Following are excerpts from the prepared text of President Carter's State of the Union address :

Mr. President, Mr. Speaker, Members of the 96th Congress, fellow citizens:

As we meet tonight, it has never been more clear that the state of our union depends on the state of the world. And tonight, as throughout our generation, freedom and peace in the world depend on the state of the American union.

The 1980s have been born in turmoil and change. This is a time of challenge to our interests and our values, a time that tests our wisdom and our will.

At this moment in Iran 50 Americans are still held captive, innocent victims of terrorism and anarchy.

Also at this moment, massive Soviet invading forces are attempting to subjugate the fiercely independent and deeply religious people of Afghanistan. s

These two acts -- one of international terrorism and one of military aggression -- present a serious challenge to the United States and to the other nations of the world. Together, we will meet these threats to peace.

I am determined that the United States will remain the strongest of all nations, but our power will never be used to initiate a threat to the security of any country or the rights of any human being. We seek to be and to remain secure -- a nation at peace in a stable world. But to be secure we must face the world as it is.

Three basic developments have helped to shape our challenges:

The steady growth and increased projection of Soviet military power eyond beyond its borders

The overwhelming dependence of the industrial democracries on oil supplies from the Middle East; and

The press of social, religious, economic and political change in many nations of the developing world -- exemplified by the revolution in Iran.

Each of these factors is important in its own right. Each interacts with the others. All three are now focused on one troubled area of the world. All must be faced together -- squarely and courageously.

We will face these challenges. We will meet them with the best that is in us. And we will not fail.

In response to the abhorrent act in Iran, our nation has been aroused and unified as ever before as in peacetime. Our position is clear. We will never yield to blackmail.

We continue to push for these specific goals:

To protect the present and future interests of the United States;

To preserve the lives of the American hostages and to seek in every possible way their safe release;

If possible, to avoid bloodshed which might further endanger the lives of our fellow Americans;

To enlist the help of other nations to end this criminal violation of the moral and legal standards of a civilized world; and

To persuade the Iranian leaders that the real danger to their nation lies to the north from Soviet troops in Afghanistan, and that the unwarranted Iranian quarrel with us hampers their response to this greater danger.

If the American hostages are harmed, a severe price will be paid.

We will never rest until every one of the victims is released.

We now face a broader, more fundamental challenge in the region because of the recent military action of the Soviet Union.

Now, as during the last 3 1/2 decades, the relationship between the United States and the Soviet Union is the most critical factor in determining whether the world will live in peace or be engulfed in global conflict.

Since the end of the Second World War, America has led other nations in meeting the challenge of mounting Soviet power. This has not been a simple or static relationship. Between us there has been cooperation -- there has been competition -- and there have been times of confrontation.

In the 1940s, we took the lead in creating the Atlantic Alliance in response to the Soviet Union's suppression and consolidation of its East European empire and the resulting threat to Western Europe.

In the 1950s, we helped to contain further Soviet challenge in Korea and the Middle East, and we rearmed to assure that containment.

In the 1960s, we met Soviet challenges in the Berlin and Cuban missle crisis, and we sought to engage the Soviet Union in the important task of moving beyond the cold war and away from confrontation.

And in the 1970s, three American presidents negotiated with the Soviet leaders in attempts to halt the growth of the nuclear arms race. We sought to establish rules of behavior that would reduce the risks of conflict, and we searched for areas of cooperation that could make our relations reciprocal and productive -- not only for the sake of our two nations, but for the security and peace of the world.

In all these actions, we have maintained two commitments: To be ready to meet any challenge by Soviet military power, and to develop ways to resolve disputes and keep the peace.

Preventing nuclear war is the foremost responsibility of the two superpowers. That is why we negotiated the strategic arms limitation treaties -- SALT I and SALT II. Especially now in a time of great tension, observing the mutual constraints imposed by the terms of these treaties will be in the best interest of both countries -- and will help to preserve world peace. I will consult closely with the Congress as we strive to control nuclear weapons. That effort will not be abandoned.

We superpowers also have a responsibility to exercise restraint in the use of military power. The integrity and the independence of weaker nations must not be threatened. Afghan Invasion

But now the Soviet Union has taken a radical and aggressive new step. It is using its great military power against a relatively defenseless nation. The implications of the Soviet invasion of Afghanistan could pose the most serious threat to world peace since the Second World War.

The vast majority of the nations of the world have condemned this latest Soviet attempt to extend its colonial domination of others and have demanded the immediate withdrawal of the invading forces. The Moslem world is especially and justifiably outraged by this aggression against an Islamic people. No action of a world power has ever been so quickly and so overwhelmingly condemned.

But verbal condemnation is not enough. The Soviet Union must pay a concrete price for their aggression. While the invasion continues, we and other countries cannot continue business as usual with the Soviet Union.

That is why the United States has imposed stiff economic penalties on the Soviet Union. I will not permit Soviet ships to fish in the coastal waters of the United States. I have cut Soviet access to high-technology equiment and agricultural products. I have limited other commerce with the Soviet Union, and have asked our allies and friends not to replace these embargoed items. I have notified the Olympic Committee that with Soviet invading forces in Afghanistan, neither the American people nor I will support sending an Olympic team to Moscow.

The Soviet Union must answer some basic questions: Will it help promote a more stable international environment in which its own legitimate, peaceful concerns can be pursued? Or will it continue to expand its military power far beyond its genuine security needs, using that power for colonial conquest?

The Soviet Union must realize that its decision to use military force in Afghanistan will be costly to every political and economic relationship it values.

The region now threatened by Soviet troops in Afghanistan is of great strategic importance: it contains more than two-thirds of the world's exportable oil . . . . Draft Registration

The men and women of America's armed forces are on duty tonight in many parts of the world. I am proud of the job they are doing, and I know you share that pride. I am convinced that our volunteer forces are adequate for our current defense needs. I hope that it will not become necessary to reimpose the draft. However, we must be prepared for that possibility. For this reason, I have determined that the Selective Service system must now be revitalized. I will send legislation and budget proposals to the Congress next month so that we can begin registration and then meet future mobilization needs rapidly if they arise.

We also need quick passage of a new charter to define clearly the legal authority and accountability of our intelligence agencies. While guaranteeing that abuses will not recur, we need to remove unwarranted restraints on our ability to collect intelligence and to tighten our controls on sensitive intelligence information. An effective intelligence capability is vital to our nation's security.

The decade ahead will be a time of rapid change, as nations everywhere seek to deal with new problems and age-old tensions. But America need have no fear -- we can thrive in a world of change if we remain true to our values and actively engaged in promoting world peace.

Peace -- a peace that preserves freedom -- remains America's first goal. In the coming years as a mighty nation, we will continue to pursue peace.

I have been working with Congress in a concentrated and persistent way over the past three years to meet this urgent need.

But to be strong abroad we must remain strong at home. In order to be strong, we must continue to face up to the difficult issues that confront us as a nation today.

The crises in Iran and Afghanistan have dramatized a very important lesson: Our dependence on foreign oil is a clear and present danger to our national security.

The need has never been more urgent. At long last, we must have a clear, comprehensive energy program for our coutnry.

We have made progress. But Congress must act promptly now to complete final action on this vital energy legislation.

Our nation will then have a major conservation effort, important initiatives to develop solar power, realistic pricing based on the true value of oil, strong incentives for the production of coal and other fossil fuels in America, and our nation's most massive peacetime investment in the development of synthetic fuels . . . . Call for Help

Tonight I call on you, on all the people of America, to help our nation. Save energy. Eliminate waste. Let us make 1980 the year of energy conservation. . . .

Our material resources, great as they are, are limited. Our problems are too complex for simple slogans or quick solutions. We cannot solve them without effort and sacrifice.

Our challenges are formidable. But there is a new spirit of unity and resolve in our country. We move into the 1980s with confidence and hope -- and a bright vision of the America we want:

An America strong and free.

An America at peace.

An America with equal rights for women -- and for all citizens.

An America with jobs and good health care and education for every citizen.

An American with a clean and bountiful life in its cities and farms.

An America that helps to feed the world.

An America secure in filling its own energy needs.

An America of justice, tolerance and compassion.

For this vision to come true, we must sacrifice, but this national commitment will be an exciting enterprise that will unify our people.

Together as one people, let us work to build our strength at home. Together as one indivisible nation, let us seek peace and security throughout the world.

Together let us make of this time of challenge and danger a decade of national resolve and of brave achievement.