Therefore, Reagan began a policy of increasing federal expenditures on the military for the next seven years. The plan seemed to lead to victory. By 1985 Reagan felt that the soviets had a leader that was now willing to form a friendly relationship with the U.S. The new leader called Mikhail Gorbachev. From this relationship, an Intermediate range Nuclear Forces Treaty emerged, which led to cuts in long-range weapons and many Soviet concessions on reducing of arms. Gorbachev also urged Yasir Arafat to renounce terrorism; he also withdrew troops from Afghanistan, and allowed for political settlements in Angola and Cambodia. These concessions that the Soviet Union traditionally stood firm on would supposedly help end the Cold War. The Soviet Union could no longer remain staunch and stubborn in the Cold War.