Now comes our time of testing. Our measure is taken, not only by what we have and use, but what we build and leave behind. And nothing this generation could ever build will matter more than the means to defend our nation and extend our peace.

In the late 1930s, as Britain refused to adapt to the new realities of war, Winston Churchill observed, "The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequences."

Yet today our military is still organized more for Cold War threats than for the challenges of a new century -- for industrial age operations, rather than for information age battles. There is almost no relationship between our budget priorities and a strategic vision. The last seven years have been wasted in inertia and idle talk. Now we must shape the future with new concepts, new strategies, new resolve.

Defending our nation is just the beginning of our challenge. My third goal is to take advantage of a tremendous opportunity – given few nations in history – to extend the current peace into the far realm of the future. A chance to project America's peaceful influence, not just across the world, but across the years.

I will put a high priority on detecting and responding to terrorism on our soil. The federal government must take this threat seriously – working closely with researchers and industry to increase surveillance and develop treatments for chemical and biological agents.

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We will defend the American homeland by strengthening our intelligence community – focusing on human intelligence and the early detection of terrorist operations both here and abroad. And when direct threats to America are discovered, I know that the best defense can be a strong and swift offense – including the use of Special Operations Forces and long-range strike capabilities.

The protection of America itself will assume a high priority in a new century. Once a strategic afterthought, homeland defense has become an urgent duty. For most of our history, America felt safe behind two great oceans. But with the spread of technology, distance no longer means security.

My appointees to the [<nowiki/>Texas] board of pardons and paroles reflect my no-nonsense approach to crime and punishment. They believe people who commit crimes against innocent Texans should pay the consequences; they believe sentences imposed by juries should be carried out.