favorite social programs and additions to them. The entire debate in just these two years has turned around not to whether we will cut spending, but by how much. And I think that's quite an achievement, and we haven't seen that kind of debate in this country for several decades. So let's recognize what we've done and stay with it because we can do even more.