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Remember the skeletal prisoners, the mass graves, the campaign to rape and torture, the endless lines of refugees, the threat of a spreading war. All these threats, all these horrors have now begun to give way to the promise of peace. Now, our troops and a strong NATO, together with our new partners from Central Europe and elsewhere, are helping that peace to take hold.

Agreements in Western Europe have paved the way for unity to replace past divisions which have undermined Europe's economic and military vitality. The defense of the West appears likely at last to include a free, democratic Germany participating as an equal in the councils of NATO.

Yet, the most startling and unambiguous revelation was the extent of anti-American groundswell everywhere: among America's NATO allies, in developing countries, Muslim nations and even in eastern Europe where Americans, only a decade ago were perceived as much-adulated liberators. "People around the world embrace things American and, at the same time, decry U.S. influence on their societies.

It constitutes a vital American interest and the pivot of NATO's southern flank. But it is derided by the EU, its NATO membership notwithstanding. It is here, in the Balkan, that the New World Order and the End of History hypothesis are being tested. A new European balance of the Big Powers will emerge here. But hitherto, alas, this particular concert of Europe has been quite a cacophony.

That NATO, under America's thumb, and the vaguely anti-American EU are at cross-purposes emerged during the recent spat over the International Criminal Court. Finally and typically the EU backed down. But it was a close call and it cast in sharp relief the tensions inside the Atlantic partnership.

During the many vagaries of the Bosnia tragedy, it would appear that when NATO accurately delivered potent doses of air power, rather than occasional pin pricks, the Serbs seemed finally to understand that an appearance of cooperation rather than defiance was in their interest.

This NATO message in the form of air power, of course, was strengthened by the effectiveness of the accompanying Croatian/Muslim counter-offensive and the fatigue of Bosnian Serb fighters. Sustaining the shock effect with forces on the ground was a necessary combination to gain the staying power effect to change the will of the Serbs. It was not accomplished by air alone. Timing remains important.

major social problems were being ignored or poorly addressed by the Federal government; our defense posture was declining as a result of a defense budget which was continuously shrinking in real terms; the strength of the NATO Alliance needed to be bolstered; tensions between Israel and Egypt threatened another Middle East war; and

The NATO alliance also has moved forward during the past year with the implementation of its historic December 1979 decision to modernize its Theater Nuclear Force capabilities through deployment of improved Pershing ballistic missiles and ground-launched cruise missiles in Europe.

And I will be seeking support from our allies for concerted action. Our NATO alliance is strong. 1983 was a banner year for political courage. And we have strengthened our partnerships and our friendships in the Far East. We're committed to dialog, deterrence, and promoting prosperity.