‘Everything We Had Hoped to Accomplish’

Here are excerpts from the prepared text of President Reagan’s speech Monday night:

I’ve just returned from Venice, Italy, where I met with the leaders of the other six industrialized democracies for our yearly economic summit.

You’ve been hearing and reading reports that nothing was really accomplished at the summit, and the United States in particular came home empty-handed. This was my seventh summit and the seventh time I’ve heard that same chorus.

The truth is we came home from this summit with everything we had hoped to accomplish. And tonight I want to report to you on decisions made there that directly affect you and your children’s economic future.

I also have a special message, one that is about our own economy; about actions that could jeopardize the kind of progress we made toward economic health last week in Venice as well as the prosperity that during the last six years all of us here in America have worked so hard to achieve. . . .

Last week in Venice, I saw overwhelming evidence that (a) consensus for less government and more personal freedom continues to grow throughout the world.

Third World Development

Indeed, part of our official discussions were about how to encourage economic development in the less affluent nations of the world and help the millions of people in developing nations achieve higher standards of living and more productive economies.

And let’s remember that this international movement towards economic freedom has made a very real difference in the daily lives of each of us here in America.

All of us can remember only a few years ago when government taxation was consuming more and more of the take-home pay of American workers at the very moment that double-digit inflation was eating up savings and becoming a special burden on the poor and the elderly.

Today, in contrast, we are now in our 54th month of economic growth. . . .

Obviously, keeping this kind of progress going on at home was very much on my mind in Venice.

That’s why I was pleased with many of the decisions we made there: In addition to reaffirming the broad consensus for economic growth, we agreed to continue working against trade barriers like high tariffs that over the long run shrink world markets, stop growth, and reduce the number of new jobs. . . .

I was particularly gratified, for example, for the support our allies gave to our Persian Gulf policy; it was extended without hesitation. . . .

In fact, . . . Britain has committed a higher proportion of its fleet to the gulf than we have, and since January has provided protection to over 100 U.K. flag vessels. France, too, has committed naval strength to the gulf.

(West) Germany and Japan, while they can’t constitutionally deploy military forces, are also working actively to seek other ways to be helpful.

Our own role in the gulf is vital. . . . Our immediate task . . . is to escort U.S. flag vessels, a traditional role for the Navy, and one which it has carried out in the gulf as well as in other areas.

Most recently, there has been some controversy about 11 new U.S. flag vessels that have been added to our merchant fleet.

Let there be no misunderstanding: We will accept our responsibility for these vessels in the face of threats by Iran or anyone else.

If we fail to do so--simply because these ships previously flew the flag of another country, Kuwait--we would abdicate our role as a naval power. . . .

Our current dealings with the Soviet Union were also discussed in Venice--and I think every American can be gratified by the sense of unity and support our allies expressed.

As most of you know, we are currently engaged in highly sensitive negotiations with the Soviets that could lead to an historic arms reduction treaty on intermediate-range missiles or INF.

This matter was also discussed last week with the NATO foreign ministers in Iceland. I have received Secretary (of State George P.) Shultz’s report on his NATO meeting, and I am pleased to tell you that we and our allies have reached full consensus on our negotiating position. . . .

Tonight, I can tell you that, with the support of our allies, the United States will . . . formally propose to the Soviet Union the global elimination of all U.S. and Soviet land-based, shorter-range INF missiles--along with the deep reductions in--and we hope the ultimate elimination of--longer-range INF missiles. . . .

There was also strong agreement in Venice on the importance of pressing the Soviet Union for progress on other important arms negotiations, such as our effort to cut 50% in strategic forces. So, too, we were agreed on the need for Soviet progress in the human rights area as well as regional conflicts, especially Afghanistan. . . .

But, while I can report to you tonight that our work on these issues in Venice was productive, honesty compels me to tell you about one disturbing topic in our discussions there: And that was the continuing threat of deficit spending.

Frankly, I have to tell you, too, that I felt among the other six summit leaders a sense of unease about America’s commitment to a consistent, enforceable plan to reduce our deficits. . . .

I share their concern.

. . . In the critical match-up between those who want to keep spending your money and raising your taxes, and those of us who resist a return to the old policies of “tax and tax, spend and spend”--we have now reached breakpoint.

That’s why I’ve made a personal decision to do something no President should ever hesitate to do when he must. And that’s go to you, the American people, put the facts before you.

The congressional budget process, supposedly overhauled in 1974 and again in 1985, isn’t working.

Months ago, I sent the Congress a responsible budget that met this year’s deficit targets while it provided for our national security needs, addded funds for critical domestic concerns such as AIDS and air safety, and kept the appetite for federal spending under control.

But instead of acting on it, Congress ignored that budget and is considering a plan that in terms of our GNP, sharply reduces defense spending over the next few years back to the dangerous levels of the late 1970s, a plan that also cripples our security assistance and economic cooperation efforts overseas.

Wasteful Spending

And what’s happened to that restraint on wasteful domestic spending solemnly promised under Gramm-Rudman-Hollings? It vanished.

And to pay for this lapse of faith you, the taxpayers, are going to be saddled with an approximately $100 billion bill over the next four years.

If this trend isn’t stopped--and stopped now--we stand to lose all the progress on the economic front we have made. . . .

Here’s what we need to do.

First, together, with the Congress, we must reform the budget process--to stop all the delays and missed deadlines and broken commitments.

We can start by getting the Congress to vote . . . on an amendment to the Constitution that will . . . mandate under the law a balanced budget.

Second, I need your immediate help in pressing your representatives in the Congress to agree to a responsible deficit reduction package and to stay with it.

I pledge to you I will use my veto power to stop big spending bills which exceed the Gramm-Rudman-Hollings targets. . . .

Third, there’s something else I hope you’ll ask for--the line-item veto. The president should have what the governors of 43 states use to stop this sort of fiscal nonsense . . .