Presidency of Jimmy Carter

Carter successfully campaigned as a Washington "outsider" critical of both President Gerald Ford and the Democratic Congress; as president, he continued this theme. This refusal to play by the rules of Washington contributed to the Carter administration's difficult relationship with Congress. After the election, the President demanded the power to reorganize the executive branch, alienating powerful Democrats like Speaker Tip O'Neill and Jack Brooks. During the Nixon administration, Congress had passed a series of reforms that removed power from the president, and most members of Congress were unwilling to restore that power even with a Democrat now in office.[37][lower-alpha 2] Unreturned phone calls, verbal insults, and an unwillingness to trade political favors soured many on Capitol Hill and affected the president's ability to enact his agenda.[39] In many cases, these failures of communication stemmed not from intentional neglect, but rather from poor organization of the administration's congressional liaison functions.[40] President Carter attempted to woo O'Neill, Senate Majority Leader Robert Byrd, and other members of Congress through personal engagement, but he was generally unable to rally support for his programs through these meetings.[41] Carter also erred in focusing on too many priorities at once, especially in the first months of his presidency.[42] Democrats in Congress were displeased with his moralistic, executive-oriented, rational approach to decision-making and his reluctance to accept standard congressional methods of compromise, patronage, and log-rolling.[43]

A few months after his term started, Carter issued a "hit list" of 19 projects that he claimed were "pork barrel" spending. He said that he would veto any legislation that contained projects on this list.[44] Congress responded by passing a bill that combined several of the projects that Carter objected to with economic stimulus measures that Carter favored. Carter chose to sign the bill, but his criticism of the alleged "pork barrel" projects cost him support in Congress.[45] These struggles set a pattern for Carter's presidency, and he would frequently clash with Congress for the remainder of his tenure.[46]

On taking office, Carter proposed an economic stimulus package that would give each citizen a $50 tax rebate, cut corporate taxes by $900 million, and increase spending on public works. The limited spending involved in the package reflected Carter's fiscal conservatism, as he was more concerned with avoiding inflation and balancing the budget than addressing unemployment. Carter's resistance to higher federal spending drew attacks from many members of his own party, who wanted to lower the unemployment rate through federal public works projects. Carter signed several measures designed to address unemployment in 1977, including an extension of the Comprehensive Employment and Training Act, but he continued to focus primarily on reducing deficits and inflation. In November 1978, Carter signed the Revenue Act of 1978, an $18.7 billion tax cut.[47]

Federal budget deficits throughout Carter's term remained at around the $70 billion level reached in 1976, but as a percentage of GDP the deficits fell from 4% when he took office to 2.5% in the 1980–81 fiscal year.[48] The national debt of the United States increased by about $280 billion, from $620 billion in early 1977 to $900 billion in late 1980.[49] However, because economic growth outpaced the growth in nominal debt, the federal government's debt as a percentage of gross domestic product decreased slightly, from 33.6% in early 1977 to 31.8% in late 1980.[50]

Carter at Three Mile Island nuclear accident April 1, 1979

In 1973, the Organization of Petroleum Exporting Countries (OPEC), based in the Middle East, had reduced output to raise world prices and to hurt Israel and its allies, including the United States.[51] This sparked the 1973 Oil Crisis, a period of high oil prices, which in turn forcing higher prices throughout the American economy and slowed economic growth.[52] The United States continued to face energy issues in the following years, and during the winter of 1976–1977 natural gas shortages forced the closure of many schools and factories, leading to the temporary layoffs of hundreds of thousands of workers.[53] By 1977, energy policy was one of the greatest challenges facing the United States. Oil imports had increased 65% annually since 1973, and the U.S. consumed over twice as much energy, per capita, as other developed countries.[46]

Upon taking office, Carter asked James Schlesinger to develop a plan to address the energy crisis.[54] In an address to the nation of April 18, 1977, Carter called the energy crisis as, apart from preventing war, "the greatest challenge that our country will face during our lifetime." He called for energy conservation, increased use of U.S. coal reserves, and carefully controlled expansion of nuclear power. His chief goals were to limit the growth of energy demand to an increase of two percent a year, cut oil imports in half, and establish a new strategic petroleum reserve containing a six-month supply.[55] Carter won congressional approval for the creation of the Department of Energy, and he named Schlesinger as the first head of that department. Schlesinger presented an energy plan that contained 113 provisions, the most important of which were taxes on domestic oil production and gasoline consumption. The plan also provided for tax credits for energy conservation, taxes on automobiles with low fuel efficiency, and mandates to convert from oil or natural gas to coal power.[56] The House approved much of Carter's plan in August 1977, but the Senate passed a series of watered-down energy bills that included few of Carter's proposals. Negotiations with Congress dragged on into 1978, but Carter signed the National Energy Act in November 1978. Many of Carter's original proposals were not included in the legislation, but the act deregulated natural gas and encouraged energy conservation and the development of renewable energy through tax credits.[57]

Another energy shortage hit the United States in 1979, forcing millions of frustrated motorists into long waits at gasoline stations. In response, Carter asked Congress to deregulate the price of domestic oil. At the time, domestic oil prices were not set by the world market, but rather by the complex price controls of the 1975 Energy Policy and Conservation Act (EPCA). Oil companies strongly favored the deregulation of prices, since it would increase their profits, but some members of Congress worried that deregulation would contribute to inflation. In late April and early May the Gallup poll found only 14 percent of the public believed that America was in an actual energy shortage. The other 77 percent believed that this was brought on by oil companies just to make a profit.[58] Carter paired the deregulation proposal with a windfall profits tax, which would return about half of the new profits of the oil companies to the federal government. Carter used a provision of EPCA to phase in oil controls, but Congress balked at implementing the proposed tax.[59][60]

In July 1979, as the energy crisis continued, Carter met with a series of business, government, labor, academic, and religious leaders in an effort to overhaul his administration's policies.[62] His pollster, Pat Caddell, told him that the American people faced a crisis of confidence stemming from the assassinations of major leaders in the 1960s, the Vietnam War, and the Watergate scandal.[63] Though most of his other top advisers urged him to continue to focus on inflation and the energy crisis, Carter seized on Caddell's notion that the major crisis facing the country was a crisis of confidence. On July 15, Carter delivered a nationally televised speech in which he called for long-term limits on oil imports and the development of synthetic fuels. But he also stated, "all the legislation in the world can't fix what's wrong with America. What is lacking is confidence and a sense of community."[64] The speech came to be known as his "malaise" speech, although Carter never used the word in the speech.[65][66]

The initial reaction to Carter's speech was generally positive, but Carter erred by forcing out several cabinet members, including Secretary of Energy Schlesinger, later in July.[67] Nonetheless, Congress approved a $227 billion windfall profits tax and passed the Energy Security Act. The Energy Security Act established the Synthetic Fuels Corporation, which was charged with developing alternative energy sources.[68] Despite those legislative victories, in 1980 Congress rescinded Carter's imposition of a surcharge on imported oil,[lower-alpha 3] and rejected his proposed Energy Mobilization Board, a government body that was designed to facilitate the construction of power plants.[70] Nonetheless, Kaufman and Kaufman write that policies enacted under Carter represented the "most sweeping energy legislation in the nation's history."[68] Carter's policies contributed to a decrease in per capita energy consumption, which dropped by 10 percent from 1979 to 1983.[71] Oil imports, which had reached a record 2.4 billion barrels in 1977 (50% of supply), declined by half from 1979 to 1983.[48]

Carter took office during a period of "stagflation", as the economy experienced both high inflation and low economic growth.[77] The U.S. had recovered from the 1973–75 recession, but the economy, and especially inflation, continued to be a top concern for many Americans in 1977 and 1978.[78] The economy had grown by 5% in 1976, and it continued to grow at a similar pace during 1977 and 1978.[79] Unemployment declined from 7.5% in January 1977 to 5.6% by May 1979, with over 9 million net new jobs created during that interim,[80] and real median household income grew by 5% from 1976 to 1978.[81] In October 1978, responding to worsening inflation, Carter announced the beginning of "phase two" of his anti-inflation campaign on national television. He appointed Alfred E. Kahn as the Chairman of the Council on Wage and Price Stability (COWPS), and COWPS announced price targets for industries and implemented other policies designed to lower inflation.[82]

The 1979 energy crisis ended a period of growth; both inflation and interest rates rose, while economic growth, job creation, and consumer confidence declined sharply.[83] The relatively loose monetary policy adopted by Federal Reserve Board Chairman G. William Miller, had already contributed to somewhat higher inflation,[84] rising from 5.8% in 1976 to 7.7% in 1978. The sudden doubling of crude oil prices by OPEC[85] forced inflation to double-digit levels, averaging 11.3% in 1979 and 13.5% in 1980.[48]

Following a mid-1979 cabinet shake-up, Carter named Paul Volcker as Chairman of the Federal Reserve Board.[86] Volcker pursued a tight monetary policy to bring down inflation, but this policy also had the effect of slowing economic growth even further.[87] Author Ivan Eland points out that this came during a long trend of inflation, saying, "Easy money and cheap credit during the 1970s, had caused rampant inflation, which topped out at 13 percent in 1979."[88] Carter enacted an austerity program by executive order, justifying these measures by observing that inflation had reached a "crisis stage"; both inflation and short-term interest rates reached 18 percent in February and March 1980.[89] In March, the Dow Jones Industrial Average fell to its lowest level since mid-1976, and the following month unemployment rose to seven percent.[90] The economy entered into another recession, its fourth in little more than a decade,[88] and unemployment quickly rose to 7.8 percent.[91] This "V-shaped recession" and the malaise accompanying it coincided with Carter's 1980 re-election campaign, and contributed to his unexpectedly severe loss to Ronald Reagan.[92] Not until March 1981 did GDP and employment totals regain pre-recession levels.[79][80]

Carter in office, February 1977

During the 1976 presidential campaign, Carter proposed a health care reform plan that included key features of a bipartisan bill, sponsored by Senator Ted Kennedy, that provided for the establishment of a universal national health insurance (NHI) system.[93] Though most Americans had health insurance through Medicare, Medicaid, or private plans, approximately ten percent of the population did not have coverage in 1977. The establishment of an NHI plan was the top priority of organized labor and many liberal Democrats, but Carter had concerns about cost, as well as the inflationary impact, of such a system. He delayed consideration of health care through 1977, and ultimately decided that he would not support Kennedy's proposal to establish an NHI system that covered all Americans. Kennedy met repeatedly with Carter and White House staffers in an attempt to forge a compromise health care plan, but negotiations broke down in July 1978. Though Kennedy and Carter had previously been on good terms, differences over health insurance led to an open break between the two Democratic leaders.[94]

In June 1979, Carter proposed more limited health insurance reform—an employer mandate to provide private catastrophic health insurance. The plan would also extend Medicaid to the very poor without dependent minor children, and would add catastrophic coverage to Medicare.[95] Kennedy rejected the plan as insufficient.[96] In November 1979, Senator Russell B. Long led a bipartisan conservative majority of the Senate Finance Committee to support an employer mandate to provide catastrophic coverage and the addition of catastrophic coverage to Medicare.[95] These efforts were abandoned in 1980 due to budget constraints.[97]

Carter sought a comprehensive overhaul of welfare programs in order to provide more cost-effective aid; Congress rejected almost all of his proposals.[98] Proposals contemplated by the Carter administration include a guaranteed minimum income, a federal job guarantee for the unemployed, a negative income tax, and direct cash payments to aid recipients. In early 1977, Secretary Califano presented Carter with several options for welfare reform, all of which Carter rejected because they increased government spending. In August 1977, Carter proposed a major jobs program for welfare recipients capable of working and a "decent income" to those who were incapable of working.[99] Carter was unable to win support for his welfare reform proposals, and they never received a vote in Congress.[100] In October 1978, Carter helped convince the Senate to pass the Humphrey–Hawkins Full Employment Act, which committed the federal government to the goals of low inflation and low unemployment. To the disappointment of the Congressional Black Caucus (CBC) and organized labor, the final act did not include a provision authorizing the federal government to act as an employer of last resort in order to provide for full employment.[101]

Carter also sought tax reform in order to create a simpler, more progressive taxation system. He proposed taxing capital gains as ordinary income, eliminating tax shelters, limiting itemized tax deductions, and increasing the standard deduction.[102] Carter's taxation proposals were rejected by Congress, and no major tax reform bill was passed during Carter's presidency.[103] Amid growing public fear that the social security system was in danger of bankruptcy within a few years, Carter signed the Social Security Financing Amendments Act in December 1977, which corrected a flaw that had been introduced into the benefit formula by earlier legislation in 1972, raised Social Security taxes and reduced Social Security benefits. "Now this legislation", the president remarked, "will guarantee that from 1980 to the year 2030, the social security funds will be sound".[104][105]

Carter supported many of the goals of the environmentalist movement, and appointed prominent environmentalists to high positions. As president his rhetoric strongly supported environmentalism, with a certain softness regarding his acceptance of nuclear energy – he had been trained in nuclear energy with atomic submarines in the Navy.[106] He signed several significant bills to protect the environment, such as the Surface Mining Control and Reclamation Act of 1977, which regulates strip mining.[107] In 1980 Carter signed into law a bill that established Superfund, a federal program designed to clean up mining or factory sites contaminated with hazardous substances.[108] Other environmental laws signed by Carter addressed energy conservation, federal mine safety standards, and control of pesticides.[109] Secretary of the Interior Cecil Andrus convinced Carter to withdraw over 100 million acres of public domain land in Alaska from commercial use by designating the land as conservation areas. The 1980 Alaska National Interest Lands Conservation Act doubled the amount of public land set aside for national parks and wildlife refuges.[110][111] Business and conservative interests complained that economic growth would be hurt by these conservation efforts.[112]

Early in his term, Carter worked to fulfill a campaign promise to teachers' unions to create a cabinet-level Department of Education. Carter argued that the establishment of the department would increase efficiency and equal opportunity, but opponents in both parties criticized it as an additional layer of bureaucracy that would reduce local control and local support of education.[113] In October 1979, Carter signed the Department of Education Organization Act, establishing the United States Department of Education. Carter appointed Shirley Mount Hufstedler, a liberal judge from California, as the first Secretary of Education.[114] Carter also expanded the Head Start program with the addition of 43,000 children and families.[115] During his tenure, education spending as a share of federal, non-defense spending was doubled.[116] Carter opposed tax breaks for Protestant schools in the South, many of which were fighting integration, a position that alienated the Religious Right.[117] He also helped defeat the Moynihan-Packwood Bill, which called for tuition tax credits for parents to use for nonpublic school education.[118]

Carter took a stance in support of decriminalization of cannabis, citing the legislation passed in Oregon in 1973.[119] In a 1977 address to Congress, Carter submitted that penalties for cannabis use should not outweigh the actual harms of cannabis consumption. Carter retained pro-decriminalization advisor Robert Du Pont, and appointed pro-decriminalization British physician Peter Bourne as his drug advisor (or "drug czar") to head up his newly formed Office of Drug Abuse Policy.[120][121] However, law enforcement, conservative politicians, and grassroots parents' groups opposed this measure, and the War on Drugs continued.[120][122] At the same time, cannabis consumption in the United States reached historically high levels.[123]

Carter was the first president to address the topic of gay rights, and his administration was the first to meet with a group of gay rights activists.[124][125] Carter opposed the Briggs Initiative, a California ballot measure that would have banned gays and supporters of gay rights from being public school teachers.[125] Carter supported the policy of affirmative action, and his administration submitted an amicus curiae brief to the Supreme Court while it heard the case of Regents of the Univ. of Cal. v. Bakke. The Supreme Court's holding, delivered in 1978, upheld the constitutionality of affirmative action but prohibited the use of racial quotas in college admissions.[126] First Lady Rosalynn Carter publicly campaigned for the ratification of the Equal Rights Amendment, and the president supported the extension of the ratification period for that amendment.[127]

Carter presided over the deregulation of several industries, which proponents hoped would help revive the sluggish economy. The Airline Deregulation Act (1978) abolished the Civil Aeronautics Board over six years, provided for the free entry of airlines into new routes, and opened air fares up to competition.[128] Carter also signed the Motor Carrier Act (1980), which gradually withdrew the government from controlling access, rates, and routes in the trucking industry; the Staggers Rail Act (1980), which loosened railroad regulations by allowing railroad executives to negotiate mergers with barge and truck lines;[129] and the Depository Institutions Deregulation and Monetary Control Act (1980), which removed ceilings on interest rates and permitted savings and commercial banks to write home mortgages, extend business loans, and underwrite securities issues.[128]

The Housing and Community Development Act of 1977 set up Urban Development Action Grants, extended handicapped and elderly provisions, and established the Community Reinvestment Act,[130] which sought to prevent banks from denying credit and loans to poor communities.[131]

A map of the geopolitical situation in 1980

Carter took office during the Cold War, a sustained period of geopolitical tension between the United States and the Soviet Union. During the late 1960s and early 1970s, relations between the two superpowers had improved through a policy known as detente. In a reflection of the waning importance of the Cold War, some of Carter's contemporaries labeled him as the first post-Cold War president, but relations with the Soviet Union would continue to be an important factor in American foreign policy in the late 1970s and the 1980s. Many of the leading officials in the Carter administration, including Carter himself, were members of the Trilateral Commission, which de-emphasized the Cold War. The Trilateral Commission instead advocated a foreign policy focused on aid to Third World countries and improved relations with Western Europe and Japan. The central tension of the Carter administration's foreign policy was reflected in the division between Secretary of State Cyrus Vance, who sought improved relations with the Soviet Union and the Third World, and National Security Adviser Zbigniew Brzezinski, who favored confrontation with the Soviet Union on a range of issues.[133]

Carter meeting with Chilean dictator Augusto Pinochet, in Washington, D.C., September 6, 1977

Carter believed that previous administrations had erred in allowing the Cold War concerns and Realpolitik to dominate foreign policy. His administration placed a new emphasis on human rights, democratic values, nuclear proliferation, and global poverty.[134][135] The Carter administration's human rights emphasis was part of a broader, worldwide focus on human rights in the 1970s, as non-governmental organizations such as Amnesty International and Human Rights Watch became increasingly prominent. Carter nominated civil rights activist Patricia M. Derian as Coordinator for Human Rights and Humanitarian Affairs, and in August 1977, had the post elevated to that of Assistant Secretary of State. Derian established the United States' Country Reports on Human Rights Practices, published annually since 1977.[136] Latin America was central to Carter's new focus on human rights.[137] The Carter administration ended support to the historically U.S.-backed Somoza regime in Nicaragua and directed aid to the new Sandinista National Liberation Front government that assumed power after Somoza's overthrow. Carter also cut back or terminated military aid to Augusto Pinochet of Chile, Ernesto Geisel of Brazil, and Jorge Rafael Videla of Argentina, all of whom he criticized for human rights violations.[138]

Carter's ambassador to the United Nations, Andrew Young, was the first African-American to hold a high-level diplomatic post. Along with Carter, he sought to change U.S. policy towards Africa, emphasizing human rights concerns over Cold War issues.[139] In 1978, Carter became the first sitting president to make an official state visit to Sub-Saharan Africa,[140] a reflection of the region's new importance under the Carter administration's foreign policy.[141] Unlike his predecessors, Carter took a strong stance against white minority rule in Rhodesia and South Africa. With Carter's support, the United Nations passed Resolution 418, which placed an arms embargo on South Africa. Carter won the repeal of the Byrd Amendment, which had undercut international sanctions on the Rhodesian government of Ian Smith. He also pressured Smith to hold elections, leading to the 1979 Rhodesia elections and the eventual creation of Zimbabwe.[142]

The more assertive human rights policy championed by Derian and State Department Policy Planning Director Anthony Lake was somewhat blunted by the opposition of Brzezinski. Policy disputes reached their most contentious point during the 1979 fall of Pol Pot's genocidal regime of Democratic Kampuchea following the Vietnamese invasion of Cambodia, when Brzezinski prevailed in having the administration refuse to recognize the new Cambodian government due to its support by the Soviet Union.[143] Despite human rights concerns, Carter continued U.S. support for Joseph Mobutu of Zaire, who defeated Angolan-backed insurgents in conflicts known as Shaba I and Shaba II.[144] His administration also generally refrained from criticizing human rights abuses in the Philippines, Indonesia, South Korea, Iran, Israel, Egypt, Saudi Arabia, and North Yemen.[145][146]

President Jimmy Carter and Soviet general secretary Leonid Brezhnev sign the Strategic Arms Limitation Talks (SALT II) treaty, June 18, 1979, in Vienna

Ford and Nixon had sought to reach agreement on a second round of the Strategic Arms Limitation Talks (SALT), which had set upper limits on the number of nuclear weapons possessed by both the United States and the Soviet Union.[147] Carter hoped to extend these talks by reaching an agreement to reduce, rather than merely set upper limits on, the nuclear arsenals of both countries.[148] At the same time, he criticized the Soviet Union's record with regard to human rights, partly because he believed the public would not support negotiations with the Soviets if the president seemed too willing to accommodate the Soviets. Carter and Soviet Leader Leonid Brezhnev reached an agreement in June 1979 in the form of SALT II, but Carter's waning popularity and the opposition of Republicans and neoconservative Democrats made ratification difficult.[149] The Soviet invasion of Afghanistan severely damaged U.S.-Soviet relations and ended any hope of ratifying SALT II.

Afghanistan had been non-aligned during the early stages of the Cold War, but a 1973 coup had brought a pro-Western government into power.[150] Five years later, Communists under the leadership of Nur Muhammad Taraki seized power.[151] The new regime—which was divided between Taraki's extremist Khalq faction and the more moderate Parcham—signed a treaty of friendship with the Soviet Union in December 1978.[151][152] Taraki's efforts to improve secular education and redistribute land were accompanied by mass executions and political oppression unprecedented in Afghan history, igniting a revolt by mujahideen rebels.[151] Following a general uprising in April 1979, Taraki was deposed by Khalq rival Hafizullah Amin in September.[151][152] Soviet leaders feared that an Islamist government in Afghanistan would threaten the control of Soviet Central Asia, and, as the unrest continued, they deployed 30,000 soldiers to the Soviet–Afghan border.[153] Carter and Brzezinski both saw Afghanistan as a potential "trap" that could expend Soviet resources in a fruitless war, and the U.S. began sending aid to the mujahideen rebels in early 1979.[154] By December, Amin's government had lost control of much of the country, prompting the Soviet Union to invade Afghanistan, execute Amin, and install Parcham leader Babrak Karmal as president.[151][152]

Carter was surprised by the Soviet invasion of Afghanistan, as the consensus of the U.S. intelligence community during 1978 and 1979 was that Moscow would not forcefully intervene.[155] CIA officials had tracked the deployment of Soviet soldiers to the Afghan border, but they had not expected the Soviets to launch a full-fledged invasion.[156] Carter believed that the Soviet conquest of Afghanistan would present a grave threat to the Persian Gulf region, and he vigorously responded to what he considered a dangerous provocation.[157] In a televised speech, Carter announced sanctions on the Soviet Union, promised renewed aid to Pakistan, and articulated the Carter doctrine, which stated that the U.S. would repel any attempt to gain control of the Persian Gulf.[158][159] Pakistani leader Muhammad Zia-ul-Haq had previously had poor relations with Carter due to Pakistan's nuclear program and the execution of Zulfikar Ali Bhutto, but the Soviet invasion of Afghanistan and instability in Iran reinvigorated the traditional Pakistan–United States alliance.[155] In cooperation with Saudi Arabia and Pakistan's Inter-Services Intelligence (ISI), Carter increased aid to the mujahideen through the CIA's Operation Cyclone.[159] Carter also later announced a U.S. boycott of the 1980 Summer Olympics in Moscow[160] and imposed an embargo on shipping American wheat to the Soviet Union. The embargo ultimately hurt American farmers more than it did the Soviet economy, and the United States lifted the embargo after Carter left office.[161]

The Soviet invasion of Afghanistan brought a significant change in Carter's foreign policy and ended the period of detente that had begun in the mid-1960s.[162]

Returning to a policy of containment, the United States reconciled with Cold War allies and increased the defense budget, leading to a new arms race with the Soviet Union.[163] U.S. support for the mujahideen in Afghanistan would continue until the Soviet Union withdrew from Afghanistan in 1989.[155]

Anwar Sadat, Jimmy Carter and Menachem Begin meet at Camp David on September 6, 1978.

Sadat, Carter and Begin shaking hands after signing Peace treaty between Egypt and Israel in the White House, March 27, 1979

On taking office, Carter decided to attempt to mediate the long-running Arab–Israeli conflict.[164][165] He sought a comprehensive settlement between Israel and its neighbors through a reconvening of the 1973 Geneva Conference, but these efforts had collapsed by the end of 1977.[166] Carter did convince Egyptian leader Anwar Sadat to visit Israel in 1978. Sadat's visit drew the condemnation of other Arab League countries, but Sadat and Israeli Prime Minister Menachem Begin each expressed an openness to bilateral talks. Begin sought security guarantees; Sadat sought the withdrawal of Israeli forces from the Sinai Peninsula and home rule for the West Bank and Gaza, Israeli-occupied territories that were largely populated by Palestinian Arabs. Israel had taken control of the West Bank and Gaza in the 1967 Six-Day War, while the Sinai had been occupied by Israel since the end of the 1973 Yom Kippur War.[167]

Seeking to further negotiations, Carter invited Begin and Sadat to the presidential retreat of Camp David in September 1978. Because direct negotiations between Sadat and Begin proved unproductive, Carter began meeting with the two leaders individually.[168] While Begin was willing to withdraw from the Sinai Peninsula, he refused to agree to the establishment of a Palestinian state. Israel had begun constructing settlements in the West Bank, which emerged as an important barrier to a peace agreement. Unable to come to definitive settlement over an Israeli withdrawal, the two sides reached an agreement in which Israel made vague promises to allow the creation of an elected government in the West Bank and Gaza. In return, Egypt became the first Arab state to recognize Israel's right to exist. The Camp David Accords were the subject of intense domestic opposition in both Egypt and Israel, as well as the wider Arab World, but each side agreed to negotiate a peace treaty on the basis of the accords.[169]

On March 26, 1979, Egypt and Israel signed a peace treaty in Washington,[170] Carter's role in getting the treaty was essential. Author Aaron David Miller concluded the following: "No matter whom I spoke to — Americans, Egyptians, or Israelis — most everyone said the same thing: no Carter, no peace treaty."[171] Carter himself viewed the agreement as his most important accomplishment in office.[169]

The Iranian Shah, Mohammad Reza Pahlavi, meeting with Arthur Atherton, William H. Sullivan, Cyrus Vance, President Jimmy Carter and Zbigniew Brzezinski in Tehran, 1977

Mohammad Reza Pahlavi, the Shah of Iran, had been a reliable U.S. ally since the 1953 Iranian coup d'état. During the years after the coup, the U.S. lavished aid on Iran, while Iran served as a dependable source of oil exports.[172] Carter, Vance, and Brzezinski all viewed Iran as a key Cold War ally, not only for the oil it produced but also because of its influence in OPEC and its strategic position between the Soviet Union and the Persian Gulf.[173] Despite human rights violations, Carter visited Iran in late 1977 and authorized the sale of U.S. fighter aircraft. That same year, rioting broke out in several cities, and it soon spread across the country. Poor economic conditions, the unpopularity of Pahlavi's "White Revolution", and an Islamic revival all led to increasing anger among Iranians, many of whom also despised the United States for its support of Pahlavi and its role in the 1953 coup.[172]

By 1978, the Iranian Revolution had broken out against the Shah's rule.[174] Secretary of State Vance argued that the Shah should institute a series of reforms to appease the voices of discontent, while Brzezinski argued in favor of a crackdown on dissent. The mixed messages that the Shah received from Vance and Brzezinski contributed to his confusion and indecision. The Shah went into exile, leaving a caretaker government in control. A popular religious figure, Ayatollah Ruhollah Khomeini, returned from exile in February 1979 to popular acclaim. As the unrest continued, Carter allowed Pahlavi into the United States for medical treatment.[175] Carter and Vance were both initially reluctant to admit Pahlavi due to concerns about the reaction in Iran, but Iranian leaders assured them that it would not cause an issue.[176] In November 1979, shortly after Pahlavi was allowed to enter the U.S., a group of Iranians stormed the U.S. embassy in Tehran and took 66 American captives, beginning the Iran hostage crisis.[175] Iranian Prime Minister Mehdi Bazargan ordered the militants to release the hostages, but he resigned from office after Khomeini backed the militants.[176]

The crisis quickly became the subject of international and domestic attention, and Carter vowed to secure the release of the hostages. He refused the Iranian demand of the return of Pahlavi in exchange for the release of the hostages. His approval ratings rose as Americans rallied around his response, but the crisis became increasingly problematic for his administration as it continued.[177] In an attempt to rescue the hostages, Carter launched Operation Eagle Claw in April 1980. The operation was a total disaster, and it ended in the death of eight American soldiers. The failure of the operation strengthened Ayatollah Khomeini's position in Iran and badly damaged Carter's domestic standing.[178] Carter was dealt another blow when Vance, who had consistently opposed the operation, resigned.[179] Iran refused to negotiate the return of the hostages until Iraq launched an invasion in September 1980. With Algeria serving as an intermediary, negotiations continued until an agreement was reached in January 1981. In return for releasing the 52 captives, Iran was allowed access to over $7 billion of its money that had been frozen in the United States. Iran waited to release the captives until 30 minutes after Carter left office on January 20, 1981.[180]

Carter and Omar Torrijos shake hands moments after the signing of the Torrijos-Carter Treaties.

Since the 1960s, Panama had called for the United States to cede control of the Panama Canal.[181] The bipartisan national policy of turning over the Canal to Panama had been established by presidents Johnson, Nixon, and Ford, but negotiations had dragged on for a dozen years. Carter made the cession of the Panama Canal a priority, believing it would implement Carter's call for a moral cleaning of American foreign policy and win approval across Latin America as a gracious apology for American wrongdoing. He also feared that another postponement of negotiations might precipitate violent upheaval in Panama, which could be damaged or block the canal.[182]

The Carter administration negotiated the Torrijos-Carter Treaties, two treaties which provided that Panama would gain control of the canal in 1999.[183] Carter's initiative faced wide resistance in the United States, and many in the public, particularly conservatives, thought that Carter was "giving away" a crucial U.S. asset.[184] Conservatives formed groups such as the Committee to Save the Panama Canal in an attempt to defeat the treaties in the Senate, but Carter made ratification of the treaties his top priority. During the ratification debate, the Senate crafted amendments that granted the U.S. the right to intervene militarily to keep the canal open, which the Panamanians assented to after further negotiations.[185] In March 1978, the Senate ratified both treaties by a margin of 68-to-32, narrowly passing the two-thirds margin necessary for ratification. The Canal Zone and all its facilities were ultimately turned over to Panama on December 31, 1999.[186][187]

Carter hoped to improve relations with Cuba upon taking office, but any thaw in relations was prevented by ongoing Cold War disputes in Central America and Africa. In early 1980, Cuban leader Fidel Castro announced that anyone who wished to leave Cuba would be allowed to do so through the port of Mariel. After Carter announced that the United States would provide "open arms for the tens of thousands of refugees seeking freedom from Communist domination", Cuban Americans arranged the Mariel boatlift. The Refugee Act, signed earlier in the year, had provided for annual cap of 19,500 Cuban immigrants to the United States per year, and required that those refugees go through a review process. By September, 125,000 Cubans had arrived in the United States, and many faced a lack of inadequate food and housing. Carter was widely criticized for his handling of the boatlift, especially in the electorally important state of Florida.[188]

Deng Xiaoping with President Carter

Continuing a rapprochement begun during the Nixon administration, Carter successfully achieved closer relations with the People's Republic of China (PRC).[189] The two countries increasingly collaborated against the Soviet Union, and the Carter administration tacitly consented to the Chinese invasion of Vietnam. In 1979, Carter extended formal diplomatic recognition to the PRC for the first time. This decision led to a boom in trade between the United States and the PRC, which was pursuing economic reforms under the leadership of Deng Xiaoping.[190] After the Soviet invasion of Afghanistan, Carter allowed the sale of military supplies to China and began negotiations to share military intelligence.[191] In January 1980, Carter unilaterally revoked the Sino-American Mutual Defense Treaty with the Republic of China (ROC), which had lost control of mainland China to the PRC in the Chinese Civil War, but was now based offshore on the island of Taiwan. Carter's abrogation of the treaty was challenged in court by conservative Republicans, but the Supreme Court ruled that the issue was a non-justiciable political question in Goldwater v. Carter. The U.S. continued to maintain diplomatic contacts with the ROC through the 1979 Taiwan Relations Act.[192]

One of Carter's first acts was to order the withdrawal of troops from South Korea, which had hosted a large number of U.S. military personnel since the end of the Korean War. Carter believed that the soldiers could be put to better use in Western Europe, but opponents of the withdrawal feared that North Korea would invade South Korea in the aftermath of the withdrawal. South Korea and Japan both protested the move, as did many members of Congress, the military, and the State Department. After a strong backlash, Carter delayed the withdrawal, and ultimately only a fraction of the U.S. forces left South Korea. Carter's attempt to remove U.S. forces from South Korea weakened the government of South Korean President Park Chung-hee, who was assassinated in 1979.[193]

In sharp contrast to Nixon and Ford, Carter gave priority to sub-Sahara Africa.[194][195] Southern Africa especially emerged as a Cold War battleground after Cuba sent a large military force that took control of Angola in 1976. The chief policy person for Africa in the Carter administration was Andrew Young, a leader in the black Atlanta community who became Ambassador to the United Nations. Young opened up friendly relationships with key leaders, especially in Nigeria. A highly controversial issue was independence of Namibia from Union of South Africa. Young began United Nations discussions which went nowhere, and Namibia would not gain independence until long after Carter left office.[196] Young advocated strong sanctions after the murder by South African police of Steve Biko in 1977, but Carter refused and only imposed a limited arms embargo and South Africa ignored the protests.[197] The most important success of the Carter administration in Africa was helping the transition from white-dominated Southern Rhodesia to black rule in Zimbabwe.[198][199]

Countries visited by Carter during his presidency

Carter made 12 international trips to 25 nations during his presidency.[200]

	Dates	Country	Locations	Details
1	May 5–11, 1977	United Kingdom	London, Newcastle	Attended the 3rd G7 summit. Also met with the prime ministers of Greece, Belgium, Turkey, Norway, the Netherlands and Luxembourg, and with the President of Portugal. Addressed NATO Ministers meeting.
	May 9, 1977	Switzerland	Geneva	Official visit. Met with President Kurt Furgler. Also met with Syrian President Hafez al-Assad.
2	December 29–31, 1977	Poland	Warsaw	Official visit. Met with First Secretary Edward Gierek.
	December 31, 1977 – January 1, 1978	Iran	Tehran	Official visit. Met with Shah Mohammad Reza Pahlavi and King Hussein of Jordan.
	January 1–3, 1978	India	New Delhi, Daulatpur Nasirabad[201]	Met with President Neelam Sanjiva Reddy and Prime Minister Morarji Desai. Addressed Parliament of India.
	January 3–4, 1978	Saudi Arabia	Riyadh	Met with King Khalid and Crown Prince Fahd.
	January 4, 1978	Egypt	Aswan	Met with President Anwar Sadat and German Chancellor Helmut Schmidt.
	January 4–6, 1978	France	Paris, Normandy, Bayeux, Versailles	Met with President Valéry Giscard d'Estaing and Prime Minister Raymond Barre.
	January 6, 1978	Belgium	Brussels	Met with King Baudouin and Prime Minister Leo Tindemans. Attended meetings of the Commission of the European Communities and the North Atlantic Council.
3	March 28–29, 1978	Venezuela	Caracas	Met with President Carlos Andrés Pérez. Addressed Congress and signed maritime boundary agreement.
	March 29–31, 1978	Brazil	Brasília Rio de Janeiro	Official visit. Met with President Ernesto Geisel and addressed National Congress.
	March 31 – April 3, 1978	Nigeria	Lagos	State visit. Met with President Olusegun Obasanjo.
	April 3, 1978	Liberia	Monrovia	Met with President William R. Tolbert, Jr.
4	June 16–17, 1978	Panama	Panama City	Invited by President Demetrio B. Lakas and General Omar Torrijos to sign protocol confirming exchange of documents ratifying Panama Canal treaties. Also met informally with Venezuelan President Carlos Andrés Pérez, Colombian President Alfonso López Michelsen, Mexican President José López Portillo, Costa Rican Rodrigo Carazo Odio and Jamaican Prime Minister Michael Manley of Jamaica.
5	July 14–15, 1978	West Germany	Bonn, Wiesbaden-Erbenheim, Frankfurt	State visit. Met with President Walter Scheel and Chancellor Helmut Schmidt. Addressed U.S. and German military personnel.
	July 15, 1978	West Germany	West Berlin	Spoke at the Berlin Airlift Memorial.
	July 16–17, 1978	West Germany	Bonn	Attended the 4th G7 summit.
6	January 4–9, 1979	France	Basse-Terre, Guadeloupe	Met informally with President Valéry Giscard d'Estaing, German Chancellor Helmut Schmidt and British Prime Minister James Callaghan.
7	February 14–16, 1979	Mexico	Mexico City	State visit. Met with President José López Portillo. Addressed the Mexican Congress.
8	March 7–9, 1979	Egypt	Cairo, Alexandria, Giza	State visit. Met with President Anwar Sadat. Addressed People's Assembly of Egypt.
	March 10–13, 1979	Israel	Tel Aviv, Jerusalem	State visit. Met with President Yitzhak Navon and Prime Minister Menachem Begin. Addressed the Knesset.
	March 13, 1979	Egypt	Cairo	Met with President Anwar Sadat.
9	June 14–18, 1979	Austria	Vienna	State visit. Met with President Rudolf Kirchschläger and Chancellor Bruno Kreisky. Met with Soviet General Secretary Leonid Brezhnev to sign SALT II Treaty.
10	June 25–29, 1979	Japan	Tokyo, Shimoda	Attended the 5th G7 summit. State visit. Met with Emperor Hirohito and Prime Minister Masayoshi Ōhira.
	June 29 – July 1, 1979	South Korea	Seoul	State visit. Met with President Park Chung-hee and Prime Minister Choi Kyu-hah.
11	June 19–24, 1980	Italy	Rome, Venice	Attended the 6th G7 summit. State Visit. Met with President Sandro Pertini.
	June 21, 1980	Vatican City	Apostolic Palace	Audience with Pope John Paul II.
	June 24–25, 1980	Yugoslavia	Belgrade	Official visit. Met with President Cvijetin Mijatović.
	June 25–26, 1980	Spain	Madrid	Official visit. Met with King Juan Carlos I and Prime Minister Adolfo Suárez.
	June 26–30, 1980	Portugal	Lisbon	Official visit. Met with President António Ramalho Eanes and Prime Minister Francisco de Sá Carneiro.
12	July 9–10, 1980	Japan	Tokyo	Official visit. Attended memorial services for former Prime Minister Masayoshi Ōhira. Met with Emperor Hirohito, Bangla President Ziaur Rahman, Australian Prime Minister Malcolm Fraser, Thai Prime Minister Prem Tinsulanonda and Chinese Premier Hua Guofeng.