Excerpts of President Reagan's toast at the dinner given last night by Soviet leader Mikhail Gorbachev at the Soviet Embassy.Mr. General Secretary, Mrs. Gorbachev, Foreign Minister Shevardnadze, Ambassdor and Mrs. Dubinin, ladies and gentlemen. We're coming to the end of the second full day of your visit to our land. It's been an eventful two days. . . .

I'd like to begin with . . . an account of one of our diplomats -- a young man, then -- stationed in our embassy in Moscow during World War II. He was there when news of victory -- V-E Day -- reached that city. And he said Red Square erupted in a spontaneous demonstration of thankfulness and joy.

Our Embassy's Chancery was just across from the Kremlin, and many of the Americans stationed there in those days were still in uniform. When they walked outside to join in the celebration the crowd spotted them, lifted them onto their shoulders and carried them on to Red Square. But the young diplomat said he was even more moved by the words of one Red Army major standing near him in the crowd, words filled with new-found hope -- "Now it's time to live," he said.

. . . We've accomplished much so far in this summit -- a path-breaking agreement that for the first time will eliminate an entire class of U.S. and Soviet nuclear weapons. But I'm convinced that history will ultimately judge this summit, and its participants, not on missile count but on how far we move together to the fulfillment of that soldier's hopes.

. . . We've come to this summit without illusions, with no attempts to gloss over the deep differences that divide us, differences that reach to the core of values upon which our political systems are based. . . .

But perhaps, in this Christmas season, we should look at an even deeper and more enduring realism. . . . It is the reality that binds each of us as individual souls -- the bond that united Soviets and Americans in exultation and thanksgiving on that day of peace 42 years ago.

. . . You've declared that in your own country there is a need for greater glasnost -- or openness -- and the world watches expectantly and with great hopes to see this promise fulfilled. . . .

We can, with our free will, shape our future, we can make it what that Soviet soldier saw in his vision of a better world, a vision of peace and freedom.

In memory of that day in Red Square, when Soviet citizens carried American soldiers on their shoulders, in memory of that day when the Red Army embraced a new world of hope, I raise my glass.

Mr. General Secretary and Mrs. Gorbachev, Foreign Minister Shevardnadze, thank you. And Ambassador and Mrs. Dubinin, thank you for your hospitality this evening. And for my last attempt at Russian, Za vashy zdorovie {To your health}.