--And the other side must not take advantage of our restraint as they have in the past. This Nation simply cannot accept anything less without jeopardizing the lives of our men and of our allies.

If a basis for peace talks can be established on the San Antonio foundations--and it is my hope and my prayer that they can--we would consult with our allies and with the other side to see if a complete cessation of hostilities--a really true cease-fire--could be made the first order of business. I will report at the earliest possible moment the results of these explorations to the American people.

I have just recently returned from a very fruitful visit and talks with His Holiness the Pope and I share his hope--as he expressed it earlier today--that both sides will extend themselves in an effort to bring an end to the war in Vietnam. I have today assured him that we and our allies will do our full part to bring this about.

Since I spoke to you last January, other events have occurred that have major consequences for world peace.

--The Kennedy Round achieved the greatest reduction in tariff barriers in all the history of trade negotiations.

--The nations of Latin America at Punta del Este resolved to move toward economic integration.

--In Asia, the nations from Korea and Japan to Indonesia and Singapore worked behind America's shield to strengthen their economies and to broaden their political cooperation.

--In Africa, from which the distinguished Vice President has just returned, he reports to me that there is a spirit of regional cooperation that is beginning to take hold in very practical ways.

These events we all welcomed. Yet since I last reported to you, we and the world have been confronted by a number of crises:

--During the Arab-Israeli war last June, the hot line between Washington and Moscow was used for the first time in our history. A cease-fire was achieved without a major power confrontation.