PERSIAN GULF

The Persian Gulf has been a vital crossroads for trade between Europe and

Asia at many key moments in history. It has become essential in recent

years for its supply of oil to the United States, our allies, and our

friends. We have taken effective measures to control our own consumption of

imported fuel, working in cooperation with the other key industrial /

nations of the world. However, there is little doubt that the healthy

growth of our American and world economies will depend for many years on

continued safe access to the Persian Gulf's oil production. The denial of

these oil supplies would threaten not only our own but world security.

The potent new threat from an advancing Soviet Union, against the

background of regional instability of which it can take advantage, requires

that we reinforce our ability to defend our regional friends and to protect

the flow of oil. We are continuing to build on the strong political,

economic, social and humanitarian ties which bind this government and the

American people to friendly governments and peoples of the Persian Gulf.

We have also embarked on a course to reinforce the trust and confidence our

regional friends have in our ability to come to their assistance rapidly

with American military force if needed. We have increased our naval

presence in the Indian Ocean. We have created a Rapid Deployment Force

which can move quickly to the Gulf--or indeed any other area of the world

where outside aggression threatens. We have concluded several agreements

with countries which are prepared to let us use their airports and naval

facilities in an emergency. We have met requests for reasonable amounts of

American weaponry from regional countries which are anxious to defend

themselves. And we are discussing with a number of our area friends further

ways we can help to improve their security and ours, both for the short and

the longer term.

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