THE ATLANTIC ALLIANCE

In recognition of the threat which the Soviet invasion of Afghanistan posed

to Western interests in both Europe and Southwest Asia, NATO foreign and

defense ministers have expressed full support for U.S. efforts to develop a

capability to respond to a contingency in Southwest Asia and have approved

an extensive program to help fill the gap which could be created by the

diversion of U.S. forces to that region.

The U.S. has not been alone in seeking to maintain stability in the

Southwest Asia area and insure access to the needed resources there. The

European nations with the capability to do so are improving their own

forces in the region and providing greater economic and political support

to the residents of the area. In the face of the potential danger posed by

the Iran-Iraq conflict, we have developed coordination among the Western

forces in the area of the Persian Gulf in order to be able to safeguard

passage in that essential waterway.

Concerning developments in and around Poland the allies have achieved the

highest level of cohesion and unity of purpose in making clear the effects

on future East-West relations of a precipitous Soviet act there.

The alliance has continued to build on the progress of the past three years

in improving its conventional forces through the Long-Term Defense Program.

Though economic conditions throughout Europe today are making its

achievement difficult, the yearly real increase of 3 percent in defense

spending remains a goal actively sought by the alliance.

The NATO alliance also has moved forward during the past year with the

implementation of its historic December 1979 decision to modernize its

Theater Nuclear Force capabilities through deployment of improved Pershing

ballistic missiles and ground-launched cruise missiles in Europe. Our

allies continue to cooperate actively with us in this important joint

endeavor, whose purpose is to demonstrate convincingly to the Soviet Union

the potential costs of a nuclear conflict in Europe. At the same time, we

offered convincing evidence of our commitment to arms control in Europe by

initiating preliminary consultations with the Soviet Union in Geneva on the

subject of negotiated limits on long-range theater nuclear forces. Also,

during 1980 we initiated and carried out a withdrawal from our nuclear

weapons stockpile in Europe of 1,000 nuclear warheads. This successful

drawdown in our nuclear stockpile was a further tangible demonstration of

our commitment to the updating of our existing theater nuclear forces in

Europe.

In the NATO area, we continued to work closely with other countries in

providing resources to help Turkey regain economic health. We regretted

that massive political and internal security problems led the Turkish

military to take over the government on September 12. The new Turkish

authorities are making some progress in resolving those problems, and they

have pledged an early return to civilian government. The tradition of the

Turkish military gives us cause to take that pledge seriously. We welcomed

the reestablishment of Greece's links to the integrated military command

structure of the Atlantic Alliance--a move which we had strongly

encouraged--as a major step toward strengthening NATO's vital southern

flank at a time of international crisis and tension in adjacent areas.

Greek reintegration exemplifies the importance which the allies place on

cooperating in the common defense and shows that the allies can make the

difficult decisions necessary to insure their continued security. We also

welcomed the resumption of the intercommunal talks on Cyprus.

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