Until the early 1980s, the United States had relied on the qualitative superiority of its weapons to essentially frighten the Soviets, but the gap had been narrowed.
[294] Although the Soviet Union did not accelerate military spending after President Reagan's military buildup,
[295] their enormous military expenses, in combination with
collectivized agriculture and inefficient
planned manufacturing, were a heavy burden for the
Soviet economy. At the same time, oil prices in 1985 fell to one third of the previous level; oil was the primary source of Soviet export revenues. These factors contributed to a stagnant Soviet economy during
Mikhail Gorbachev's tenure.
[296]
Meanwhile, Reagan escalated the rhetoric. In his famous 1983 speech to religious fundamentalists, he outlined his strategy for victory. First, he labeled the Soviet system an "
Evil Empire" and a failure—its demise would be a godsend for the world. Second, Reagan explained his strategy was an arms buildup that would leave the Soviets far behind, with no choice but to negotiate arms reduction. Finally, displaying his characteristic optimism, he praised liberal democracy and promised that such a system eventually would triumph over Soviet communism.
[297][298]
Reagan appreciated the revolutionary change in the direction of the Soviet policy with
Mikhail Gorbachev, and shifted to diplomacy, intending to encourage the Soviet leader to pursue substantial arms agreements.
[299] He and Gorbachev held
four summit conferences between 1985 and 1988: the
first in
Geneva, Switzerland, the
second in
Reykjavík, Iceland, the third in Washington, D.C., and the fourth in Moscow.
[300] Reagan believed that if he could persuade the Soviets to allow for more democracy and free speech, this would lead to reform and the end of Communism.
[301] The critical summit was at Reykjavík in October 1986, where they met alone, with translators but with no aides. To the astonishment of the world, and the chagrin of Reagan's most conservative supporters, they agreed to abolish all nuclear weapons. Gorbachev then asked the end of SDI. Reagan said no, claiming that it was defensive only, and that he would share the secrets with the Soviets. No deal was achieved.
[302]
Speaking at the
Berlin Wall on June 12, 1987, Reagan challenged Gorbachev to go further, saying "General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization, come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev,
tear down this wall!" Later, in November 1989, East German authorities began allowing citizens to pass freely through border checkpoints,
[303][304] and began dismantling the Wall the following June;
[305][306] its demolition was completed in 1992.
[305][306]
At Gorbachev's visit to Washington in December 1987, he and Reagan signed the
Intermediate-Range Nuclear Forces Treaty (INF Treaty) at the White House, which eliminated an entire class of nuclear weapons.
[307] The two leaders laid the framework for the Strategic Arms Reduction Treaty, or
START I; Reagan insisted that the name of the treaty be changed from Strategic Arms Limitation Talks to Strategic Arms Reduction Talks.
[308]
When Reagan visited Moscow for the fourth summit in 1988, he was viewed as a celebrity by the Soviets. A journalist asked the president if he still considered the Soviet Union the evil empire. "No," he replied, "I was talking about another time, another era."
[309] At Gorbachev's request, Reagan gave a speech on free markets at the
Moscow State University.
[310]