While we both have worked at finding these and other points of mutual advantage, it has long been clear to both sides that the potential for long-term cooperation or even partnership between our countries would depend ultimately on the course of the Soviet Union's domestic reform. That is why when last fall I called for pathways of mutual advantage, not just discrete points, I also announced our desire to see a broader democratic dialogue with Soviet reformers. Not just economic reform but essential political reform could transform the Soviet Union into a very different society.

         Over the course of several summits and numerous  meetings, we have become much more familiar with the ups and downs of perestroika, the enormous and daunting difficulty of changing after 70 years a society's basic direction and many of its values.

         In the last several months, however, we have seen a series of unsettling events. They include the tragic violence in the Baltics; an apparent turn toward economic decentralization; a less free media; extension of army and KGB authority; and the resignation or departure from the government of key reform advocates.

         These actions are completely inconsistent with the course of peaceful change, democratic principles, the rule of law, and real economic reform. There is simply no justification for the use of force against peaceful and democratically elected governments. Our hearts go out to the courageous people of the Baltic States who have acted throughout with dignity and restraint.

         The President and I have had extensive discussions with President Gorbachev and other  Soviet officials about these developments. We and our European allies have pointed out the inevitable consequences if the Soviet Government continues on this path. And we have stated our belief that the Soviet Union cannot hope to succeed in meeting its own objectives if it should abandon perestroika, democratization, and glasnost.

         On the Baltics, I could do no better here than to quote the President's words from the State of the Union address: ". . . our objective is to help the Baltic peoples achieve their aspirations, not to punish the Soviet Union.

         We have had representations from the Soviet leadership about their continuing commitment to reform, to peaceful dialogue with the Baltics, and to creating a society ruled by law, not force. We're going to watch this situation closely to see whether these representations become enduring realities.

         I hope that the Soviet Union will relearn quickly the lesson from its own hard experience: the old ways are not the right ways. perestroika cannot succeed at gunpoint. Clearly, we cannot rule out the possibility that matters may still turn more for the worse. But at the same time, we must be careful not to jump to premature conclusions.

         The Soviet leadership is at a crossroads. We have made clear that their last several steps have taken them down a path of no benefit for them or for us or for anyone else. For the sake of history and for the sake of the world, I hope they resume the march that has given the entire world hope of a better future.

         I want to sum up my comments today with this observation. When I appeared before you a year ago to review our overall foreign policy, we were well on the way to a whole and free

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