GEORGE BUSH bluntly told America last night to break its “addiction to oil” and its energy dependency on imported fuel from unstable regimes in the Middle East.

In his annual State of the Union address, the President set out plans to pour billions of dollars into researching new technology for producing alternative fuels such as ethanol, which he hopes will cut oil imports from Arab countries by 75 per cent over the next 20 years.

Mr Bush was speaking after a disastrous year in which his poll ratings have slumped amid growing public concern over his Adminstrations’s handling of Iraq, the economy and Hurricane Katrina.

The President devoted long passages of his speech to the anxiety and pessimism Americans feel in a fast-changing world. He suggested this was not just over the continued threat of terror and the brutality of America’s enemies in countries such as Iraq, but also because of the rising costs of energy and health care and the economic insecurity created by increased global competition.

He issued a staunch defence of his foreign policy and America’s “leadership” of the world, saying: “Our nation is committed to an historic, long-term goal — we seek the end of tyranny in our world ... the future security of America depends on it. The only way to defeat the terrorists is to defeat their dark vision of hatred and fear by offering the hopeful alternative of political freedom and peaceful change.”

He gave a warning against giving in to the isolationist and protectionist tendencies that have always existed in American politics. “The only way to protect our people, the only way to secure the peace, is by our leadership — so the United States of America will continue to lead.

“In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers alone, they would not leave us alone. They would simply move the battlefield to our own shores.”

On Iraq, he expressed optimism that more troops could be brought home in the next 12 months. He reiterated that Iran’s attempts to obtain nuclear weapons would not be tolerated.

But it was Mr Bush’s remarks on the threat of energy dependency that will cause the biggest impact in a country where the industrial economy was once built on the automobile, and where about 200 million cars still clog the highways. He said: “America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology.”

The President is a former Texas oil man, whose early chequered business career included a series of speculative ventures culminating in the controversial sale of his stock to Harken Energy in 1990 for just under $1 million.

Aides say that Mr Bush was impressed by Brazil’s use of ethanol produced from sugar cane as an alternative to fossil fuels. He believes US technology will make a similar scheme using wood shavings and vegetation commercially viable within six years.

“The American economy is pre-eminent but we cannot afford to be complacent. In a dynamic world economy, we are seeing new competitors like China and India. We must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hard-working, ambitious people — and we are going to keep that edge.”

He also set out a $50 billion (£28 billion) scheme for improving education. But this speech, in comparison to his previous State of the Union addresses, was thin on specific proposals. Mr Bush made only passing references to the scandal around Jack Abramoff, the disgraced Republican lobbyist, saying only that Congressmen had a duty to uphold their oaths and be good guardians of the American taxpayers’ dollars. Instead, he appealed for a more bi partisan approach by Congress, emphasising the need for all sections of the US political system to work together in the nation’s interests.

He praised Samuel Alito who was confirmed yesterday as a Supreme Court judge by the Senate in a 58-42 vote, which was split along party lines with only one Republican — and all but four Democrats — voting against him. The appointment secured a key component for Mr Bush’s long-term legacy. Justice Alito is expected to shift the court to the right on many social issues and, with the appointment of Chief Justice Roberts last year, should ensure the President leaves a firm imprint on American society for decades to come.

EXTRACTS FROM THE PRESIDENT'S SPEECH

'America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology'

'Our nation is committed to an historic, long-term goal - we seek the end of tyranny in our world. The future security of America depends on it'

'We cannot find security by abandoning commitments and retreating within our borders'

Extended coverage of the speech, commentary by Gerard Baker and the speech in full

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