Russia condemns North Korea's exercises, we consider that they are a provocation but ramping up military hysteria will lead to nothing good. It could lead to a global catastrophe.

Recognizing economic health as an indispensable basis of military strength and the free world's peace, we shall strive to foster everywhere, and to practice ourselves, policies that encourage productivity and profitable trade.

Any orderly balance-sheet of military strength must be in two parts. The first is the position as of today. The second is the position in the period ahead.

Our second task is to do the constructive work of building a genuine peace. We must never become so preoccupied with our desire for military strength that we neglect those areas of economic development, trade, diplomacy, education, ideas and principles where the foundations of real peace must be laid.

My profoundest conviction is that the American people will say, as one man: No matter what the exertions or sacrifices, we shall maintain that necessary strength! But we could make no more tragic mistake than merely to concentrate on military strength. For if we did only this, the future would hold nothing for the world but an Age of Terror.

Our military organization today bears little relation to that known by any of my predecessors in peacetime.