We are in a period of great transition, great hope, and yet great uncertainty. We recognize that the Soviet military threat in Europe is diminishing, but we see little change in Soviet strategic modernization. And, therefore, we must sustain our own strategic offense modernization and the Strategic Defense Initiative. But the time is right to move forward on a conventional arms control agreement to move us to more appropriate levels of military forces in Europe, a coherent defense program that insures the U.S. will continue to be a catalyst for peaceful change in Europe. And I've consulted with leaders of NATO. In fact I spoke by phone with President Gorbachev just today. And I agree with our European allies that an American military presence in Europe is essential and that it should not be solely tied to the Soviet military presence in Eastern Europe. But our troop levels can still be lower. And so tonight I am announcing a major new step for a further reduction in U.S. and Soviet manpower in Central and Eastern Europe to 195,000 on each side. This number, this number, this level, reflects the advice of our senior military advisers. It's designed to protect American and European interests and sustain NATO's defense strategy. A swift conclusion to our arms control talks--conventional, chemical and strategic--must now be our goal. And that time has come. Still, we must recognize an unfortunate fact: in many regions of the world tonight the reality is conflict, not peace. Enduring animosities and opposing interests remain. And thus the cause of peace must be served by an America strong enough and sure enough to defend our interests and our ideals. It's this American idea that for the past four decades helped inspire the Revolution of '89. And here at home, and in the world, there is history in the making, and history to be made. Six months ago, early in this season of change, I stood at the gates of the Gdansk shipyard in Poland at the monument to the fallen workers of Solidarity. It's a monument of simple majesty. Three tall crosses rise up from the stones, and atop each cross, an anchor, an ancient symbol of hope. The anchor in our world today is freedom. Holding us steady in times of change, a symbol of hope to all the world. And freedom is at the very heart of the idea that is America. Giving life to the idea depends on every one of us. Our anchor has always been faith and family. In the last few days of this past monumentous year, our family was blessed once more, celebrating the joy of life when a little boy became our 12th grandchild. When I held the little guy for the first time, the troubles at home and abroad seemed manageable, and totally in perspective. And now I know, I know you're probably thinking, Well, that's just a grandfather talking.