‘Second revolution’ foreseen

Press, 8 February 1985, Page 6

‘Second revolution’ foreseen

NZPA-AFP Washington The President of the United States, Mr Ronald Reagan, in his annual State of the Union address, has outlined his vision of “a second American revolution” with a nation powerful economically, scientifically, and militarily. Mr Reagan, who celebrated his seventy-fourth birthday yesterday, described America as a “great industrial giant reborn”. He then promised Americans a more streamlined Administration, a fairer tax system, and said that he would move towards balancing the Budget, earmark record funds for research and development, and put a permanently manned laboratory in space. He told a joint session of Congress that America’s determination to maintain a strong defence had brought the Soviet Union back to the arms bargaining table.

He also reaffirmed his faith in his “star wars” strategic defence initiative and said, “let’s get started” on it. Mr Reagan opened his speech by recalling the economic progress the United States had made with “25 straight months of economic growth, the strongest in 34 years . . .' 3.9 per cent inflation . . . and 7.3 million new jobs”. He described America’s economic success as freedom’s success, which could be repeated in a hundred different nations. “Many countries in East Asia and the Pacific have few resources other than the enterprise of their own people.. But through low tax rates and free markets they have soared ahead of centralised economies. And now China is opening up its economy to meet its needs.” He issued a warning against protectionism and

urged all America’s trading partners to begin a new round of trade talks next year to expand trade and

competition to strengthen the global economy. Mr Reagan described the success of the space shuttle and said, “We are going to develop a permanently manned space station. In the next decade Americans and our friends will work together in space.” “The ‘star wars’ defence programme is the most hopeful possibility of the nuclear age. Some say it will bring war to the heavens, but its purpose is to deter war. Some say the research will take a long time. The answer to that is, ‘Let’s get started’.”

The Soviets already had strategic defences that surpassed America’s. He said that America had to stand by its allies. “We must not break faith with those risking their lives on

every continent from Afghanistan to Nicaragua, to defy Soviet-supported aggression.” On internal affairs Mr Reagan called for a fairer tax system to release the nation’s growth potential and said that a “tax bill for fairness” could be passed within a year. He repeated his oft-stated belief that the best way to cut deficits was through economic growth, not by raising taxes. To achieve a balanced Budget “we must lighten the Government’s claim on our total economy”, he said. “The 1986 Budget must not be one dime higher than fiscal 1985.” He said that there would

be a slow-down in the social security budget (Medicare) and that there would be no relaxation in United States efforts to restore its military strength. He said that defence spending plans had

been trimmed ?USIOO million ($213 million) over the last four years and now represented only a third of the Federal Budget. He also wanted costly Government subsidies: eliminated. He welcomed what he saw as a spiritual renewal evidenced in America through increased churchgoing and offers by young people to work voluntarily overseas. He condemned abortion and asked Congress to introduce legislation to protect the unborn. Violent crime had “threatened the sense of national well-being,” he said. “Shouldn’t we feel more compassion for victims of crime than for those who commit crime?” He also said that “Our alliances are stronger than ever, our economy is stronger than ever.” America had resumed its historic role as a leader of the free world, he said.