Speech Transcript:

 Mr. President, Mr. Speaker, members of the United States Congress.

I come to this house of the people to speak to you and all Americans,
certain we stand at a defining hour.

Halfway around the world, we are engaged in a great struggle in the
skies and on the seas and sands. We know why we're there. We are
Americans - part of something larger than ourselves.

For two centuries we've done the hard work of freedom. And tonight we
lead the world in facing down a threat to decency and humanity.

What is at stake is more than one small country, it is a big idea - a
new world order, where diverse nations are drawn together in common
cause to achieve the universal aspirations of mankind: peace and
security, freedom, and the rule of law. Such is a world worthy of our
struggle, and worthy of our children's future.

The community of nations has resolutely gathered to condemn and repel
lawless aggression. Saddam Hussein's unprovoked invasion - his
ruthless, systematic rape of a peaceful neighbor - violated
everything the community of nations holds dear. The world has said
this aggression would not stand, and it will not stand.

Together, we have resisted the trap of appeasement, cynicism and
isolation that gives temptation to tyrants. The world has answered
Saddam's invasion with 12 United Nations resolutions, starting with a
demand for Iraq's immediate and unconditional withdrawal, and backed
up by forces from 28 countries of six continents. With few
exceptions, the world now stands as one.

The end of the cold war has been a victory for all humanity. A year
and a half ago, in Germany, I said our goal was a Europe whole and
free. Tonight, Germany is united. Europe has become whole and free,
and America's leadership was instrumental in making it possible.

The principle that has guided us is simple: our objective is to help
the Baltic peoples achieve their aspirations, not to punish the
Soviet Union. In our recent discussions with the Soviet leadership we
have been given representations, which, if fulfilled, would result in
the withdrawal of some Soviet forces, a re-opening of dialogue with
the republics, and a move away from violence.

We will watch carefully as the situation develops. And we will
maintain our contact with the Soviet leadership to encourage
continued commitment to democratization and reform.

If it is possible, I want to continue to build a lasting basis for
U.S.-Soviet cooperation, for a more peaceful future for all mankind.

The triumph of democratic ideas in Eastern Europe and Latin America,
and the continuing struggle for freedom elsewhere around the world
all confirm the wisdom of our nation's founders.

Tonight, we work to achieve another victory, a victory over tyranny
and savage aggression.

We in this Union enter the last decade of the 20th Century thankful
for all our blessings, steadfast in our purpose, aware of our
difficulties and responsive to our duties at home and around the
world.

For two centuries, America has served the world as an inspiring
example of freedom and democracy. For generations, America has led
the struggle to preserve and extend the blessings of liberty. And
today, in a rapidly changing world, American leadership is
indispensable. Americans know that leadership brings burdens, and
requires sacrifice.

But we also know why the hopes of humanity turn to us. We are
Americans; we have a unique responsibility to do the hard work of
freedom. And when we do, freedom works.

The conviction and courage we see in the Persian Gulf today is simply
the American character in action. The indomitable spirit that is
contributing to this victory for world peace and justice is the same
spirit that gives us the power and the potential to meet our
challenges at home.

We are resolute and resourceful. If we can selflessly confront evil
for the sake of good in a land so far away, then surely we can make
this land all it should be.

If anyone tells you America's best days are behind her, they're
looking the wrong way.

Tonight, I come before this house, and the American people, with an
appeal for renewal. This is not merely a call for new government
initiatives, it is a call for new initiative in government, in our
communities, and from every American - to prepare for the next
American century.

America has always led by example. So who among us will set this
example? Which of our citizens will lead us in this next American
century? Everyone who steps forward today, to get one addict off
drugs; to convince one troubled teen-ager not to give up on life; to
comfort one AIDS patient; to help one hungry child.

We have within our reach the promise of renewed America. We can find
meaning and reward by serving some purpose higher than ourselves - a
shining purpose, the illumination of a thousand points of light. It
is expressed by all who know the irresistible force of a child's
hand, of a friend who stands by you and stays there - a volunteer's
generous gesture, an idea that is simply right.

The problems before us may be different, but the key to solving them
remains the same: it is the individual - the individual who steps
forward. And the state of our Union is the union of each of us, one
to the other: the sum of our friendships, marriages, families and
communities.

We all have something to give. So if you know how to read, find
someone who can't. If you've got a hammer, find a nail. If you're not
hungry, not lonely, not in trouble - seek out someone who is.

Join the community of conscience. Do the hard work of freedom. That
will define the state of our Union.

Since the birth of our nation, "we the people" has been the source of
our strength. What government can do alone is limited, but the
potential of the American people knows no limits.

We are a nation of rock-solid realism and clear-eyed idealism. We are
Americans. We are the nation that believes in the future. We are the
nation that can shape the future.

And we've begun to do just that, by strengthening the power and
choice of individuals and families.

Together, these last two years, we've put dollars for child care
directly in the hands of patients instead of bureaucracies,
unshackled the potential of Americans with diabilities, applied the
creativity of the marketplace in the service of the environment, for
clean air, and made homeownership possible for more Americans.

The strength of a democracy is not in bureaucracy, it is in the
people and their communities. In everything we do, let us unleash the
potential of our most precious resource - our citizens. We must return
to families, communities, counties, cities, states and institutions of
every kind, the power to chart their own destiny, and the freedom and
opportunity provided by strong economic growth. That's what America
is all about.

I know, tonight, in some regions of our country, people are in
genuine economic distress. I hear them.

Earlier this month Kathy Blackwell of Massachusetts wrote me about
what can happen when the economy slows down, saying, "My heart is
aching, and I think that you should know - your people out here are
hurting badly."

I understand. And I'm not unrealistic about the future. But there are
reasons to be optimistic about our economy.

First, we don't have to fight double-digit inflation. Second, most
industries won't have to make big cuts in production because they
don't have big inventories piled up. And third, our exports are
running solid and strong. In fact, American businesses are exporting
at a record rate.

So let's put these times in perspective. Together, since 1981, we've
created almost 20 million jobs, cut inflation in half and cut
interest rates in half.

Yes, the largest peacetime economic expansion in history has been
temporarily interrupted. But our economy is still over twice as large
as our closest competitor.

We will get this recession behind us and return to growth soon. We
will get on our way to a new record of expansion, and achieve the
competitive strength that will carry us into the next American
century.

We should focus our efforts today on encouraging economic growth,
investing in the future and giving power and opportunity to the
individual.

We must begin with control of Federal spending. That's why I'm
submitting a budget that holds the growth in spending to less than
the rate of inflation. And that's why, amid all the sound and fury of
last year's budget debate, we put into law new, enforceable spending
caps so that future spending debates will mean a battle of ideas, not
a bidding war.

Though controversial, the budget agreement finally put the Federal
Government on a pay-as-you-go basis, and cut the growth of debt by
nearly $500 billion. And that frees funds for saving and job-creating
investment.

Now, let's do more. My budget again includes tax-free family savings
accounts; penalty-free withdrawals from I. R. A.'s for first-time
homebuyers; and, to increase jobs and growth, a reduced tax for
long-term capital gains.

I know their are differences among us about the impact and the
effects of a capital gains incentive. So tonight I am aking the
Congressional leaders and the Federal Reserve to cooperate with us in
a study, led by Chairman Alan Greenspan, to sort out our technical
differences so that we can avoid a return to unproductive partisan
bickering.

But just as our efforts will bring economic growth now and in the
future, they must also be matched by long-term investments for the
next American century.

That requires a forward-looking plan of action, and that's exactly
what we will be sending to the Congress. We have prepared a detailed
series of proposals, that include:

    * A budget that promotes investment in America's future - in
children, education, infrastructure, space and high technology.
    * Legislation to achieve excellence in education, building on the
partnership forged with the 50 governors at the education summit,
enabling parents to choose their children's schools and helping to
make America No. 1 in math and science.
    * A blueprint for a new national highway system, a critical
investment in our transportation infrastructure.
    * A research and development agenda that includes record levels
of Federal investment and a permanent tax credit to strengthen
private R and D and create jobs.
    * A comprehensive national energy strategy that calls for energy
conservation and efficiency, increased development and greater use of
alternative fuels.
    * A banking reform plan to bring America's financial system into
the 21st Century, so that our banks remain safe and secure and can
continue to make job-creating loans for our factories, businesses,
and homebuyers. I do think there has been too much pessimism. Sound
banks should be making more sound loans, now. And interest rates
should be lower, now.

In addition to these proposals, we must recognize that our economic
strength depends upon being competitive in world markets. We must
continue to expand America's exports. A successful Uruguay Round of
world trade negotiations will create more real jobs, and more real
growth, for all nations. You and I know that if the playing field is
level, America's workers and farmers can outwork and outproduce
anyone, anytime, anywhere.

And with the Mexican free trade agreement and our Enterprise for the
Americas Initiative we can help our partners strengthen their
economies and move toward a free trade zone throughout this entire
hemisphere.

The budget also includes a plan of action right here at home to put
more power and opportunity in the hands of the individual. That means
new incentives to create jobs in our inner cities by encouraging
investment through enterprise zones. It also means tenant control and
ownership of public housing. Freedom and the power to choose should
not be the privilege of wealth. They are the birthright of every
American.

Civil rights are also crucial to protecting equal opportunity. Every
one of us has a responsibility to speak out against racism, bigotry,
and hate. We wil continue our vigorous enforcement of existing
statutes, and I will once again press the Congress to strengthen the
laws against employment discrimination without resorting to the use
of unfair preferences.

We're determined to protect another fundamental civil right: freedom
from crime and the fear that stalks our cities. The Attorney General
will soon convene a crime summit of the nation's law-enforcement
officials. And to help us support them we need a tough crime control
legislation, and we need it now.

As we fight crime, we will fully implement our nation strategy for
combatting drug abuse. Recent data show we are making progress, but
much remains to be done. We will not rest until the day of the dealer
is over, forever.

Good health care is every American's right and every American's
responsibility. So we are proposing an aggression program of new
prevention initiatives - for infants, for children, for adults, and
for the elderly - to promote a healthier America and to help keep
costs from spiraling.

It's time to give people more choice in government by reviving the
ideal of the citizen politician who comes not to stay, but to serve.
One of the reasons there is so much support for term limitations is
that the American people are increasingly concerned about big-money
influenece in politics. We must look beyond the next election, to the
next generation. The time has come to put the national interest ahead
of the special interest - and totally eliminate political action
committees.

That would truly put more competition in elections and more power in
the hands of individuals. And where power cannot be put directly into
the hands of the individual, it should be moved closer to the people -
away from Washington.

The federal government too often treats government programs as if
they are of Washington, by Washington, and for Washington. Once
established, federal programs seem to become immortal.

It's time for a more dynamic program life cycle. Some programs should
increase. Some should decrease. Some should be terminated. And some
should be consolidated and turned over to the states.

My budget includes a list of programs for potential turnover totaling
more than $20 billion. Working with Congress and the governors, I
propose we select at least $15 billion in such programs and turn them
over to the states in a single consolidated grant, fully funded, for
flexible management by the states.

The value fo this turnover approach is straightforward. It allows the
Federal Government to reduce overhead. It allows states to manage more
flexibly and more efficiently. It moves power and decision-making
closer to the people. And it re-enforces a theme of this
Administration: appreciation and encouragement of the innovative
power of " states as laboratories."

This nation was founded by leaders who understood that power belongs
in the hands of the people. They planned for the future. And so must
we - here and around the world.

As Americans, we know there are times when we must step forward and
accept our responsibility to lead the world away from the dark chaos
of dictators, toward the bright promise of a better day.

Almost 50 years ago, we began a long struggle against aggressive
totalitarianism. Now we face another defining hour for America and
the world.

There is no one more devoted, more committed to the hard work of
freedom, than every soldier and sailor, every marine, airman and
coastguardsman - every man and every woman now serving in the Persian
Gulf.

Each of them has volunteered to provide for this nation's defense.
And now they bravely struggle to earn for America and for the world
and for future generations, a just and lasting peace.

Our commitment to them must be equal of their commitment to our
country. They are truly America's finest.

The war in the gulf is not a war we wanted. We worked hard to avoid
war. For more than five months we, along with the Arab League, the
European Community and the United Nations, tried every diplomatic
avenue. U.N. Secretary General Perez de Cuellar; Presidents
Gorbachev, Mitterand, Ozal, Mubarak, and Bendjedid; Kings Fahd and
Hassan; Prime Minsters Major and Andreotti - just to name a few - all
worked for a solution. But time and again Saddam Hussein flatly
rejected the path of diplomacy and peace.

The world well knows how this conflict began, and when: it began on
August 2nd, when Saddam invaded and sacked a small, defenseless
neighbor. And I am certain of how it will end. So that peace can
prevail, we will prevail.

Tonight I'm pleased to report that we are on course. Iraq's capacity
to sustain war is being destroyed. Our investment, our training, our
planning - all are paying off. Time will not be Saddam's salvation.

Our purpose in the Persian Gulf remains constant: to drive Iraq out
from Kuwait, to restore Kuwait's legitimate government, and to insure
the stability and security of this critical region.

Let me make clear what I mean by the region's stability and security.
We do not seek the destruction of Iraq, its culture or its people.
Rather, we seek an Iraq that uses its great resources not to destroy,
not to serve the ambitions of a tyrant, but to build a better life for
itself and its neighbors. We seek a Persian Gulf where conflict is no
longer the rule, where the strong are neither tempted nor able to
intimidate the weak.

Most Americans know instinctively why we are in the Gulf. They know
we had to stop Saddam now, not later. They know this brutal dictator
will do anything, will use any weapon, will commit any outrage, no
matter how many innocents must suffer.

They know we must make sure that control of the world's oil resources
does not fall into his hands only to finance further aggression. They
know that we need to build a new, enduring peace - based not on arms
races and confrontation, but on shared principles and the rule of
law.

And we all realize that our responsibility to be the catalyst for
peace in the region does not end with the successful conclusion of
this war.

Democracy brings the undeniable value of thoughtful dissent, and we
have heard some dissenting voices here at home, some reckless, most
responsible. But the fact the all the voices have the right to speak
out is one of the reasons we've been united in principle and purpose
for 200 years.

Our progress in this great struggle is the result of years of
vigilance and a steadfast commitment to a strong defense. Now, with
remarkable technological advances like the Patriot missile, we can
defend the ballistic missile attacks aimed at innocent civilians.

Looking forward, I have directed that the S.D.I. program be refocused
on providing protection from limited ballistic missile strikes,
whatever their source. Let us pursue an S.D.I. program that can deal
with any future threat to the United States, to our forces overseas
and to our friends and allies.

The quality of American technology, thanks to the American worker,
has enabled us to successfully deal with difficult military
conditions, and help minimize the loss of life. We have given our men
and women the very best. And they deserve it.

We all have a special place in our hearts for the families of men and
women serving in the Gulf. They are represented here tonight, by Mrs.
Norman Schwarzkopf, and to all those serving with him. And to the
families, let me say, our forces in the gulf will not stay there one
day longer than is necessary to complete their mission.

The courage and success of the R.A.F. pilots - of the Kuwaiti, Saudi,
French, Canadians, Italians, the pilots of Qatar and Bahrain - all are
proof that for the first time since World War II, the international
community is united. The leadership of the United Nations, once only
a hoped-for ideal, is now confirming its founders' vision.

I am heartened that we are not being asked to bear alone the
financial burden of this struggle. Last year, our friends and allies
provided the bulk of the economic costs of Desert Shield, and having
now received commitments of over $40 billion for the first three
months of 1991, I am confident they will do no less as we move
through Desert Storm.

But the world has to wonder what the dictator of Iraq is thinking. If
he thinks that by targeting innocent civilians in Israel and Saudi
Arabia, that he will gain an advantage - he is dead wrong. If he
thinks that he will advance his cause through tragic and despicable
environmental terrorism - he is dead wrong. And if he thinks that by
abusing coalition P.O.W.s, he will benefit - he is dead wrong.

We will succeed in the Gulf. And when we do, the world community will
have sent an enduring warning to any dictator or despot, present or
future, who contemplates outlaw aggression.

The world can therefore seize this opportunity to fufill the
long-held promise of a new world order - where brutality will go
unrewarded, and aggression will meet collective resistance.

Yes, the United States bears a major share of leadership in this
effort. Among the nations of the world, only the United States of
America has had both the moral standing, and the means to back it up.
We are the only nation on this earth that could assemble the forces of
peace.

This is the burden of leadership - and the strength that has made
America the beacon of freedom in a searching world.

This nation has never found glory in war. Our people have never
wanted to abandon the blessings of home and work, for distant lands
and deadly conflict. If we fight in anger, it is only because we have
to fight at all. And all of us yearn for a world where we will never
have to fight again.

Each of us will measure, within ourselves, the value of this great
struggle. Any cost in lives is beyond our power to measure. But the
cost of closing our eyes to aggression is beyond mankind's power to
imagine.

This we do know: Our cause is just. Our cause is moral. Our cause is
right.

Let future generations understand the burden and the blessings of
freedom. Let them say, we stood where duty required us to stand.

Let them know that together, we affirmed America, and the world, as a
community of conscience.

The winds of change are with us now. The forces of freedom are
united. We move toward the next century, more confident than ever,
that we have the will at home and abroad, to do what must be done -
the hard work of freedom.

May God bless the United States of America.