A report by the CIA of the critical domestic economic problems and social discontent Soviet General Secretary Gorbachev provided a look what the sources of his principal dilemma-the very reforms needed to deal with the problems would threaten preservation of the [[nomenklatura]] and put at risk Gorbachev’s ability to maintain the power to bring about [[Perestroika]].<ref>CIA Assessments of the Soviet Union: [https://www.cia.gov/csi/monograph/russia/enter.html Chapter 5, Enter Gorbachev ], Douglas J. MacEachin, CIA Publications, 1996.</ref>
====ReykjavíkSummit====
Gorbachev requested a Summit with Reagan in Reykjavik in October 1986 to discuss the stresses competition from the Reagan’s defense posture was having on Soviet military spending and economy, and Gorbachev’s ability to carryout his plans of restructuring Communist control. Gorbachev told the [[Politburo]] in preparation for the Summit, "Our goal is to prevent the next round of arms race. If we do not do this ... will pulled into an arms race beyond our power, and we will lose this race, for we are presently at the limit of out capabilities."<ref>Notes of Politburo Meeting 4 October 1986, [http://www.cnn.com/SPECIALS/cold.war/episodes/22/documents/reykjavik/ Gorbachev's instructions for the group preparing for Reykjavik]</ref>
Initially, Reagan recognized that the Soviets were offering a bad dealat the [[Reykjavík Summit]], so he walked away from the table.<ref>[http://www.nationalreview.com/article/423381/reagans-lesson-obama-no-agreement-better-bad-agreement-thom-tillis Reagan's Lesson to Obama: 'No Agreement Is Better Than a Bad Agreement'], [[National Review]]</ref> A year later, the ''Intermediate-Range Nuclear Forces Treaty (INF)'', which was signed by Reagan and Gorbachev on December 8th, 1987.<ref>[http://news.bbc.co.uk/onthisday/hi/dates/stories/october/12/newsid_3732000/3732902.stm 1986: Reykjavik summit ends in failure], [[BBC]]</ref>
===Dealing with the Soviets===