I am not discouraged. I really am not. I do not despair for our country. I never do. I believe tonight, as I always have, that the essential decency … - Jimmy Carter

To help our hard-pressed cities, which quite often in the past have not gotten a fair share of governmental opportunity, we've supported--and Congress just passed yesterday--a major expansion of countercyclical revenue sharing, which means that the money goes to the areas that are most in need. We've also proposed a renewed community block grant program with changes that will stimulate private investment, in particular housing and other developments, and put more of the money into the cities again which need it most. We support extending the earned-income tax credit for working people and a general, personal tax credit, which together add up to $6.8 billion annually in individual tax relief, mostly for low- and middle-income families, including those families too poor to owe any income tax. And also, I will sign into law within the next few days--Congress has already passed--a permanent $4 billion tax cut through increases in the standard deductions. Eighty-eight percent of this tax relief will go to families with incomes of less than $15,000 a year, and 3.3 million low-income taxpayers who no;,' pay taxes will not have to pay any Federal income taxes at all.

Our national energy plan is based on 10 fundamental principles. The first principle is that we can have an effective and comprehensive energy policy only if the Government takes responsibility for it and if the people understand the seriousness of the challenge and are willing to make sacrifices. The second principle is that healthy economic growth must continue. Only by saving energy can we maintain our standard of living and keep our people at work. An effective conservation program will create hundreds of thousands of new jobs. The third principle is that we must protect the environment. Our energy problems have the same cause as our environmental problems-wasteful use of resources. Conservation helps us solve both problems at once. The fourth principle is that we must reduce our vulnerability to potentially devastating embargoes. We can protect ourselves from uncertain supplies by reducing our demand for oil, by making the most of our abundant resources such as coal, and by developing a strategic petroleum reserve. The fifth principle is that we must be fair. Our solutions must ask equal sacrifices from every region, every class of people, and every interest group. Industry will have to do its part to conserve just as consumers will. The energy. producers deserve fair treatment, but we will not let the oil companies profiteer. The sixth principle, and the cornerstone of our policy, is to reduce demand through conservation. Our emphasis on conservation is a clear difference between this plan and others which merely encouraged crash production efforts. Conservation is the quickest, cheapest, most practical source of energy. Conservation is the only way that we can buy a barrel of oil for about $2. It costs about $13 to waste it. The seventh principle is that prices should generally reflect the true replacement cost of energy. We are only cheating ourselves if we make energy artificially cheap and use more than we can really afford. The eighth principle is that Government policies must be predictable and certain. Both consumers and producers need policies they can count on so they can plan ahead. This is one reason that I'm working with the Congress to create a new Department of Energy to replace more than 50 different agencies that now have some control over energy. The ninth principle is that we must conserve the fuels that are scarcest and make the most of those that are plentiful. We can't continue to use oil and gas for 75 percent of our consumption, as we do now, when they only make up 7 percent of our domestic reserves. We need to shift to plentiful coal, while taking care to protect the environment, and to apply stricter safety standards to nuclear energy. The tenth and last principle is that we must start now to develop the new, unconventional sources of energy that we will rely on in the next century. Now, these 10 principles have guided the development of the policy that I will describe to you and the Congress on Wednesday night.

We will put our relations with Latin America on a more constructive footing, recognizing the global character of the region's problems. We are also working to resolve in amicable negotiations the future of the Panama Canal. We will continue our efforts to develop further our relationships with the People's Republic of China. We recognize our parallel strategic interests in maintaining stability in Asia, and we will act in the spirit of the Shanghai Communiqué. In Southeast Asia and in the Pacific, we will strengthen our association with our traditional friends, and we will seek to improve relations with our former adversaries. We have a mission now in Vietnam seeking peaceful resolution of the differences that have separated us for so long. Throughout the world, we are ready to normalize our relationships and to seek reconciliation with all states which are ready to work with us in promoting global progress and global peace.