 And that's the ice. And then a couple of the people in Washington hopes I'm shoveling snow at 4.30 this morning. We need the door open. The biggest talk show in the country is it's all night long. It's all night long. Well, you're not up there. I got equated with him during the campaign, because I used to have to get up in the morning at 4.30 to get that plane up there. Los Angeles, while I was shaving, he would still be on the radio. Well, it would be great if he could go down to the show. It either has been or has done in several languages. So he suggested some of the space show. He'd done it in sequence. That's number two. It looks like a little shadow coming through on his upper lip. Here's a second. If you want to put this just one quick shadow. Well, may I? Yes, that show is the latest possible interest. Let me start by saying this budget conference is obviously in a great tangle and safe for Alice. So what I'm trying to do here is told you one of these meetings tomorrow on the next day is lay it out certain step-by-step on what's at issue and where the big differences are between the House and Senate to our options. I thought before we go into all the details we ought to keep in mind that the overall budget is just the context of the rental. The first point is that as a result of our agreeing with the Senate to zero, three, three on defense road over the next three years, that's brought our defense numbers down quite a bit more than we were before from the baseline we had prior. So we can say that without before any domestic spending has the baseline adapted now at least like $200 billion a year in 86 in the obvious. Is that right? Yeah, $200 billion after the defense adjustment assuming we can get zero, three, three out of the Congress and I think we're in a pretty good position to do that. I want to remind everybody that that $200 billion we're working on as opposed to the higher one when we had a credence assumes that we get 4% real economic growth each quarter over the next three years to find it out. Might have tightened you up a little bit. Well, listen we know how grueling your training has been but you're an inspiration to our young people that they can reach the top by striving for excellence and America will be cheering you again on the downhill the best of luck to you and now I wonder if your running mate there Christine Cooper is at hand. Well, bless you. Christine, listen I want to tell you all of us I've just been saying to Debbie we're all very thrilled back here we know the painful injury that you had to overcome and believe me a lot of people were holding their breath when you went around those gates on your way to the silver. Well, it certainly was and your silver medals I think under all the circumstances you're a real profiling courage. We have more than cut in half the increase over the projected Carter defense budget much more than half has been cut and the increase since we've been here has only been about three billion dollars a year over what he himself had proposed then and he was down in his spending he was down to five percent of gross national product for defense spending in the 1960s defense spending was ten percent of gross national product it was nine percent or eight percent in the 1970s and by 1979 it brought it down to five percent and we are holding it to seven percent you were getting laughs to you happy birthday Mr. President happy birthday to you and two days early aren't they coming fast enough without moving it up make a wish you should you should know what I'm wishing it's easy enough to guess sir now see you don't have to share that little one look what's there it's got football bladders in it blown up it's not it's for me no I said the cake well it says I love you and it says what more can I say happy birthday and then it says guess who but she already just gave it away well ladies and gentlemen the president of the united states good evening please be seated I have a a statement here we've been pleased to see mounting evidence of new strength in our economy by following policies of lower taxes and free and fair trade America has led the world with 33 straight months of growth and more than eight million new jobs inflation has been held under four percent meanwhile nations clinging to high taxes and protectionist policies have not only failed to match our performance they've lost jobs and seen their investment flow to the united states opportunity is our engine of progress so I'm asking congress to work with me and not against me to control federal spending to pass our fair share tax plan lowering rates further markets overseas and urge other nations to cut their high tax rates to strengthen their economies and ability to buy American products we've begun doing many good things for America these last four and a half years much remains to be done and can be done so let us not place all that progress all our hopes for the future at risk by starting down a slippery slope of impulsive acts and imprudent judgment this is a time for cool heads and clear vision and now my vision says that I should call on you Helen as you head towards the summit one of the big questions is whether you would be willing to explore the possibility of a trade off on these base weapons for big cuts in the Soviet arsenal and I'd like to follow up Helen no this is we're talking about the strategic defense initiative now I'm sorry that anyone ever used the Appalachian Star Wars for it because it isn't that it is purely to see if we can find a defensive weapon so that we can get rid of the idea that our deterrent should be the threat of retaliation whether from the Russians toward us or us toward them of the slaughter of millions of people by way of nuclear weapons and rather than that kind of negotiation I think at this summit meeting what we should take up is the matter of turning toward defensive weapons as an alternative to this just plain naked nuclear threat of each side saying we can blow up the other and this I would hope that if such a weapon proves practical that then we can realistically eliminate these horrible offensive weapons nuclear weapons entirely and I also have to point out that with regard to whether that would be a bargaining chip which I don't see it as that at all is the fact that the Soviet Union is already ahead of us in this same kind of research they have been doing it much longer than us seeking a defensive weapon also some individuals that haven't learned the lesson or haven't lived long enough to have been around when the Great Depression was on that's one of the advantages of being a kid my age Helen I'm sorry do you think the rose could be the national flower? but the rose by any other name smells so sweet like sweet friends ladies and gentlemen I'd plan to speak to you tonight to report on the state of the Union the events of earlier today have led me to change those plans today is a day for mourning and remembering Nancy and I are pain to the core but the tragedy of the shuttle challenger we know we share this pain with all the people of our country this is truly a national loss 19 years ago almost to the day we lost three astronauts in a terrible accident on the ground but we've never lost an astronaut in flight we've never had a tragedy like this and perhaps we've forgotten the courage it took for the crew of the shuttle but they the challenger seven were aware of the dangers but overcame them and did their jobs brilliantly we mourn seven heroes Michael Smith Robbie Judith Resnick Ronald McNair Allison Onizuka Gregory Jarvis and Christa McAuliffe we mourn their loss as a nation together the families of the seven we cannot bear as you do the full impact of this tragedy but we feel the loss and we're thinking about you so very much your loved ones were daring and brave and they had that special grace that special spirit that says give me a challenge and I'll meet it with joy they had a hunger to explore the universe and discover its truths they wished to serve and they did they served all of us we've grown used to wonders in this century it's hard to dazzle us but for 25 years the United States Space Program has been doing just that we've grown used to the idea of space and perhaps we forget that we've only just begun we're still pioneers they, the members of the Challenger crew were pioneers and I want to say something to the school children of America who were watching the live coverage of the shuttle's takeoff I know it's hard to understand but sometimes painful things like this happen it's all part of the process of exploration and discovery it's all part of taking a chance and expanding man's horizons the future doesn't belong to the faint hearted it belongs to the brave the Challenger crew was pulling us into the future and we'll continue to follow them I've always had great faith in and respect for our space program and what happened today does nothing to diminish it we don't hide our space program we don't keep secrets and cover things up we do it all up front and in public that's the way freedom is and we wouldn't change it for a minute we'll continue our quest in space there will be more shuttle flights and more shuttle crews and yes more volunteers more civilians, more teachers in space nothing ends here our hopes and our journeys continue I want to add that I wish I could talk to every man and woman who works for NASA or who worked on this mission and tell them that they have moved and impressed us for decades and we know of your anguish we share it there's a coincidence today on this day 390 years ago the great explorer Sir Francis Drake died aboard ship off the coast of Panama in his lifetime the great frontiers were the oceans and a historian later said he lived by the sea died on it and was buried in it well today we can say of the Challenger crew their dedication was like Drake's complete the crew of the space shuttle Challenger honored us by the manner in which they lived their lives we will never forget them nor the last time we saw them this morning as they prepared for their journey and waved goodbye and slipped the surly bonds of earth to touch the face of God thank you my fellow Americans thank you for joining Nancy and me on this festive evening the menorah stands lighted in Lafayette Park for this is also the time of Hanukkah and this season is rich in the meaning of our Judeo-Christian tradition in a moment we'll be lighting the national Christmas tree carrying forward what is now a 62 year tradition first begun by Calvin Coolidge tonight we're drawn in warmth to one another as we reflect upon the deeply holy meaning of the miracle we shall soon celebrate we know that Mary and Joseph reached the stable in Bethlehem sometime after sunset we do not know the exact moment the Christ child was born only what we would have seen if we'd been standing there we'd stand here now suddenly a star from heaven shining in our eyes shining with brilliant beauty across the skies a star pointing toward eternity in the night like a great ring of pure and endless light and then all was calm and all was bright and as we light this magnificent tree may all the youthful hope and joy of America light up the heavens and make the angels sing Merry Christmas and God bless you all and now we're going to light the tree Ladies and gentlemen the President of the United States and Mrs. Reagan Ladies and gentlemen the National Anthems of the Soviet Union and the United States of America Thank you for these talks for three days I'm going to wait for the meetings here and not offer any Do you think it is to break the step forward to sign this treaty? Oh yes, I believe it very much But would it be totally satisfied with that or would you like to make progress? Obviously we want to make progress I think both of us made that clear in the early morning Mr. Secretary Spokesman said that you are a man of surprises have you brought a surprise for President or have you brought a surprise concerning the arms negotiations? Well I don't think that policies are made with surprises Responsible policies particularly by countries such as the Soviet Union have to be well thought for and on the basis of that responsible decisions have to be taken What happened? Mr. President, I suggest that you hold your hands that you should take as a citizen of this I think we should United Kingdom of Great Britain and Northern Ireland and the United States of America Ladies and gentlemen please dinner in honor of Prime Minister Thatcher of the United Kingdom In 1952 when Winston Churchill had become Prime Minister of the Second Time and all the troubles of the Cold War including the hardships of re-arming the West were keenly felt he was having a meeting with a group of American journalists in New York In Martin Gilbert's extraordinary biography we find recorded these words from Churchill Lord Moran What a nation in history when it became supremely powerful as had no thought of territorial aggrandizement no ambition but to use its resources for the good of the world I marveled at America's altruism her sublime disinterestedness All at once I realized Lord Moran went on Winston was in tears his eyes were red his voice faltered Well Prime Minister Thatcher I think you can imagine how humbling it is for an American to read such an account such a tribute from Sir Winston a man so unselfish himself in pursuit of the cause of freedom a man who led Britain when Britain stood bravely and unselfishly alone has only a reminder of how deeply runs the mutual admiration on both sides of the Atlantic would you please stand to join me in expressing admiration and appreciation for Prime Minister Margaret Thatcher of the United Kingdom of Great Britain and Northern Ireland and in raising a toast to Her Majesty the Queen Let us not only recall Dr. King but rededicate ourselves to the commandments he believed in and sought to live every day now should love thy God with all thy heart and thy shall love thy neighbor as thyself and I just have to believe that all of us if all of us young and old Republicans and Democrats do all we can to live up to those commandments then we will see the day when Dr. King's dream comes true and in his words all of God's children will be able to sing with new meaning land where my father's died land of the pilgrim's pride from every mountainside let freedom ring thank you God bless you and I will sign it Thank you Mr. President Ladies and gentlemen the Vice President of the United States the Secretary of the Treasury James A. Baker III and the Chief of Staff to the President Donald T. Regan Ladies and gentlemen the President of the United States Thank you all please be seated thank you and welcome to the White House in a moment I'll be sitting at that desk taking up a pen and signing the most sweeping overhaul of tax code in our nation's history to all of you here today who've worked so long and hard to see this day come my thanks and the thanks of a nation go out to you the journey's been long and many said we'd never make it to the end but as usual the pessimists left one thing out out of their calculations the American people they haven't made this the freest country and the mightiest economic force on this planet by shrinking from challenges they never gave up and after almost three years of commitment and hard work one headline in the Washington Post told the whole story the impossible became the inevitable and the dream of America's fair share tax plan became a reality when I signed this bill into law America will have the lowest marginal tax rates and the most modern tax code among major industrialized nations one that encourages risk taking innovation and that old American spirit of enterprise I feel like we've just played the world series of tax reform and the American people won here seven years ago getting something new meet here tonight in this historic chamber to continue that work if anyone expects just a proud recitation of the accomplishments of my administration I say let's leave that to history we're not finished yet my message to you tonight is put on your work shoes, we're still on the job Mr. Speaker Mr. President I will say to you tonight what I've said before and will continue to say the budget process has broken down it needs a drastic overhaul with each ensuing year the spectacle before the American people is the same as it was this Christmas budget deadlines delayed or missed completely monstrous continuing resolutions that pack hundreds of billions of dollars worth of spending into one bill and a federal government on the brink of default I know I'm echoing what you here in the Congress have said because you suffered so directly but let's recall that in seven years of 91 appropriations bills scheduled to arrive on my desk by a certain date only ten made it on time last year of the 13 appropriations bills due by October 1st none of them made it instead we had four continuing resolutions 41 days then 36 days two days and three days respectively and then along came these behemoths this is the conference report 1,053 pages report weighing 14 pounds and then this a reconciliation bill six months late that was 1,186 pages long weighing 15 pounds and the long term continuing resolution this one was two months late and it's 1,057 pages long weighing 14 pounds that was a total of 43 pounds of paper and ink you had three hours yes three hours to consider each and it took 300 people my office of management budget just to read the bill so the government wouldn't shut down Congress shouldn't send another one of these what do you like Mr. President you get a great arm wrestle great as you know I really want to beat you you know that you're 16 one years close to and okay left hand and right arm okay ready go because you took a dive I didn't take no dive you ready thank you thank you my fellow Americans this has been a busy and eventful week for Nancy and me now that the summit and Geneva is behind us we need to look ahead and ask where do we go from here as I told Congress we've made a fresh start in US-Soviet relations every issue was on the table and our 15 hours of discussions were tough and lively throughout I got a better perspective from listening to General Secretary Gorbachev and I think he went home with a lot to think about too I plan to meet Mr. Gorbachev again next year in Washington but between now and then we have much work to do opportunities to address important problems of Soviet-American relations should not be squandered we must always be realistic about our deep and abiding differences but we should be working for progress wherever possible on arms control the Soviets after several years of resisting talks have now agreed that each side should cut nuclear arms by 50% in appropriate categories and in our joint statement we called for early progress on this directing the emphasis of the talks toward what has been the chief US goal all along deep equitable fully verifiable reductions in offensive weapons again it's wonderful to be home so until next week, thanks for listening God bless you and I should say first I believe that Tom Foley has been absolutely exact with the leadership has been fully supported with the Congress I think we're on the brink of a good agreement it's not the last word as you have already said that we will ever speak on the matter of vessel control but I think it's worthwhile and Bob Dole and others will have other suggestions that we generally ought to proceed but this is I think a good sound undertaking because worthy of bipartisan support I hope you feel so and that we can go forward with it Jim? I agree, they were worried how it would be exactly that way they were considered to be hard, long very hard to hard to make some choices but they worked out always I think we've got a lot of work to do