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The Election of 1988 - Vice president bush was an obvious choice to succeed Ronald Reagan. - Bush's low profile encouraged senator Robert Dole and television evangelist Pat Robertson to challenge him for the Nomination. - To the surprise of political observers, he chose as his running mate a largely unknown young conservative from Indiana, Senator J. Danforth "Dan" Quayle.

 The new President - Bush brought a wide range of experience to the white house. - he left his home state of Connecticut to start a successful oil business in Texas. - Bush hinted that he would not simply follow the old ideas and attitudes of the Reagan era.

Drugs, Education, and the Environment - George Bush had spoken out strongly on the need to control the spread of illegal drugs. - the president warned, however,that the large federal deficit would rule out expensive new antidrug programs. - the problem of nuclear wastes posed a special threat to the environment.

The savings and loan Crisis - a rash of savings bank failures put even more pressure on the nation's finances. - These savings and loan institutions, known as S&Ls, had long financed mortgages, or loans, for Americans buying homes. - The Regan administration had led a campaign to deregulate S&Ls-that is, to allow them more freedom from government control.

Reducing the Deficit - The savings and loan crisis added to the growing deficit in the federal budget. - Congress and the president needed either to cut spending or raise more money, to reduce it. - If they failed to pass budget buy October 1, the automatic budget cutes called for in the Gramm-Rudman-Hollomgs Act would go into effect. - Democrats objected that the measure would mainly benefit rich investors. - The plan increased taxes on cigarettes, alcohol, and gasoline.

The Elections of 1990 - The new budget agreement had reduced the deficit more than any legislation during the Reagan years. - They saw billions of dollars needed to bail out savings and loans institution because of mismanagement. - Voters reelected most members of congress, but with little enthusiasm.

Flags and the Supreme Court - In 1989, the court struck down a Texas law that had made burning the American flag a crime. - The justices ruled that burning the flag in protest was a form of free speech. - Opponents replied that it was more important to protect basic freedoms than symbols. - Flag burning was just one of many controversial issues facing the Supreme Court.

Section 4 A world in Transition The End of the Cold War - Since the end of World War - The Polish government had outlawed Solidarity, an independent labor union. - Finally, in 19989, the communist government allowed Solidarity candidates to run for the Polish parliament. - It was the start of a flood of changes in Eastern Europe capped by the election of Walesa as the President of Poland in 1990.

New Directions in Lain America - George Bush took a less militant approach to ward affairs in Nicaragua than Ronald Reagan had. - he didn't continue to press for military aid to the contras. Instead, the Bush administration worked out a bipartisan agreement with congress. - He helped funnel American support to the contras in Nicaragua. At the same time however he became heavily involved in drug smuggling. - He declared a state of emergency and openly corrupted Panama's elections.

Unrest in China - The wave of reform that swept communist Europe sent shock waves through china. - Hundreds of thousands gathered at Tiananmen Square in the capital city of Beijing. - Thousands of protesters were killed or arrested. Many fled the country, and one prominent reformer took refuge in the united stated embassy. - President Bush disapproved of the return t repression. However, he refused to take strong action against the Chinese Government.

 A Policy Toward South Africa - During the early 1980's the South African government had continued to pursue the policy of apartheid, or separation of the races. - Although President Reagan opposed Apartheid, he argued that economic actions taken against South Africa would hurt the black majority by destroying jobs. - At the same time, many American universities and some state governments sold their sock in companies that operated in South Africa. - His most dramatic act was to free Nelson Mandela, a black opponent of apartheid who had been in prison for 27 years.

War Clouds in the Middle East - Despite hopeful signs in other parts of the world, the Middle East remained a threat to world peace. After the Iran-Iraq war ended in 1988, Iraqi dictator Saddam Hussein rebuilt his military. - A complex threat. during the 1980's, the industrial nations had become more dependent than ever before on oil from the Persian Gulf. - If Saddam conquered Saudi Arabia as well as Kuwait, he would control more than 80 percent of the oil in the region. With that power, it might be possible to cripple the economies of the western world.  Fugitives in a Desert Drama - Suddenly, hundreds of Americans living far from home faced an unpredictable and dangerous situation. Iraqi thanks rumbled through the streets of Kuwait City. - Jeff Rickert, a chemical worker from North Carolina, saw his wife off at the Kuwaiti area after she had departed, he was struck by the confused mob of people and the armed Iraqi soldiers who seemed to be everywhere. - After nearly four months in hiding, Mills and his wife decided to cross Kuwait by car, hoping to reach the American embassy in Baghdad

War in the Persian Gulf - As Mills and hundreds of other Americans waited to see whether they would be allowed to leave Kuwait and Iraq, the threat of war increased. - In November 1990, President Bush convinced the United Nations Security council to declare January 15,1991, as a deadline for Iraq's removal from Kuwait.