 Call the city desk. I got a story that'll crack this town-wide open My fellow Americans during the campaign two years ago I spoke of the need for the United States to restore the balance in our relationship with the Soviet Union For too many years we'd stood still while the Soviets increased their military strength and expanded their influence from Afghanistan to Ethiopia and beyond I Expressed a belief which you seem to share that it was time for the United States to chart a new course Since then we've embarked upon a build-up of our defense forces in order to strengthen our security and in turn to strengthen the prospects for peace We still have a long way to go But the fact that we've started on a new course has enabled us to propose the most comprehensive set of proposals for arms reduction and control In more than a quarter of a century It's always been my belief that if the Soviets knew we were serious about maintaining our security They might be more willing to negotiate seriously at the bargaining table In the near future, I'll be speaking to you in more detail about this matter of arms control and more importantly arms reductions But right now I have something in the nature of news. I'd like to bring you The balance between the United States and the Soviet Union cannot be measured in weapons and bombers alone To a large degree the strength of each nation is also based on economic strength Unfortunately, the West's economic relations with the USSR have not always served the national security goals of the alliance The Soviet Union phases serious economic problems But we and I mean all of the nations of the free world have helped the Soviets avoid some hard economic choices By providing preferential terms of trade by allowing them to acquire militarily relevant technology And by providing them a market for their energy resources even though this creates an excessive dependence on them By giving such preferential treatment we've added to our own problems Creating a situation where we have to spend more money on our own defense to keep up with Soviet capabilities Which we helped create Since taking office I have emphasized to our allies the importance of our economic as well as our political relationship with the Soviet Union In July of 1981 at the economic summit meeting in Ottawa, Canada I expressed to the heads of state of the other major Western countries and Japan my belief that we could not continue Conducting business as we had I Suggested that we forge a new set of rules for economic relations with the Soviet Union which would put our security concerns for most I wasn't successful at that time in getting agreement on a common policy Then in December of 1981 the Polish government at Soviet instigation Imposed martial law on the Polish people and outlawed the Solidarity Union This action showed graphically that our hopes for moderation in Soviet behavior We're not likely to be fulfilled In response to that action I imposed an embargo on selected oil and gas equipment to demonstrate our strong opposition to such actions and To penalize this sector of the Soviet economy which relies heavily on high technology Much of it from the United States In June of this year. I extended our embargo to include not only us companies and their products But subsidiaries of us companies abroad and on foreign licensees of us companies Well, it's no secret that our allies didn't agree with this action We stepped up our consultations with them in an effort to forge an enduring realistic and security-minded economic policy toward the Soviet Union These consultations have gone on over a period of months Well, I'm pleased today to announce that the industrialized democracies have this morning Reached substantial agreement on a plan of action The understanding we've reached demonstrates that the western alliance is fundamentally united And intends to give consideration to strategic issues When making decisions on trade with the ussr As a result, we have agreed not to engage in trade arrangements Which contribute to the military or strategic advantage of the ussr Or serve to preferentially aid the heavily militarized soviet economy In putting these principles into practice We will give priority attention to trade in high technology products Including those used in oil and gas production We will also undertake an urgent study of western energy alternatives As well as the question of dependence on energy imports from the soviet union In addition, we've agreed in the following immediate actions First, each partner has affirmed that no new contracts for the purchase of soviet natural gas Will be signed or approved during the course of our study of alternative western sources of energy Second, we and our partners will strengthen existing controls on the transfer of strategic items To the soviet union Third, we will establish without delay procedures for monitoring financial relations with the soviet union And will work to harmonize our export credit policies The understanding we and our partners have reached and the actions we are taking Reflect our mutual determination to overcome differences and strengthen our cohesion I believe this new agreement is a victory for all the allies It puts in place a much needed policy in the economic area To complement our policies in the security area As I mentioned a moment ago, the united states imposed sanctions against the soviet union In order to demonstrate that their policies of oppression would entail substantial costs Well, now that we've achieved an agreement with our allies Which provides for stronger and more effective measures There is no further need for these sanctions And I am lifting them today The process of restoring a proper balance in relations with the soviet union is not ended It will take time to make up for the losses incurred in past years But acting together we and our allies are making major progress And I'm happy to say the prospects for peace are brighter I have just returned to the white house from the soviet embassy Where I signed the book of condolence for president brezhnev New leaders are coming to power in the soviet union If they act in a responsible fashion they will meet a ready and positive response in the west Till next saturday at the same time Goodbye and god bless you