 I don't grant my whole friends and I deserve to hear what a letter it is for Nancy and me to be her host this year this afternoon. You were really supportive after all. And it must have about to hold our second meeting at this particular location. Meeting, an office. This administration, your administration has made some important progress along that new course. The budget conference report passed April 4th yesterday by the House passed the Senate 54-45. The resolution reflects a course of declining deficits all of the closer. And that means we're closer to living within our means. We can look forward to reducing that trillion dollar debt from building up for the last 40 years and deleting that is a very deeply held personal dream of mine. That first installed to occur in more each aspect. But passing this resolution is not like waving a magic wand. We in government now prove we mean what we promise. We can live up to the standards that we set. And there will be other crucial votes in the important test before we be sure that the budget monster is really under control. Because unlike in California when you passed that was it. Now I understand here in Washington it's just a resolution. And the committees will start sending out appropriation bills. And, well, I got a veto in just waiting. These votes anyway were another important victory for the cause of fiscal sanity. In addition to cutting the rate of growth of spending we promised to do in 1980. We also cut tax rates in a few days. Why American workers will get their second and first meaningful instalment of tax cut. July 1st at 10%. And of course our three year 25% across the board. Tax rate cut only lessens the increase in the taxes that were passed. Now before we got here the biggest single tax increase in history was a little bit like spending. We're not actually cutting to less spending than there was the year before. We're just cutting increases yet. We'll get down there. I believe the tax program will return and send it an opportunity to the marketplace and help lead our people out of this recession. It was once wisely said that what the government gives it must first take away. I'd like to add that the government also not only takes it away to spend, that skins a little carry the charge off at the top. And last 20 years our government's gone even further. It spent more, so it taxed more and then it spent more even than it was taxing. Between 1976 and 1981 taxes went up 300 billion dollars. And the deficits in that period went up 318 which I think is a pretty good answer to those 10 that you concurred the deficits by raising taxes. We don't have a trillion dollar debt because we don't tax enough. We don't have a trillion dollar debt because we spend too much. We made pretty good also so far with a tax force under Vice President George Bush with regard to regulations, some of those regulations we used to talk about in the campaign and the unnecessariness of 23,000 pages of the federal registry that's been eliminated lists those regulations. And the latest development of this tax force, we have reduced the amount of paperwork involved in the people by 100 million man-analysts. So that's a lot. Some of these things have been done in a year old that they put into effect. Saving trade has increased. Real wages are showing a positive growth for the first time in three years. Real sales continue to be increased. The best news of all is the inflation rate. After back to back years of double digit inflation before we took office, today inflation is and has been with the last six running at an annual rate of 3.7 percent. Hadn't been to the month of May it would have been 2.8 percent. The month of May it was a little squirt with those gasoline prices and so forth. But I have an idea that I'm preaching to the choir here. I'm going to stop speaking to you and start talking with you. Both of us are. We want you to know that this administration remains committed to that economic program and the values and the ideals that were the essence of the 1980 campaign. I still believe there's nothing wrong with the health of the American spirit and the strength of the American will. The American people didn't fail the system. Too many of our leaders failed the people. We here continue to support that of the American people. I believe we can and will lead this country to greatness once again. Well, it's been good to welcome the Prime Minister to Washington even if for only an afternoon's visit. I was delighted that we could continue our conversations from Paris, London and Bonn on the whole host of issues where our cooperation is so close. In that connection, incidentally, I know that we have now met four times in this month in as many cities. It's customary when two political figures get together to describe their talks as far-ranging. But in our case that statement is both figuratively and literally true. I'm going to have to check the history books but four separate meetings in four different places in less than four weeks may well be unprecedented in our bilateral relations. Seriously, I did have as I always do an exceptionally useful discussion with the Prime Minister which covered a number of critical issues. The fighting in the South Atlantic has stopped since we last met. We believe that a fundamental principle of international society that forced not be used to settle disputes was at stake in that conflict. We also discussed other issues including a number of economic questions, the future of East-West relations and the crucial role played by the events in Poland. We share the commitment to arms control negotiations with the Soviet Union. We also agree that the work accomplished at the two summit meetings in which we participated earlier this month, Versailles and Bonn, demonstrated anew the vitality and cohesion of the Western democracies. Clearly, there's much more in our free and pluralistic societies that unites us than divides us and that's our major strength when we face a determined and totalitarian adversary. With respect to the tragic situation in the Middle East, we consulted about what we could do to promote a lasting and just peace in that region that's so important to us, especially in Lebanon and to bring an end to the human suffering there. The Prime Minister has come to us at a particularly auspicious moment. The birth of an heir to the throne of the United Kingdom and we have every hope that she will carry back to London our fondest good wishes, those of the American people, Nancy and myself, to their royal highnesses, the prince and princess of Wales and to their little son. And so we're most grateful to you for making the extra effort to come down here and see us. Mr President, can I just add a few words to what the President has already said? I was very anxious to come and talk to the President so that we could get up to date with a number of things that have happened since we last met on his very highly successful visit to Europe and his particularly successful visit to Britain. As he pointed out since then, the fighting in the Falkland Islands has been concluded which was a tremendous relief to us all and we hope that things will steadily continue to improve there. We've also discussed matters as such as the Lebanon where there is a great tragedy taking place which is of concern to us all and naturally of course we discuss East-West matters and a number of economic things. I've just noticed today that in some of the questions I have been asked by some of you ladies and gentlemen and some others there's often been a little bit of an attempt to try to indicate some differences either between the United States and Britain or some sort of attempt to divide us on some things. I can only report to you that those attempts will never succeed because we can't be divided. Our relationship and the alliance is far too staunch and far too deep for that. I'm just very grateful too for what the President said about the new royal birth. It does indicate the great continuity that there is in Britain. The tremendous patriotism which one gets in almost all countries but it's a patriotism in a way of the kind we have here in the States as well. Not only love of your country because you belong to it but because it stands for certain things and it's those that makes you patriotic. I will of course take back your very warm message to our people and I'm certain they'll be delighted with your good wishes. Now I think ladies and gentlemen that I'm due to be cross-examined by a number of you elsewhere. I look forward to that and I hope you do too. And thank you Mr. President for your warm hospitality and for the opportunity of talking to you. Well, I sure will. This is a photo opportunity Sam, fall back on that. I think that we've made our position plain and clear what we've tried to do there. But very grateful to the President for everything they've done to help. Thank you very much. Thank you. And love to Nancy. Thank you so much for making this possible. All right now.