V. 18 Feb 75

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ISRAEL

[Answer] Both sides, we, as well as the Egyptians, avoided entering into details at this stage. Earlier, I brought a number of proposals to Washington in the framework of an agreement meant to put an end to a possible war and military engagements in any possible contingencies, and to insure progress toward peace. The Egyptians reacted negatively, but they did show interest in the opening of negotiations. And he [Dr Kissinger] cannot conclude with certainty what the depth and width of the gap are, but he knows that regardless of all the willingness by both parties to negotiate and reach an interim settlement, the gap exists and he will have to try to narrow the gap during his next visit.

[Question] When we are talking of an Egyptian compensation, we also take into account the Egyptians' glances toward their kinsmen, the Syrians, the Palestinians and Jordan--what influence will Egypt's readiness for an interim settlement have? To what extent will Egypt be ready to make an interim settlement without making it contingent upon settlements with Syria, for example?

[Answer] There is no doubt that to a certain degree Arab solidarity does exist. But there are also differences of opinion and controversies in the Arab camp. We did not stipulate any preliminary conditions. However, one thing remains clear: We shall negotiate with every Arab country willing to do so. There are countries with which an interim settlement can be discussed, and there are others with which only a peace treaty can be discussed. And one agreement cannot be linked to another. Each agreement must stand on its own. Since we are ready to negotiate with all of them--with each one of them in its proper time--there is no call for the other side to stipulate conditions either.

[Question] Mr Foreign Minister, we sit and talk about an interim settlement with Egypt, and the Geneva conference seems to be on the horizon. How does this fit into the situation?

[Answer] It does, by all means. We wanted the Geneva conference, and we were instrumental in gaining the Security Council's approval of a resolution to convene the Geneva conference as a permanent framework, in which and on whose behalf efforts were made in the past--and will be made in the future--to reach a political settlement. And I have no doubts whatever that sooner or later the Geneva conference will be convened. There is a difference, however, in whether the conference meets after the soil has been prepared for its success, or whether it is intended in advance to produce an impasse which could lead to war.

[Question] In case a partial settlement with Egypt is reached before the Geneva conference, when will such an agreement begin to be implemented?

[Answer] You want me to say what the commitments of the agreement will be, even before it is signed, even before we have concluded the negotiations regarding it. There is naturally the question: On what date after the signing will the various stages of the implementation begin? But it is too early to say this today.

[Question] What about the Americans? Have they been so far only the careful listeners trying to learn in order to prepare for the next visit, or have they also started to take the initiative, to make suggestions?

[Answer] The talks were not Israeli monologs. This was a dialog, as my predecessor was fond of saying. This was a lively dialog, with assessments of situations and exchanges of views and opinions. But these were not negotiations, because the negotiations are not with the United States. They should be conducted with Egypt. And the Americans agreed with our view that they do not intend to present a proposal of their own--at this stage.

V. 18 Feb 75

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ISRAEL

Look, I cannot make guesses about what will happen in the future, but the Americans regard themselves as negotiators, not as weavers of designs or initiators of plans. The plans are ours, and the Egyptians'. Possibly, both common and contradicting lines will be reflected in them in the near future. And the Americans, with Dr Kissinger in the lead, will have to muster their capabilities and their goodwill to bridge the differences of opinion and give prominence to the common denominator. And if it indeed becomes clear--as I do believe it will--that an interim settlement such as is needed by both Israel and Egypt also coincides with American policy, then it is not devoid of prospects. However, I would also like to issue a warning to ourselves: Just as there is no place for pessimism to paralyze any initiative beforehand, there is also no place for buoyant optimism, which might trap us into disillusionment. We have to desire peace, to strive toward peace. If it can be brought nearer by stages, we must do so in stages, by exploiting every possibility, being ready to examine every possibility, even if it should seem to be devoid of prospects.

[Question] You were talking of optimism and pessimism. Our guest, Dr Kissinger, threw out an estimate before his departure: "Fifty-fifty." Are you ready to chance a guess of your own on the prospects for a settlement.

[Answer] No. First of all, a guess of this sort is not much of a guess, because, regardless of the eventual result, he will have a 50 percent success. [as heard] And I do not want to look for such an easy solution. I have always said that I see a real prospect for talks over an interim settlement taking place. But I thought that the gap between the positions of Israel and Egypt was deep and wide, to the extent that I was less optimistic regarding quick results. However, I claim that an interim settlement is desired by both parties. And if both sides are interested, they are sure to find the options. Because, what is the alternative to a settlement? If we go to Geneva without prior preparation and without preliminary achievements, the conference is doomed to failure beforehand. And a political deadlock could definitely lead toward military escalation, something neither we, nor, I assume, our neighbors want at this stage. On the other hand, I admonish ourselves not to negotiate under pressure of fear, be it the threat of war, or even war itself. Because those issues regarding which we are ready to make compromises, within the framework of an interim settlement, we shall approach without fear--on the contrary, with courage. And as for those issues regarding which we are unable to make a compromise, we must not give up our position even under threat of war.

## Cabinet To Hear Results of Talks

### Jerusalem Domestic Service in Hebrew 1900 GMT 15 Feb 75 TA

[Text] The ministerial team which met with Dr Kissinger will make a report to the Cabinet tomorrow. Our political correspondent has learned that the ministerial team will recommend that the Cabinet not hold a political discussion for the time being, because no details are being discussed in the present stage of the talks, and consequently there is no need for the time being to take new decisions.

V. 18 Feb 75

N 8

ISRAEL

Cabinet Hears Report on Talks

Tel Aviv IDF Radio in Hebrew 1520 GMT 16 Feb 75 TA

[Text] Today, the Israeli Cabinet heard a report on the talks with U.S. Secretary of State Dr Henry Kissinger. Here is an initial report from Jerusalem in the Cabinet session by our political correspondent Yoel (Esteron):

[Esteron]-live] As you noted, the ministerial team--the prime minister, the foreign minister and the defense minister--reported on the talks with the U.S. secretary of state. The other minister asked for clarifications, and members of the team replied. A political discussion, however, did not take place, and as had been expected, no decisions were adopted. It was made clear that during the week of talks a further step was made by way of examination and reconnoitering, but the practical negotiations have not yet started. No new Egyptian proposals have been presented to the Cabinet. None of the Cabinet members requested a political discussion today, nor was a date set for a political discussion in the Cabinet.

The secretary of the government commented a short while ago on the reports published in NEWSWEEK and reprinted in some Israeli papers alleging that the Israeli team had differences of opinion which found expression in the talks with Kissinger: According to the government spokesman, these reports are totally unfounded. The team conducted the talks with a single voice and in unity. [end correspondent's report]

Cabinet Discusses Border Settlements

Jerusalem Domestic Service in Hebrew 1600 GMT 16 Feb 75 TA

[Excerpts] In its plenary session today, the Cabinet was briefed by the ministerial team that had held talks with Dr Kissinger. Here is our political correspondent Shalom Qital's report:

[qital--in own voice] In today's Cabinet session, the defense minister reviewed matters of security.

Regarding another subject, and following a motion tabled jointly by the defense minister and by the education minister, it was decided to enable students to work in border settlements within the framework of the national service project. The motion says that border settlements are in need of volunteers to help with farm work, since members of border settlements are overburdened with watch duties. The safety of the pupils will be seen to by the IDF, which, in any case, is also responsible for the security of the border settlements. Parents will be asked to give prior approval in writing to pupils leaving for the border settlements.

It was also decided in today's Cabinet session to call on 11th grade students to take part voluntarily in Civil Guard watch duties. It was also decided to examine the integration of these pupils in the security watch on educational institutions, also on a voluntary basis. So far, only 12th grade students have volunteered for these tasks.

iec of report]

V. 18 Feb 75

N 9

ISRAEL

Knesset Leader Describes Kissinger

Jerusalem Domestic Service in Hebrew 1500 GMT 14 Feb 75 TA

[Text] The chairman of the Knesset Foreign Affairs and Defense Committee Yizhaq Navon has said that Dr Kissinger is basically a friend of Israel and he is doing much to strengthen it. If differences of opinion take place with him from time to time, this is legitimate. Knesset member Navon was speaking at a state list political committee meeting.

Papers Express Views on Visit

Jerusalem Domestic Service in Hebrew 0500 GMT 16 Feb 75 TA

[From the morning press review]

[Text] Dr Kissinger has left the region. HA'AREZ learns from Kissinger's visit that President as-Sadat is not yet ready for another partial arrangement with Israel except on the basis of his own approach, which rules out the idea of a commitment to end belligerency, yet calls for Israel to withdraw from all the fronts at the same time. It appears, therefore, that no move forward has taken place--no move which would justify the efforts Dr Kissinger has exerted. Nevertheless, it should be assumed that Dr Kissinger will make another effort next month to achieve some results before the Russians begin to fill a practical role when the Geneva conference is convened.

HAZOFE thinks that the short period of time between Kissinger's two visits should be utilized to examine Egypt's intentions. Does it want to achieve peace in stages or is it interested only in gaining time to prepare for a new war. The paper assumes that for his next visit Dr Kissinger will prepare a compromise proposal which he will present as a basis for concrete discussions. Hence, Israel should utilize all its links with the American administration to insure that Dr Kissinger will not propose a plan which would be incompatible with the essential interests of Israel's security.

SHE'ARIM charges that Dr Kissinger in his visit to the region is actually setting up a new system of pan-Arabism and is creating a common denominator for the Arab countries which have contradictory interests. The paper believes that such pan-Arabism is tantamount to a timebomb threatening Israel's existence. The paper concludes that Kissinger engages in extinguishing small fires, but his action is liable to fan a larger fire in the future.

NOWINY KURIER on the other hand believes that Kissinger's visit has made an important contribution to the clarification of the stands of all sides, and that in his forthcoming visit it will become clear whether practical progress has been made.

V. 18 Feb 75

N 10

ISRAEL

Afternoon Papers on Visit

Jerusalem Domestic Service in Hebrew 0900 GMT 16 Feb 75 TA

[Afternoon press review]

[Text] The two afternoon papers write about the fog left in our region following Dr Kissinger's departure.

YEDI'OT AHARONOT says the optimism which accompanied the visit of the American secretary of state had only one intention--to soften Israeli public opinion. The proposals which Kissinger will bring with him on his return to the region are clear. The paper adds that it would not be worried by these proposals if it could be convinced that the prime minister's present attitude toward making further concessions will not change.

MA'ARIV is worried by the reports that Egypt does not intend to commit itself directly to Israel but to Washington. The paper says the Egyptians made such commitments in the past and now they are disregarding them. Therefore, Cairo's contention that it cannot commit itself to Israel should be rejected.

Signed Nonbelligerency Agreement Wanted

Jerusalem POST in English 18 Feb 75 p 1 TA

[By Jerusalem POST diplomatic correspondent]

[Text] Isreal will insist on a direct, signed, binding undertaking from Egypt to end the state of belligerency in return for a major withdrawal embracing the Mitla and Jiddi passes and the Abu Rudays oilfield in Sinai. Government officials in Jerusalem reiterated this position yesterday in reaction to President as-Sadat's interview with the Washington POST in which he held out the prospect of Egyptian undertakings to "third-parties," for instance to the U.S.

The Israeli officials said that such indirect undertakings would be useful in addition to direct undertakings, as giving added weight and stability to an accord.

Senior American officials on the Kissinger aircraft, meanwhile, are reported to have advised newsmen accompanying the secretary "not to take too seriously in coming weeks the public statements and news briefings from either the Egyptians or the Israelis."

Bernard Gwertzman of the New York TIMES wrote that this was the U.S. officials' reaction on the plane from Tel Aviv to Aqaba on Friday afternoon when the accompanying newsmen told of a briefing they had had that day with "senior Israeli officials."

Gwertzman wrote that the Israeli officials had been less optimistic than Dr Kissinger, and had asserted "that Mr Kissinger did not bring to the Israeli leaders...very much more about the Israeli position than was known there..." [as published]

"The newsmen were told," Gwertzman reported, "that in diplomacy both the Egyptians and Israelis were sure to take very tough positions in public to gain whatever negotiating advantage they could."

V. 19 Feb 75

C 4

ARABIAN PENINSULA

According to these plans some reforms are conceded on one hand, while repressive violence and the spread of terror in the ranks of the citizens are increased on the other, until by these means the neutralization of the uncommitted elements is achieved through temptations and offers alternating with threats and terror, so that they eventually become not merely neutral elements but ripe for falling into the lap of the authorities and cooperating with them.

"Our peoples realized quite early the dimensions of this terrible, base design and boldly proceeded to take decisive moves to frustrate it, taking a lesson from their bitter experience with the forces of repression and terror and from the experience of the fighting peoples who preceded them on this road. Thus they escalated their struggles and reinforced them by taking quickly to the armed struggle, as the highest form of struggle, and confronting reactionary violence with organized revolutionary violence.

"We pledge ourselves to continue the decisive struggle and to make all the popular masses totally committed to the armed struggle, in order to bring down the reactionary regimes and their agents and to rout their imperialist masters, realizing thereby freedom and independence and the building of a new society, a society of justice and prosperity.

"We are confident that the masses of the Arab people in Oman and the Iranian people will rise to this sacred historic task. We stress that the expansionist intentions at the expense of Arab territory shown by the agent shah and his regime, and endorsed by invasion and military occupation, are in fact acts of aggression made solely by the agent regime at the instigation of its imperialist masters in Washington and London.

"The Iranian masses dissociate themselves from them. These acts should not in any way whatsoever affect the nature of the strong, fraternal and historic relations that bind the Iranian masses and their brothers and Arabs.

"We realize clearly that the aggressive war launched by the Iranian forces on 20 December 1973 against the Arab people of Oman and the escalation of this war by the recent launching of an extensive military offensive against the liberated western zone of the Dhofar region with the object of delivering the coup de grace and expanding the area of Iranian military occupation of Omani territory and the treason committed by the agent Qabus in opening wide the doors of Oman for the shahanshah's ambitions-- all this came about in implementation of the imperialist strategy in the area.

"[Word indistinct] announcement came about the tripartite agreement between the U.S. Britain and the agent Qabus, and which stipulated the use of the island of Al-Masirah as an important strategic position by the American forces is in line with U.S. threats to occupy the sources of oil and lays bare the disgraceful American imperialist intentions toward the region and the strengthening of the traitorous role played by the agent Qabus in threatening the peace and security of the region as a whole.

"We positively believe that Oman will not be the only country to be subjected to this brazen aggression; other peoples of the region are not safe from the evil of imperialism in the future unless the progressive forces and the peoples of the region take revolutionary initiative to stem this aggression.

V. 19 Feb 75

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ARABIAN PENINSULA

"We also regard any tolerance of the reactionary regimes in Iran and Oman and any stand that will lead to their interest a (?violation) against the interests of the Arab people in Oman, the Iranian masses and all the struggling peoples in the world. [Words indistinct] we at the time when we express our absolute faith in armed struggle waged by our heroic people and the rest of the peoples of the region and especially the heroic Palestinian people against imperialism, Zionism and reaction [words indistinct] the imperialists, enemies of the peoples."

[Signed] The Popular Front for the Liberation of Oman; the Fidai organization of the Iranian people; the Mujahids organization of the Iranian people; organizations of the Iranian National Front.

## PFLO CLAIMS MILITARY VICTORIES IN DHOFAR

Baghdad INA in Arabic 0910 GMT 15 Feb 75 JN

[Text] Aden--The Omani revolutionaries have killed 23 Iranian military personnel in battles waged in the western area of Dhofar region last Wednesday and Thursday. The Popular Front for the Liberation of Oman said in a military communique distributed here today that the battles also led to the complete destruction of 36 Iranian defensive positions. The communique said that the revolutionaries returned safely to base after these battles.

## Military Communique No 39/75 Issued

Aden Voice of Oman in Arabic 1615 GMT 17 Feb 75 LD/EA

[Text] Military Communique No 39/75:

On 15 February 1975, a group of the forces of the People's Liberation Army and the people's militia launched an artillery attack against the enemy post at Akharad at 0930. The shelling by our heroic revolutionaries was intense and concentrated on the enemy positions at this post. The shelling lasted for 1/2 hour.

Enemy losses were as follows: complete destruction of five defensive positions; our revolutionaries set fire to the enemy camp; a helicopter was seen landing to take away the dead and the wounded during the shelling by our revolutionaries. The number of enemy dead and wounded could not be assessed by the time this communique was being prepared.

On our side, no losses were incurred and our revolutionaries returned safely to their bases.

Issued by the forces of the People's Liberation Army, Dhofar region.

## SAUDI ARABIA

### REPORTAGE ON VISIT OF HENRY KISSINGER

#### Kissinger Arrives in Riyadh

Riyadh Domestic Service in Arabic 1100 GMT 15 Feb 75 LD

[Text] U.S. Secretary of State Henry Kissinger arrived at 1200 today at Riyadh International Airport aboard a special aircraft on a short visit to the kingdom as part of his current tour of the Middle East. He was welcomed at the airport by Shaykh Ahmad Zaki Yamani, minister of petroleum and mineral affairs; Shaykh Muhammad Ibrahim Mas'ud, acting minister of state for foreign affairs; Salim Sunbul, chief of protocol at the Foreign Ministry; the U.S. ambassador to the kingdom and a number of leading civil and military personalities.

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ARABIAN PENINSULA

Shaykh Ahmad Zaki Yamani said in a statement to news agency and press representatives: "We are happy to welcome a friend to our country and to exchange views with him so as to help him attain peace in the region. We appreciate his efforts and wish him success."

Dr Henry Kissinger also made a statement saying: "I would like to express my pleasure at visiting Riyadh and meeting friends in the Saudi Arabian Kingdom. I shall convey to His Majesty King Faysal the results of the tour I have undertaken in the region and the determination of the United States of America to contribute to speedy progress toward peace in the Middle East. We shall also discuss other questions including cooperation between the oil-producing states and consumers. Our talks will be characterized by understanding, cooperation and traditional friendship."

## Talks With Faysal, Ministers

### Riyadh Domestic Service in Arabic 1400 GMT 15 Feb 75 LD

[Excerpt] His Majesty King Faysal received U.S. Secretary of State Henry Kissinger at 1630 in the premier's office where they held political talks. Amir Fahd ibn 'Abd al-'Aziz, second deputy prime minister and minister of interior, met U.S. Secretary of State Henry Kissinger at 1400. The meeting was attended by Shaykh Muhammad Ibrahim Mas'ud, acting minister of state for foreign affairs; the U.S. under secretary of state for economic affairs, the assistant secretary of state for economic affairs, the assistant secretary of state for Middle East affairs and the American ambassador to the kingdom. At 1415, Dr Kissinger met Shaykh Ahmad Zaki Yamani, Saudi minister of petroleum and mineral affairs. The meeting was attended by the American under secretary of state for economic affairs, the assistant secretary of state for Middle East affairs and the American ambassador.

Earlier, Dr Kissinger met Shaykh Muhammad Ibrahim Mas'ud, acting minister of state for foreign affairs, soon after his arrival in Riyadh. The meeting was attended by Joseph Sisco, under secretary of state for political affairs and the U.S. ambassador. Dr Kissinger also met the American ambassadors accredited to the Arab Gulf states, the YAR ambassador and the official in charge of U.S. interests in Baghdad.

## Kissinger Departs Riyadh

### Riyadh Domestic Service in Arabic 1800 GMT 15 Feb 75 LD

[Text] At 1800 today, His Excellency Dr Henry Kissinger, U.S. secretary of state, left Riyadh International Airport on board a special aircraft for West Germany following a brief visit to the Kingdom of Saudi Arabia within a tour of the Middle East, during which he continued his efforts to bring about peace in this region. He was seen off at the airport by His Excellency Shaykh Ahmad Zaki Yamani, minister of petroleum and mineral affairs; His Excellency Shaykh Muhammad Ibrahim Mas'ud, acting minister of state for foreign affairs; Salim Sunbul, chief of protocol at the Foreign Ministry; the U.S. ambassador to the kingdom, and a number of senior officials.

Upon departure, Dr Kissinger made a statement to news agency correspondents and the press in which he said: "I can in fact say that we have reviewed discussions on a Middle East peace with King Faysal and senior officials in the kingdom. I listened with great interest to his majesty's advice, which we take seriously. We have reviewed bilateral relations and other issues of interest to both countries. My colleagues and I are thankful for the hospitality and welcome accorded us."

V. 19 Feb 75

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ARABIAN PENINSULA

His Excellency Shaykh Ahmad Zaki Yamani said: "We believe that it is in the interest of the United States that peace be established in this region. His Excellency Shaykh Muhammad Ibrahim Mas'ud said: "We welcome the visit of Dr Henry Kissinger, which aims at cooperation and the achievement of our desired objective, the bringing about of a peaceful solution, as well as talks on problems facing our Arab region at the present juncture." He added: As he himself said, "Dr Henry Kissinger's trip has been exploratory. But this trip will help the advance to the next stage during his coming trip in March 1975." His excellency added: "We in Saudi Arabia hopefully look forward to cooperation and to reaching the next stage, which is complete withdrawal and the granting of their legitimate rights to the Palestinian peoples.

SYRIAN MINISTER KHADDAM MEETS KING FAYSAL, DEPARTS FOR KUWAIT

Riyadh Domestic Service in Arabic 1400 GMT 16 Feb 75 LD

[Summary] King Faysal received 'Abd al-Halim Khaddam, Syrian deputy prime minister and foreign minister, at the premier's office today. At 1300 today, 'Abd al-Halim Khaddam left Riyadh International Airport for Kuwait as part of a tour he is currently making to a number of Arab countries. He was seen off by Muhammad Ibrahim Mas'ud, acting state minister for foreign affairs.

'Abd al-Halim Khaddam made a statement to the SAUDI NEWS AGENCY prior his departure in which he said: I delivered a message from President Hafiz al-Asad to King Faysal on the situation in the region. This message comes within the context of the continued consultations and contacts between King Faysal and President Hafiz al-Asad. He added: His majesty asked me to deliver a message in reply to President al-Asad. He also said that his tour will include several Arab states to hold consultations on the situation in the Arab region.

"Shaykh Muhammad Ibrahim Mas'ud, acting minister of state for foreign affairs, stated that in view of the coordination King Faysal is carrying out among Arab states, he received the Syrian foreign minister and discussed with him the situation in the Arab region in general and bilateral relations between Syria and Saudi Arabia in particular. He added that these discussions are within the context of the consultations among Arab states on the Middle East problem."

TUNISIAN PLANNING MINISTER ARRIVES IN JIDDAH FOR TALKS

Riyadh Domestic Service in Arabic 0600 GMT 16 Feb 75 LD

[Excerpts] Chedli Ayari, Tunisian minister of planning and president of the Arab-African Development Bank, arrived last night at Jiddah International Airport on an official visit to the kingdom during which he will have talks with Muhammad Aba al-Khayl, minister of state for financial and national economy affairs, and Hisham Nazir, minister of state and head of the Central Planning Authority, to coordinate cooperation between Tunisia and Saudi Arabia in the field of planning and investment. His excellency will also discuss a plan for the Arab-African Bank.

In a statement to the SAUDI NEWS AGENCY on his visit to the kingdom, his excellency said: The aim of my visit is to discuss with Saudi officials the consolidation of the fruitful cooperation between the two countries, in particular in the economic and industrial fields. This visit comes after the successful visit of Hisham Nazir, minister of state and head of the Central Planning Authority, to Tunisia during which several economic projects between the two countries were discussed. This is also an opportunity to study the plan for the Arab-African Bank in which Saudi Arabia is taking an active and useful role by providing aid and its economic experience.

UNCLASSIFIED

HIGH NOTE. THE KEY TO ISRAEL'S WITHDRAWAL FROM THE ABU RUDEIS OIL FIELDS IS A GUARANTEED ALTERNATE SUPPLY.

THIS AFTERNOON, FROM ALL APPEARANCES, THE SHAH OF IRAN PRONOUNCED HIMSELF READY TO UNDERWRITE THAT GUARANTEE.

BY THIS EVENING KISSINGER WAS IN PARIS. DURING HIS MEETINGS WITH FRENCH OFFICIALS, THE SECRETARY WILL BE

TRYING TO LINE UP SUPPORT FOR HIS PROGRAM TO LOWER OIL PRICES WHILE ENSURING THAT THEY DON'T FALL SO LOW AS TO DISCOURAGE RESEARCH INTO ALTERNATE ENERGY SOURCES.

TOMORROW, KISSINGER RETURNS TO WASHINGTON. REASONER:

SECRETARY KISSINGER HAS APPARENTLY BEEN UNABLE TO PERSUADE SYRIA'S PRESIDENT ASSAD TO RENEW THE MANDATE FOR A UN PEACEKEEPING FORCE ON THE GOLAN HEIGHTS BEYOND MAY.

ABC NEWS CORRESPONDENT JOHN COOLEY REPORTS THAT SINCE HAK'S CURRENT DIPLOMACY SEEMS NOT TO HAVE (INAUDIBLE)

A RETURN TO SYRIA OF THE GOLAN TERRITORY, ASSAD HAS TAKEN A HARD LINE TO BLOCK A SEPARATE EGYPTIAN-ISRAELI DEAL FOR ME PEACE.

(B) NBC EVENING NEWS RICHARD VALERIANI FROM PARIS:

EXTRAORDINARY SECURITY MEASURES WERE IN FORCE AT THE HOTEL WHERE THE MEETING TOOK PLACE. THE SHAH ARRIVED FROM ST. MORITZ WHERE HE HAS BEEN ON VACATION. IF NORMAL DIPLOMATIC PROTOCOL HAD BEEN OBSERVED, THE SECRETARY OF STATE WOULD HAVE GONE TO ST. MORITZ. CHUT SINCE THE SHAH REPORTEDLY

HAD TO SEE HIS DENTIST IN ZURICH ANYWAY, HE ALSO SCHEA
DULED THE LUNCH WITH HAK HERE AS WELL. HAK CAME TO
ZURICH TO TALK ABOUT OIL, ESPECIALLY OIL FOR ISRAEL. HE
HAD ALREADY DISCUSSED THAT SUBJECT WITH THE ISRAELIS IN
A GENERAL WAY IN JERUSALEM LAST WEEK. THE TWO MEN TALKED
FOR ABOUT 3 HOURS. IRAN ALREADY SUPPLIES ISRAEL WITH
ALMOST HALF OF ITS OIL NEEDS AND THE ISRAELIS GET THE
REST FROM THE ABU RUDEIS FIELDS WHICH THEY CAPTURED FROM
EGYPT IN 1967. IF THEY NOW RETURN THOSE FIELDS TO EGYPT
AS PART OF ANOTHER DEAL, THEY WANT ASSURANCES THEIR NEEDS
WILL BE MET ELSEWHERE. AFTER TODAY'S MEETING THE SHAH
LEFT LITTLE DOUBT ABOUT WHERE THE REPLACEMENT OIL WOULD
COME FROM. THE SHAH: "I SAID WHEN WE SELL OUR OIL AND
FILL UP THE TANKERS IN OUR TERMINAL PORTS WE DON'T MIND
AND WE DON'T CARE WHERE IT GOES." VALERIANI: AFTER

LUNCH IN ZURICH AND BREAKFAST IN LONDON, HAK FLEW TO PARIS
FOR DINNER. THIS IS THE FINAL STOP ON HIS NINE COUNTRY,
TEN-DAY TRIP AND HE PLANS TO RETURN TO WASHINGTON TOMORROW.

UNCLASSIFIED

(C) CBS, MARVIN KALB FROM PARIS: SECURITY WAS EXTRAORDINARILY TIGHT AS HAK FLEW INTO ZURICH--DOZENS OF TANKS, SCORES OF POLICE DOGS, HUNDREDS OF TROOPS POSITIONED FOR THE SECRETARY'S PILGRIMAGE TO THE SHAH, A MONARCH WITH MONEY AND AMBITION. HE SHATTERED HAK'S HOPE THAT OIL PRICES MIGHT SOON DROP - NO, HE WARNED, THEY MIGHT EVEN GO UP IF THE CONSUMING INDUSTRIALIZED WORLD DOES NOT CONTROL ITS RAMPANT INFLATION. AT BEST, PRICES MAY HOLD AT THE CURRENT INFLATED LEVEL. AFTER A THREE-HOUR LUNCH OF CAVIAR AND ROAST BEEF DEVOTED IN LARGE PART TO HAK'S CURRENT EFFORTS TO ARRANGE ANOTHER DEAL IN THE ME, THE SHAH SAID IN EFFECT THAT IRAN IS READY TO MAKE UP THE OIL ISRAEL MAY LOSE FROM THAT DEAL BY GIVING UP THE ABU RUDEIS OIL FIELDS. THE SHAH: "ONCE THE TANKERS ARE LOADED, WHERE IT GOES IS OF NO IMPORTANCE TO US. WE DON'T MIND WHERE IT GOES, BECAUSE IT IS A PURELY COMMERCIAL TRANSACTION FOR MY COUNTRY."
KALB: HAK RETURNS TO WASHINGTON TOMORROW, READY TO LAUNCH A MAJOR STUDY ON HOW TO GUARANTEE ANOTHER INTERIM AGREEMENT BETWEEN ISRAEL AND EGYPT. ONE (IDEA) THAT HE IS CONSIDERING IS A FORMAL AMERICAN DEFENSE TREATY WITH ISRAEL.

UNCLASSIFIED

## 2. RADIO (AFTERNOON AND EVENING)

(A) MARVIN KALB, FROM PARIS: "AFTER A THREE-HOUR LUNCHEON MEETING WITH SECRETARY KISSINGER THE SHAH TOLD REPORTERS THAT THE PRICE OF OIL COULD GO UP EVEN HIGHER UNLESS THE WESTERN INDUSTRIALIZED WORLD DOES SOMETHING ABOUT ITS RAMPANT INFLATION. THE SHAH DID NOT MENTION THE FACT THAT THE INFLATION HAD BEEN ACCELERATED BY THE FIVE-FOLD INCREASE IN OIL PRICES IN THE PAST 14 MONTHS. 'I'M NOT

ONE OF THOSE PEOPLE WHO BELIEVE THE PRICE OF OIL SHOULD GO LOWER,' THE SHAH SAID AS KISSINGER STOOD BY HIS SIDE, 'IF YOU FORCE IT WITH YOUR INFLATION THE PRICE WILL GO HIGHER.' NEWSMEN ON KISSINGER'S PLANE DURING THE FLIGHT FROM ZURICH TO PARIS TONIGHT WERE TOLD THAT THE SECRETARY WOULD BE ASTONISHED IF OIL PRICES WENT ANY HIGHER. HE APPARENTLY BELIEVES THAT THE PRICE WILL EVENTUALLY GO DOWN BECAUSE OF THE CURRENT SURPLUS OF OIL IN WORLD MARKETS, BUT THAT FOR THE TIME BEING THE PRICE IS APT TO REMAIN PRETTY MUCH AT CURRENT INFLATED LEVELS."

(B) RICHARD VALERIANI, FROM PARIS: "FOLLOWING A THREE-HOUR WORKING LUNCH WITH KISSINGER THE SHAH LEFT LITTLE DOUBT THAT IRAN WAS PREPARED TO FULFILL ALL OF ISRAEL'S OIL NEEDS. HE TOLD AN IMPROMPTU NEWS CONFERENCE THAT 'ONCE THE TANKERS ARE LOADED WE DON'T MIND WHERE THE OIL GOES.' THE ISRAELIS ALREADY GET ALMOST HALF OF THEIR OIL FROM IRAN. THE REST COMES FROM THE ABU RUDEIS FIELDS THAT WERE CAPTURED FROM EGYPT IN 1967. BUT BEFORE THEY RETURN THOSE FIELDS TO EGYPT AS PART OF ANOTHER AGREEMENT, THEY WANT ASSURANCES THEIR OIL NEEDS WILL BE MET ELSEWHERE. THE UNITED STATES HAS APPARENTLY PROMISED ENOUGH ECONOMIC AID TO PAY FOR THE EXTRA IMPORTED OIL, WHICH SHOULD COST AN ESTIMATED 400 MILLION DOLLARS A YEAR."

UNCLASSIFIED

UNCLASSIFIED

(C) BARRY SCHWEID, FROM ZURICH: "SECRETARY OF STATE KISSINGER FLEW TO ZURICH TODAY FOR LUNCH WITH THE SHAH OF IRAN. THE TWO TOP ITEMS ON THE AGENDA: OIL PRICES AND SUPPLYING ISRAEL ONCE IT GIVES UP OIL FIELDS IN THE SINAI. THE SHAH FLEW DOWN FROM ST. MORITZ WHERE HE HAS BEEN SKIING FOR FOUR WEEKS. KISSINGER LAVISHED PRAISE AS USUAL CALLING THE SHAH AN OLD TRUSTED AND VALUED FRIEND OF THE UNITED STATES. HE SAID NOTHING OF COURSE ABOUT THE QUADRUPLED OIL PRICES THAT HAVE DEVASTATED EUROPE AND PINCHED THE AMERICAN ECONOMY.

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(D) LATER KALB ON CBS RADIO FROM PARIS: "KISSINGER FLEW INTO PARIS TONIGHT FOR TALKS WITH FRENCH LEADERS ABOUT ENERGY AND THE MIDDLE EAST - HE RETURNS TO WASHINGTON TOMORROW. THE HIGHLIGHT TODAY WAS A THREE-HOUR LUNCHEON MEETING WITH THE SHAH OF IRAN. IT TOOK PLACE IN A HILLTOP HOTEL IN ZURICH UNDER THE TIGHTEST SECURITY BLANKET THAT FINANCIAL CENTER HAD EVER EXPERIENCED. THE SHAH DISPELLED ANY OFFICIAL AMERICAN HOPE FOR A DROP IN OIL PRICES. HE WARNED, IN FACT, THAT PRICES MIGHT GO UP IF THE WESTERN INDUSTRIALIZED NATIONS DO NOT CONTROL THEIR RAMPANT INFLATION. AT BEST, PRICES MAY HOLD AT THE CURRENT INFLATED LEVEL. ON KISSINGER'S CURRENT EFFORT TO ARRANGE ANOTHER INTERIM SOLUTION BETWEEN EGYPT AND ISRAEL, THE SHAH SUPPORTED IT EVEN TO THE EXTENT OF GIVING ASSURANCES THAT IRAN WOULD MAKE UP FOR ANY OIL ISRAEL MIGHT LOSE BY GIVING UP THE ABU RUDEIS OIL FIELDS. THAT IS ONE KEY TO KISSINGER'S CURRENT STRATEGY THAT, IN ANY DEAL IN THE SINAI, EGYPT GETS BACK THE OIL FIELDS."

3. WIRES

(A) BARRY SCHWEID, AFTERNOON LEAD, DATELINE PARIS: "SHAH GAVE ASSURANCES TODAY THAT IRAN WOULD REPLACE ANY OIL ISRAEL USES AS A RESULT OF RETURNING THE ABU RUDEIS OIL FILEDS TO EGYPT...

'ONCE THE TANKERS ARE LOADED, WE DON'T MIND WHERE THE OIL GOES. IT IS A PURELY COMMERCIAL TRANSACTION FOR US,' THE SHAH SAID... HE ALSO REITERATED THAT IRAN WOULD NOT BE PART OF ANY OIL EMBARGO AGAINST THE WEST.

'WE HAVE NOT TAKEN PART IN THE FIRST OIL EMBARGO, AND WE WILL NOT TAKE PART IN ANY OTHER,' HE SAID. HE ADDED THAT IN ANY CASE A FUTURE EMBARGO WOULD NOT WORK ANY MORE BECAUSE OF THE TREMENDOUS STOCKS SINCE BUILT UP IN THE WESI. 'TODAY, WARS CANNOT LAST MORE THAN THREE WEEKS.'

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ON OIL PRICES, THE SHAH SAID HE DOES NOT EXPECT THEM TO BE
FORMALLY LOWERED, BUT THAT THE DECLINING VALUE OF THE
DOLLAR AND INFLATION ARE EFFECTIVELY LOWERING THEM ANYWAY.
...THE PRICE OF A BARREL OF OIL TODAY CORRESPONDS TO SOME-
THING BETWEEN $7 AND $8, HE SAID. OIL PRICES RANGE
BETWEEN $10 AND $11 A BARREL.

•IF YOU FORCE US TO RAISE THE PRICE BY INFLATION,' HE
ADDED, 'IT WILL GO UP.'

ON THE FLIGHT TO PARIS, IT WAS LEARNED THAT KISSINGER WANTS
A STUDY OF POSSIBLE GUARANTEES THAT COULD BE MADE TO
ISRAEL BY THE U.S. AS A MEANS OF ASSURANCES FOLLOWING A
SINAI WITHDRAWAL. ...

IN LONDON EARLIER IN THE DAY, THE SECRETARY SOUGHT TO
INSURE THAT THE SOVIET UNION WILL NOT BLOCK ANOTHER INTERIM
MIDEAST AGREEMENT, BY PROMISING NOT TO EXCLUDE THE SOVIETS
FROM HIS EFFORTS.

•I HOPE THE SOVIET UNION WILL UNDERSTAND THAT ANY STEP
TOWARD PEACE IS IN THE INTEREST OF EVERYBODY,' HE SAID.
'WE HAVE ALWAYS ASSESSED THAT A FINAL SETTLEMENT WILL
REQUIRE THE PARTICIPATION AND COOPERATION OF THE SOVIET
UNION.'

....EGYPTIAN FOREIGN MINISTER ISMAIL FAHMY INDICATED
TUESDAY HE HAS FAITH IN MAK'S EFFORTS BUT SAID EGYPT WOULD
AGAIN GO TO WAR AGAINST ISRAEL IF THEY FAIL." MAK

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ACTION:

Foreign Service of the
United States of America

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TOSEC 454

E.O. 11652: N/A

TAGS: OVIP (KISSINGER, HENRY A.)

SUBJECT: COMBINED TRAVELING PRESS REPORT, FEBRUARY 18, PART 2

FOR AMBASSADOR ANDERSON FROM S/PRS

NO. 33 - PART 2

NEWSPAPERS

SUMMARY: ALL PAPERS FEATURE HAK-GROMYKO GENEVA MEETINGS PROMINENTLY. MOST HIGHLIGHT SOV CONCESSION FOR ONE MORE ISRAELI-EGYPTIAN DISENGAGEMENT TRY BEFORE HEADING FOR GENEVA. LONE EXCEPTION IS NYTIMES WHICH LEADS WITH HAK-GROM WINDING UP THEIR TALKS "IN DISAGREEMENT OVER MIDDLE EAST." IN ADDITION TO SCHMIDT REPORT ON ME PROGRESS, CSM HAS SECOND PAGE ONE DISPATCH FROM SCHMIDT (AND JOHN COOLEY) ON HAK'S DISCUSSIONS WITH SAUDIS ON OIL FLOOR PRICE. KEATLEY'S FULL REPORT BEING SENT SEPTEL. END SUMMARY.

WASHPOST, BERGER, PAGE ONE, HEADLINED "GROMYKO KISSINGER CONFER, GENEVA TALKS ON MIDEAST SEEN DEFERRED." (PIX OF STATES HAK "WON SOME EXTRA TIME FROM THE SOVIET UNION TO NEGOTIATE A NEW AGREEMENT BETWEEN EGYPT AND ISRAEL." ADDS

HAK LEFT GENEVA "WITH SOME CONFIDENCE THAT THE SOVIETS WOULD NOT CAMPAIGN TO BLOCK THE ACCORD HE IS TRYING TO WORK OUT." STATES THAT SOV-US STATEMENT CONTAINS PHRASE "AT AN EARLY DATE," IN REFERENCE TO RESUMPTION OF GENEVA CONFERENCE, AND THAT "THIS WAS TERMED 'A SLIGHT NUANCE BETTER' FROM THE AMERICAN VIEWPOINT" THAN THE VLAD COMMUNIQUE TERMINOLOGY. SAYS SOVS "MAY HAVE HAD NO CHOICE BECAUSE EGYPT HAS CAST ITS LOT WITH KISSINGER'S STEP-BY-STEP APPROACH," AND THAT HAK CONTENDS SOVS WILL NOT BE OBSTRUCTIONIST AS LONG AS THEY UNDERSTAND ISRAELI-EGYPTIAN ACCORD WILL BE FOLLOWED BY GENEVA CONFERENCE RESUMPTION. STATES "MAJOR REASON" FOR MEETINGS IN GENEVA WAS "SAID TO BE"

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KEEPING SOVS INFORMED OF US MOVES. SAYS HAK "IS DESCRIBED AS BEING READY TO RETURN TO THE GENEVA CONFERENCE AFTER AN ISRAELI-EGYPTIAN ACCORD, SINCE IT WILL BE DIFFICULT TO GET ANY OTHER AGREEMENTS THROUGH THE STEP-BY-STEP PROCESS." UNCLASSIFIED

BERGER SAYS, "WHILE THE USUALLY STONY-FACED GROMYKO WAS JOVIAL ... ONE PARTICIPANT SAID THE RUSSIAN SEEMED READIER TO ACCUSE THE US OF BAD FAITH. THERE WERE SOME POINTS, REPORTERS WERE TOLD, ON WHICH GROMYKO EXPRESSED HIS VIEWS WITH 'GREAT DIRECTION' BUT ALWAYS MAKING SURE TO SAY 'SHORT OF THE PRECIPICE.'" SAYS "IT WAS UNDERSTOOD THAT KISSINGER ... BEGAN PROBING TO DETERMINE WHETHER MOSCOW WOULD BEGIN TO PERMIT EMIGRATION TO INCREASE 'IMPERCEPTIBLY.' THE KISSINGER ARGUMENT IS THAT THE ISSUE MUST BE REMOVED FROM PUBLIC VIEW FOR IT TO BE RESOLVED. REPORTERS ... WERE TOLD THAT THE SECRETARY ALSO PLANNED TO DISCUSS WITH THE SOVIETS POSSIBLE 'GUARANTEES' OF A ME SETTLEMENT AT SOME TIME IN THE FUTURE. BUT IT WAS SAID THE USE OF SOVIET OR AMERICAN TROOPS WAS OUT OF THE QUESTION." BERGER SAYS REPORTERS WERE TOLD HAK PRESENTED A NUMBER OF US IDEAS ON IMPLEMENTING THE VLAD AGREEMENT, IDEAS "WHICH WERE SAID TO HAVE BEEN 'SERIOUSLY RECEIVED.'"

NYDAILY NEWS, CARTER, WITH SNAPSHOT OF GROM, HEADLINED ACROSS TOP PAGE TWO "SOVIETS GIVE K MORE TIME ON PEACE.:
CARTER LEADS HAK AND GROM AGREED ON EARLY DATE"
GENEVA CONFERENCE RESUMPTION. NO DATE SET BUT GROM "INDICATED THAT THE RUSSIANS WOULD NOT OBSTRUCT KISSINGER'S STEP-BY-STEP PEACEMAKING IN THE MEANTIME."
FOLLOWS WITH "A COMMUNIQUE SAID THAT FOR THE FIRST TIME DURING THEIR TALKS, HAK AND GROM HAD BEGUN WORK ON A US-SOVIET SALT TREATY, TO WHICH PRESIDENT AND BREZ

AGREED IN PRINCIPLE IN VLAD. SAYS THAT ON FLIGHT TO LONDON SENIOR OFFICIAL SAID US-SOV "RELATIONS APPEAR TO BE FAIRLY GOOD DESPITE THE KREMLIN'S RECENT CANCELLATION OF THE US-SOVIET TRADE PACT." STATES THE OFFICIAL SAID THESE GENEVA TALKS "WERE SLIGHTLY STIFFER THAN PREVIOUS" HAK-GROM MEETINGS "AND A SHADE MORE DIFFICULT. BUT THE BASIC ATMOSPHERE WAS DESCRIBED AS STILL BEING 'RATHER JOVIAL.'", CARTER, ONE OF ONLY

FEW REPORTERS WHO PICK UP MENTION OF PALESTINIANS IN JOINT STATEMENT, STATES THIS REFERENCE "WAS ROUGHLY THE SAME AS THAT IN COMMUNIQUES AFTER PREVIOUS US-SOVIET MEETINGS." STATES "KISSINGER PLANS TO RETURN TO THE REGION NEXT MONTH FOR INTENSIVE NEGOTIATIONS TO TRY TO WRAP-UP A NEW EGYPTIAN-ISRAELI DISENGAGEMENT AGREEMENT."

LATIMES, RESTON, PAGE ONE HEADLINE, "RUSS AGREE TO MORE FLEXIBLE MIDEAST STAND, KISSINGER-GROMYKO STATEMENT SOFIENS GENEVA POSITION." STATES HAK AND GROM AGREED TO AN EARLY-DATE RESUMPTION OF THE ME PEACE CONFERENCE, AN AGREEMENT WHICH "MARKED A SHIFT IN THE SOVIET POSITION

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TOWARD A MORE FLEXIBLE RESPONSE TO KISSINGER'S ROLE IN
THE ME-AS A PEACEMAKER." STATES THAT SENIOR AMERICAN
OFFICIAL SAID THE CHANGE IN LANGUAGE BETWEEN THE GENEVA
JOINT STATEMENT AND THE VLAD COMMUNIQUE "WAS DELIBERATE
AND WAS MEANT TO SHOW AT LEAST A SLIGHT CHANGE OF THE
SOVIET POSITION."

RESTON DEVOTES CONSIDERABLE SPACE TO SALT NEGOTIATIONS
AND INCLUDES COMMENT FROM SENIOR OFFICIALS THAT HAK
"BELIEVES THE US AND SOVIET SIDES WILL SPEND ROUGHLY
ANOTHER FOUR WEEKS SPARRING AT THE NEGOTIATING TABLE.
WITH A FINAL DECISION TO MOVE AHEAD, KISSINGER BELIEVES THE
MAJOR PROBLEMS ON LIMITING OFFENSIVE NUCLEAR WEAPONS CAN
BE RESOLVED IN TWO MONTHS." SAYS SAME US OFFICIAL PLAY-
ED DOWN SIGNIFICANCE OF NO REFERENCE TO BREZHNEV'S TRIP
TO US IN JOINT STATEMENT, SAYING BREZ'S ITINERARY REMAINS

ABOUT THE SAME BUT THAT DATES WILL DEPEND ON THE PACE
OF THE ARMS TALKS.

CSM, SCHMIDT, PAGE ONE HEADLINE "KISSINGER HOLDS MIDEAST
TEMPO, SECRETARY TELLS GROMYKO ANOTHER WITHDRAWAL LIKELY
BEFORE HAVING TO RESUME GENEVA PARLAY." LEADS WITH
"SIGNS FROM ISRAEL AND EGYPT THAT THE SECRETARY'S TOUR OF
THE ME LAST WEEK WAS HAVING JUST THE RESULTS HE HAD

SOUGHT - MEMENT TOWARD AN INTERIM SETTLEMENT." LABELS
THIS AS "THE MOST IMPORTANT THING" HAK HAD TO DISCUSS
WITH GROM. NOTES THAT "THE RUSSIANS SUSPECT - RIGHTLY -

THAT THE AMERICANS WANT TO MAINTAIN THE POSITION OF
DIPLOMATIC DOMINANCE WHICH THEY WON AS RESULT OF DR.
KISSINGER'S SUCCESS IN NEGOTIATING DISENGAGEMENT AGREE-
MENTS ... (AND THERE WAS LITTLE HAK COULD TELL GROM) TO
DISPEL THIS CONVICTION." CITES AS "ENCOURAGING NEWS:"
1. ISRAELI LEADERS HAVING "COME TO THE CONCLUSION, AFTER
CAREFUL STUDY BY THEIR LEGAL EXPERTS, THAT A DECLARATION
OF NON-BELIGERENCE BY EGYPT ... WOULD NOT, AFTER ALL,
BE NECESSARY. THE EXPERTS AGREED WITH WHAT KISSINGER
TOLD THEM: THAT A NONBELLIGERENCY DECLARATION WAS
TANTAMOUNT TO DECLARING PEACE AND MORE THAN THE EGYPTIANS
COULD BE EXPECTED TO SWALLOW AT THIS TIME. IT WOULD
THEREFORE BE SUFFICIENT FOR EGYPT TO PROMISE TO 'REFRAIN
FROM WARFARE.'" 2. FAHMY TELLING "A GATHERING OF
INFORMATION SPECIALISTS IN BEIRUT THAT HE EXPECTED A
LIMITED ISRAELI WITHDRAWAL ON THE EGYPTIAN AND SYRIAN
FRONTS BEFORE THE END OF JUNE;" AND CALLING HAK'S VISIT
"PROMISING." FAHMY ALSO DENIED ANY RIFT BETWEEN SYRIA
AND EGYPT ON STEP-BY-STEP DIPLOMACY, SOMETHING ALSO
INDICATED BY SENIOR AMERICAN OFFICIALS WHO SAID
ASSAD WOULD LIKE TO TALK ABOUT A FIVE-OR-SIX KILOMETER
ISRAELI GOLAN WITHDRAWAL. SCHMIDT TERMS THE SYRIAN
PROBLEM AS THE "STICKIEST" BECAUSE THE ISRAELIS "SAY
THEY COULD MOVE ONLY IN THE FRAMEWORK OF A TOTAL PEACE
SETTLEMENT. AND THE EGYPTIANS WILL MOVE ONLY IN CONCERT
WITH THESYRIANS."

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SEPARATE CSM REPORT FROM SCHMIDT ON PAGE ONE IS
HEADLINED "KISSINGER QUEST FOR CHEAPER OIL." SCHMIDT
STATES SENIOR US OFFICIALS SAID FAISAL AND YAMANI "HAD
GIVEN GENERAL SSPPORT TO THE US PLAN" FOR LONG-TERM OIL-
PURCHASE AGREEMENTS AT A FIXED FLOOR PRICE. ONE
OFFICIAL ON THE SECRETARY'S PLANE SAID ONE OPEC MEMBER
HAD ALREADY PROMISED SUPPORT FOR THE "FLOOR PRICE DEAL IN
EXCHANGE FOR LONG-TERM US AID COMMITMENTS" BUT REFUSED
TO NAME THE COUNTRY. SCHMIDT STATES "THIS EXCHANGE
WITH THE OFFICIAL MISTAKENLY LED SOME CORRESPONDENTS TO
REPORT THAT THE US HAD ABANDONED THE POLICY OF COLLECTIVE
ACTION BY CONSUMERS ... AND NOW WAS READY TO DEAL
BILATERALLY." STATES HAK "SAYS THAT THE HIGH OPEC
PRICE ... IS ALREADY CRUMBLING UNDER THE PRESSURE OF
(EUROPEAN AND US PRODUCTION REDUCTION REDUCTIONS)
AND FURTHER ECONOMIES, NOT TO MENTION ALTERNATIVE SOURCES
OF ENERGY." MENTIONS LIBYA AS SHOWING "SIGNS OF WILLING-
NESS TO CUT PRICESBZ AND SOME OPEC COUNTRIES, NOTABLY
HIGH PRICES.

TAG-ON TO SCHMIDT BY JOHN COOLEY OUT OF BEIRUT LEADS

"REPORTS REACHING HERE SUGGEST NO SAUDI ARABIAN ENTHUSIASM" FOR HAK'S FLOOR-PRICE PROPOSAL. SAYS REUTERS QUOTED YAMANI DENYING THAT HE AND HAK "HAS DISCUSSED DRAFT ACCORDS BETWEEN PRODUCERS AND CONSUMERS AT PRICES BELOW THE CURRENT LEVEL., CITES ME ECONOMIC SURVEY STATING "US POLICY AIMS 'TO BREAK THE POWER' OF OPEC WHICH IT REGARDS AS A CARTEL. THE US ALSO WANTS 'TO RAM THROUGH A SUBSTANTIAL REDUCTION OF OPEC OIL PRICESBN WHILE AT THE SAME TIME PROTECTING THE IEA MEMBERS' ON SUBSTITUTE ENERGY PROJECTS BEHIND A TARIFF WALL OR BY OTHER MEANS OF DOMESTIC PRICE SUPPORT. TRUE, HINTS HAVE BEEN PUT OUT THAT THE US-IEA GROUP WOULD BE PREPARED TO CONSIDER SOME FORM OF INDEXING OF OIL PRICES ONCE OPEC HAD AGREED TO LOWER THE BASE PRICE,' BUT THIS WOULD MEAN THE END OF OPEC'S POWER AND WOULD THEREFORE BE REJECTED BY ALL OPEC MEMBERS."

NYTIMES, GWERTZMAN, IS SOLE DISSENTER TO UPBEAT REPORTS ON CONCLUSION OF HAK-GROM MEETING. HEADLINESBC ZKISSINGER TALKS WITH GROMYKO END WITH RIFT ON MIDEAST, RUSS

IANS SAID TO ACCUSE US OF EXCLUDING SOVIET FROM DIPLOMATIC EFFORTS." GWERTZMAN REPORTS GROM'S STATEMENT THAT "THERE WERE QUESTIONS ON WHICH OUR POSITIONS DID NOT EXACTLY COINCIDE" AND HAK'S CONCURRENCE WITH THIS STATEMENT. SAYS NEWSMEN WERE TOLD ON THE PLANE THAT GROM "HAD URGED THE IMMEDIATE RECONVENING OF THE GENEVA CONFERENCE ... AND HAD ACCUSED THE US OF BAD FAITH IN EXCLUDING THE SOVIET

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UNION FROM THE ME DIPLOMACY." ADDS THAT NOW "KISSINGER BELIEVES THE RUSSIANS ARE UNLIKELY TO MOUNT A CAMPAIGN TO SABOTAGE HIS APPROACH." MENTIONS AMERICAN BELIEF OF THE INEVITABILITY OF THE RECONVENING OF THE GENEVA CONFERENCE AND DESCRIBES THE ATMOSPHERE OF THE TALKS "AS SOMEWHAT MORE FORMAL AND SLIGHTLY MORE ABRASIVE THAN IN PREVIOUS SESSIONS, BUT ON THE WHOLE 'JOVIAL.'"

ON OTHER SUBJECTS DISCUSSEDBN GWERTZMAN STATES THE TWO SIDES DISAGREED ON CYRPUS; HAK RAISED THE POSSIBILITY OF ANOTHER TRADE AGREEMENT; DISCUSSED NEW PROPOSALS MADE BY HAK ON SALT; THE US "DISCERNED SOVIET FLEXIBILITY ON EXTENDING THE AGREED 150 KILOTON LIMIT ON' PNE APPLICAT-IONS; STILL DISAGREED ON SOME ASPECTS OF CSCE "BUT THE AMERICANS BELIEVE THE ISSUES CAN BE SOLVED; AND DISCUSSED BREZ'S US TRIP. STATES GROM RAISED THE POSSIBILITY OF AN AGREEMENT TO LIMIT ARMS TO THE ME IN THE CONTEXT OF A FINAL SETTLEMENT, BUT "THE AMERICANS BELIEVE SUCH AN ACCORD WOULD BE INEFFECTUAL UNLESS THE FRENCH AND OTHER ARMS PRODUCERS ALSO ADHERED."

AFTERNOON WIRES

UPI (NO BYLINE) FROM ZURICH LEADS "KISSINGER WON APPARENT AGREEMENT TODAY FROM THE SHAH TO KEEP IRANIAN OIL SUPPLIES FLOWING TO ISRAEL IF ISRAEL RETURNS THE CAPTURED SINAI DESERT ABU RUDEIS OILFIELDS TO EGYPT. BUT THERE WAS NO BREAKTHROUGH ON OIL PRICES." STATES THE SHAH "REITERATED HIS POSITION AFTER A 2 1/2 HOUR MEETING WITH KISSINGER THAT ONCE IRANIAN OIL HAS BEEN LOADED ON TANKERS, THE DESTINATION IS UNIMPORTANT." SAYS "THE SHAH WAS REPLYING TO QUESTIONS ABOUT THE ABU RUDEIS OILFIELDS - WHICH AMERICAN OFFICIALS SAID HAD BEEN AT THE TOP OF KISSINGER'S QUESTIONS TO" HIM. ADDS THAT "THE SHAH ALSO SAID THAT OIL PRICES SHOULD CORRESPOND TO INFLATION RATES IN THE INDUSTRIALIZED WORLD. "I AM CONCERNED ABOUT KEEPING A CONSTANT PURCHASING POWER,' HE SAID." NOTED THAT HAK "RESTRICTED HIMSELF TO CHARACTER-IZING US-IRANIAN RELATIONS AS 'EXTREMELY CLOSE.'" SAYS SHAH "ALSO REITERATED HIS OPPOSITION TO ANY ARAB OIL EMBARGO." BEFORE REVIEWING HAK'S MOVEMENTS FOR THE DAY, STATES THAT "SHAH HAD INVITED HIM TO MEET AT ZURICH FOLLOWING HINTS FROM THE US THAT SUCH A MEETING MIGHT BE USEFUL."

AP, SCHWEID, WITH SIMILAR REPORT FROM ZURICH, SAYS THE SHAH "GAVE SEEMING ASSURANCE TODAY THAT IRAN IS READY TO REPLACE ANY OIL ISRAEL MIGHT LOSE IF IT RETURNED TO EGYPT THE ABU RUDEIS OILFIELDS IN ANY NEW SINAI AGREE-MENT WORKD OUT BY" HAK. SAYS THE SHAH "ALSO MAKE PLAIN THAT IRAN WOULD NOT JOIN IN ANY ECONOMIC BOYCOTT OF ISRAEL ... (AND) WOULD NOT BE PART OF ANY OIL EMBARGO AGAINST WESTERN CONSUMER COUNTRIES."

SEPARATE AP ITEM FROM LONDON REPORTS; AK WAS "IMPRESSED" WITH NEW CONSERVATIVE PARTY LEADER MARGARET THATCHER.

MAW

UNCLASSIFIED

ACTION:

D/EF

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4328

TOSEC 450

E.O. 11652: N/A
TAGS:OVIP (KISSINGER, HENRY A.,
SUBJECI: TRAVELING PRESS MATERIAL

NO. 32

FOLLOWING IS TEXT OF KEATLEY ARTICLE, WALL STREET JOURNAL
ARTICLE, FEBRUARY 18, PAGE 2. HEADLINE: KISSINGER JOURNEY
PRODUCES SOME GAINS ON MIDEAST PEACE, DETENTE AND ENERGY

BEGIN TEXT: LONDON - SECRETARY OF STATE HENRY KISSINGER RETURNS TO THE U.S. FROM A NINE-NATION TOUR TOMORROW. CONVINCED HE HAS MADE PROGRESS ON THREE IMPORTANT FOREIGN POLICY CONCERNS - THE MIDEAST, DETENTE AND ENERGY.

HIS CLAIMS ARE MODEST, HOWEVER. THOUGH CHANCES OF ANOTHER INTERIM MIDEAST PEACE MOVE - A SECOND ISRAELI TROOP WITHDRAWAL IN THE SINAI DESERT - APPARENTLY HAVE IMPROVED, MR. KISSINGER CAUTIONS THAT SEVERAL FACTORS COULD UNDO THE EFFORT. HE HOPES A COUPLE WEEKS OF SHUTTLING BETWEEN CAIRO AND JERUSALEM NEXT MONTH WILL BRING AGREEMENT.

MEANTIME, HIS TWO DAYS OF TALKS WITH SOVIET FOREIGN
MINISTER ANDREI GROMYKO IN GENEVA, WHICH ENDED YESTERDAY,
WENT BETTER THAN EXPECTED. THE CHANCE OF A RUSSIAN EFFORT

TO BLOCK THE MIDEAST PEACE MOVE SEEMS SLIGHTLY REDUCED AND
THE SOVIET POLITBURO MEMBER STRESSED HE WANTS IMPROVED
RELATIONS WITH THE U.S. THUS, THERE IS A STRONG
POSSIBILITY THAT MR. KISSINGER WILL TRY AGAIN TO WORK

UNCLASSIFIED

OUT A NEW TRADE AGREEMENT TO PERMIT INCREASED JEWISH EMIGRATION FROM THE SOVIET UNION, PLUS TARIFF AND CREDIT CONCESSIONS FOR THE RUSSIANS.

PREVIOUS FAILURE - THE PREVIOUS EFFORT FAILED WHEN MOSCOW REJECTED CONGRESSIONAL RESTRICTIONS THAT IT CONSIDERED INTERFERENCE IN ITS INTERNAL AFFAIRS. ANY NEW EFFORT WILL TRY TO ARRANGE TERMS MORE SECRETLY SO IT DOESN'T BECOME A PUBLIC POLITICAL ISSUE AGAIN.

ON ENERGY, THE TRAVELING SECRETARY BELIEVES HE SCORED POINTS BOTH WITH PRODUCERS AND CONSUMERS. SAUDI ARABIA, THE MAIN EXPORTER, WILL DISCUSS MR. KISSINGER'S CONCEPT OF LOWER PRICES IN RETURN FOR LONG-TERM PURCHASE COMMITMENTS, ALTHOUGH IT DIDN'T PROMISE TO AGREE. A SENIOR STATE DEPARTMENT OFFICIAL IS TALKING THIS OVER IN RIYADH, THE SAUDI CAPITAL, WITH OIL EXPERTS THERE.

MR. KISSINGER CONTENDS THAT THE WEST GERMANS SUPPORT ANOTHER OF HIS ENERGY IDEAS - THAT OF ESTABLISHING A FLOOR PRICE FOR IMPORTED OIL SO THAT CUT-RATE FUEL WON'T SOMEDAY UNDERCUT COSTLY ALTERNATIVE ENERGY SOURCES DEVELOPED BY INDUSTRIALIZED NATIONS. THE U.S. SAYS SUCH SOURCES MUST BE DEVELOPED TO END WESTERN DEPENDENCE UPON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES, OR OPEC.

MR. KISSINGER EXPECTS BRITAIN AND FRANCE TO SUPPORT THE PROPOSAL AS WELL. HOWEVER, THERE IS SOME INTERNAL POLITICAL OPPOSITION IN ALL THESE COUNTRIES. SOME EUROPEANS SUSPECT IT IS A SCHEME MAINLY TO BENEFIT THE U.S. WHICH HAS LARGE SUPPLIES OF COAL AND OTHER FUEL RESOURCES.

BEFORE RETURNING TO WASHINGTON, MR. KISSINGER WILL DISCUSS ENERGY WITH THE SHAH OF IRAN, WHOM HE MEETS TODAY IN ZURICH. ALL THESE TALKS ARE DESIGNED TO IMPROVE PROSPECTS FOR A MAJOR CONSUMER-PRODUCER OIL CONFERENCE EXPECTED IN PARIS LATE NEXT MONTH.

MIDEAST SITUATION - JUST WHAT WILL HAPPEN IN THE MID-EAST, HOWEVER, REMAINS THE OVERRIDING ISSUE. ANOTHER WAR THERE WOULD UPSET EFFORTS TO WORK OUT SOLUTIONS FOR THE ENERGY PROBLEM, AND COULD BRING A U.S.-SOVIET CONFRONTATION, DESTROYING DETENTE.

KISSINGER CLAIMS THE NEXT NEGOTIATIONS WILL BE THE TOUGHEST YET AND DECLINES TO MAKE ANY FIRM PREDICTIONS. BUT HE LEAVES THE IMPRESSION, PUBLICLY AND PRIVATELY, THAT THE CURRENT TRIP HAS IMPROVED PEACE PROSPECTS. UNDER DISCUSSION IS A MAJOR ISRAELI TROOP WITHDRAWAL IN THE SINAI FROM TWO STRATEGIC MOUNTAIN PASSES AND FROM CAPTURED OIL FIELDS, WHICH PROVIDE 60 OF ISRAEL'S PETROLEUM NEEDS. IN RETURN, ISRAEL WANTS PUBLIC AND SUBTANTIAL EGYPTIAN POLITICAL MOVES AWAY FROM THE OFFICIAL STATE OF WAR THAT EXISTS BETWEEN THEM.

UNCLASSIFIED

UNCLASSIFIED

THESE CENTER ON NONBELIGENCY PLEDGES FROM CAIRO, SOME-
THING EGYPTIAN PRESIDENT ANWAR SADAT IS RELUCTANT TO GIVE
BECAUSE IT WOULD APPEAR TO ERODE ARAB INITY. HOWEVER,
AFTER TALKS WITH THE AREA'S MAJOR POLITICAL FIGURES -
PLUS THE RUSSIANS, THE ARAB'S MAIN ARMS SUPPLIERS - MR.
KISSINGER OBVIOUSLY BELIEVES ANOTHER INTERIM STEP IS
POSSIBLE.

MORE GENEVA TALKS - AFTER THAT, THE PARTIES PROBABLY
WOULD RECONVENE THE GENEVA MIDEAST PEACE CONFERENCE.
SO FAR, THE U.S. RESISTS THAT ON THE GROUND THAT IT
WOULD PRODUCE ONLY A DANGEROUS STALEMATE. BUT THERE IS
ACCEPTANCE THAT IT MAY BE INEVITABLE DUE TO SOVIET AND
SOME ARAB PRESSURE. THERE IS ALSO HOPE THAT MEETING
AGAIN IN GENEVA COULD BRING SUCCESS IF IT COMES JUST
AFTER CONCLUSIONS OF A SINAI ARRANGEMENT, WHICH WOULD
LEAVE THE PARTIES IN A RELATIVELY GOOD MOOD.

NONE OF THIS WILL BE EASY, ISRAELI LEADERS ARE UNDER
GREAT PRESSURE TO AVOID MAJOR CONCESSIONS TO THE ARABS.
IF THEY GO TOO FAR, THEIR GOVERNMENT COULD BE OUSTED.
MEANTIME, MR. SADAT FEARS GENEROUS COMPROMISE WITH

ISRAEL WOULD TURN RADICAL ARABS AGAINST HIM, AND PERHAPS
CUT OFF FINANCING FROM SAUDI ARABIA, WHICH ALSO HAS
POLITICAL REASONS FOR WANTING TO APPEAR SOMEWHAT
MILITANT.

SYRIA REMAINS LESS FLEXIBLE THAN EGYPT AND PREACHES
AGAINST COMPROMISE WITH ISRAEL. IT ALSO WANTS THE
PALESTINIAN LIBERATION ORGANIZATION BROUGHT INTO THE
NEGOTIATIONS, WHICH U.S.BM OFFICIALS BELIEVE WOULD FURTHER
COMPLICATE THE PROBLEM.

RESTRAINED OPTIMISM - YET MR. KISSINGER EXHIBITS
RESTRAINED OPTIMISM. HE APPARENTLY BELIEVES ALL PARTIES
WILL GO ALONG WITH ANOTHER SINAI MOVE, PROVIDED THE
GENEVA CONRERENCE IS RECONVENED SOON AFTER. WHETHER THE

MEETING WOULD MERELY RATIFY THE SINAI AGREEMENT OR PICK
UP SUBSTANTIVE ISSUES, SUCH AS ISRAELI EVACUATION OF
SYRIA'S GOLAN HEIGHTS, IS UNRESOLVED.

IN HIS TALKS WITH MR. GROMYKO, SECRETARY KISSINGER
LEARNED THAT SOVIET PARTY LEADER LEONID BREZHNEV STILL
PLANS TO VISIT WASHINGTON, PROBABLY IN JUNE OR JULY.
THERE HAS BEEN SPECULATION THAT MR. BREZHNEV'S POOR
HEALTH MIGHT FORCE A CONCELLATION. BUT HE APPARENTLY
WILL RESUME FULL DUTIES AFTER A FEW MORE WEEKS OF REST.

ARMS CONTROL ALSO WAS DISCUSSED. THE U.S.BM PUT
FORWARD SOME IDEAS ABOUT THE PLANNED SECOND STRATEGIC
ARMS LIMITATION TALKS TREATY THAT MR. BREZHNEV AND
PRESIDENT FORD HOPE TO SIGN DURING THE WASHINGTON SUMMIT.
BROAD OUTLINES OF THIS AGREEMENT WERE NEGOTIATED LAST
NOVEMBER IN VLADIVOSTOK BUT MANY DETAILS REMAIN, SUCH AS

ACTION.

D/EF

TELEGRAM

INCOMING AMEMBASSY PARIS

CONTROL: [Y]
RECEIVED: 18 FEV. 1975

10:00 PM

ORIGINATING POST:
State
POST MRN: 36263

UNCLASSIFIED

NNNVV E.P362
00 RUFNPS
DE RUE-C #6263/1 0492035
ZNR UUUUU ZZH
0 182023Z FEB 75 ZFF4
FM SECSTATE WASHDC
TO AMEMBASSY PARIS IMMEDIATE 2784
BT
UNCLAS

4324

STATE 036263

TOSEC 449

E.O. 1162: N/A
TAGS: OVIP (KISSINGER, HENRY A.)

SUBJECT: COMBINED TRAVELING PRESS REPORT: MORNING, FEBRUARY 18, 1975. PART I.

FOR AMB. ANDERSON FROM S/PRS

NO. 33

WIRES:

I. AP, SCHWEID FROM ZURICH, SAYS HAK "GAVE A PUBLIC ASSURANCE TODAY THAT THE SOVIET UNION WILL NOT BE EXCLUDED FROM HIS EFFORTS TO ACHIEVE A MIDDLE EAST SETTLEMENT."

I HOPE THE SOVIET UNION WILL UNDERSTAND THAT ANY STEP TOWARD PEACE IS IN THE INTEREST OF EVERYBODY...WE HAVE ALWAYS AGREE THAT A FINAL SETTLEMENT WILL REQUIRE THE PARTICIPATION AND COOPERATION OF THE SOVIET UNION." HAK TOLD REPORTERS AT HEATHROW BEFORE FLYING TO ZURICH FOR LUNCH WITH THE SHAH.

SCHWEID STATES THE ME AND WILSON TRIP TO MOSCOW WERE THE DOMINANT TOPICS DURING HAK'S TALKS IN LONDON, AND THAT HAK TOLD REPORTERS, "WE CONSIDER THE BRITISH VISIT EXTREMELY SUCCESSFUL AND A CONTRIBUTION TO THE RELAXATION OF TENSIONS."

SCHWEID NOTES BASSAN FREIHA, AL ANWAR'S EDITOR AND A "CONFIDANT" OF SADAT, WRITING IN THE LEBANESE NEWSPAPER THAT HAK "HAD REACHED A DEAD END" IN HIS EFFORTS TOWARDS AN EGYPTIAN-ISRAELI DISENGAGEMENT AND THAT HE "MIGHT CALL OFF HIS SCHEDULED TRIP TO THE ME NEXT MONTH." LASTLY, SCHWEID REPORTS THE MENA DISPATCH THAT SADAT HAS SENT MARAWAN TO ZURICH WITH A MESSAGE FOR THE SHAH.

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UNCLASSIFIED

2. UPI (NO BYLINE) FROM ZURICH STATES HAK'S TRIP TO ZURICH IS FOR "OIL TALKS WITH THE SHAH." SAYS HAK "IS EXPECTED TO SEEK A COMMITMENT THAT IRAN WILL CONTINUE TO SUPPLY ISRAEL WITH OIL IF ISRAEL WITHDRAWS FROM" ABU RODEIS. TOUCHES ON MEETINGS IN LONDON AND TRIP TODAY TO PARIS.

RADIO/TV

1. KALB (CBS RADIO, FIRST LINE REPORT, LONDON) -- KISSINGER JOINS THE PILGRIMAGE TO THE SHAH OF IRAN WHO IS IN ZURICH ON A SKIING HOLIDAY AND THEN AFTER A STOP-OVER IN PARIS TONIGHT HE RETURNS TO WASHINGTON ONLY TO PREPARE TO LEAVE WASHINGTON FOR THE ME.

IT SEEMS AS THOUGH EVERYONE HAS BEEN VISITING THE SHAH OF IRAN, NOT IN IRAN BUT IN ZURICH WHERE THIS MONARCH, MADE RICH BY INFLATED OIL PRICES, HAS BEEN ENJOYING A SKIING HOLIDAY. THE KING OF JORDAN VISITED THE SHAH; HE EVEN LEARNED TO SKI. THE PRESIDENT OF FRANCE HAS VISITED THE SHAH; HE ALREADY KNEW HOW TO SKI. AND NOW THE SECRETARY OF STATE VISITS THE SHAH; IF KISSINGER KNOWS HOW TO SKI IT IS ONE OF HIS BEITER-KEPT SECRETS.

IT ALL RESEMBLES A PILGRIMAGE TO AN EXTRAORDINARY MONARCH WHO HOLDS THE POWER OF LIFE AND DEATH OVER HIS FAR-FLUNG SUBJECTS, AND IN A WAY HE DOES, HE AND FAISAL OF SAUDI ARABIA. THEY HAVE THE OIL THE INDUSTRIALIZED WEST NEEDS TO SURVIVE. THE FIVE-FOLD INCREASE IN OIL PRICES OVER THE LAST 15 MONTHS HAS HAD A DEVASTATING IMPACT ON BRITAIN, ITALY AND MANY OTHER WEST EUROPEAN COUNTRIES. JAPAN HAS BEEN CRIPPLED, FORCED TO ADJUST HER FOREIGN POLICY TOWARD THE ARAB-ISRAELI CONFLICT FOR FEAR OF OFFENDING THE ARABS, JUST TO ENSURE CONTINUING FLOW OF OIL. A (INAUDIBLE) COMMODITY REDUCING PROUD COUNTRIES TO SHRIVELING DEPENDENCIES.

EVEN THE U.S. HAS BEEN AFFECTED, THOUGH NOT AS BADLY. KISSINGER BELIEVES THAT IT IS VERY IMPORTANT THAT THE WEST FREE ITSELF FROM DEPENDENCY ON FOREIGN SOURCES OF ENERGY. THAT DEPENDENCY HAS GROWN IN RECENT YEARS AND THE RATE DISTURBS THE SECRETARY. HE Fears THAT IN TIME SUCH DEPENDENCY COULD LEAD TO ONE OF TWO RESULTS -- EITHER THE

WEST STRAPPED FOR OIL WILL RESORT TO MILITARY FORCE TO KEEP THE SUPPLY FLOWING OR THE WEST WILL SURRENDER ITS POLITICAL INDEPENDENCE TO THE OIL SUPPLIERS. FACED WITH THESE BLEAK ALTERNATIVES KISSINGER HAS TAKEN THE LEAD IN TRYING TO BREAK THE POWER OF THE OIL CARTEL -- AT A MINIMUM WEAKEN IT. ONE WAY IS BY THE WEST DEVELOPING ALTERNATIVE SOURCES OF ENERGY; ANOTHER WAY IS BY DEPRIVING THE PRODUCERS OF A REASON TO IMPOSE ANOTHER OIL EMBARGO AND THIS IS WHERE KISSINGER'S MARATHON PEACE-MAKING EFFORTS IN THE ME COME INTO THE PICTURE.

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UNCLASSIFIED

AT THE MOMENT HE IS TRYING TO ARRANGE ANOTHER INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL. HE IS GOING TO RETURN TO THE ME NEXT MONTH TO COMPLETE THE NEGOTIATION HE BEGAN LAST WEEK. AT LEAST HE HOPES TO COMPLETE IT.

THE DIFFICULTIES ARE VAST. BOTH EGYPT AND ISRAEL HAVE RELATIVELY WEAK GOVERNMENTS. THEY WANT AN AGREEMENT BUT THEY MAY NOT HAVE THE POWER TO MAKE THE CONCESSIONS TO GET IT. IN ISRAEL THERE IS A GROWING BODY OF OPINION THAT ANOTHER WAR IS INEVITABLE AND MAYBE IT HAD BETTER BE FOUGHT SOONER RATHER THAN LATER. THAT MAKES FOR A DEGREE OF INFLEXIBILITY IN THE NEGOTIATION BUT AMERICAN OFFICIALS BELIEVE THAT PM RABIN WILL BE WISE AND FLEXIBLE AND WORK OUT A SATISFACTORY AGREEMENT.

SADAT OF EGYPT HAS SEVERE ECONOMIC TROUBLE AT HOME, HEAVY PRESSURE FROM ARAB RADICALS ABROAD AND HIS OWN POSITION HAS BEEN WEAKENED. HE HAS STATED THAT HE MUST RECOVER THE STRATEGIC PASSES IN THE SINAI PLUS THE ABU RUDEIS OIL FIELDS IN THIS UPCOMING AGREEMENT OR THERE IS A STRONG POSSIBILITY OF WAR. HE TOO MUST FIND A WAY TO COMPROMISE, TO GO SLOW, TO SHOW PATIENCE IN THIS PARTICULAR NEGOTIATION NO MATTER WHAT ASSAD OF SYRIA SAYS OR THE PALESTINE EXTREMISTS. AFTER HIS TALKS WITH FM GROMYKO KISSINGER THINKS HIS CHANCES OF SUCCESS HAVE RISEN SLIGHTLY, MEANING IT IS STILL STEEPLY UPHILL.

KALB (CBS RADIO, ZURICH): AFTER DISCUSSING THE ME WITH KISSINGER THE BRITISH FON SEC. CALLAGHAN SAID "THERE IS A GOOD PROSPECT FOR ANOTHER STEP BEING TAKEN", MEANING ANOTHER INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL. ONE REASON FOR CALLAGHAN'S MODEST OPTIMISM IS THIS -- GROMYKO EASED UP ON HIS PRESSURE FOR A QUICK RECONVENING OF THE GENEVA CONFERENCE GIVING KISSINGER MORE TIME TO CONCLUDE ANOTHER SINAI DEAL. THE PRICE FOR THAT EASING UP IS AN UNDERSTANDING BETWEEN THE TWO FMS THAT THE CONFERENCE WILL BE RECONVENED SHORTLY AFTER THE SUCCESSFUL CONCLUSION OF

THE SINAI AGREEMENT. KISSINGER FLEW INTO ZURICH AFTER HIS MEETINGS IN LONDON FOR TALKS WITH THE SHAH ABOUT THE ENERGY CRISIS IN GENERAL AND ABOUT THE POSSIBILITY OF THE SHAH BEING WILLING TO MAKE UP FOR ANY OIL ISRAEL. MIGHT LOSE IF SHE HAS TO GIVE UP THE ABU RUDEIS OIL FIELDS AS PART OF A SINAI SETTLEMENT. SUCH AN ARRANGEMENT SEEMS FEASIBLE AS THE SHAH HAS REPEATEDLY STATED HE WILL NOT USE OIL FOR POLITICAL PURPOSESBM

2. KOPPEL (ABC-TV AM-AMERICA, LONDON): LAST NIGHT KISSINGER MET HERE IN LONDON WITH THE PARTY IN POWER, PM WILSON JUST BACK FROM MOSCOW AND THE FIRST FOREIGN

UNCLASSIFIED

UNCLASSIFIED

LEADER TO SEE BREZHNEV SINCE RUMORS OF BREZHNEV'S
POLITICAL OR PHYSICAL DECLINE BEGAN SURFACING A FEW WEEKS
AGO. BUT THIS MORNING KISSINGER SHOWED HIS STYLE AS A
DIPLOMAT BY HEDGING HIS BETS IN ANGLO-AMERICAN RELATIONS --
BREAKFAST WITH MARGARET THATCHER, THE NEWLY ELECTED LEADER
OF THE CONSERVATIVE PARTY. LATER TODAY KISSINGER FLYS
TO SWITZERLAND AGAIN WHERE HE WILL MEET FOR A WORKING
LUNCH WITH THE SHAH OF IRAN WHO IS VACATIONING IN ZURICH.
ALTHOUGH ONE OF THE SHORTEST, THIS MAY BE ONE OF THE
SECRETARYBJS KEY STOPSBN MARKING HIS FIRST CONVERSATIONS WITH
THE SHAH SINCE KISSINGER UNVEILED HIS PLAN TO OFFER
GUARANTEED OIL PRICES OVER AN EXTENDED PERIOD OF TIME IN
EXCHANGE FOR THE LOWERING OF PRICES BY OIL PRODUCERS NOW.
FINALLY, LATE TOMORROW AFTERNOON KISSINGER'S LAST STOP
BEFORE RETURNING HOME TO WASHINGTON -- TALKS WITH FRENCH
LEADERS IN PARIS WHERE HE WILL TRY TO LINE UP SUPPORT
FOR HIS PROTECTED OIL PRICE PROPOSAL.

MAW

BT

#62.63

UNCLASSIFIED

ZCZC LUA183 181832 PLB052 NXI
UU LPI

KISSINGER 2-18
NIGHT LP KISSINGER PLB043
BY WILBUR G. LANDREY

PARIS (UPI) -- THE SHAH OF IRAN SAID TUESDAY HE WILL KEEP OIL SUPPLIES FLOWING TO ISRAEL AS PART OF A NEW SETTLEMENT SECRETARY OF STATE HENRY KISSINGER IS TRYING TO NEGOTIATE IN THE MIDDLE EAST.

THE SHAH ALSO DECLARED THAT IRAN WILL REFUSE TO TAKE PART IN ANY OIL EMBARGO.

IT WAS LEARNED THAT KISSINGER BROUGHT UP THE POSSIBILITY OF IRAN SUPPLYING ISRAEL WITH OIL COMMERCIALLY IF THAT COUNTRY AGREEMENT TO RETURN THE CAPTURED ABU RODEIS OIL FIELDS TO EGYPT AS PART OF A NEW INTERIM PEACE SETTLEMENT.

STANDING BESIDE KISSINGER AT THE FASHIONABLE DOLDER GRAND HOTEL IN ZURICH AFTER THEIR TWO AND A HALF HOUR TALKS, THE SHAH TOLD REPORTERS WHO ASKED ABOUT IT:

"OUR POLICY IS TO SELL OIL TO THOSE WHO BUY IT. ONCE THE TANKERS ARE LOADED, WE DON'T CARE WHERE IT GOES BECAUSE IT IS PURELY A COMMERCIAL TRANSACTION."

HE ADDED THAT HIS COUNTRY KEPT COMMERCE AND POLITICS APART. IRAN HAD NEVER BOYCOTTED ANYONE, HE SAID, AND WOULD NOT TAKE PART IN A NEW OIL EMBARGO, WHICH HE INDICATED HE THOUGHT WOULD FAIL ANYWAY BECAUSE OF INCREASED STOCKPILES OF OIL.

KISSINGER BREAKFASTED WITH BRITAIN'S NEW WOMAN LEADER OF THE CONSERVATIVE OPPOSITION IN LONDON TUESDAY MORNING, THEN FLEW TO ZURICH TO LUNCH WITH THE SHAH AND FINALLY FLEW TO PARIS TUESDAY NIGHT TO DINE WITH FRENCH LEADERS. PARIS WAS THE LAST STOP BEFORE HE FLIES BACK TO WASHINGTON ON WEDNESDAY.

MORE WGL
HGS 1935
NNNN

UU LPI

KISSINGER 2-18
1ST ADD NIGHT LP KISSINGER PARIS PLB052 X X X WEDNESDAY.

KISSINGER'S MISSION TO THE MIDDLE EAST AND OIL WERE THE MAIN TOPICS OF THE TALKS BETWEEN THE SHAH AND KISSINGER BUT THEY ALSO TALKED ABOUT THE STRATEGIC POSITION IN THE PERSIAN GULF WHERE THE UNITED STATES AND RUSSIA ARE NOW JOCKEYING FOR BASES AND POSITION.

AS KED ABOUT U.S. BASES IN THE AREA, THE SHAH SAID IRAN WOULD PREFER TO HAVE NO OUTSIDE POWERS IN THE AREA BUT AS LONG AS THERE WERE, HE WELCOMED THE PRESENCE OF THE UNITED STATES.

ON OIL PRICES, THE SHAH SAID HE WAS NOT INTERESTED IN LOWER PRICES BUT HE WAS INTERESTED IN DIALOGUE WITH THE OIL CONSUMERS. HE WAS CONCERNED, HE SAID, ABOUT HOW TO KEEP A CONSTANT PURCHASING POWER FOR OIL AND CONSIDERING INFLATION, HE SAID, OIL PRICES HAD ACTUALLY DECLINED 35 PER CENT.

THE ACTUAL PRICES OF OIL IN CONSTANT PRICES WAS AROUND SEVEN TO EIGHT DOLLARS A BARREL INSTEAD OF THE 11 DOLLARS IT WAS SELLING FOR IN INFLATED MONEY. THE PROBLEM WAS FOR THE INDUSTRIALIZED NATIONS TO CONTROL THEIR INFLATION, HE SAID.

HE REPEATED HIS PROPOSAL FOR TYING THE PRICE OF OIL TO AN INDEX OF INDUSTRIALIZED PRICES.

THE SECURITY PRECAUTIONS WERE INTESE AROUND THE HOTEL WHERE THE TWO MEN MET, WITH POLICEMEN STANDING EVERY FEW FEET ALONG THE APPROACHES. KISSINGER BRODE TO AND FROM THE AIRPORT WHERE IS PLANE LANDED AND THE HOTEL IN THE BULLET PROOF LIMOUSINE HE USES IN THE MIDDLE EAST.

MORE WGL
HGS 1956

[Y]

<table><thead><tr><th colspan="2">ACTION / S/S 15</th></tr></thead><tbody><tr><td>CRS-2</td><td>X</td></tr><tr><td>SUPVR</td><td>X</td></tr><tr><td>MASTER</td><td>X</td></tr><tr><td>NO. COPIES</td><td>19</td></tr><tr><td>INITIALS</td><td>33</td></tr></tbody></table>

Amembassy London
IN TELEGRAM

Pres'

FOR A:COMN USE ONLY

UNCLASSIFIED

3 18 02 43

IMMEDIATE

FROM: State
NO: 35905
RECD:

DE RUE HC 5905/1 04902 18
ZMR UUUUU ZZ H

0 1802 082 FEB 75 2774
FM SECSTATE WASDC

TO AMEMBASSY LONDON IMMEDIATE 4968-69-70
BT

UNCLAS

STATE 035905

TOSEC 425

E.O. 11652: N/A

SUBJECT: COMBINED WIRE/TV REPORT: EVENING, FEB. 17

FOR AMBASSADOR ANDERSON FROM S/FRS
NO. 31

WIRES:

1. AP (SCHWEID, DATELINE GENEVA) -- GROMYKO COMPLETED DISCUSSIONS TODAY ON THE MIDDLE EAST AND EAST-WEST RELATIONS AND STRESSED THAT THE TWO POWERS REMAIN PLEDGED TO A POLICY OF DETENTE. AFTER MEETING WITH GROMYKO FOR 8 1/2 HOURS OVER TWO DAYS, KISSINGER FLEW OFF TO LONDON, DESCRIBING HIS DISCUSSIONS HERE AS "FRUITFUL." HE SAID HE WOULD REPORT TO PRESIDENT FORD THAT "WE ARE MOVING WITHIN THE SPIRIT OF PREVIOUS AGREEMENTS." GROMYKO ECHOED THIS BY STATING THAT "THE SOVIET LEADERSHIP AND THE SOVIET GOVERNMENT FIRMLY PURSUE THE LINE WHICH HAD BEEN FORMED IN RELATIONS BETWEEN OUR COUNTRIES IN RECENT TIMES." HE SPOKE OF MUTUAL EFFORTS IN "NARROWING DIFFERENCES ON QUESTIONS WHERE DIFFERENCES EXIST" AND SAID THE TWO NATIONS "HAVE COVERED A GREAT DISTANCE IN A POSITIVE DIRECTION." IN A JOINT COMMUNIQUE, COURSE OF CONTINUING TO IMPROVE SOVIET-AMERICAN RELATIONS IN ACCORDANCE WITH EXISTING UNDERSTANDINGS AND AGREEMENTS OF PRINCIPLE WHICH THEY FIRMLY BELIEVE ARE IN THE INTEREST

UNCLASSIFIED

UNCLASSIFIED

PAGE 2

FROM: State 35905
(POST) (MRN)

OF THE PEOPLES OF THE USA AND THE SOVIET UNION AND OF
INTERNATIONAL PEACE." THE MIDDLE EAST WAS LISTED AS THE
4TH ITEM OF DISCUSSION ALTHOUGH THE COMMUNIQUE SAID THAT
"PARTICULAR ATTENTION" WAS GIVEN TO THE ISSUE. GROMYKO
TOLD NEWSMEN THAT ON MANY SUBJECTS IN THE WIDE-RANGING
DISCUSSION "OUR POSITIONS WERE CLOSE OR COINCIDE." "IT IS
NO SECRET, AND I AM SURE THAT THE SECRETARY OF STATE WILL
AGREE, THAT OUR POSITION ON SOME (OTHERS) DO NOT EXACTLY
COINCIDE," HE ADDED. KISSINGER ALSO CONFERRED THIS MORNING
WITH ROGER GALLOPIN, PRESIDENT OF THE EXECUTIVE
COUNCIL OF THE INTERNATIONAL COMMITTEE OF THE RED CROSS
ABOUT AMERICANS MISSING IN INDOCHINA. KISSINGER REPORTED-LY
TOLD GALLOPIN THAT THE UNITED STATES APPRECIATES RED
CROSS EFFORTS ON BEHALF OF 2,300 AMERICANS UNACCOUNTED FOR
IN INDOCHINA, INCLUDING 900 LISTED OFFICIALLY AS MISSING
IN ACTION.

2. AP (SCHWEID, LONDON DATELINE) -- KISSINGER PRESENTED NEW, UNCLOSED PROPOSALS ON NUCLEAR WEAPONS CONTROLS AND TRADE TO GROMYKO IN GENEVA TODAY AND RAN INTO SOME SHARP DIFFERENCES ON HIS STEP-BY-STEP MIDEAST STRATEGY. KISSINGER THEN FLEW TO LONDON FOR TALKS WITH PRIME MINISTER WILSON AND FOREIGN MINISTER CALLAGHAN, WHO EARLIER IN THE DAY SIGNED A SERIES OF COOPERATIVE AGREEMENTS WITH THE SOVIETS IN MOSCOW. KISSINGER RETURNS TO SWITZERLAND FOR LUNCH TUESDAY WITH THE SHAH OF IRAN. US OFFICIALS SAID KISSINGER WENT INTO CONSIDERABLE DETAIL WITH GROMYKO ON WAYS TO WRAP UP THE NUCLEAR WEAPONS TREATY WHILE MAKING COUNTER PROPOSALS TO THE SOVIET POSITIONS IN THE LAGGING TALKS. THE 10-YEAR FACT ESTABLISHING MISSILE CEILINGS COULD BE READY FOR SOVIET LEADER BREZHNEV AND PRESIDENT FORD TO SIGN AT A LATE JUNE SUMMIT IN WASHINGTON, NEWSMEN WERE TOLD. HOWEVER, THE "SPARRING" BETWEEN THE TWO SIDES COULD DELAY THE BREZHNEV VISIT UNTIL SEPTEMBER, US OFFICIALS SAID. IN A JOINT STATEMENT ISSUED AFTER MORE THAN NINE HOURS OF TALKS, KISSINGER AND GROMYKO RLEDGED "TO CONTINUE ENERgetic EFFORTS TO WORK OUT AN APPROPRIATE LONG-TERM AGREEMENT THIS YEAR." BOTH MEN USED THE SAME, DIPLOMATIC LICHHE -- "FRUITFUL" -- TO DESCRIBE THEIR MEETING. IT WAS LEARNED THAT KISSINGER TOOK UP WITH THE SOVIET FOREIGN MINISTER PROSPECTS FOR NEGOTIATING A NEW TRADE AGREEMENT TO REPLACE THE 1972 ACCORD THAT MOSCOW REPUDIATED LAST MONTH. US STRATEGY AGAIN CALLS FOR RELATING TARIFF AND CREDIT CONCESSIONS TO AN INCREASE IN JEWISH EMIGRATION. HOWEVER, AS KISSINGER ORIGINALLY WANTED IT, THE SOVIETS WOULD NOT BE REQUIRED TOMAKE PUBLIC COMMITMENTS. THE FORD ADMINISTRATION CONTENDS CONGRESS IS AT FAULT FOR CANCELLATION OF THE OLD AGREEMENT BY DEMANDING A PUBLIC COMMITMENT ON EMIGRATION FROM MOSCOW AND ALSO SETTING A LOW CEILING ON BANK CREDITS. GROMYKO

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PAGE 3

TOLD REPORTERS AS HE EMERGED FROM KISSINGER'S GENEVA HOTEL SUITE THAT "OUR POSITIONS ARE CLOSE OR COINCIDE" ON MANY OF THE ISSUES THEY DISCUSSED. BUT, HE WENT ON, "IT IS NO SECRET, AND I AM SURE THE SECRETARY OF STATE WILL AGREE WITH ME, THERE WERE SOME QUESTIONS ON WHICH OUR POSITIONS DID NOT EXACTLY COINCIDE." NEWSMEN ABOARD KISSINGER'S PLANE WERE TOLD GROMYKO WAS REFERRING TO THE MIDDLE EAST AND TO THE EUROPEAN SECURITY CONFERENCE, WHICH THE SOVIETS WANT TO WIND UP QUICKLY WITH RECOGNITION OF MOSCOW'S HEGEMONY IN EASTERN EUROPE. ON THE MIDEAST, GROMYKO REITERATED TO KISSINGER THE SOVIETS' INTEREST IN AN EARLY RESUMPTION OF THE GENEVA PEACE CONFERENCE AND A PLACE AT THE TABLE FOR THE PALESTINE LIBERATION ORGANIZATION. THE US OPPOSES A QUICK RETURN TO GENEVA BECAUSE OF THE DISPUTE OVER PALESTINIAN PARTICIPATION, TO WHICH ISRAEL IS FIRMLY OPPOSED. US OFFICIALS SAID THE ATMOSPHERE HAD BEEN LESS "STARCHY" THAN THEY HAD EXPECTED AND THAT THE COMMUNIQUE REFLECTS A SLIGHT SOVIET MODERATION ON THE MIDEAST, IN THAT IT CALLS FOR THE GENEVA CONFERENCE TO RESUME WORK "AT AN EARLY DATE" INSTEAD OF IMMEDIATELY.

TV:

1. ABC-TV (SMITH/REASONER) -- (LEAD ITEM): SMITH:
KISSINGER AND GROMYKO ENDED THEIR GENEVA MEETING TODAY.
WHILE BOTH SIDES ADMIT DIFFERENCES IN THE TWO DAYS OF
TALKS, THE GENERAL RESULTS ARE SAID TO BE POSITIVE. IN A
JOINT COMMUNIQUE BOTH NATIONS SAY THEY WILL CONTINUE TO
WORK TOWARDS DETENTE. THEY ALSO SAY THEY WILL CONTINUE TO
WORK FOR A NEW LONG-TERM STRATEGIC ARMS LIMITATION AGREEMENT THIS YEAR. THE MOST CONTENTIOUS ISSUE, THE M.E., WAS
RESERVED FOR DISCUSSION LAST.

KOPPEL ON CAMERA): GROMYKO IS NOT UNDuly RENOWNED AS A
BACK-SLAPPER, BUT BY PAST STANDARDS HE WAS ALMOST GLOW-\ING WITH GOODWILL THIS MORNING AS HE AND KISSINGER PREPAR-
ED TO EXCHANGE VIEWS ON THE ME. THE RUSSIANS HAVE MADE NO

SECRET OF THE FACT THAT THEY CONSIDER KISSINGER'S SOLO-
STYLE DIPLOMACY OFFENSIVE, WHICH DOES NOT IN AND OF ITSELF
ALARM KISSINGER. WHAT HE'S WORRIED ABOUT IS THAT THE
SOVIETS WILL ACTIVELY TRY TO UNDERMINE HIS PEACE-MAKING
EFFORTS IN THE ME. WHEN THE TWO MEN EMERGED AGAIN AFTER
MORE THAN FIVE HOURS OF TALKS, IT APPEARED THAT THE SPIRIT
OF DETENTE STILL SUPERCEDES ANY EXISTING DIFFERENCES.

INTERPRETER FOR GROMYKO: "ON QUESTIONS WHERE THESE DIFFER-\ENCES EXIST, TO WORK IN THE SPIRIT OF THOSE RELATIONS WHICH
HAVE BEEN ESTABLISHED BETWEEN THE SOVIET UNION AND THE US."

ONLY A COUPLE OF DAYS AGO, SOVIET LEADER BREZHNEV SHARFLY

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PAGE 4

CRITICIZED KISSINGER'S STRAVELS THROUGHOUT THE ME BUT REFERRED TO HIM ONLY AS "CERTAIN PERSONS." A REPORTER WANTED TO KNOW WHOM BREZ HNEV MIGHT HAVE BEEN REFERRING TO.

INTERPRETER FOR GROMYKO: "HE DID NOT MENTION ANY PARTICULAR PERSON. (LAUGHTER)."

REPORTER: "THAT'S WHY WE'RE TRYING TO FIND OUT."

KISSINGER: "I ASKED THE FOREIGN MINISTER THE SAME QUESTION. I OFFERED TO SHARE IN THE CONDEMNATION OF SUCH EFFORTS."

ON THAT NOTE OF COMRADESHIP, KISSINGER LEFT GENEVA AND FLEW HERE TO LONDON, BRINGING WITH HIM THE CONVICTION THAT AS THE SOVIETS SEE A GENEVA CONFERENCE AT THE END OF THE ROAD CHANCES ARE SLIGHTLY LESS THAN THEY WERE YESTERDAY THAT THE SOVIETS WILL MOUNT A DETERMINED CAMPAIGN TO DERAIL KISSINGER'S ME PEACE-KEEPING EFFORTS.

JUST AN HOUR AFTER KISSINGER'S ARRIVAL, BRITISH PRIME MINISTER WILSON RETURNED FROM HIS SUMMIT MEETING IN MOSCOW. KISSINGER AND WILSON MEET THIS EVENING AT A DINNER WITH THEIR RESPECTIVE SOVIET AND ME EXPERTS TO EXCHANGE NOTES.

SMITH, TODAY'S OFFICIAL COMMUNIQUE CALLED FOR RESUMPTION OF THE GENEVA MIDDLE EAST PEACE TALKS AT AN EARLY DATE. UP TO THIS TIME, MOSCOW HAS BEEN CALLING FOR IMMEDIATE RESUMPTION OF THE GENEVA TALKS -- SO THAT'S A CONCESSION.

2. NBC-TV (CHANCELLOR, SECOND ITEM FOLLOWING PIECE ON FANK ABANDONMENT OF MEKONG RIVER POSITIONS IN CAMBODIA) --
CHANCELLOR: ON THE OTHER SIDE OF THE WORLD THE NEWS IS LESS BAD. SECRETARY KISSINGER MET SOVIET FOREIGN MINISTER GROMYKO IN GENEVA TO DISCUSS THE ME AND OTHER THINGS, AND IN SOME WAYS IT WENT BETTER THAN HAD BEEN EXPECTED.

VALERIANI (BY SATELLITE): DESPITE GROMYKO'S CHEERFUL WAVE AS HE ENTERED KISSINGER'S HOTEL, AMERICAN OFFICIALS WERE EXPECTING A RATHER CONTENTIOUS MEETING BECAUSE OF AMERICAN-SOVIET DIFFERENCES ON THE ME, THE MAIN TOPIC OF DISCUSSION TODAY. THE TWO MEN MET FOR ABOUT FIVE HOURS. GROMYKO ARGUED FOR AN IMMEDIATE RECONVENING OF THE GENEVA PEACE CONFERENCE WHERE THE RUSSIANS WOULD HAVE A LARGER ROLE IN THE NEGOTIATIONS. KISSINGER ARGUED AGAINST IT. AFTERWARD, KISSINGER AND GROMYKO SOFT-PEDAINED THEIR DIFFERENCES.

INTERPRETER FOR GROMYKO: "IF THERE WERE QUESTIONS ON WHICH OUR POSITIONS ARE CLOSE OR COINCIDE (INAUDIBLE) AND I THINK

UNCLASSIFIED

UNCLASSIFIED

PAGE 5

FROM: State 3/500
(POST) (HRN)

THE SECRETARY OF STATE WILL AGREE THERE WERE QUESTIONS ON WHICH OUR POSITIONS DID NOT EXACTLY COINCIDE."

KISSINGER: "WE DEEPENED OUR UNDERSTANDING ON THOSE ISSUES WHERE OUR VIEWS COINCIDE, AND ON THOSE ISSUES WHERE OUR VIEWS COULD NOT COINCIDE EXACTLY WE ATTEMPTED TO BRING OUR VIEWS INTO CLOSER HARMONY."

VALERIANI. GROMYKO WAS ASKED ABOUT SOVIET LEADER BREZNEV'S RECENT CRITICISM OF "CERTAIN PEOPLE" NEGOTIATING IN THE ME, AN OBVIOUS SLAP AT KISSINGER. (FOLLOWED BY FILM OF SAME SEQUENCE SHOWN BY ABC). A JOINT STATEMENT ISSUED AS KISSINGER LEFT SWITZERLAND CALLED FOR THE RESUMPTION OF THE GENEVA PEACE CONFERENCE AT AN EARLY DATE. THAT AMBIGUOUS PHRASE (INALIBLE) THE RUSSIANS WOULD NOT TRY TO BLOCK ANOTHER PARTIAL AGREEMENT BETWEEN EGYPT AND ISRAEL. KISSINGER THEN FLEW TO LONDON. EN ROUTE NEWSMEN WERE TOLD HE IS CONVINCED THERE MUST BE A NEW AGREEMENT BETWEEN EGYPT AND ISRAEL BEFORE THEY GO BACK TO GENEVA SO THAT IT WON'T SEEM THE CONFERENCE WAS BEING RECONVENED IN AN ATMOSPHERE OF CRISIS. KISSINGER HAD DINNER HERE WITH PRIME MINISTER WILSON. THE BRITISH LEADER HAS JUST RETURNED FROM AN OFFICIAL VISIT TO MOSCOW, SO THE TWO MEN COULD COMPARE NOTES ON THEIR ASSESSMENT OF CURRENT SOVIET THINKING.

3. OBS-TV (CRONKITE, LEAD ITEM) -- DIPLOMATIC VICTORY, POLITICAL DILEMMA, AND MILITARY DEFEAT LOOMED ON THE NATION'S FOREIGN POLICY MAP TONIGT. THE VICTORY MAY HAVE COME AS SECRETARY KISSINGER'S TWO DAYS OF TALKS WITH SOVIET FOREIGN MINISTER GROMYKO, A VICTORY IN THE SENSE OF KISSINGER'S WINNING MORE TIME TO WORK OUT HIS STEP-BY-STEP STRATEGY FOR ME PEACE BEFORE THE RUSSIANS FORCE A GENEVA CONFERENCE. (CRONKITE'S "POLITICAL DILEMMA" IS THE ETHIOPIAN REQUEST FOR US MILITARY ASSISTANCE AND THE "MILITARY DEFEAT" THREATENS IN CAMBODIA.)

SECRETARY KISSINGER'S APPROACH TO A ME PEACE HAS BEEN ON A STEP-BY-STEP BASIS, DEALING WITH COUNTRIES INDIVIDUALLY. THE SOVIETS, FEELING LEFT OUT, HAVE WANTED TO FORCE THE ISSUE INTO A MULTINATIONAL CONFERENCE AT GENEVA WHERE THEY WOULD HAVE A MAJOR ROLE. FOR THE TIME BEING, IT LOOKS AS IF KISSINGER HAS WON OUT.

KALB (ON CAMERA): AFTER NINE HOURS OF TALKING, KISSINGER AND GROMYKO REDGED THEIR GOVERNMENTS TO CONTINUE WORKING TOWARDS DETENTE. THIS WAS CONSIDERED IMPORTANT BECAUSE

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THERE HAVE BEEN AMBIGUOUS SIGNS LATELY THAT THE KREMLIN MIGHT BE HAVING SECOND THOUGHTS. THE TALKS FOCussed ON A NEW STRATEGIC ARMS AGREEMENT. KISSINGER PRESENTED SOME

NEW IDEAS; GROMYKO LISTENED SERIOUSLY. THEN BOTH DIPLOMATS DISCUSSED THE ME, THE MOST DANGEROUS ISSUE BETWEEN THEM. THERE WERE SOME SHARP EXCHANGES AND DEEP DIFFERENCES REMAIN. FOR EXAMPLE, BREZHNEV CRITICIZED "CERTAIN PERSONS," MEANING KISSINGER, FOR ALLEGEDLY TRYING TO DIVIDE THE ARABS. WHO WERE THESE "CERTAIN PERSONS?", GROMYKO WAS ASKED -- THE QUESTION PRODUCING THIS BANter (REPEAT OF SAME SEQUENCE COVERED BY ABC AND NBC.)

KISSINGER THEN FLEW INTO LONDON AN HOUR BEFORE PRIME MINISTER WILSON RETURNED FROM MOSCOW. AT A DINNER TONIGHT KISSINGER AND WILSON SWAPPED IMPRESSIONS OF SOVIET POLICY. THERE'S AN UNDERSTANDING NOW BETWEEN KISSINGER AND GROMYKO THAT THE GENEVA CONFERENCE WILL BE RECONVENED SHORTLY. AFTER THE SUCCESSFUL CONCLUSION OF ANOTHER INTERIM AGREEMENT BETWEEN ISRAEL AND EGYPT. FOR THAT REASON, THE RUSSIANS HAVE EASED THEIR PRESSURE FOR A QUICK RETURN TO GENEVA FROM EARLY NEXT MONTH UNTIL LATER IN THE SPRING.

INGER SOLL

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STATE 035894

TOSEC 421

E.O. 11652: N/A

TAGS: OVIP KISSINGER, H. A.)

SUBJECT: REVIEW OF NEWSPAPERS, FEBRUARY 17

FOR AMBASSADOR ANDERSON FROM S/FR S

NO. 29

SUMMARY: THE NEW YORK TIMES, FEBRUARY 17, AND THE WASHINGTON POST, FEBRUARY 17 BOTH HAVE PAGE ONE STORIES ON THE KISSINGER-GROMYKO TALKS IN GENEVA. TIMES SUB-HEAD, "SOME ANGER IS HINTED"; POST HEADLINE, "STRAIN EVIDENT AS KISSINGER, GROMYKO MEET ON DETENTE." BALTIMORE SUN, FEB. 17, PAGE ONE ARTICLE DATELINED, BONN, BY GENE OISHI, HAS HEADLINE, "GERMANS MAY ARM TURKEY, BONN INFORMS KISSINGER ON WAY TO GENEVA." (SUN PRINTED ALONGSIDE ARTICLE, ABOVE FOLD, TWO COLUMN AP PHOTO OF SECRETARY KISSINGER MEETING GROMYKO AT SOVIET MISSION IN GENEVA.) UPI'S WILLIAM LANDRY REPORTED FROM GENEVA, FEB. 17, THAT SECRETARY KISSINGER AND FOREIGN MINISTER GROMYKO HAD SOME SHARP EXCHANGES AT THEIR FIRST MEETING AND EXPECTED A DIFFICULT SESSION AT THEIR SECOND MEETING, FEBRUARY 17.

1. THE NEW YORK TIMES

(A) "KISSINGER MEETS GROMYKO TO TALK ABOUT RELATIONS."
IN AN UNSIGNED ARTICLE, DATELINED GENEVA, FEB. 16, THE TIMES REPORTED THAT "SECRETARY OF STATE KISSINGER AND FM ANDREI A. GROMYKO OF THE SOVIET UNION BEGAN TALKS TONIGHT, WITH THE STRESS ON SOVIET-AMERICAN RELATIONS, INCLUDING NEW PROPOSALS MADE BY THE TWO SIDES ON ARMS CONTROL ISSUES.

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"THE THREE AND A HALF HOUR SESSION WAS DESCRIBED LATER BY MR. KISSINGER AS 'CONSTRUCTIVE WITH CANDID INTERLUDES.' THIS WAS INTERPRETED BY AMERICAN OFFICIALS AS MEANING THAT THE MEETING HAD BEEN MARKED BY OCCASIONAL SHARP DIFFERENCES.

"THE TWO MEN DISCUSSED WORLD ISSUES SUCH AS CYPRUS AND THE EUROPEAN SECURITY CONFERENCE AS WELL AS SOVIET-AMERICAN PROBLEMS TONIGHT AND AGREED TO PUT OFF UNTIL TOMORROW THEIR PLANNED, DETAILED REVIEW OF THE MEETING, THE MAIN CONTENT OF OUR ISSUE BETWEEN THE TWO COUNTRIES AT THIS MOMENT.

"NEWSMEN ABORAD MR. KISSINGER'S AIR FORCE 707 WERE GIVEN A RUNDOWN ON CERTAIN ASPECTS OF CURRENT SOVIET-AMERICAN RELATIONS THAT THE TWO MEN WERE DUE TO DISCUSS:

"AT THE GENEVA MEETINGS ON STRATEGIC-ARMS LIMITATION, THE RUSSIANS, IN THE PAST MONTH HAVE SUBMITTED A DRAFT DOCUMENT TO WRAP UP THE DETAILS OF THE VLADIVOSTOK AGREEMENT THAT CALLED ON EACH SIDE TO LIMIT ITS TOTAL OF OFFENSIVE MISSILES AND BOMBERS TO 2,400 OF WHICH 1,320 MISSILES COULD HAVE MULTIPLE WAR HEADS. THE DOCUMENT WAS SAID TO CONTAIN SOME OF MOWCOW'S 'FET IDEAS,' TROUBLESOME FOR THE U.S. TO ACCEPT, AND TO BE DEFICIENT IN INSPECTION PROCEDURES.

"THE U.S. PLANS TO SUBMIT ITS OWN PROPOSALS ON VERIFICATION OF THE OFFENSIVE ARMS ACCORD, BUT THERE WILL PROBABLY BE FOUR TO SIX MORE WEEKS OF SPARRING AT GENEVA BEFORE THE TWO SIDES GET DOWN TO SERIOUS DISCUSSION.

"THE PACE OF THE STRATEGIC ARMS TALKS WILL DECIDE THE EXACT TIME OF A VISIT BY MR. BREZHNEV TO THE U.S., LATER IN THE YEAR. UP TO NOW, THE TWO SIDES HAVE TENTatively PLANNED ON LATE JUNE OR EARLY JULY, BUT NEWSMEN WERE TOLD THAT IT WAS POSSIBLE THE DATE COULD BE SEPTEMBER.

"THE U.S. BELIEVES THAT THE CONFERENCE ON SECURITY AND COOPERATION IN EUROPE IS MAKING PROGRESS UNDER SOVIET INSISTENCE THAT A 35-NATION SUMMIT MEETING BE HELD AS THE FINALE. THAT MEETING WILL ALSO TAKE PLACE EITHER IN LATE JUNE, EARLY JULY OR SEPTEMBER.

"NEGOTIATIONS HAVE RESUMED IN MOSCOW ON PUTTING INTO EFFECT THE PEACEFUL EXPLOSIONS ASPECT OF THE TREATY BANNING UNDERGROUND NUCLEAR EXPLOSIONS ABOVE THE FORCE OF BOMB LITONSONS--OR THE FORCE OF 150,000 TONS OF TNT--EXCEPT FOR CERTAIN PEACEFUL EXPLOSIONS THAT HAVE TO BE AGREED UPON.

THE U.S. IS SUBMITTING NEW PROPOSALS TO THE RUSSIANS ON MAKING SURE THAT THESE EXPLOSIONS ARE NOT IN FACT MILITARY TESTS; ONE METHOD WOULD BE TO SET OFF A SERIES OF EXPLOSIONS OF NUCLEAR DEVICES WHOSE TOTAL WOULD BE ABOVE 150 KILOTONS, RATHER THAN JUST ONE LARGE DEVICE.

"THERE IS NO INCLINATION ON THE PART OF THE FORD ADMINI

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STRATIFICATION NOW TO NEGOTIATE A NEW TRADE AGREEMENT WITH THE RUSSIANS. THE ADMINISTRATION WANTS FIRST TO FIND OUT EXACTLY WHAT CONGRESS WOULD LIKE TO SEE IN THAT ACCORD AND TO DETERMINE WHAT CAN BE WORKED OUT. MR. KISSINGER PLANNED, HOWEVER, TO DISCUSS THE SUBJECT AS A WHOLE, INCLUDING, PRESUMABLY THE EMIGRATION QUESTION."

...BECAUSE OF THE SHARP DIFFERENCES BETWEEN THE TWO COUNTRIES ON HOW TO PROCEED TOWARD A ME SETTLEMENT, MR. KISSINGER DID NOT LOOK FORWARD TO THE MEETING WITH MR. GROMYKO.

"A SPEECH BY MR. BREZHnev ON FRIDAY THAT QUESTIONED THE VALUE OF MR. KISSINGER'S STEP BY STEP APPROACH LED MR. KISSINGER TO BELIEVE THAT MR. GROMYKO WILL PRESS TOMORROW FOR AN AMERICAN AGREEMENT TO RECONVENE THE GENEVA CONFERENCE ON THE MIDDLE EAST AS SOON AS POSSIBLE.

"THE AMERICANS, WHO ARE CO-CHAIRMEN OF THE CONFERENCE WITH THE RUSSIANS, HAVE NOT FLATLY OPPOSED SUCH A RECONVENING, BUT THEY HAVE STRESSED THAT IT WAS IMPORTANT THAT THE SESSION FOLLOW UP A SUCCESSFUL EGYPTIAN-ISRAELI ACCORD IN SINAI AND THAT IT NOT BE THE RESULT OF A STALEMATE.

"MR. KISSINGER ALSO BELIEVES THAT THE RUSSINS, AT A LATER STAGE, WILL HAVE TO PLAY A MORE SIGNIFICANT ROLE THAN THEY HAVE UP TO NOW IN PEACE-MAKING EFFORTS."

THE DISPATCH ALSO IN INCLUDED A SUMMARY OF SECRETARY KISSINGER'S INTERVIEW, FEB. 16, ON GERMAN TELEVISION, CHANNEL 2.

(B) "REPORTER'S NOTEBOOK: KISSINGER SEEMS OPTIMISTIC, BUT PROGRESS I; NOT CLEAR." -- BERNARD GWERTZMAN, IN A PAGE ONE ARTICLE, DATED INED, GENEVA, FEB. 16, REPORTED AS FOLLOWS:

"AS HIS AF JET WAS TAXIING FOR TAKE-OFF AT AQABA, ESTERDAY MORNING, SECRETARY OF STATE KISSINGER STROLLED

TO THE REAR OF THE PLANE WHERE THE NEWSMEN WERE SITTING AND EXCLAIMED: 'WHEN I LEAVE THIS JOB, I CAN BECOME DIRECTOR OF AN INSAME ASYLUM. I'VE BEEN WELL TRAINED FOR IT.'....

"IF HIS PUBLIC COMMENTS HAVE BEEN HOPEFUL, HE HAS HEDGED HIS BETS PRIVATELY. NEWSMEN WHO PRESSED FOR A PREDICTION WERE REWARDED ONLY WITH A CAUTIOUS OBSERVATION THAT MR. KISSINGER WOULD NOT BE RETURNING TO THE AREA IF HE THOUGHT THE SITUATION WAS HOPELESS; THEY WERE TOLD THAT THE ODDS WERE 50-50 AT BEST FOR AN ACCORD, GIVEN THE EGYPTIAN AND ISRAELI POSITION.

--, WAS MR. KISSINGER CAUTIOUS IN PRIVATE BECAUSE THAT IS HIS NATURE, OR BECAUSE, WHEN THE TALKS FAIL, HE WANTS TO BE ABLE TO SAY 'I TOLD YOU SO'?

"IF A POLL WERE TAKEN OF THE 16 NEWSMEN WHO HAVE ACCOM-PANIED MR. KISSINGER ON THIS TRIP, A MAJORITY WOULD PROBABLY VOTE THAT THEY THOUGHT THE LIKELIHOOD OF THE TALKS SUCCEEDING NEXT MONTH WAS STRONGER THAN THEIR FAILING. IS THIS BECAUSE THEY HAVE BEEN INFLUENCED BY MR. KISSINGER'

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DESIRE TO KEEP NEGOTIATING HOPES ALIVE OR BECAUSE THAT IS WHAT THEIR EXPERIENCE TELLS THEM IS THE LOGICAL OUTCOME? THEY PROBABLY COULDN'T BE 100 PERCENT SURE THEMSELVES.

"BECAUSE OF MR. KISSINGER'S ROLE AS A MEDIATOR IN THE ME, THOSE ACCOMPANYING HIM ARE THRUST INTO THE POSITION OF BEING NEUTRAL OBSERVERS AS WELL. IT HAS BEEN A UNIQUE EXPERIENCE FOR THE NEWSMEN ABOARD, BECAUSE MR. KISSINGER'S BLUE, WHITE AND SILVER AF 707 IS THE ONLY AIRLINER ALLOWED TO FLY DIRECTLY BETWEEN TEL AVIV AND CAIRO AND BETWEEN TEL AVIV AND DAMASCUS. IN ONE DAY, THEY GET THE ISRAELI LINE FROM OFFICIALS AND JOURNALISTS AND WITHIN HOURS THEY HEAR THE EGYPTIAN--OR SYRIAN-- VIEW FROM THE OPINION MOLDERS IN THE ARAB STATE....

"ON THIS TRIP, FOR INSTANCE, MANY ISRAELIS SEEMED MORE UNENTHUSIASTIC THAN EVER ABOUT MR. KISSINGER'S EFFORTS. THEY WERE EXTREMELY WARY OF MAKING ANY CONCESSION ON SINAI TO THE EGYPTIANS, EXCEPT IN EXCHANGE FOR WRITTEN DECLARATIONS OF NON-BELLIGERENCY THAT THEY ADMITTED THEY WERE HARDLY LIKELY TO RECEIVE. SOME ISRAELIS ALREADY SEEM TO BELIEVE THAT ANOTHER WAR IS INEVITABLE AND THAT THE NEXT TIME AROUND THEY WILL DELIVER A CRIPPLING BLOW TO THE ARABS...

"THE ISRAELIS SEEMED MORE CONFIDENT OF THEIR NEGOTIATING POSITION THAN THEY DID ON MR. KISSINGER'S LAST TRIP, IN EARLY NOVEMBER, JUST AFTER THE ARABS' SUMMIT CONFERENCE AT RABAT HAD GIVEN PROMINENCE TO THE PALESTINE LIBERATION ORGANIZATION. BUT THE ISRAELIS' ATTITUDE ALSO MADE TPM APPEAR RELATIVELY INFLEXIBLE AT A TIME WHEN MANY FOREIGNERS WOULD LIKE THE ISRAELIS TO MAKE CONCESSIONS AND HELP THEM AVOID ANOTHER OIL EMBARGO.

"THE EGYPTIANS, ON THE OTHER HAND, APPEARED MORE RELAXED ABOUT THE NEGOTIATIONS THAN THE ISRAELIS AND SEEMED MYSTIFIED WHEN A NEWSMAN TOLD THAM THAT ISRAELIS DON'T TRUST THEIR INTENTIONS....

"VIRTUALLY EVERY KISSINGER TRIP HAS HAD AT LEAST ONE 'FLAP' BETWEEN MR, KISSINGER AND THE PRESS. THIS TIME IT OCCURRED YESTERDAY ON THE FLIGHT FROM AQABA TO RIYADH.

"DURING A WIDE-RANGING DISCUSSION ABOUT OIL POLICY, SOME NEWSMEN GOT THE IMPRESSION THAT MR. KISSINGER WAS GOING TO RIYADH TO PERSUADE KING FAISAL TO MAKE A DEAL WITH THE U.S. ON LONG-TERM OIL PURCHASES.

"THIS WAS NOT MR. KISSINGER'S STATED INTENTION. RATHER HE PLANNED ONLY TO DISCUSS HIS RECENT OIL POLICY SPEECH WITH THE KING AND TO TALK ABOUT OVER-ALL CONSUMER-PRODUCER COOPERATION OVER THE LONG PERIOD, NOT JUST SA;DI-AMERICAN DEALS.

"BECAUSE OF THIS MISUNDERSTANDING, SOME DISPATCHES WERE FILED THAT SUGGESTED THAT MR. KISSINGER WAS ON A CARTEL-BREAKING MISSION, WHEN, IN FACT, HIS 90 MINUTES WITH THE

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KING WERE APPARENTLY MUCH TAMER.

"THIS PROMPTED MR. KISSINGER TO ISSUE A PERSONAL STATEMENT UPON ARRIVAL IN BONN, SAYING HIS OIL POLICY WAS ONLY WHAT HE HAD SAID IT WAS IN HIS SPEECH ON FEB. 3 IN WASHINGTON. SOME NEWSMEN WHO HAD FILED THE MORE DRAMATIC DISPATCHES GRUMBLED LATER ABOUT BEING 'MISLED' BY MR. KISSINGER, BUT IN THIS CASE, WHILE PERHAPS BEING GUILTY OF A POOR BRIEFING, MR. KISSINGER WAS PROBABLY INNOCENT OF DELIBERATE DECEPTION.

"MR. KISSINGER SEEMED TO RECOGNIZE HIS OWN RESPONSIBILITY FOR THE MISUNDERSTANDING. ON HIS PLANE, TRAVELING FROM BONN TO GENEVA THIS AFTERNOON, NEWSMEN WERE TOLD THAT HE COULD UNDERSTAND, AFTER READING HIS AIDES' NOTES, HOW SOME NEWSMEN MIGHT HAVE GONE ASTRAY.

"THERE ARE OFTEN SOME ABSURD MOMENTS IN THESE MISSIONS.

"THE OTHER DAY, WHILE MR. KISSINGER WAS MEETING WITH NEWSMEN IN HIS AIRBORNE OFFICE IN THE FRONT OF THE PLANE, HIS RADIO TELEPHONE BEGAN RINGING IN THE BACK OF THE COMPARTMENT. THIS IS A PHONE THAT CAN CONNECT HIMWITH ANY PART OF THE WORLD, NO ONE DARED TO PICK IT UP.

"FINALLY, IN EXASPERATION, MR. KISSINGER SHOUTED, 'CAN'T ANYONE ANSWER IT? I KNOW YOU CAN'T GET ON THE PLANE IF YOUR I.Q. IS MORE THAN 50.'

"MR. KISSINGER'S VISITS TO ISRAEL HAVE USUALLY INCLUDED, ANTI-KISSINGER DEMONSTRATIONS. MR. KISSINGER TOOK NOTE OF THE STRONG VIEWS AGAINST HIM WHEN HE SAID, IN A TOAST AT A DINNER GIVEN FOR HIM BY FOREIGN MINISTER YIGAL ALLON OF ISRAEL, THAT HE KNEW THAT THE OPPOSITION PARTY WAS AT THE DINNER 'TO STUDY THE DEPTHS HUMAN DEPRAVITY CAN REACH.' EVERY ONE LAUGHED."

2. WASHINGTON POST--IN AN ARTICLE DATELINED GENEVA, FEB. 16, MARILYN BERGER REPORTED THAT "SECRETARY OF STATE KISSINGER AND SOVIET FOREIGN MINISTER ANDREI GROMYKO DETENTE FOLLOWING A SERIES OF CHILL WINDS THAT HAVE TENDED TO COOL THE RELATIONSHIP. COOL THE RELATIONSHIP.

"GROMYKO WAS HOST AT A DINNER FOR KISSINGER, WHO INDICATED THAT HE WAS EXPECTING HIS ENCOUNTER WITH HIS SOVIET

COUNTERPART TO BE ALMOST AS COLD AS THE SUBFREEZING WEATHER HERE....

"REPORTERS TRAVELING WITH KISSINGER WERE TOLD THE INFORMAL AGENDA INCLUDED:

"THE MIDDLE EAST. MOSCOW KEEPS CALLING FOR AN IMMEDIATE RETURN TO THE GENEVA CONFERENCE. KISSINGER WANTS FIRST TO NEGOTIATE A SECOND INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL TO IMPROVE THE CLIMATE FOR THE GENEVA CONFERENCE BY STRENGTHENING THE POSITION OF THE MODERATE ARABS....

"SALT. THE SOVIET UNION HAS PUT FORWARD A PROPOSAL THAT ESSENTIALLY FOLLOWS THE LINES OF THE VLADIVOSTOK

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ACCORD AS SELL AS SOME 'PET' IDEAS THAT COULD CAUSE DIFFICULTY, THE REPORTERS WERE TOLD.

"THE U.S. CONSIDERS THE SOVIET PROPOSAL 'DEFICIENT' ON INSPECTION PROVISIONS, WHICH THE AMERICAN DELEGATION WILL PROPOSE. THE CONTENTION ABOARD THE KISSINGER PLANE IS THAT WHILE THERE ARE NO INSUPERABLE PROBLEMS, THERE WILL BE FOUR TO SIX WEEKS MORE OF 'SPARRING' BEFORE A DETERMINATION TO MOVE FORWARD IS MADE IN MOSCOW AND WASHINGTON.

"ON PROGRESS IN SALT WILL DEPEND THE TIMING OF THE SOVIET-AMERICAN SUMMIT, WHICH THE TRAVELING PRESS WAS TOLD WOULD PROBABLY COME IN LATE JUNE OR EARLY JULY, ALTHOUGH IT COULD SLIP BACK TO SEPTEMBER....

"THRESHOLD TEST BAN. REPORTERS WERE TOLD THAT NEGOTIATIONS HAVE BEEN RESUMED ON THIS AGREEMENT, WHICH WAS SET UP AT THE LAST MOSCOW SUMMIT. THE U.S. IS PRESENTING NEW PROPOSALS CALLING FOR CLEARER CRITERIA FOR UNDERGROUND EXPLOSIONS FOR 'PEACEFUL PURPOSES'....

"TRADE. AFTER THE SOVIET REPUDIATION OF THE TRADE AGREEMENT, U.S.-SOVIET RELATIONS SUFFERED A HEAVY BLOW. REPORTERS WERE TOLD THAT KISSINGER WOULD NOT DISCUSS A NEW AGREEMENT IN ANY CONCRETE MANNER UNTIL HE GOT A BETTER UNDERSTANDING OF WHAT HE COULD GET FROM CONGRESS....

"EMIGRATION. MOSCOW TURNED DOWN THE TRADE AGREEMENT WHEN CONGRESS CLAMPED TARIFF AND CREDITS RESTRICTIONS ON THE SOVIET UNION LESS IT LIBERALIZED ITS EMIGRATION POLICIES. IN THE MONTH OF JANUARY, A HIGH AMERICAN OFFICIAL SAID, EMIGRATION FROM THE SOVIET UNION DROPPED TO 1,100 THE LOWEST IN FOUR YEARS, COMPARED TO 3,000 AT THE HIGHEST THAT THE DROP WAS ENTIRELY ACCIDENTAL.

"CYPRUS. THE SOVIET UNION IS EXPECTED TO CALL FOR AN INTERNATIONAL CONFERENCE ON CYPRUS. KISSINGER CONSIDERS THIS A PRESCRIPTION FOR STALEMATE, JUST LIKE THE GENEVA CONFERENCE ON THE MIDDLE EAST....

"EARLIER IN THE DAY, KISSINGER MET WITH WEST GERMAN CHANCELLOR HELMUT SCHMIDT AND FOREIGN MINISTER HANSDIETRICH GENSCHER. THERE WAS A 'COMPLETE UNANIMITY OF VIEWS,' KISSINGER SAID. RELATIONS BETWEEN THE TWO COUNTRIES HAVE NEVER BEEN SO GOOD, HE SAID.

"KISSINGER AGREED TO VISIT BERLIN IN APRIL, AT THE LATEST, A MOVE TO LIFT THE MOOD OF THE BERLINERS, AN AMERICAN OFFICIAL SAID. WEST GERMAN GOVERNMENT SPOKESMAN KLAUS BOELLING SAID THAT TO HIS KNOWLEDGE THE LEADERS DID NOT DISCUSS A PLAN FOR GERMANY TO SEND ARMS TO TURKEY TO MAKE UP FOR THOSE THE U.S. IS NOW BANNED FROM SUPPLYING. THAT PROBLEM IS BEING STUDIED IN BONN. NOR DID THEY DISCUSS THE USE OF GERMAN AIR BASES IN THE EVENT OF ANOTHER MIDDLE EAST WAR, BOELLING SAID."

3. BALTIMORE SUN, FROM BONN, SUN CORRESPONDENT OISHI REPORTED THAT "IN VIEW OF THE CONGRESSIONAL EMBARGO ON U.S. WEAPONS DELIVERIES TO TURKEY, WEST GERMANY IS CON-

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SIDERING A RESUMPTION OF ARMS SALES TO THE ANKARA GOVERNMENT.

"HAK WAS BELIEVED TO HAVE DISCUSSED THE MATTER WITH WEST GERMAN LEADERS DURING HIS BRIEF STOPOVER HERE. A BONN GOVERNMENT SPOKESMAN, HOWEVER, SAID NO FINAL DECISION HAS BEEN MADE.

"LATER THE U.S. SECRETARY OF STATE ARRIVED IN GENEVA FOR MEETINGS WITH THE SOVIET FM, ANDREI A. GROMYKO, THAT COULD HELP SET THE COURSE OF NEGOTIATIONS ON NUCLEAR ARMS LIMITATION AND THE ME. THE TWO TALKED FOR 3-1/2 HOURS LAST NIGHT....

"DURING A PRESS CONFERENCE AFTER THE TALK WITH HANS-DIETRICH GENSCHER, THE WEST GERMAN FM, MR. KISSINGER SAID THAT THE QUESTION OF GERMAN ARMSTOTURKEY WAS 'A MATTER FOR THE FEDERAL REPUBLIC OF GERMANY TO DECIDE', THEN ADDED, 'WE DISCUSED THE POLITICAL SITUATION IN THE EASTERN MEDITERRANEAN.'

"MR. KISSINGER REPEATEDLY HAS OPPOSED THE ARMS CUT-OFF TO TURKEY, WHICH WENT INTO EFFECT FEB. 5, SAYING IT UNDERMINED U.S.-TURKISH RELATIONS AS WELL AS THE NATO'S DEFENSE POSTURE IN THE EASTERN MEDITERRANEAN.

"A WEST GERMAN FOREIGN MINISTRY SPOKESMAN EXPLAINED LATER THAN BONN WAS CONSIDERING RESUMING ARMS SHIPMENTS TO TURKEY AND GREECE IN VIEW OF STRATEGIC IMPORTANCE OF THESE TWO COUNTRIES TO NATO'S SOUTHEASTERN FLANK.

-BUT HE ADDED THAT WEST GERMANY COULD NOT FILL THE WEAPONS GAP LEFT BY THE U.S. ARMS CUT-OFF 'IN QUANTITY OR QUALITY.'...

"IN VIEW OF THE RESTORATION OF A DEMOCRATIC GOVERNMENT IN ATHENS, THE WEST GERMAN GOVERNMENT SHOULD IT DECIDE TO RESUME ARMS SHIPMENTS, WOULD DELIVER TO BOTH GREECE AND TURKEY, THE SPOKESMAN SAID....

"THE WEST GERMAN GOVERNMENT SPOKESMAN ALSO REPORTED THAT MR. KISSINGER, IN HIS TALKS WITH MR. GENSCHER AND WITH CHANCELLOR HELMUT SCHMIDT, MADE A COMPREHENSIVE REPORT ON HIS ME PEACE EFFORTS.

"BEFORE GOING TO GENEVA TO MEET WITH MR. GROMYKO, MR. KISSINGER TOLD A WESTGERMAN TELEVISION CORRESPONDENT THAT A SOLUTION TO THE MIDEAST CONFLICT WAS 'NOT ATTAINABLE WITHOUT THE PARTICIPATION, AND POSSIBLY GUARANTEES, BY THE SOVIET UNION.'"

4. UNITED PRESS INTERNATIONAL, LANDRY REPORTED FROM GENEVA THAT "AFTER SOMETIMES SHARP EXCHANGES ON OTHER SUBJECTS, SECSTATE HAK AND SOVIET FM AAG MET FOR A SECOND TIME TODAY IN WHAT AMERICAN SOURCES SAID COULD BE A DIFFICULT SESSION ON THEIR ME DIFFERENCES.

"THE QUESTION WAS WHETHER RUSSIA WOULD TRY TO OBSTRUCT KISSINGER'S NEXT STEP TOWARD A ME PEACE AGREEMENT OR HELP HIM. A SENIOR AMERICAN OFFICIAL SAID THAT SO FAR THE

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RSSIANS HAD BEEN NEITHER VERY HELPFUL NOR NOTABLY CONSTRUCT VE. SOVIET COMMUNIST PARTY GENSEC LEONID BREZHNEV ATTACKED KISSINGER'S MISSION LAST WEEK IN VEILED TERMS.

"KISSINGER'S FIRST MEETING WITH GROMYKO SUNDAY NIGHT WAS DESCRIBED BY INFORMED SOURCES AS BUSINESSLIKE PUNCTUATED BY SOME SHARP EXCHANGES....

"BEFORE MEETING GROMYKO KISSINGER CONFERRED FOR 20 MINUTES WITH ROGER GALLOPIN, PRESIDENT OF THE EXECUTIVE COUNCIL OF THE INTERNATIONAL COMMITTEE OF THE RED CROSS.

"GALLOPIN ASSURED KISSINGER THE RED CROSS WILL CONTINUE ITS EFFORTS TO GET SOME NEWS OF THE 2,300 AMERICAN STILL MISSING OR UNACCOUNTED FOR IN INDOCHINA....

"AMERICAN SOURCES DID NOT IDENTIFY THE CONTROVERSIAL ISSUES DISCUSSED SUNDAY BY GROMYKO AND KISSINGER, BUT THE TWO MEN TALKED ABOUT THE WIDE RANGE OF BILATERAL ISSUES BETWEEN THE TWO COUNTRIES....

"RETURNING TO HIS HOTEL AFTER THE MEETING, KISSINGER TOLD REPORTERS THAT IT WAS 'GENERALLY CONSTRUCTIVE WITH CANDID INTERLUDES.'

"KISSINGER AND GROMYKO WERE LUNCHING TOGETHER IN KISSINGER'S SUITE AND THEIR TALKS WERE EXPECTED TO LAST UNTIL ABOUT 3 P.M. (10 A.M., EST). THREE HOURS LATER HAK WAS TAKING OFF FOR LONDON WHERE PM WILSON WILL BE VISIT TO MOSCOW AND TALKS WITH BREZHNEV."

"BOTH GROMYKO AND KISSINGER HAVE JUST COMPLETED TOURS OF THE ME. KISSINGER WAS TRYING TO LAY THE GROUNDWORK FOR A NEW INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL FOR FURTHER ISRAELI TROOP WITHDRAWALS IN THE SINAI DESERT.

"ALMOST FROZEN OUT OF THE MIDEAST NEGOTIATIONS FROM THE START, GROMYKO PRECEDED KISSINGER THIS TIME, SELLING A RIVAL POLICY --AN IMMEDIATE RETURN TO THE GENEVA PEACE CONFERENCE WHERE ALL PARTIES, INCLUDING RUSSIA, ARE REPRESENTED.

"BEFORE RETURNING TO GENEVA, KISSINGER WANTS AT LEAST ONE MORE SUCCESS FOR HIS STEP-BY-STEP APPROACH ON THE GROUNDS THAT IT WILL PROMOTE A BETTER ATMOSPHERE.

"A SENIOR AMERICAN OFFICIAL HAS SAID THAT SO FAR THE RUSSIANS HAD NEITHER BEEN VERY HELPFUL NOR NOTABLY CONSTRUCTIVE, BUT SOVIET COMMUNIST PARTY GENERAL SECRETARY LEONID BREZHNEV ATTACKED KISSINGER'S MISSION LAST WEEK IN VEILED TERMS." INGERSOLL

BT

#5894

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OVER

<table><thead><tr><th>ACTION/INFO</th></tr></thead><tbody><tr><td>S/5-15</td></tr><tr><td>CRS-2</td></tr><tr><td>SUPVR</td></tr><tr><td>MASTER</td></tr><tr><td>NO. COPIES</td></tr><tr><td>20</td></tr><tr><td>INTL/US</td></tr><tr><td>23</td></tr></tbody></table>

Amembassy London
IN TELEGRAM

FOR A:COM USE ONLY

1975 FEB 17 20 (TRANSLATED)

IMMEDIATE

DE RUEHC #5878/1 0481929
Z NR UUUUU ZZ H
0 1 719 11Z FEB 75 Z FF4
FM SECSTATE WASHD C
TO AMEMBASSY LONDON IMMEDIATE 4943-44
BT
UNQAS
STATE 035878.

FROM: State
NO: 35878
RECD:

TO SEC 410

E.O. 11652: N/A
TAGS: OVIP (KISSINGER, H. A.)

SUBJECT: SUMMARY OF RADIO AND TV, FEBRUARY 16 AND 17

NO. 28

SUMMARY: BROADCASTING FROM GENEVA, SUNDAY EVENING, FEBRUARY 16, VALERIANI ON NBC-TV, REPORTED THAT SECRETARY KISSINGER CAME TO GENEVA WITH SPECIAL INTEREST IN TRYING TO FIND OUT WHAT THE CURRENT MOOD IN MOSCOW IS. ATMOSPHERE AT THE SOVIET MISSION, HE REPORTED, WAS RESTRAINED. HE SAID THE TWO FOREIGN MINISTERS WERE SAVING THE MOST CON- TENTIOUS ISSUES FOR DISCUSSIONS ON MONDAY, FEBRUARY 17. IN HIS MONDAY MORNING BROADCAST ON THE TODAY SHOW, VALERIANI REPORTED THAT THERE WERE SOME SHARP EXCHANGES AT THE SUNDAY EVENING KISSINGER-GROMYKO MEETING WITH MORE DISAGREE- MENT EXPECTED AT THE MONDAY MEETINGS, ESPECIALLY OVER THE SEATING OF THE FLO AT GENEVA. ON OBS RADIO AND TV, MONDAY MORNING, KALB REPORTED THAT THE MONDAY NIGHT MEETING BETWEEN SECRETARY KISSINGER AND FOREIGN MINISTER GROMYKO WAS MARKED BY OCCASIONAL SHARP EXCHANGES AND THAT MONDAY'S ENCOUNTER MAY BE EVEN SHARPER. KOPPEL ON ABC TV, MONDAY EXPERIENCE OF REPRESENTATIVE STEVEN SOLARZ IN SYRIA AND EXPERIENCE OF REPRESENTATIVE STEVEN SOLAR? IN SYRIA AND

THE CONGRESSMAN'S RET HINKING OF HIS OPPOSITION TO THE U.S. GRANTING $25 MILLION OF ECONOMIC AID AS AN EXAMPLE OF WHAT SECRETARY KISSINGER MAY HAVE IN MIND WHEN HE TALKS ABOUT INTANGIBLES IN THE MOVEMENT TOWARDS PEACE.

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FROM: State 35878
(POST) (MRN)

1. VALERIANI, NBC-TV:

(A), SUNDAY EVENING, FEBRUARY 16, FROM GENEVA--KISSINGER REPORTED TO CHANCELLOR SCHMIDT ON HIS RECENT VISIT TO THE MIDDLE EAST. THE TWO MEN ACTIVELY DISCUSSED ECONOMIC POLICY AND THE OIL PROBLEM. THE GERMANS GENERALLY FAVORED THE AMERICAN PROPOSAL FOR A WORLD PRICE ON OIL THAT IS BELOW THE CURRENT LEVEL BUT STILL HIGH ENOUGH TO STIMULATE INVESTMENTS IN ALTERNATE SOURCES OF ENERGY. FROM BONN, KISSINGER FLEW TO GENEVA TO MEET WITH SOVIET GROMYKO.
JUST TWO DAYS AGO THE TOP SOVIET LEADER, BREZHNEV, BLASTED KISSINGER'S ONE MAN DIFLOMACY IN THE ME. IN HIS AIRPORT ARRIVAL STATEMENT, GROMYKO SAID THAT WHAT HE AND KISSINGER DISCUSSED HERE WOULD BE OF INTEREST TO OTHER COUNTRIES BESIDES THE U.S. AND THE SOVIET UNION. VALERIANI-- THE SECURITY MEASURES AT THE AIRPORT WERE INTENSIFED IN THE WAKE OF A BOMB ATTEMPT ON THE WEST GERMAN MISSION ONE WEEK AGO. POLICE CARRIED SUBMACHINE GUNS, WORE BULLET PROOF VESTS. KISSINGER CAME TO GENEVA WITH A SPECIAL INTEREST IN TRYING TO FIND OUT WHAT THE CURRENT MOOD IN MOSCOW IS, SINCE HE HAS NOT HAD DIRECT CONTACT WITH HIGH RANKING SOVIET OFFICIALS IN MORE THAN A MONTH. IN HIS ARRIVAL STATEMENT KISSINGER ECHOED THE VIEW THAT AMERICAN-SOVIET RELATIONS ARE ESSENTIAL TO THE PEACE OF THE WORLD. THE ATMOSPHERE AT THE SOVIET DIFLOMATIC MISSION WAS FRIENDLY BUT RESTRAINED AS KISSINGER ARRIVED FOR A WORKING DINNER.
AMERICAN OFFICIALS SAID TONIGHT'S AGENDA INCLUDED A GENERAL DISCUSSION OF A NEW TRADE AGREEMENT BUT NO NEW NEGOTIATIONS ON THAT SUBJECT. KISSINGER AND GROMYKO ARE SAVING THE MOST CONTENTIOUS ISSUES ON THEIR AGENDA FOR TOMORROW.

B) MONDAY, FEBRUARY 17, FROM GENEVA--GROMYKO ARRIVED IN GENEVA TWO DAYS AFTER BREZHNEV HAD BLASTED KISSINGER'S ONE MAN DIFLOMACY IN THE ME AND HE CAME READY TO DEMAND AN IMMEDIATE RECONVENING OF THE GENEVA PEACE CONFERENCE. SECURITY WAS EXTRAORDINARILY HEAVY FOR THE ARRIVAL OF KISSINGER AND GROMYKO. THE SECRETARY OF STATE CAME HERE CONCERNED THAT THE RUSSIANS MIGHT BE PLANNING TO PUT PRESSURE ON SYRIA TO OPPOSE HIS STEP-BY-STEP NEGOTIATION. THE FIRST MEETING TOOK PLACE OVER DINNER AT THE SOVIET DIFLOMATIC MISSION AND OFFICIALS DESCRIBED THE TALKS AS GENERALLY CONSTRUCTIVE BUT INDICATED THERE HAD BEEN SOME SHARP EXCHANGES. MORE DISAGREEMENT IS LIKELY TODAY IF THEY DISCUSS THE ME IN DETAIL WITH GROMYKO PUSHING FOR THE SEATING OF THE RLO AT GENEVA AND KISSINGER OPPOSING IT

UNLESS THE RLO ACKNOWLEDGES THE RIGHT OF ISRAEL TO EXIST. AFTER GENEVA THE NEXT STOP ON KISSINGER'S ITINERARY IS LONDON WHERE HE WILL CONFER WITH PM WILSON. WILSON WILL HAVE JUST RETURNED FROM AN OFFICIAL VISIT TO THE SOVIET UNION AND KISSINGER IS INTERESTED IN HEARING THE BRITISH ASSESSMENT OF THE CURRENT MOOD IN MOSCOW.

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PRINTER'S

3

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FROM: STATE 35878
(POST) (HRN)

2. KALB, FEBRUARY 17, FROM GENEVA:

(A) CBS-TV -- LAST NIGHT KISSINGER AND GROMYKO MET AT THE SOVIET EMBASSY, THIS MORNING IN THE SECRETARY'S HOTEL SUITE. NOT ONLY LOCATION CHANGED, TOPICS TOO. LAST NIGHT THEY DISCUSSED PREPARATIONS FOR BREZHNEV'S VISIT TO THE U.S. IN LATE JUNE OR JULY FOUCUSSING ON STRATEGIC ARMS. BOTH SIDES HAVE RECENTLY EXCHANGED PROPOSALS BUILDING ON THE VLADIVOSTOK ACCORDS, BUT NO BREAKTHROUGHS HAVE BEEN REGISTERED. ANOTHER FOUR TO SIX WEEKS OF SPARRING IS ANTICIPATED THEN TWO MONTHS OF HARD NEGOTIATING BEFORE AGREEMENT IS POSSIBLE. IF AGREEMENT IS NOT POSSIBLE THEN BREZHNEV'S VISIT MAY HAVE TO BE POSTponED UNTIL SEPTEMBER. TODAY THE TWO DIRIGOMATS SHIFTED TO THE ME, EASILY THE MOST CONTENTIOUS ISSUE BETWEEN THEM. BREZHNEV RECENTLY CRITICIZED KISSINGER'S PEACE MAKING EFFORTS BELIEVING THAT THE ENTIRE PROBLEM OUGHT TO BE THROWN INTO THE LAP OF A RECONVENED GENEVA CONFERENCE. KISSINGER HAS NO OBJECTION TO A CONFERENCE BUT HE WANTS IT TO TAKE PLACE AFTER ANOTHER INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL IS WORKED OUT WITH AMERICAN HELP.

(B) CBS RADIO -- KISSINGER AND GROMYKO SWITCHED SUBJECTS AND LOCATIONS TODAY FROM PREPARATIONS FOR BREZHNEV'S STILL SCHEDULED VISIT TO THE U.S. EARLY THIS SUMMER TO THE BITTER AND DIVISIVE PROBLEM OF THE ME, FROM GROMYKO'S EMBASSY TO KISSINGER'S HOTEL SUITE. IF LAST NIGHT'S MEETING WAS MARKED BY OCCASIONALLY SHARP EXCHANGES, AS KISSINGER'S SPOKESMAN HINTED LAST NIGHT, TODAY'S ENCOUNTER MAY BE EVEN SHARPER. THE RUSSIAN AND AMERICAN POSITIONS ON THE ME DIFFER WIDELY -- GROMYKO PUSHING FOR A QUICK RECONVENING OF THE GENEVA CONFERENCE, AN ISRAELI PULL-BACK ALL THE WAY TO THE 1967 BORDERS AND THE ESTABLISHMENT OF A SEPARATE PALESTINIAN STATE. KISSINGER, FOR HIS PART, PUSHES FOR ANOTHER INTERIM AGREEMENT NOW BETWEEN ISRAEL AND EGYPT AND ONLY THEN A RETURN TO GENEVA WHERE FURTHER ISRAELI TROOP WITHDRAWALS WOULD BE DISCUSSED WITHIN THE FRAMEWORK OF AN OVERALL PEACE SETTLEMENT. KISSINGER'S POLICY WAS ATTACKED BY BREZHNEV IN RECENT DAYS BUT THE SECRETARY IS FLOWING AHEAD ANYWAY. HE PLANS TO RETURN TO THE ME NEXT MONTH BELIEVING THAT ANOTHER AGREEMENT IS CRITICALLY IMPORTANT IN HOLDING OFF ANOTHER WAR AND ANOTHER POSSIBLE OIL EMBARGO.

3. KOPPEL, ABC-TV, FEBRUARY 17 FROM BONN -- HOW IS KISSINGER DOING IN THE ME? LET ME QUICKLY TELL YOU OF ONE STEVEN SOLARZ, A FRESHMAN CONGRESSMAN FROM BROOKLYN WHO HITCHED A RIDE WITH US THE OTHER DAY ON THE KISSINGER PLANE FROM DAMASCUS TO TEL AVIV. CONGRESSMAN SOLARZ HAS NOTHING AND EVERYTHING TO DO WITH KISSINGER'S ME STRATEGY. AS A NEW MEMBER OF THE HFAC SOLARZ WAS ASKED TO MAKE A FACT FINDING TOUR OF THE ME. BY THE TIME OUR PATHS CROSSED, THE CONGRESSMAN ALREADY HAD BEEN IN ISRAEL BUT MORE SIGNIFICANTLY HE HAD LONG PRIVATE MEETINGS WITH

UNCLASSIFIED

UNCLASSIFIED

FROM: STA78 35878
(POST) (MRN)

HUESSIN OF JORDAN, SADAT OF EGYPT AND ASAD OF SYRIA. A YEAR AGO IT IS DOUBTFUL THAT ASAD WOULD HAVE MET WITH ANY AMERICAN CONGRESSMAN LET ALONE ONE WITH ONLY THREE WEEKS OF SENIORITY TO HIS CREDIT. BUT WHAT IS EVEN MORE REMARKABLE IS THAT SOLARZ IS JEWISH AND THE DISTRICT HE REPRESENTS CONTAINS 99.9 PERCENT OF ALL THE SYRIAN JEWS IN AMERICA, SOME 25,000 OF THEM, WHICH IS MORE THAN FIVE TIMES THE NUMBER OF JEWS LIVING IN SYRIA TODAY. THE JEWS OF SYRIA, ACCORDING TO CONGRESSMAN SOLARZ, REPRESENT THE MOST OPPRESSED JEWISH COMMUNITY IN THE WORLD AND THERE IS SOME COMPETITION IN THE CATEGORY. BUT SOLARZ LEFT HIS MEETING WITH ASAD FEELING THAT THE SYRIAN PRESIDENT IS WILLING TO EASE THE JEWISH PROBLEM SOMEWHAT AND THE CONGRESSMAN FROM BROOKLYN WHO ADMITS THAT HE WAS PREVIOUSLY OPPOSED TO GRANTING SYRIA TWENTY FIVE MILLION DOLLARS IN ECONOMIC AID NOW SAYS THAT HE IS INCLINED TO RETHINK HIS OPPOSITION. THE FACT IS THAT THINGS HAVE CHANGED IN THE ME AND THE CHANGES ARE NOT ALWAYS AS DISCERNIBLE AS THE DISENGAGEMENT OF ARMIES. THE STORY OF CONGRESSMAN SOLARZ IS WORTH REMEMBERING THE NEXT TIME YOU HEAR SECRETARY KISSINGER TALK ABOUT INTANGIBLES IN THE MOVEMENT TOWARDS PEACE. INGER SOLL

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162313Z FEB 75 ZFF4
FM SECSTATE WASHDC
TO USMISSION GENEVA IMMEDIATE 8099
BT
UNCLAS STATE 035843

UNCLASSIFIED

Received
Forward
Generation
Unit

FOLLOWING REPEAT STATE 035843 SENT ACTION BONN DATED
16 FEBRUARY 1975:

1975 FEB 17 01 43

GTE

UNCLAS STATE 035843

TOSEC 393

E.O. 11652:N/A

TAGS: OVIP (KISSINGER, HENRY A.)
SUBJECT: MEDIA REPORT - SATURDAY FEBRUARY 15 EVENING AND SUNDAY, FEBRUARY 16

NO. 27

1. MARVIN KALB (CBS TV, BONN VIA SATELLITE, SAT., FEB. 15, EVENING): HAK FLEW INTO BONN AIRPORT TONIGHT AFTER A SUCCESSFUL STOP-OVER IN SAUDI ARABIA WHERE HE PRESSED THE CONSUMER APPROACH TO LONG TERM OIL PURCHASES AT LOWER PRICES AS WELL AS HIS CURRENT EFFORT TO ARRANGE ANOTHER INTERIM AGREEMENT BETWEEN EGYPT AND ISRAEL. HERE, AS IN SAUDI ARABIA, THE SECRETARY WILL UNDERLINE HIS BELIEF THAT THE OIL CONSUMING NATIONS MUST REDUCE THEIR DEPENDENCE ON IMPORTED OIL OR ELSE, IN TIME, HE FEELS, THEY MAY BE DRIVEN TO THE USE OF MILITARY FORCE, OR TO THE ACCEPTANCE OF POLITICAL SURRENDER. THE MOOD IN SAUDI ARABIA SEEMS SUBDUED, PERHAPS BECAUSE FAISAL RESENTED HAK'S RECENT THREAT TO CONSIDER USING FORCE AGAINST THE OIL PRODUCERS IF THE WEST FACES ECONOMIC STRANGULATION. FAISAL ALSO APPARENTLY RESENTED IMPLICATIONS THAT THE SECRETARY INTENDS TO BREAK UP THE OIL CARTEL. HAK SEEMED TO GET NOWHERE ON HIS PITCH FOR LOWER OIL PRICES BUT HE DID WIN

FAISAL'S SUPPORT FOR TRYING TO WORK OUT ANOTHER ISRAELI PULL-BACK IN THE SINAI. TOMORROW HAK MEETS WITH WEST GERMAN CHANCELLOR SCHMIDT TO DISCUSS A COMMON WESTERN APPROACH TO THE OIL CRISIS AND IN THE EVENING HE FLYS TO GENEVA WHICH MAY BE A FROSTY MEETING WITH SOVIET FM GROMYKO. IN THE LAST FEW DAYS THE RUSSIANS HAVE BLASTED HAK'S PEACE KEEPING EFFORTS IN THE ME.

NEWSPAPERS

1. NYTIMES - GWERTZMAN, PAGE ONE-RIYADH - 4-COLUMN PIC OF HAK MEETING WITH FAISAL LEAD: HAK MEETS FAISAL FOR TALKS ON LONG OIL PACTS; SUB-LEAD: HE DISCUSSES HIS PROPOSAL FOR PRODUCER CONSUMER ACCORDS TO CUT PRICES 7 CONFERS WITH HUSSEIN - PARLEY WITH SAUDIS FOLLOWS VISIT TO JORDAN WHERE HE IS TOLD OF KING'S SUPPORT - TEXT EXCERPTS: HAK FLEW TO BONN TODAY AFTER DISCUSSING WITH KING FAISAL THE AMERICAN PLAN FOR LONG-TERM OIL AGREEMENTS BETWEEN PRODUCERS AND CONSUMERS AT PRICES LOWER THAN THE CURRENT WORLD PRICE OF $11 A BARREL.

NEWSMEN WERE TOLD EARLIER THAT AT LEAST ONE MAJOR OIL PRODUCER HAD EXPRESSED INTEREST TO THE UNITED STATES IN SUCH AN ARRANGEMENT, STEMMING FROM THE RECENT AMERICAN PROPOSAL TO SET A MINIMUM FLOOR PRICE FOR OIL IN CONSUMING COUNTRIES THAT WOULD BE LOWER THAN CURRENT PRICES BUT HIGHER THAN WHAT MIDDLE EASTERN OIL USED TO COST.

UNCLASSIFIED

<table><thead><tr><th>CHRON</th><th>ACTION<br>S/S 15</th></tr></thead><tbody><tr><td></td><td>AMB</td></tr><tr><td></td><td>DCM</td></tr><tr><td></td><td>ADMIN</td></tr><tr><td></td><td>BAP</td></tr><tr><td></td><td>CRO</td></tr><tr><td></td><td>CS</td></tr><tr><td></td><td>GSO</td></tr><tr><td></td><td>MSG</td></tr><tr><td></td><td>PER</td></tr><tr><td></td><td>RSO</td></tr><tr><td>16/50</td><td></td></tr></tbody></table>

IT COULD NOT BE LEARNED, HOWEVER, WHETHER THE COUNTRY
THAT HAD EXPRESSED INTEREST WAS SAUDI ARABIA OR SOME
OTHER PRODUCER.

UNCLASSIFIED
35843

THE FLOOR-PRICE IS DESIGNED TO SET THE PRICE OF OIL HIGH
ENOUGH TO ENCOURAGE INVESTMENT IN OTHER SOURCES OF ENERGY
BUT LOWER THAN THE CURRENT PRICE OF OIL ...

HUSSEIN GIVES VIEWS - HAK ARRIVED HERE FROM AQABA, WHERE
HE WAS TOLD BY KING HUSSEIN OF JORDAN'S SUPPORT FOR HIS
EFFORT TO BRING ABOUT A NEW EGYPTIAN-ISRAELI AGREEMENT ON
SINAI. BUT KING HUSSEIN ALSO SAID JORDAN HAD NO INTEREST
IN RETURNING TO THE GENEVA PEACE CONFERENCE SO LONG AS
THE PLO HAD RESPONSIBILITY FOR RECOVERING THE WEST BANK
OF THE JORDAN RIVER FROM ISRAEL.

AFTER THE MEETINGS WITH SAUDI OFFICIALS, HAK SAID AT THE
RIYADH AIRPORT THAT HE WAS "ENLIGHTENED" BY KING
FAISAL'S "VALUABLE VIEWS" ON HIS LATEST MEDIATION EFFORTS.
SHEIK ZAKI, WHO SAW HIM OFF, SAID: "EVERY TIME WE MEET
OUR FRIEND KISSINGER WE FEEL THAT HE LEAVES AMONG US A

GREATER CONVICTION OF HIS ABILITY AND HIS EFFORTS"...

HAK BELIEVES THAT THE RUSSIANS WILL PROBABLY INCREASE
PRESSURE IN COMING WEEKS TO MAKE IT MORE DIFFICULT FOR
HIM TO CONCLUDE EGYPTIAN-ISRAELI ACCORD THAT HAS
OCCUPIED HIS TIME SINCE HE ARRIVED IN THE ME LAST MONDAY.

SPECIFICALLY, HAK EXPECTS SYRIA TO TRY TO DISCOURAGE
EGYPT FROM MAKING AN AGREEMENT WITH ISRAEL PRIOR TO THE
RECONVENING OF THE ME PEACE CONFERENCE AT GENEVA...

U.S. VIEWS CLARIFIED - ON THE OIL QUESTION, OF
PARAMOUNT IMPORTANCE IN SAUDI-AMERICAN RELATIONS BECAUSE
OF SAUDI ARABIA'S POSITION AS THE WORLD'S LARGEST
EXPORTER OF PETROLEUM, HAK WANTED TO EXPLAIN THE
AMERICAN THINKING ON PRODUCER-CONSUMER COOPERATION AND
THE RECENT PRICE PROPOSALS SUBMITTED TO THE IEA IN
PARIS.

HAK INTENDED TO STRESS THE DUAL AMERICAN CONCERNS-
AVOIDING A CONFORMATION WITH PRODUCERS WHILE TAKING THE
NECESSARY STEPS TO INSURE THAT THE WEST WOULD NOT BE
HELPLESS IN CASE OF ANOTHER OIL EMBARGO ...

IT IS ASSUMED THAT SAUDI ARABIA, SEEKING GOOD
LONGER-TERM RELATIONS WITH THE UNITED STATES, WOULD BE
INTERESTED IN THIS KIND OF DEAL, BUT IT COULD NOT
BE CONFIRMED THAT SAUDI ARABIA HAD IN FACT EXPRESSED
INTEREST. MOREOVER, DETAILS AS TO HOW SUCH AN
ARRANGEMENT WOULD BE NEGOTIATED, INCLUDING THE ROLE OF
OIL COMPANIES, HAVE NOT BEEN WORKED OUT ...

HAK ARRIVED IN RIYADH AT A TIME WHEN VIGOROUS EFFORTS
WERE BEING PURSUED TO IMPROVE RELATIONS BETWEEN THE U.S.
AND SAUDI ARABIA. YESTERDAY AN AGREEMENT ON TECHNICAL
COOPERATION WAS SIGNED, AND THE SAUDI MINISTER OF FINANCE
AND NATIONAL ECONOMY, SHEIK MOHAMMAD ABA AL-KHAIL, WILL
GO TO WASHINGTON IN THE COMING WEEK TO WORK OUT AN
ECONOMIC COOPERATION AGREEMENT.

JOINT COMMISSIONS WERE SET UP LAST YEAR IN THE FIELDS
OF ECONOMICS AND DEFENSE THAT HAVE BEEN USED AS A
PATTERN FOR AMERICAN COOPERATION IN OTHER COUNTRIES.
CHARLES W. ROBINSON, THE UNDER SECRETARY OF STATE FOR
ECONOMIC AFFAIRS, ARRIVED HERE ABOARD HAK'S PLANE TO
EFFECTIVELY. MR. ROBINSON, WHO HAS BEEN TOURING THE
ME, JOINED MR. KISSINGER IN AQABA YESTERDAY. END NYTIMES.

UNCLASSIFIED

2. WASH POST - BERGER, PAGE ONE - LEAD: HAK, FAISAL TALK ON ENERGY, DATELINE BONN - 3-COLUMN PIC INSIDE PAGE 27 HAK AND KING FAISAL - TEXT EXCERPTS: HAK MET WITH KING FAISAL IN SAUDI ARABIA TODAY TO EXPLAIN HIS LONG-TERM PROPOSALS FOR BREAKING THE DEPENDENCE OF THE INDUSTRIALIZED WORLD ON OIL PRODUCERS AND TO DISCUSS AS WELL POTENTIAL LONG-TERM PURCHASING AGREEMENTS.

UNCLASSIFIED

35843

EN ROUTE TO RIYADH, REPORTERS WERE TOLD THAT HAK WOULD DISCUSS WITH FAISAL A LONG-TERM OIL-PRODUCING AGREEMENT THAT WOULD GUARANTEE SUPPLY AND PRICES. THIS WAS INTERPRETED AS A STRATEGY DESIGNED TO BREAK THE OIL CARTEL, WITH THE UNITED STATES CARRYING OUT SEPARATE NEGOTIATIONS WITH INDIVIDUAL PRODUCING STATES.

IT WAS ORIGINALLY INDICATED TO REPORTERS THAT THE U.S. WOULD PROPOSE TO BUY SAUDI OIL AT A FIXED PRICE LOWER THAN THE PRESENT WORLD PRICE OF ABOUT $10.80 A BARREL. UNDER SUCH AN AGREEMENT, THE U.S. WOULD HAVE CONTINUED TO PAY THE CONTRACT PRICE EVEN IF THE WORLD PRICE LATER DROPPED BELOW IT.

FOLLOWING THE MEETING WITH FAISAL, HOWEVER, REPORTERS WERE TOLD THAT HAK NEVER INTENDED TO TALK ABOUT A BILATERAL DEAL BUT INSTEAD SPOKE IN BROADER TERMS ABOUT THE ENTIRE ENERGY PROGRAM HE HAD ELABORATED EARLIER THIS MONTH, WHEN HE CALLED FOR FLOOR PRICES FOR OIL AND VARIOUS FORMS OF PRODUCER-CONSUMER COOPERATION.

AS HAK'S PLANE HEADED TOWARD BONN, STATE DEPARTMENT SPOKESMAN ROBERT ANDERSON DENIED THAT THE UNITED STATES WAS ENGAGED IN ANY BILATERAL APPROACH TO THE PRODUCERS.

HAK, OBVIOUSLY SENSITIVE TO THE FACT THAT HE WAS ARRIVING IN A EUROPE SOMEWHAT SUSPICIOUS OF U.S. MOTIVES, WAS QUICK TO PUT OUT A DENIAL. PREVIOUSLY, HAK HAD BERATED EUROPEAN NATIONS FOR TRYING TO GO IT ALONE IN BILATERAL DEALS TO INSURE THEIR OWN OIL SUPPLIES...

HAK SAID THAT IN DISCUSSING CONSUMER-PRODUCER RELATIONS WITH FAISAL "THE U.S. ATTITUTE WILL BE ONE OF CONCILIATION, COOPERATION AND TRADITIONAL FRIENDSHIP."

HE DID NOT IN ANY WAY, HOWEVER, PULL BACK FROM THE INTERVENTION THREAT AND IT WAS STATED WITH CONSIDERABLE SATISFACTION THAT HAK HEARD NO THREATS OF A NEW OIL EMBARGO DURING HIS TRIP THROUGH THE ME.

APPARENTLY UPPERMOST IN HAK'S MIND AS HE FLEW TO RIYADH FROM AQABA, WAS THE NEED TO BREAK THE DEPENDENCE OF THE CONSUMING NATIONS ON THE PRODUCING NATIONS. UNLESS THAT DEPENDENCE IS BROKEN, A HIGH OFFICIAL SAID, THE WEST WILL HAVE NO CHOICE IN THE NEXT FIVE YEARS BUT SURRENDER OR MILITARY ACTION.

NOT SURPRISINGLY, HAK'S RECEPTION IN SAUDI ARABIA, AT LEAST FROM OUTWARD SIGNS - WAS NOT AS WARM AS IT HAS BEEN IN THE PAST. THE CHILL MIGHT HAVE EMANATED FROM THE TALK OF MILITARY INTERVENTION, WHICH OFFICIALS SAID FAISAL RAISED, BUT IT COULD BE JUST A REFLECTION OF PERSONALITIES ...

REPORTERS TRAVELING WITH HAK WERE TOLD THAT THE FLOOR PRICE COULD BE AS LOW AS $6 A BARREL, A FIGURE THAT IS A DOLLAR OR TWO BELOW THOSE THAT HAD BEEN MENTIONED IN WASHINGTON.

HAK WAS ACCOMPANIED TO EGYPT, JORDAN AND SAUDI ARABIA BY UNDER SECRETARY OF STATE FOR ECONOMIC AFFAIRS CHARLES S. ROBINSON AND THE NATIONAL SECURITY COUNCIL'S ECONOMICS STAFF AIDE, ROBERT HORMATS. THEY ARE ON A

UNCLASSIFIED

TOUR OF THE ME AND PERSIAN GULF AREA TO DEVELOP PROJECTS FOR THE JOINT ECONOMIC COMMISSIONS THAT THE UNITED STATES HAS ESTABLISHED WITH SOME COUNTRIES OF THE REGION ...

UNCLASSIFIED

35843

REPORTERS WERE TOLD THAT HAK HAD ALSO ORDERED A STUDY OF THE ARAB BOYCOTT OF BANKS AND INVESTMENT COMPANIES HEADED BY JEWS. THIS HAS BECOME AN IMPORTANT ISSUE IN FRANCE, WEST GERMANY AND BRITAIN, WHERE ARAB COUNTRIES HAVE BARRED THESE BANKS FROM INVESTMENT CONSORTIUMS. IT WAS CONTENDED THAT IF THE ARAB COUNTRIES CAN DISCRIMINATE AGAINST BANKS THEY CAN ALSO DISCRIMINATE AGAINST NATIONS.

REPORTERS WERE TOLD THAT KISSINGER DOES NOT FEEL WELL ENOUGH BRIEFED ON THE ISSUE TO DISCUSS IT DURING HIS TRIP BUT THAT HE WOULD BE STUDYING ECONOMIC WARFARE AND ITS USE FOR POLITICAL PURPOSES ... END WASH POST.

3. NYDAILY NEWS - CARTER - PAGE 2 - NO PIC - RIYADH - LEAD: QUOTE HENRY TIES TO CUT OIL PRICE END QUOTE - TEXT EXCERPTS: HAK TODAY DISCUSSED WITH KING FAISAL THE POSSIBILITY OF MAKING A LONG-TERM DEAL TO BUY OIL AT A GUARANTEED PRICE LOWER THAN THE $10.50 A BARREL NOW BEING CHARGED BY THE WORLD OIL CARTEL.

FAISAL'S ACTION TO THE PROPOSAL WAS NOT DISCLOSED, BUT IT WAS LEARNED THAT AT LEAST ONE OIL-PRODUCING COUNTRY HAS ALREADY SHOWN INTEREST IN ENTERING A LONG-TERM CONTRACT TO SUPPLY OIL FOR A LOWER PRICE THAN SET BY OPEC.

THE OFFER OF A GUARANTEED PRICE OVER ALONG PERIOD WAS A NEW PLOY TO TRY TO BRING DOWN THE PRICE OF OIL, WHICH HAS INCREASED FOUR-FOLD SINCE THE OCTOBER 1973 ARAB-ISRAELI WAR. WHETHER IT WILL WORK DEPENDS IN LARGE MEASURE ON FAISAL'S ATTITUDE ...

HAK FLEW HERE FROM AQABA, AFTER TALKS WITH KING HUSSEIN ABOUT JORDAN'S ROLE IN ME PEACEMAKING. THE WORD THAT HAK RECEIVED FROM HUSSEIN DID NOT ENCOURAGE ISRAEL'S HOPES THAT THE ISRAELIS WOULD BE ABLE TO MAKE A DEAL WITH JORDAN, ABOUT THE FUTURE OF THE OCCUPIED WEST BANK OF THE JORDAN...

JORDANIAN PM ZAID RIFAI SAID THAT "JORDAN FEELS AT THE MOMENT IT HAS NO ROLE TO PLAY," IN ME PEACEMAKING.

HE SAID THAT JORDAN WOULD NOT EVEN GO BACK TO THE GENEVA PEACE CONFERENCE IF IT WAS RECONVEND THIS SPRING, AS EXPECTED.

HOPEFUL OF AGREEMENT - BUT AFTER VISITS TO ISRAEL, EGYPT AND SYRIA, HAK WAS HOPEFUL THAT HE MIGHT BE ABLE TO WORK OUT A SECOND-STAGE DISENGAGEMENT AGREEMENT BETWEEN EGYPT AND ISRAEL BEFORE THE GENEVA CONFERENCE RECONVENES.

A HIGH OFFICIAL ABOARD THE SECRETARY'S PLANE CONCEDED THAT THE CHANCE MANY BE LESS THAN 50-50 BUT SAID THAT HAK SAID MORE CLEARLY AFTER THIS WEEK'S EXPLORATORY TRIP "WHAT MIGHT BE POSSIBLE." HAK WILL RETURN TO THE ME IN MID-MARCH FOR INTENSIVE NEGOTIATIONS.

SAUDI ARABIAN OIL MINISTER YAMANI, GREETING HAK ON HIS ARRIVAL IN RIYADH, SAID: "WE APRECIATE HIS EFFORTS AND WISH HIM THE BEST OF LUCK."