I recently submitted to the Congress my proposals to reorganize the Federal

energy structure and the hard choices which remain if we are serious about

reducing our dependence upon foreign energy. These include programs to

reverse our declining production of natural gas and increase incentives for

domestic crude oil production. I proposed to minimize environmental

uncertainties affecting coal development, expand nuclear power generation,

and create an energy independence authority to provide government financial

assistance for vital energy programs where private capital is not

available.

We must explore every reasonable prospect for meeting our energy needs when

our current domestic reserves of oil and natural gas begin to dwindle in

the next decade. I urgently ask Congress and the new administration to move

quickly on these issues. This Nation has the resources and the capability

to achieve our energy goals if its Government has the will to proceed, and

I think we do.

I have been disappointed by inability to complete many of the meaningful

organizational reforms which I contemplated for the Federal Government,

although a start has been made. For example, the Federal judicial system

has long served as a model for other courts. But today it is threatened by

a shortage of qualified Federal judges and an explosion of litigation

claiming Federal jurisdiction. I commend to the new administration and the

Congress the recent report and recommendations of the Department of

Justice, undertaken at my request, on "the needs of the Federal Courts." I

especially endorse its proposals for a new commission on the judicial

appointment process.

While the judicial branch of our Government may require reinforcement, the

budgets and payrolls of the other branches remain staggering. I cannot help

but observe that while the White House staff and the Executive Office of

the President have been reduced and the total number of civilians in the

executive branch contained during the 1970's, the legislative branch has

increased substantially although the membership of the Congress remains at

535. Congress now costs the taxpayers more than a million dollars per

Member; the whole legislative budget has passed the billion dollar mark.

We have made some progress in cutting back the expansion of government and

its intrusion into individual lives, but believe me, there is much more to

be done--and you and I know it. It can only be done by tough and

temporarily painful surgery by a Congress as prepared as the President to

face up to this very real political problem. Again, I wish my successor,

working with a substantial majority of his own party, the best of success

in reforming the costly and cumbersome machinery of the Federal

Government.

The task of self-government is never finished. The problems are great; the

opportunities are greater.

America's first goal is and always will be peace with honor. America must

remain first in keeping peace in the world. We can remain first in peace

only if we are never second in defense.

In presenting the state of the Union to the Congress and to the American

people, I have a special obligation as Commander in Chief to report on our

national defense. Our survival as a free and independent people requires,

above all, strong military forces that are well equipped and highly trained

to perform their assigned mission.

I am particularly gratified to report that over the past 2 1/2 years, we

have been able to reverse the dangerous decline of the previous decade in

real resources this country was devoting to national defense. This was an

immediate problem I faced in 1974. The evidence was unmistakable that the

Soviet Union had been steadily increasing the resources it applied to

building its military strength. During this same period the United States

real defense spending declined. In my three budgets we not only arrested

that dangerous decline, but we have established the positive trend which is

essential to our ability to contribute to peace and stability in the

world.

The Vietnam war, both materially and psychologically, affected our overall

defense posture. The dangerous anti-military sentiment discouraged defense

spending and unfairly disparaged the men and women who serve in our Armed

Forces.

The challenge that now confronts this country is whether we have the

national will and determination to continue this essential defense effort

over the long term, as it must be continued. We can no longer afford to

oscillate from year to year in so vital a matter; indeed, we have a duty to

look beyond the immediate question of budgets and to examine the nature of

the problem we will face over the next generation.

I am the first recent President able to address long-term, basic issues

without the burden of Vietnam. The war in Indochina consumed enormous

resources at the very time that the overwhelming strategic superiority we

once enjoyed was disappearing. In past years, as a result of decisions by

the United States, our strategic forces leveled off, yet the Soviet Union

continued a steady, constant buildup of its own forces, committing a high

percentage of its national economic effort to defense.

The United States can never tolerate a shift in strategic balance against

us or even a situation where the American people or our allies believe the

balance is shifting against us. The United States would risk the most

serious political consequences if the world came to believe that our

adversaries have a decisive margin of superiority.

To maintain a strategic balance we must look ahead to the 1980's and

beyond. The sophistication of modern weapons requires that we make

decisions now if we are to ensure our security 10 years from now.

Therefore, I have consistently advocated and strongly urged that we pursue

three critical strategic programs: the Trident missile launching submarine;

the B-1 bomber, with its superior capability to penetrate modern air

defenses; and a more advanced intercontinental ballistic missile that will

be better able to survive nuclear attack and deliver a devastating

retaliatory strike.

In an era where the strategic nuclear forces are in rough equilibrium, the

risks of conflict below the nuclear threshold may grow more perilous. A

major, long-term objective, therefore, is to maintain capabilities to deal

with, and thereby deter, conventional challenges and crises, particularly

in Europe.

We cannot rely solely on strategic forces to guarantee our security or to

deter all types of aggression. We must have superior naval and marine

forces to maintain freedom of the seas, strong multipurpose tactical air

forces, and mobile, modern ground forces. Accordingly, I have directed a

long-term effort to improve our worldwide capabilities to deal with

regional crises.

I have submitted a 5-year naval building program indispensable to the

Nation's maritime strategy. Because the security of Europe and the

integrity of NATO remain the cornerstone of American defense policy, I have

initiated a special, long-term program to ensure the capacity of the

Alliance to deter or defeat aggression in Europe.

As I leave office I can report that our national defense is effectively

deterring conflict today. Our Armed Forces are capable of carrying out the

variety of missions assigned to them. Programs are underway which will

assure we can deter war in the years ahead. But I also must warn that it

will require a sustained effort over a period of years to maintain these

capabilities. We must have the wisdom, the stamina, and the courage to

prepare today for the perils of tomorrow, and I believe we will.

As I look to the future--and I assure you I intend to go on doing that for

a good many years--I can say with confidence that the state of the Union is

good, but we must go on making it better and better.

This gathering symbolizes the constitutional foundation which makes

continued progress possible, synchronizing the skills of three independent

branches of Government, reserving fundamental sovereignty to the people of

this great land. It is only as the temporary representatives and servants

of the people that we meet here, we bring no hereditary status or gift of

infallibility, and none follows us from this place.

Like President Washington, like the more fortunate of his successors, I

look forward to the status of private citizen with gladness and gratitude.

To me, being a citizen of the United States of America is the greatest

honor and privilege in this world.

From the opportunities which fate and my fellow citizens have given me, as

a Member of the House, as Vice President and President of the Senate, and

as President of all the people, I have come to understand and place the

highest value on the checks and balances which our founders imposed on

government through the separation of powers among co-equal legislative,

executive, and judicial branches. This often results in difficulty and

delay, as I well know, but it also places supreme authority under God,

beyond any one person, any one branch, any majority great or small, or any

one party. The Constitution is the bedrock of all our freedoms. Guard and

cherish it, keep honor and order in your own house, and the Republic will

endure.

It is not easy to end these remarks. In this Chamber, along with some of

you, I have experienced many, many of the highlights of my life. It was

here that I stood 28 years ago with my freshman colleagues, as Speaker Sam

Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick

Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates,

Clem Zablocki-and I remember those who have gone to their rest. It was here

we waged many, many a lively battle--won some, lost some, but always

remaining friends. It was here, surrounded by such friends, that the

distinguished Chief Justice swore me in as Vice President on December 6,

1973. It was here I returned 8 months later as your President to ask not

for a honeymoon, but for a good marriage.

I will always treasure those memories and your many, many kindnesses. I

thank you for them all.

My fellow Americans, I once asked you for your prayers, and now I give you

mine: May God guide this wonderful country, its people, and those they have

chosen to lead them. May our third century be illuminated by liberty and

blessed with brotherhood, so that we and all who come after us may be the

humble servants of thy peace. Amen.

Good night. God bless you.

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