American leadership in the international arena is vital to the future of this country, former secretary of state James A. Baker III said in a speech at the Institute of Politics' ARCO Forum at the Kennedy School last night.

Addressing a full house, Baker outlined five major challenges he believes the United States must confront in order to strengthen its foreign policy.

Baker urged the audience to take an active part in ensuring a more active U.S. foreign policy.

"I can tell you one thing, my friends," he said. "If the American people speak, our elected officers will listen."

Baker's speech, titled "American Foreign Policy and the Challenges of Leadership at the Century's End," was the 1996 Albert H. Gordon Lecture on Finance and Public Policy.

Baker contended that the U.S. presence in the western hemisphere must be strengthened, underlining his belief in the importance of maintaining strong relations with Canada and Mexico.

"We need to move away from separation at home and towards integration with the rest of the hemisphere," he said.

Baker also mentioned what he perceives to be the importance of enforcing U.S. security on the seas.

"Maintaining a strong role in the Pacific in ways that maintain regional and international security is vital," he said.

Baker also expressed concern over the political situation in China and emphasized that the U.S. should maintain firm foreign policies in Southeast Asia.

"We should hedge against the worst by maintaining security in the region," Baker said.

The former secretary of state also added that the U.S. role in China involves a multitude of political, economic and humanitarian issues.

"We need to maintain a China policy that is as complex as our interests there," Baker said.

Baker said the U.S. should attempt to play an important role in integrating the countries of Central Europe.

"The West can best help those countries by involving them in NATO," Baker said.

He also said that nations such as Hungary, Poland and the Czech Republic should be incorporated into the European Union.