## Économie et responsabilités

Naguère, lorsque les Grands occidentaux se réunissaient « au sommet », soit entre eux, soit avec le numéro un soviétique, c'était sans l'Allemagne et le plus souvent pour parler d'elle. Nul ne s'étonne aujourd'hui que, en marge de la conférence d'Helsinki, le chancelier Schmidt s'asseye pour discuter les affaires mondiales à la table des présidents Ford et Giscard d'Estaing et de M. Wilson, qui, d'ailleurs, en l'espace de quatre jours, viennent tous trois de défiler chez lui. Nul ne s'étonnera non plus — si le scénario diplomatique ébauché samedi à Bonn par MM. Giscard d'Estaing et Schmidt est retenu, — que ces « quatre Grands » occidentaux en invitent un cinquième, qui n'est oriental que par la géographie, le Japon.

Autre signe des temps : « sommets » à quatre et à cinq — ce dernier pouvant être élargi pour ménager des susceptibilités — seront consacrés aux affaires économiques et, plus spécialement, à la restauration d'une ordre monétaire international. Par leur composition et leur objet, ces « sommets » occidentaux mettront en évidence la priorité, trop longtemps méconnue par les Français, des problèmes économiques. De nos jours, l'intendance prime. Non seulement, il n'est pas de bien-être mais non plus d'indépendance et de liberté — pour ne rien dire de liberté — pour ne rien dire de la puissance militaire qui, malheureusement, continue de jouer son rôle, — sans une économie saine, solide et prospère.

Une notion plus nouvelle en diplomatie, encore qu'elle soit vieille comme l'humanité, a été invoquée par MM. Giscard d'Estaing et Schmidt à l'appui des initiatives qu'ils ont prises same di : la notion de responsabilité.

Responsables, les gouvernements de sont évidemment, devant ceux qui les ont mis au pouvoir, de la gestion des économies nationales. Mais ils le sont aussi désormais vis-à-vis des principaux partenaires économiques de leur pays. A cet égard, les Etats-Unis ont une responsabilité particulière, non seulement parce qu'ils ont l'économie la plus puissante de l'Occident, mais aussi parce que ce sont eux qui, depuis la guerre, ont émis la monnaie occidentale. Le sens profond des appels lancés par le président Giscard d'Estaing et le chancelier Schmidt au président Ford signifie que les Etats-Unis ne peuvent plus prétendre à aucun « leadership » — la direction du monde occidental — s'ils continuent à fabriquer des dollars à leur convenance et à impuser la circulation de chèques qu'ils interdisent d'encaisser. Si les Américains ne veulent pas gérer le dollar rigoureusement, les Occidentaux doivent inventer un nouveau système monétaire stable. Hors de cette stabilité, pendent MM. Giscard d'Estaing et Schmidt, pas de salut.

Responsables, les Occidentaux le sont enfin vis-à-vis du tiersmonde, parce qu'ils sont les plus riches, les plus forts et les mieux organisés. Depuis que le tiersmonde a découvert l'arme du pétrole et des matières premières, l'Occident ne peut d'ailleurs plus en faire fi ni cantonner ses relations avec le monde non industrialisé dans une attitude vaguement bienveillante et patrimoniste. Les crises político-sociales qui secouent le sud de l'Europe, du Portugal à la Turquie, seraient singulièrement aggravées si les rapports Nord-Sud dégénéraient en une confrontation entre le monde industrialisé et le tiersmonde, relançant la crise économique à l'Ouest. C'est sous des coups venus de l'intérieur et non plus de l'extérieur que le monde atlantique risquerait alors de succomber.

Ainsi les Occidentaux ne peuvent-ils plus mener leur barque économique sans prendre conscience de leurs « responsabilités », c'est-à-dire sans s'inspirer d'une morale. Quand l'économie devient une politique, elle ne peut plus être seulement affaire de gros sous.

2

# Un projet vieux de vingt et un ans

● **FEVRIER 1954.** — À la Conférence de Berlin, M. Molotov propose au nom de l'U.R.S.S. un « traité général sur la sécurité collective en Europe » ouvert à tous les pays européens. Les Etats-Unis et la Chine communiste participeraient comme observateurs. Le plan prévoit l'organisation de conférences périodiques et la mise sur pied d'organismes consultatifs, l'un politique, l'autre militaire.

● **SEPTEMBRE 1964.** — À l'Assemblée des Nations unies, le ministre polonais des affaires étrangères, M. Rapacki, préconise la réunion d'une conférence européenne sur la sécurité.

● **6 JUILLET 1966.** — Déclaration de Bucarest, à la suite de la réunion du comité politique consultatif des Etats membres du pacte de Varsovie. Celle-ci propose la convocation d'une conférence générale européenne » « en vue d'examiner les problèmes relatifs à la garantie de la sécurité et à l'établissent d'une coopération générale européenne ».

● **AVRIL 1967.** — Réunion à Karlov-Yary des partis communistes européens. La déclaration finale rappele celle de Bucarest, mais exclut clairement la participation des Etats-Unis à une conférence.

● **21 AOUT 1968.** — L'U.R.S.S. et quatre de ses alliés envahissent la Tchécoslovaquie.

● **17 MARS 1969.** — Appel de Budapest, publié à l'issue de la conférence du comité consultatif des pays membres du pacte de Varsovie. Le communiqué souhaite une « reconnaître des représentants de tous les pays européens intéressés à établir, d'un commun accord, les modalités d'une conférence panéuropéenne et son ordre du jour ».

● **AVRIL 1969.** — Consell atlantique à Washington : aucune réponse à l'appel de Budapest. M. Michel Débré déclare : « Une telle conférence serait prématuré. En état actuel des choses, plutôt que de lever les obstacles à la sécurité européenne, une conférence risquerait de consolider les oppositions. »

● **30-31 OCTOBRE 1969.** — Déclaration de Prague : les ministres des affaires étrangères des pays du traité de Varsovie proposent de tenir la conférence européenne à Helsinki durant le premier semestre de 1970. L'ordre du jour porterait sur : 1) la sécurité européenne et la renonciation à l'emploi de la force ; 2) l'extension des rapports commerciaux, économiques, scientifiques et techniques.

● **5 DECEMBRE 1969.** — Déclaration du consell atlantique. Les alliés conviennent qu' « une préparation solgende et la perspective de résultats concrets seraient dans tous les cas essentielle ».

● **27-27 MAI 1970.** — Consell atlantique de Rome. « Pour autant, déclare le communiqué final, que seront enregistrés des progrès à la suite de ces conversations (que les

pays de l'OTAN préparent sur les réductions de forces en Europe) et dans les conversations en cours, notamment en ce qui concerne l'Allemagne et Berlin, les gouvernements alliés se déclarent prêts à établir des contacts multiléraux avec tous les gouvernements intéressés ».

● **21-22 JUIN 1970.** — A Budapest, les ministres des affaires étrangères du pacte de Varsovie acceptent la participation des Etats-Unis et du Canada. L'ordre du jour est élargi aux relations culturelles et aux problèmes de l'environnement. Une réduction des forces armées étran-

gères stationnées sur le territoire des Etats européens pourra être évoqué au sein d'un organisme créé par la conférence.

● **12 AOUT 1970.** — Conclusion du traité de Moscou entre la R.F.A. et l'U.R.S.S.

● **4 DECEMBRE 1970.** — Consell atlantique de Bruxelles. « Dès l'Ins tant où les pourparlers sur Berlin auront aboui et pour autant que les autres conversations en cours progresseront favorablement », les alliés se prêteront à des contacts multilatéraux « pour déterminer quand il sera possible de convoquer une confé-

rence ou une série de conférences sur la sécurité et la coopération européennes ».

● **7 DECEMBRE 1970.** — Signature à Varsovie du traité germano-polonais.

● **3 SEPTEMBRE 1971.** — Conclusion de l'accord quadripartite sur Berlin. M. Maurice Schumann, ministre français des affaires étrangères, se prononce pour une préparation « bilatérale multiple » d la C.S.C.E. et pour un déroulement de celle-ci en trois étapes.

● **31 OCTOBRE 1971.** — Réunis à Paris, MM. Brejnev et Pompidou expriment l'espoir que la conférence pourra se réunir en 1972.

● **10 DECEMBRE 1971.** — A Bruxelles, le conseil atlantique se déclare prêt à engager des conversations multilatérales « le plus tôt possible ». Il constate toutefois que Moscon n'a toujours pas répondu à son offre de conversations sur les réduction mutuelles et équilibrées de forces en Europe (M.B.F.R.).

● **12 SEPTEMBRE 1972.** — Visite de M. Kissinger à Moscou, L'U.R.S.S. pr. pose de commencer les conversations exploratoires sur les M.B.F.R. fin janvier 1973.

● **23 OCTOBRE 1972.** — Les membres du conseil permanent de l'OTAN acceptent de tenir des conversations multilatérales sur la C.S.C.E., qui s'ouvrent le 22 novembre à Helsinki.

● **8 JUIN 1973.** — Clôture des consultations multilatérales. Au cours de quatre sessions de travail, les trente-cinq participants expriment leur « accord collectif » sur sept recommandations aux ministres des affaires étrangères concernant l'organisation, l'ordre du jour, la date, etc., de cette conférence.

● **3-7 JUILLET 1973.** — Première phase de la C.S.C.E. à Helsinki, au niveau des ministres des affaires étrangères. Ceux-ci décident que, pour sa deuxième phase, la conférence se réunira à Genève le 18 septembre 1973 (au niveau des experts), afin de « préparer des projets de déclaration, de recommandations, de résolutions, ou d'autres documents finaux ».

● **29 AOUT 1973.** — Un comité de coordination, composé de représentants des Etats participants, se réunit pour la première fois à Genève, afin de préparer l'organisation de la deuxième phase.

● **18 SEPTEMBRE 1973.** — Ouvrière à Genève de la deuxième phase de la C.S.C.E.

● **24 NOVEMBRE 1974.** — A Vladivostock, MM. Ford et Brejnev abouissent à la conclusion qu'il existe « une possibilité de terminer la C.S.C.E. avec succès et dans le délai le plus proche ».

● **7 DECEMBRE 1974.** — A Ram-bouillet, MM. Brejnev et Giscard d'Estaling « constatant que sont créés les prémises pour la conclusion à bref délai de la conférence... au niveau le plus élevé ».

● **21 JUILLET 1975.** — Communiqué final de la deuxième phase de la C.S.C.E. : « le « sommet » est convoqué à Helsinki le 30 juillet.

## Il y a cent soixante ans le Congrès de Vienne...

Il y a cent soixante ans, un autre « super-sommet » européenne avait déjà rassemblé les têtes couronnées du vieux continent, — les chefs d'Etat de l'époque. Il s'agissait déjà alors de tirer les conclusions de longues années de guerres et de bouleversements politiques — provoquer cette fois par la Révolution française et les campagnes napoléoniennes, — mais les valuinges de 1815 réussirent ce que ne purent faire ceux de 1945 : l'acte final du Congrès de Vienne fut un peu le « traité de paix » que les Etats membres de la coalition anti-hitlerienne tentèrent valinement d'établir et que ne prétend nullement être la déclaration d'intentions de Helsinki.

Ouvert en 1814, le Congrès de Vienne se termina en juin 1815. L'empereur d'Autriche, le tsar de Russie, le roi de Prusse, le roi de Danemark, les rois de Wurtemberg et de Bavière, un grand nombre de princes allant — tels que les grands-ducs de Bade et de Saxe-Welmar, — le jeune Léopold de Saxe-Coburg-Gotha, futur roi des Belges sous le nom de Léopold Ier, le Grand, le duc de Toscane, etc., firent de nombreux appariements dans la capitale des Habsbourg. Ils y participèrent surtout, il est vrai, à une activité mondaine particulièrement intense, à telle enseigne que le Congrès de Vienne a surtout laissé aux contemporains le souvenir de ses fastes et de ses vales : le 6 novembre 1814, Walleyrand écrivit à Louis XVIII : « L'empereur de Russie aime, le roi de Danemark boit, le roi de Wurtemberg mange, le roi de Prusse pense, le roi de Bavière parle et l'empereur d'Autriche paye. »

L'acte final du Congrès, qu

porte la date du 9 juin 1815, et comporte cent vingt et un articles, n'a été ni négocié ni signé par les souverains européens. Il est l'œuvre de leurs pléniotentialistes, et particulièrement de ceux des grandes puissances européennes qui doivent à ce Congrès leur célébrité : Metternich, chancelier d'Autriche qui joua le rôle de maître de maison, lord Castlereagh et le duc de Wellington, représentant l'Anglète, Hardenberg et Humboldt pour la Prusse, Nesselrode pour la Russie, Talleyrand enfin, qui sut habillement jouer de diverses entre ses interlocuteurs pour adoucir le sort de la France vauque. Huit pays seulement signèrent le document final de Vienne : les cinq grandes puissances citées, les royaumes d'Espagne et de Sardaigne et les Etats pontificaux.

L'acte du Congrès de Vienne régla à l'époque la distribution des territoires et des souveraniétés dans les pays suivants : Russie et Pologne, Pays-Bas (et Belgique), Suisse (confédération et cantons), Italie (et ses diverses principaux). Il manifesta d'autre part et surtout la volonté des pays signataires de garder ensemble un contact permanent pour veiller à la stabilité de l'ordre européen et international « sur la base des principes de la légitimité monarchique et de la tradition ». Ce qui devait amener quelques mois plus tard, après les Cent Jours et Waterloo, les quatre signataires du pacte de Chaumon (1er mars 1814), Anglète, Autriche, Prusse et Russie, qui dominèrent le Congrès de Vienne, à constituer un « directoire européenne » que l'histoire a retenu sous le nom de « Sainte-Aliance ».

A Security Disaster

Thanks to last week's House vote on the Turkish arms embargo, Turkey is taking control of the 20-odd American bases on its soil and suspending all of their activities not related to NATO. In effect, U.S. monitoring stations along Turkey's 2,000-mile border with the Soviet Union have stopped listening. This leaves a gap in our early warning against missile attack that is only partly filled by other sources. It also hampers our ability to check on the strategic arms agreements, and it seriously reduces our ability to eavesdrop on Soviet radio communications, an important element in our intelligence system.

Thus does Congress protect the security interests of the United States. The House voted 223 to 206 to throw away these assets. And for what?

Well, a main theme on the House floor was not yielding to blackmail, meaning the Turkish threat to respond to the embargo by taking over the bases. The embargo apparently is not blackmail. Also, there was a lot of talk about "legality," referring to a rather touching provision in the foreign aid law that U.S. supplied arms should not be used for purposes the U.S. does not approve.

This forgets, for one thing, that Turkey did not start the Cyprus crisis.

The late Greek junta set things off by sponsoring a coup led by terrorist fanatics bent on uniting the island with Greece. The 1960 treaty on the independence of Cyprus gave Turkey the right to prevent such erosion. Furthermore, Congress has received evidence that arms supplied to Greece were used illegally on the Greek Cypriot side. But Congress hasn't embargoed arms to Greece.

We could understand some of this one-sidedness in terms of constituent pressures, but there seems in addition to be an extra element of self-destructiveness. This was particularly evident in the fact that several arch-conservative Republicans, like Ashbrook of Ohio, Crane of Illinois and Rousselot of California voted against the administration-backed compromise—apparently out of irritation at Henry Kissinger's softness toward the Russians, the chief beneficiaries of the House vote.

It would be nice to have the United States in a position to mediate some peaceful solution to the Cyprus problem, but so far the U.S. seems against all odds to have alienated both sides. For its part, Congress seems intent on proving what a disaster a congressionally-run foreign policy would be.

CSCE

when Durkin called for a new election. At the rate the Senate was proceeding on the issue, he said, "the term will have expired long before the Senate makes up its mind."

The Democrats yielded, and the Senate conceded next day its inability to decide the winner.

## The Administration

Ford assesses first year. President Ford cited restoration of confidence in the White House as one of the greatest achievements of his first year in office. "We run the White House differently," he told reporters of the New York Times in an interview July 23 (report on it published July 25), in a reference to his predecessor, Richard M. Nixon. The difference was interpreted to be one of tone, not policy. [See p. 41F1]

The restoration of confidence in the U.S. presidency in the international field also was cited by the President as one of his greatest achievements during the first year.

A third achievement Ford viewed with satisfaction was having "kept our cool" in confronting simultaneous recession and inflation.

As his largest disappointments, President Ford mentioned the fall of non-Communist governments in South Vietnam and Cambodia and the breakdown of negotiations in the Middle East in March.

The President said there was "no possibility" of re-establishing a U.S. presence in Vietnam or Cambodia under current circumstances. As for the Middle East currently, he felt that an agreement could be reached if both Israel and Egypt were "more flexible."

Ford reaffirmed his policy to go to Helsinki, Finland to sign the international accord on European security, but he was cautious on the strategic arms limitation talks with the Soviet Union. Unless there were progress in the second round of discussions, he said, the prospect of a fall visit to Washington by Soviet Communist party leader Leonid I: Brezhnev would be "considerably lessened." As for the talks themselves, there were "tougher problems in detail than I anticipated," he said.

On other domestic issues, Ford said he would seek "something new" to replace the current welfare system, which continued to grow more costly "with too much going to people who don't deserve it and too little to the people who do deserve it." He disclosed that he had rejected, because of budget restraint, a 1974 cabinet proposal to supplant antipoverty programs with "outright cash" payments to the needy.

He expected to wrestle some form of his energy conservation program from Congress "after a hard, tortuous struggle" despite what he described as the fragmented leadership and "parochialism" of the Democratic-controlled Congress.

On the political side, Ford voiced confidence that Vice President Nelson A. Rockefeller would fare "a great deal better" at the party convention than he had as an unsuccessful contender for the presidential nomination in the past. And Ford

said he are Gov. George C. Wallace. D. Ala. said "a good many similarities" on domestic issues although "we do have, apparently, some significant differences on foreign policy."

Hathaway resigns after 6 weeks. Stanley K. Hathaway resigned as secretary of the interior July 25 "for reasons of my personal health." He had served only six weeks in the post. [See p. 416E2]

It was announced July 17 that Hathaway, 51, had been hospitalized July 15 for physical exhaustion. On July 22, it was announced that he was suffering from "moderate depression," brought on by overwork, and that he was undergoing psychiatric treatment.

A mid diabetes was discovered after Hathaway entered the hospital, but his decision was not considered a factor in this was to resign. The bruising confirmation fight was considered a factor.

Hathaway offered his resignation upon entering the hospital, but President Ford rejected it July 15. He accepted the second resignation "with deepest regrets."

Resignations. The White House July 21 announced the following resignations, effective July 30.

Ralph E. Kennedy resigned as a member of the National Labor Relations Board. [See 1970, p. 910C3]

Lowell J. Paige resigned as assistant director for education of the National Science Foundation. [See 1973, p. 888A2]

William W. Woodruff resigned as assistant secretary of the Air Force. [See 1973, p. 271C3]

## The Economy

Aluminum price hike plans defended. In hearings held July 21-22 by the Council on Wage and Price Stability, aluminum producers defended their plans to raise prices and warned that a second increase might be required later in the year. [See p. 510C2]

A Kaiser Aluminum official argued July 21 that the company's announced increase, averaging 2.7%, was "fully cost-justified" by higher prices paid for raw material, labor and fuel. An official of Aluminum Co. of America (Alcoa) echoed that position July 22, noting that since mid-1970, the price of bauxite had climbed 119%, the cost of fuel and power had increased 95%, and the price of aluminum ingot had risen 41%.

Kaiser also contended that its planned increase was "non-inflationary" and that the impact on consumers would be minimal. The price of refrigerators would rise 25¢ as a result of the price hike and automobiles would cost $1.85 more, he said.

Unless producers were able to improve profits and attract investors to finance needed expansion, the Kaiser spokesman said, the U.S. faced a severe shortage of aluminum. The industry needed $6 billion to meet an estimated increase in demand of 2 million tons by 1980, he said. Alcoa supported this viewpoint, saying that as the market strengthened, "we'll have to move prices upward again."

However, under questioning by council chairman Albert Rees, Kaiser conceded it planned no new capital-investment programs for at least the next two years, even

with the anticipated increase. Rees also questioned the need for a price increase when the industry was operating at 75% of capacity, sales were down 46% over the year, and production was being stockpiled.

Rees said July 31 the council would seek no further delay for the price increases, despite its misgivings about the impact on consumer prices, because the aluminum companies "rise in costs had been well documented." Spokesmen for Alcoa, Kaiser and Reynolds said the increases would take effect as planned.

Budget office submits report. The new Congressional Budget Office June 30 submitted its first detailed forecast of the economy and dismissed with Administration economists on several key policies and projections. [See p. 123E2]

The report warned that higher fuel prices, resulting from President Ford's imposition of a $2-a-barrel increase in the tax on foreign oil, his plan to decontrol old oil prices, and an anticipated $2.25-a-barrel increase in the cost of imported oil, would add 2.4% to the inflation rate and .6% to the jobless rate by the end of 1976. [See pp. 552G1, 407D2] The fuel price increases, which were expected to cost consumers and businesses $40 billion, "threaten both to rekindle inflation and to slow down the recovery," the study stated.

In another position that was contrary to the Administration's stand, the budget office favored an extension of the 1975 tax cut and the enactment of additional tax reductions totaling $15 million. [See p. 211F2] "Prices wouldn't be affected very much" and the unemployment rate would drop .3% if these stimulative actions were taken, according to the report.

On the other hand, a refusal to extend current tax cuts could reduce the nation's total output of goods and services by about $8 billion and add .1% to the jobless rolls by the end of 1976.

The budget office differed with the Administration on the issue of federal budget deficits. Treasury Secretary William E. Simon and others had warned that large-scale federal borrowing to finance the deficits would "crowd out" private investors in the nation's money market. According to the study, budget deficits, instead, would stimulate business activity and create a "crowding-in" effect as businesses improved and expanded their capacity. [See p. 317D3]

In another projection contrary to the Administration's forecast, the budget office predicted the jobless rate would remain near the 9% level for 1975 and fall to 7.8%-8.2% by the end of 1976. [See p. 450G1] Prices were expected to increase 6%-9% during the next year, when the Administration forecast a 7% inflation rate.

The budget office's projections were based on assumptions of a $68.8 billion budget deficit for fiscal 1976 and an 8.5% rate of growth in the money supply. [See p. 355D1] The Administration based its figures on a $60 billion deficit ceiling and a 5%-7.5% rate of growth in the nation's money supply. [See p. 377E3]

A

B

C

D

E

F

G

553

August 2, 1975

A

Giscard visits Poland. French President Valery Giscard d'Estaing visited Poland June 17-20 and signed documents strengthening economic, political and cultural relations between the two nations. [See 1973, p. 1062E2]

B

A charter signed by Giscard d'Estaing and Polish Communist Party First Secretary Edward Gierek outlined the principles of cooperation between their countries, calling for broadening of ties and annual political consultations at the ministerial level. Among the charter's principles were non-recourse to the threat or use of force, inviolability of frontiers and respect for the rights of individuals and fundamental liberties.

C

The two leaders also signed a five-year agreement on economic cooperation and other accords that a joint communique said would at least triple French-Polish bilateral trade in five years. An accord was signed granting Poland credits worth 7 billion francs ($1.75 billion) to buy French products over the next three years and contracting for increased French purchases of Polish coal.

Gierek and Giscard d'Estaing also signed a declaration pledging their nations to increase cooperation and exchanges of people and information in the areas of culture, education, science and technology.

D

In the communique issued June 20, both leaders expressed the hope that the current phase of the 35-nation Conference on Security and Cooperation in Europe would be concluded soon so that a summit meeting could be held this summer. [See p. 352D1]

E

Giscard d'Estaing said at a news conference June 20 that France would agree to a summit meeting in Helsinki July 22, as proposed by Soviet Communist Party General Secretary Leonid I. Brezhnev, provided that the preparatory work were completed. [See p. 193D5, 84C3]

F

Giscard ends V-E day ceremonies. President Giscard d'Estaing announced May 8, that France would abolish government ceremonies commemorating the end of World War II in Europe. Announcing the decision on the 30th anniversary of V-E day, the president said he was certain that the "organization of Europe" had ended the possibility of war on the continent. He suggested that European Economic Community leaders should choose instead a day to mark the birth of the community. [See p. 335B3]

The decision was denounced by French veterans and Resistance groups, a wide range of politicians and other leading personalities. However, West German Chancellor Helmut Schmidt May 9 welcomed the move.

G

## Soviet Union

U.S. repeats: Moscow has Somali base. U.S. Secretary of Defense James R. Schlesinger said June 10 that the Soviet Union had begun storing short-range anti-ship missiles at a large new naval facility at Berbera, Somalia on the Gulf of Aden. It supports naval and air operations in the Indian Ocean. He made the statement in an appearance before the Senate Armed Services Committee in defense of the Administration's plan to construct a $108 million naval base on Diego Garcia, a British Island in the Indian Ocean. [See 1974, p. 1061D1]

U.S. and other sources had several times in the past reported the development of a Soviet base at Berbera, [See p. 327G1; 1974, pp. 1100B1, 718D1] but both the Soviet Union and Somalia had consistently denied the allegations. [See 1974, p. 695A3] In response to Schlesinger's June 10 declaration—in support of which the secretary had shown secret aerial reconnaissance photographs which featured what was described as a missile storage and handling facility—the official Soviet news agency Tass retorted June 12 that the defense secretary "must have fallen victim to a mirage." Somali Foreign Minister Omar Arteh Ghalib June 10 denied that there was a Soviet base in Somalia and invited "friends and foes alike to come and visit Somalia and particularly Berbera to see the reality."

Republic elections held. Elections of more than 2.2 million deputies to the Supreme Soviets of the union and autonomous republics were held throughout the U.S.S.R. June 15. A single candidate stood for each seat in the more than 50,000 republic and local-level Soviets in which representation was based on population, with the formulas varying among and within the republics. About 47% of the deputies to the various Soviets were women and about 28% were 30 years of age or younger.

Emigres skirting Israel. The U.S. government and refugee organizations in the U.S. had observed an increase in recent months in the number of Soviet Jewish emigres who settled in countries other than Israel, it was reported May 20.

More than a third of the 4,499 Jews permitted to leave the U.S.S.R. during the first four months of 1975 had emigrated to the U.S. or other countries in the West and, during the first half of May, the proportion had risen to 45% deciding against going to Israel. [See p. 187A2]

(In 1973, 4% of the total emigre population of 31,082 chose countries other than Israel; most of the 1,429 came to the U.S. In 1974, 3,882, or 19% of the 20,634 emigres, selected destinations other than Israel, with 3,490 settling in the U.S.)

## Switzerland

Anti-recession program. The government July 1 implemented three emergency decrees designed to control the current recession. [See p. 224G1]

The measures, approved by Parliament June 19, provided for an investment program of SF1.1 billion ($400 million) to be used primarily for private sector construction work and housing renovation. [See 1972, p. 1069D1; an alignment of Swiss export risk guarantees with the nation's main trading partners by increasing them from 85% to 95% of delivery value; and improvements in unemployment insurance which presently covered only 20% of Swiss workers.

In an earlier move to stimulate the economy, the government abolished the 7% ceiling on the expansion of commercial bank credit, effective May 1. A 6% limit was imposed at the end of 1972 and was later increased to 7%. [See 1973, p. 68A1] The government also eased restrictions on consumer loans and installment purchases.

Tax increases approved. Voters agreed in a national referendum June 8 to pay higher gasoline and sales taxes as well as increased taxes on upper-level incomes. They rejected a proposed increase in the heating oil tax. [See 1974, p. 1032G2]

The new taxes would result in an estimated additional SF1 billion ($400 million) a year revenue for the government.

The electorate approved a 50% increase in the gasoline surtax, to 45¢ a gallon, which had been voted by the government and Parliament in the fall of 1974. It also agreed to raise the retail sales tax from 4.4% to 5.6% and the wholesale sales tax from 6.6% to 8.4%. Tax on corporate profits would increase 10%, with the maximum rising from 8.8% to 9.8%. For personal incomes of more than $100,000 the tax rate ceiling would climb from 10.45% to 11.5%.

The voters also extended the emergency powers of the government, in effect since 1971, to impose taxes and curb the inflow of foreign funds in order to control inflation and speculation. [See below, pp. 224C1; 47F3; 1974, p. 658E3]

Only 36.5% of the registered voters participated in the referendum.

**Currency interventions reported**—The Swiss National Bank disclosed that its foreign-exchange interventions from January to mid-May were equivalent to SF4 billion ($1.6 billion) weekly, it was reported June 23. [See p. 432E1] The bank added that its foreign exchange reserves remained virtually unchanged. It also reported that swap facilities of nearly SF1.6 billion were dissolved. These foreign exchange operations had led to no increase in inflation in 1975, the report said.

Foreign exchange reserves as of June 13 totaled SF9.77 billion and gold reserves SF11.89 billion.

**Frane protection measures set**—The government and the National Bank April 1 announced three measures designed to protect the Swiss franc from currency speculation, effective immediately. [See p. 224D1]

All domestic and foreign banks were ordered to report to the National Bank at the end of the day all foreign currency transactions of more than $5 million; no foreign currency dealing would be allowed to start before 9 a.m.; and all commercial banks had to balance separately their daily transactions for each currency. Previously only the total amount of foreign currency liabilities had to equal the total receivables.

Discount rate reduced. In an attempt to stimulate the ailing economy and bolster the declining U.S. dollar, the Swiss National Bank reduced its discount rate from 7% to 4.5% on May 20. [See pp. 432E1, 432F1]

476

FACTS ON FILE

WORLD AFFAIRS

Ford Sees European Leaders in Brussels,
Madrid, Rome; Meets With Sadat in Austria

Ford reassures allies at NATO summit. Acting to reassure the nation's European allies of continued U.S. strength, support and commitment, President Ford made his first trip as president to Europe May 28-June 3, in the wake of U.S. defeats in Indochina.

The highlight of the trip was the summit meeting of North Atlantic Treaty Organization (NATO) heads of state in Brussels May 29-30. (In addition to the NATO summit, Ford also held bilateral meetings in Brussels with European officials, including French President Valery Gerdard d'Estaing who had not attended the NATO sessions. Ford later met with Egyptian President Anwar Sadat in Austria and with Spanish and Italian leaders in their respective capitals.)

In remarks upon his arrival in Brussels May 28, President Ford, accompanied on the trip by Mrs. Ford, said NATO was "the cornerstone of U.S. foreign policy." NATO Secretary General Joseph M. A. H. Luns had indicated in a press conference that day that a main purpose of the summit meeting, as the alliance entered its 26th year, was the need to dispel "uncertainties" created by the developments in Indochina. [See pp. 289A1, 245A1]

Ford later held talks with Belgian Premier Leo Tindemans on the U.S. YF-16 fighter bomber in the context of the pending four-nation European buying consortium deal [See p. 373C2] and attended a dinner hosted by King Baudouin.

In his opening address to the NATO summit session May 29, Ford said that the Atlantic allies faced "serious problems" and that the most important purpose of the Brussels meeting was the " renewal of our commitment" to the alliance. Citing the recent events in Indochina, he said: "Because of the United States' long involvement [there], these events have led some to question our strength and reliability .... Our military power remains and will continue to remain, second to none; of this let there be no doubt.... Our actions will continue to confirm the durability of our commitments."

The president then listed "six primary tasks" to which, he said, the alliance should dedicate itself:

* "First, we must maintain a strong and credible defense. This must remain the foremost objective of the alliance." He also urged more efficient coordination of defense resources. [See p. 373F1]

* "Second, we must preserve the quality and integrity of this alliance on the basis of unqualified participation, not on the basis of partial membership or special arrangements." This, Ford made explicit in a May 30 press conference. [See below] was a reference to Greece, which had withdrawn from the military section of NATO. [See 1974, pp. 1095A3, 796B1] and "did not refer to France's permanent relationship" with the alliance. (France had with-

drawn its military forces from NATO in 1966. [See 1966, p. 84C1])

* "Third, let us improve the process of political consultation." This had been a major issue during the drafting of the Atlantic Declaration signed by NATO foreign ministers in Ottawa in June 1974. [See 1974, p. 490D3]

* "Fourth, let us cooperate in developing a productive and realistic agenda for detente, an agenda that serves our interests and not the interests of others who do not share our values." He also asserted the need to implement the "promises" made at the Conference on Security and Cooperation in Europe (CSCE) in order to give legitimacy to the talks. "whatever euphoric or inflated emphasis the Soviet Union or other participants may try to give it." [See p. 193A2] He further cited the need for "good faith" at the Vienna talks on mutual and balanced force reductions in Europe. [See p. 99C3]

* "Fifth... we must strengthen our own democratic institutions and encourage the growth of truly democratic processes everywhere." He singled out Spain and proposed that the alliance "consider how to relate Spain with Western defense." In his May 30 press conference, however, Ford acknowledged "the unlikelihood of it taking place in the future or the immediate future." [See below, p. 373A1]

* "Sixth, we should rededicate ourselves to the alliance as a great joint enterprise." He urged the expansion of the scope of the essentially military alliance by affirming the need to meet "the challenges of modern society in coping with the environmental problems of industrialized societies. We must address the issues of population, food and raw materials." He also called for cooperation of NATO members in economic, monetary and technological spheres.

The heads of state of other NATO member nations addressed the closed session May 30. Reiterating President Ford's call for closer economic cooperation, West German Chancellor Helmut Schmidt said the alliance was threatened "more by the world economic situation than in any particular geographical area" and called for more coordination in economic policies. His remarks reportedly also won the support of British Prime Minister Harold Wilson and other leaders whose addresses were not released to the press.

In their addresses to the May 30 session, Greek Premier Constantine Caramanlis and Turkish Premier Suleyman Demirel both said they sought a peaceful solution to the Cyprus crisis. [See p. 390C3] Demirel reportedly leveled sharp criticism at the U.S., characterizing as "self-destructive" the Congressional embargo on arms shipments to Turkey. [See p. 79G1]

The heads of government agreed in principle May 30 to consider a proposal by Canadian Prime Minister Pierre Elliott

FACTS ON FILE
World News Digest with Index

© 1975 by Facts On File, Inc.

Volume 35, No. 1804

June 7, 1975

THIS WEEK'S NEWS HEADLINES

World Affairs

B

President Ford attended NATO summit in Brussels, conferred with leaders in Spain and Italy, met with Egyptian President Sadat in Austria; Greek, Turkish premiers held talks.

Egypt reopened Suez Canal; Israel thinned Canal force; Lebanon fighting halted; Syria, Iraq ended water feud; Soviet A-plant for Libya agreed.

Pages 389-392

U.S. Affairs

C

Wholesale prices rose .4% in May; 1st quarter profits dropped; 1st quarter GNP, inflation figures revised; indicators climbed 4.2% in April; other economic news.

President Ford vetoed jobs bill; signed roads, SEC bills; Bartels quit as drug agency head; Ford stressed defense, energy bills.

House approved wider Voting Act.

Supreme Court upheld Congressional subpoena power, curbed Pennsylvania school aid.

D

Sen. Church disputed Vice President Rockefeller on CIA; Kennedys said to seek Castro removal; FBI, USDA plans to link computer banks scored.

CAB fined American Airlines $150,000 for illegal campaign contributions; Braniff accused of political slush fund; AMPI monopoly suit settled.

Clean air progress report.

Calif. enacted farm labor law; Chaikin succeeded Stulberg as ILGWU chief.

Judge barred new beef standards.

Ex-Treasury Secretary Connally returned to stump.

Alaska marijuana law overturned.

Pages 392-400

E

Other Nations

Martial law declared in Angola.

Australia planned Fraser Island mining.

Canada set Seoul loan for A-plant.

Finland cabinet quit.

British bank planned by Saudis.

Italy probed bribe charges.

Mali freed 15 political prisoners.

Portugal freed ex-minister.

Rhodesian police killed 11 in riots.

Also: news of British Solomon Islands.

Bulgaria, Cameroon, Ghana, Seychelles.

Pages 400-404

F

Miscellaneous

2 tranquilizers put under federal control; other medicine & health news.

Page 404

G

REFERENCES in brackets give
location of background information
in this & preceding volumes

389

A

pensate for the loss of "between 30% and 50% of our purchasing power lately because of world inflation." A State Department official who had met with the shah said the Iranians "want a price increase and they've begun talking it up big."

The shah lauded the U.S. decision to use force to free the Mayaguez as "a very healthy development." [See p. 349A1] He also disclosed plans for a Persian Gulf security arrangement based on an Iranian-Iraqi accord and joined by other nations in the area.

B

### U.S.-Soviet Relations

Gromyko, Kissinger meet in Vienna. U.S. Secretary of State Henry A. Kissinger and Soviet Foreign Minister Andrei A. Gromyko held talks in Vienna May 19-20. It was the first high-level meeting between officials of the two countries since the Communist victory in South Vietnam. [See pp. 289A1, 293F1]

Both men described the talks as "useful" and agreed to meet again for further discussions in July. Kissinger noted in remarks to newsmen May 20 that "progress was made on issues that were discussed." Gromyko, who was present, seconded Kissinger's comment.

On the Middle East, agreement was reached to cooperate on a framework for reconvening the Geneva Conference in late summer or the autumn. No details on the two powers' Middle East positions emerged from the Vienna talks.

Some progress was reported on issues related to the Strategic Arms Limitation Talks (SALT II) scheduled to reconvene in Geneva in June. [See p. 313B2]

Also discussed was the Conference on Security and Cooperation in Europe and the possibility of holding a high-level summit meeting at the Conference's conclusion. [See p. 193A2]

(In a speech May 12 before the World Affairs Council of St. Louis, Mo., Kissinger, commenting on the Communist victories in Asia, had warned the Soviet Union that its "willingness... to exploit strategic opportunities—even though some of these opportunities presented themselves more or less spontaneously and not as a result of Soviet action—constitutes a heavy mortgage on detente." Gromyko, speaking at a Warsaw Pact anniversary meeting in Moscow May 14, publicly rebuked Kissinger by name—a highly unusual gesture—for certain of his May 12 remarks. He said that Kissinger's espousal of detente and his opposition to military budget cuts "do not quite libel, to put it mildly.")

U.S., Soviet warships exchange visits. The U.S. and the Soviet Union exchanged visits of warships May 12 in ceremonies commemorating the 30th anniversary of the end of World War II. It was the first time since 1945 that ships of either country had visited the other.

The Soviet guided-missile destroyers Boikiy and Znuguchiy docked in Boston harbor for a five-day visit, while the U.S. guided-missile destroyer Tatnall and the guided-missile frigate Leahy moored at Leningrad's Vasilyevsky Island port.

Newsmen visit Soviet space center. The

Soviet Union for the first time permitted foreign newsmen to inspect its main flight control center at Kaliningrad May 12, in a gesture related to the Apollo-Soyuz joint space mission scheduled for the summer. [See p. 96G1]

The center was described as similar in operation to the Johnson Manned Space Center in Houston, Texas, but U.S. space experts indicated that the Kaliningrad center, 15 miles northeast of Moscow, was somewhat less sophisticated than the U.S. facility.

According to the May 12 report by the New York Times correspondent, a large illuminated map of the world showing tracking stations and spacecraft orbital paths was mounted on one wall. Electronic screens above and on either side flashed flight information. Twenty-four consoles, each with telephones and four closed-circuit television screens, faced the map.

The U-shaped center was built in 1970 and was first used on a manned mission for the flight of Soyuz 12 in 1973. [See 1973, p. 814B3]

U.S., Soviet in a lobster agreement. The U.S. Commerce Department announced April 17 that the U.S.S.R. had agreed to new controls to protect U.S. lobster fishermen from interference by Soviet trawlers. A revision of a 1967 compact, the agreement prohibited Soviet ships from taking lobsters along the continental shelf and set up new procedures by which U.S. fishermen would give notice of where their lobster pots had been placed. [See p. 64E1]

### European Community

Israel trade pact signed. Israel May 11 became the first Mediterranean nation to sign a trade and cooperation agreement with the European Economic Community (EEC). [See p. 84G1] The signing came despite strong Arab pressure for a delay until similar pacts with three Arab nations were concluded.

The agreement, signed in Brussels, would cut EEC tariffs on Israel industrial products by 60% July 1, when the agreement would become effective, and eliminate them by 1977. It would also reduce Israeli tariffs on most EEC industrial products by 1980 and on all industrial goods by 1985, although a two-year extension would be permitted. Israel retained the right, however, to protect infant industries. Tel Aviv agreed that provisions for imports of Israeli citrus products would be suspended until the EEC granted aid to Italian farmers. [See p. 296B3]

The agreement was signed by Israeli Foreign Minister Yigal Allon and Irish Foreign Minister Garret FitzGerald, current president of the EEC's Council of Ministers. FitzGerald described the accord as the first fruit of the EEC's "balanced overall approach" to the Mediterranean and expressed the hope that agreements with other nations of the area would be signed soon.

Similar agreements with Algeria, Tunisia and Morocco had originally been planned to take effect simultaneously with

the Israeli pact, but these negotiations had encountered difficulties, mainly because they involved wider economic concessions and such sensitive issues as the export of oil and Algerian wine to Europe. This snag had led the ambassadors of Libya, Somalia and Iraq, acting for the Arab League, to warn the EEC May 7 of unspecified "political consequences" if the Israeli treaty were signed before pacts with the three Arab countries were negotiated.

The Algerian government May 9 had asked the Arab League to suspend preparations for upcoming economic talks with the EEC in protest against the Israeli trade agreement, the Lebanese newspaper al-Anwar reported May 11. [See p. 17D2]

The EEC's refusal to bow to Arab pressure was hailed by Israeli Foreign Minister Allon May 12 as an "encouraging sign" that Europe was not ready to submit to "Arab blackmail." At the signing May 11, Allon had said the accord would have "great political importance: Europe is paving the way to a new kind of cooperation which, we believe, may provide a model for regional cooperation in our area."

EEC Commissioner Claude Cheysson told the European Parliament May 15 that the Commission was insisting that clauses barring discrimination against Jewish EEC nationals and firms be included in any accords with Arab nations. [See p. 155E1]

Syrian Foreign Minister Abdel Halim Khaddam, at the end of a three-day official visit to West Germany, denounced the Israeli pact May 13 and said it would reinforce Israeli "obstinacy." (Khaddam signed an accord May 13 with West German Foreign Minister Hans-Dietrich Genscher providing Syria with a West German long-term, low-interest capital credit of 180 million German marks [$77.4 million].)

Export credit pact talks fail. In two days of talks in Brussels May 12-13, the EEC, Japan and the U.S. failed to conclude a "gentleman's agreement" aimed at preventing competitive cut-rate credit bidding for export customers. [See 1974, p. 866C2]

The talks focused on a compromise agreement that included fixing export credit terms for five-year transactions at a minimum of 8% interest for "rich" nations and 71.5% for other nations. U.S. Treasury Undersecretary Jack Bennett described the proposed interest floor as "ridiculously low," but said the U.S. would accept it "as a minimum." However, two nations had opposed the compromise. He added. Unidentified sources said the opponents were France and Japan.

Under the compromise, countries planning to violate the terms of the agreement would be required to give 31 days notice.

The current "gentleman's agreement" sets minimum rates at 7.5%, although various European nations had offered lower credit terms to the Soviet Union for large transactions. [See pp. 230C2, 99F2]

China agrees to let. Sir Christopher Shouldac, the EEC commissioner for

352

FACTS ON FILE

he had received in Concord. Members of the "PC" had gathered on the banks of the Concord River and shouted obscenities and waved banners as the President spoke.

## Other U.S. News

Brezhnev-Ford summit postponed. President Gerald Ford and Soviet Communist Party First Secretary Leonid I. Brezhnev agreed to postpone until the autumn their Washington meeting originally scheduled for the summer. Administration officials said April 26. [See p. 87F1]

The Washington officials said the decision had not been prompted by any sudden or critical problem. Among the reasons cited for the delay were a timing conflict with the expected 35-nation summit meeting concluding in July the Conference on Security and Cooperation in Europe; [See p. 84C3] the slow pace of strategic arms limitation talks: [See p. 84C2]; uncertainty about the Middle East; a need for re-examination of the situation in Indochina; and the mutual desire to review Soviet-American relations in detail.

### Goldwater on Vietnam. Nixon. Sen. Barry Goldwater (R, Ariz.) urged the nation April 27 to forget the U.S. experience in Indochina as an "unfortunate happening" and to "learn our lessons from it." He hailed President Ford's recent speech saying the war had ended "as far as America is concerned." [See p. 271C1]

"That was a strong leadership-type speech," Goldwater said, and would probably lessen the chance of a challenge to Ford's presidential candidacy from the Republican Party's conservatives. [See p. 214G2]

Appearing on the CBS-TV "Face the Nation" program, Goldwater also said he thought former President Richard M. Nixon should make a "full confession" of his complicity in the Watergate scandal as a first step "out from under the big black cloud" over his name. If Nixon would "get his name cleaned up" by a public statement or before the courts, Goldwater said, he thought he could become an asset to the party. [See p. 118A3]

In an ABC-TV interview April 24, Goldwater called for an end to the debate about Vietnam but blamed losing the war on two former Democratic Presidents—John F. Kennedy and Lyndon B. Johnson—and their defense secretary—Robert S. McNamara.

### Nixon '75 to 80% recovered
—Nixon was "feeling fine" and his doctors had told him he was "about 75 to 80% recovered" from the surgery and illness that followed his resignation from the presidency in August 1974, according to a copyrighted story April 22 in the Daily Trojan, the student newspaper of the University of Southern California, by Trojan editor Kari Granville. Miss Granville, who talked with Nixon April 19, reported that Nixon said the planned collection of his presidential papers and memorabilia in a USC library "will include those famous tapes you've heard so much about." That was Nixon's way of saying to the

university trustees." Miss Granville wrote, "that he no longer wants the Personnel Tape, that caused his downfall, destroyed, that they will be made public." [See p. 279A3]

## OTHER NATIONS

### Argentina

Violence continues. Political murders, bombings and other terrorist attacks continued throughout Argentina March 24-April 25, raising the 1975 death toll to at least 182 victims, according to press reports. [See p. 197B1]

The violence was generally attributed to three separate groups—the Marxist People's Revolutionary Army (ERP), the left-wing Peronist Montoneros, and the right-wing Argentine Anticommunist Alliance (AAA). Security forces continued to arrest and kill only leftists, leaving the AAA to operate with virtual impunity.

In a protest against the mounting terrorism, federal deputies from the opposition Radical Civic Union demanded April 2 that the government tell the Chamber of Deputies what "measures are being taken to discover the assassins of policemen and soldiers as well as the authors of the barbarous killings that occurred in Temperley. Lomas de Zamora and Mar del Plata." Police in those three localities recently had found the dynarnamed bodies of 13 persons kidnapped earlier, presumably by the AAA.

The Radicals noted that while the government was effectively combatting "violence unleashed by the extreme left," it had not arrested a single member of the AAA. "This impunity," they declared, "cannot be attributed to the inefficiency of our security organisms, and it compromises the government itself."

"Bodies appear by the hundreds along public roads, but so far the government has not investigated a single case or arrested one culprit or suspect," the deputies asserted. These bodies usually bore the accepted "signatures" of the AAA—signs of torture, dozens of bullet wounds and, often, mutilation by fire or explosives.

Responding to the Radicals' demand, the armed forces commander, Lt. Gen. Leandro Anaya, briefed legislators on the ERP April 17. He said the guerrilla group was linked to the Fourth Communist International and to the Cuban government. He added that the ERP kept in close touch with the Montoneros, despite their ideological differences, and the two groups had agreed that the ERP would operate in rural areas and the Montoneros in Argentina's cities.

Interior Minister Alberto Rocamora appeared before Congress April 19 and disclosed that the government was holding 1,117 detainees under the state of siege. He denied widespread rumors that the AAA was a parapolice group. "What makes a repressive police action [against the AAA] difficult is that it acts ... against the left, a task in which the armed forces and security forces are also engaged," Rocamora said.

The AAA distributed leaflets April 25

threatening to kill 16 prominent newsmen and soldiers unless they left the country by April 28. The 10, who included the well-known Uruguayan writer Mario Benedetti, went into hiding rather than emigrate, the London Times reported April 29.

Among other recent terrorist developments:

In Mar del Plata, the bullet-riddled body of a university administrator was found by police March 24, and a left-wing Peronist medical student was found murdered March 28. The killings were attributed to the AAA.

Presumed leftist guerrillas killed army Col. Martin Rico in a suburb of Buenos Aires March 27. A policeman was killed in Santa Fe Province March 29, reportedly by the ERP, and a policeman and army colonel were shot to death in Buenos Aires April 2 in an assassination attempt by presumed leftists against Gabriel Morales, an aide to Social Welfare Minister Jose Lopez Rega. Morales was seriously wounded.

Police killed two presumed leftists in Buenos Aires Province March 29, and they announced the arrest of 19 ERP and Montoneros guerrillas in Cordoba April 2. The army reported killing two ERP members April 3 when the guerrillas tried to ambush a military patrol.

Police in Buenos Aires reported killing two ERP members and arresting some 50 leftists April 3, including 20 members of the Tupamaros guerrilla group of Uruguay.

The Buenos Aires branch of the Italian Belgian Bank was damaged April 4 by a bomb presumably detonated by leftists. Leftists were also held responsible for the bombing the same day of the home of Norberto Kozaima, a Social Welfare Ministry official, and for the murder April 5 of Jose Chirino, a conservative leader of the Metallurgical Workers Union. [See p. 280B3]

Police found six bullet-riddled bodies April 6 on the road from Buenos Aires to Ezeiza International Airport. Next to the victims was a placard, attributed to the AAA, saying: "We were from the ERP, the Montoneros and the FAR." The last group, the Revolutionary Armed Forces, was a leftist guerrilla band. Police said April 8 that four of the victims were Chilean.

(Chilean journalist Ernesto Carmona reported in the Venezuelan newspaper El Nacional April 26 that Argentine security forces were carrying out a "pogrom" of Chilean leftists who had taken refuge in Argentina after the 1973 military coup against the late Chilean President Salvador Allende. The persecution and murder of Chileans in Argentina was carried out in collaboration with the Chilean embassy in Buenos Aires and the Chilean military intelligence service.)

The government news agency Telam reported April 7 that police had arrested 13 leftist subversives in Mendoza Province and 17 in Comodoro Rivadavia. Police in Buenos Aires announced April 10 that they had discovered a leftist arms factory in Moron and arrested four Argentine and

A

B

C

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May 3, 1975

303

nots were prepared to negotiate on a "new constitutional basis." The resolution fell far short of the Greek Cypriot demands for a deadline on the withdrawal of Turkish troops and the return of Greek Cypriot refugees to their homes.

President Makarios conceded March 13 that the resolution was "not absolutely satisfactory," but he praised the new role planned for Waldheim, a development, Makarios said, which gave the Cyprus problem "an international dimension and form."

The U.N. resolution was approved one day after U.S. Secretary of State Henry Kissinger concluded a one-day visit to Ankara, where he met with Turkish leaders on the Cyprus issue. [See p. 155B1] After the talks, he said "progress had been made" toward resuming the talks between the two Cypriot communities. Kissinger had discussed Cyprus with Greek Foreign Minister Dimitrios Bitsios in Brussels March 7.

High official injured in blast. Rogilos Michaelides, director general of the Ministry of Agriculture and Natural Resources, lost both legs when a bomb planted in his car trunk exploded in Nicosia March 9. The motives for the attack were not known. Michaelides had no known political affiliations.

Bishops' dispute revived. A bomb exploded March 5 at the office of Bishop Chrysanthos of Limassol, a supporter of Makarios, causing some damage but no casualties. The blast occurred one day after the pro-Makarios synod of the Eastern Orthodox Church of Cyprus publicly denounced what it described as the continuing interference in church affairs of three anti-Makarios bishops defrocked in July 1973. [See 1973, p. 607F3] The synod accused Bishops Gennadios of Phos, Antimos of Kitium, and Kyprianos of Kyrenia of plotting with the now-deposed Greek junta and the Turkish government to overthrow President Makarios in July 1974. [See 1974, p. 569G1] The three bishops, outspoken supporters of the EOKA-B underground which helped instigate the coup, rejected the charge.

## East-West Relations

Brezhnev re-emerges, renews detente call. Soviet Communist Party General Secretary Leonid I. Brezhnev March 18 delivered his first major public address since reappearing in February after a seven-week hiatus in public appearances. The address, in which he renewed calls for detente, ended speculation about Brezhnev's status within the Kremlin. [See p. 99B3, 12B1]

Speaking at the 11th Congress of the Hungarian Socialist Workers' Party, [See p. 199B3] he reaffirmed the policy of detente, saying, "Simultaneous with the struggle for a lasting peace in Europe, we pay the most serious attention to the strengthening of relations between the So-

mutually advantageous cooperation.

Brezhnev gave special attention to the 35-nation Geneva Conference on Security and Cooperation in Europe (CSCE), urging that the participants agree to conclude its work in the coming months with a summit meeting in Helsinki of heads of state. [See p. 34C3: 1974, p. 973E3] (It was reported March 18 that Brezhnev had sent letters to Western leaders proposing a June 30 date for the CSCE summit. [See below] Officials in Washington said President Ford was studying the proposal.)

Brezhnev met March 18 with the first secretaries of the Communist Parties of Bulgaria, Czechoslovakia, Hungary, Poland and East Germany who were leading their respective delegations in attending the Hungarian Party Congress. Rumanian President Nicolae Ceausescu was the only Soviet bloc leader not present in Budapest. Like the Yugoslav delegation, the Rumanian delegation was headed by a lower Party official.

U.K. holds ex-RAF pilot as Soviet spy. A former Royal Air Force (RAF) nuclear bomber pilot was charged March 12 with violating Great Britain's Official Secrets Acts by allegedly attempting to pass "certain information" to a Soviet consul-ate official. Former Flight Lt. Alastair Duncan Steadman, 33, was arrested March 10 by British counterespionage agents and police after several days' surveillance. Various transmitting devices were reportedly found in his home. The British Foreign Office declined comment on whether the Soviet official believed involved would be expelled. (Britain had expelled more than 100 Soviet diplomats for alleged spying activities in 1971. [See 1971, pp. 763G3, 764C1])

In another British-Soviet development, London announced March 17 that Soviet trade union council chairman Alexander Shelepin, who was also the former chief of the secret police (KGB), would be granted a visa for a trip to Britain with a group of Soviet trade unionists. More than 100 members of Parliament had called on the

safeguard national interests and not to express moral approval or disapproval."

French premier in U.S.S.R. French Premier Jacques Chirac and several other French officials visited the Soviet Union March 19-24 for talks with Soviet leaders in preparation for the scheduled trip of President Valery Giscard d'Estaing to the U.S.S.R. in December. The Giscard visit had been planned during the visit of Soviet Communist Party General Secretary Leonid I. Brezhnev to France in December 1974. [See 1974, p. 1018D1]

A communique issued March 24 reflected a slight cooling in relations. It was believed, the phrase "irreversible coexistence" used in the December statement now being replaced with the phrase "durable coexistence." The slight cooling detected was believed to indicate Moscow's annoyance at Giscard's perceived rapprochement with the U.S. [See 1974, p. 1037A1]

The French newspaper Le Monde had also reported March 23 that Chirac was planning to raise the question of Communist agitation in the French armed forces. The French premier refused to comment on whether he had broached this topic during his three-hour meeting with Brezhnev March 24 or in talks with other Soviet leaders. [See p. 29F2]

A main object of discussion was the Conference on Security and Cooperation meeting in Geneva. It was reported March 18 that Giscard d'Estaing had conveyed a message to the Kremlin affirming his approval in principle for an early high-level summit meeting to conclude the 35-nation conference. [See above; 1974, p. 1018F1] A firmer French statement was not, however, forthcoming during the Chirac talks. The French and Soviet officials also discussed the Middle East, Cyprus and Indochina.

Chirac and Soviet Premier Alexei Kosygin signed two cooperation accords on the environment and agriculture March 24.

## U.S. AFFAIRS

### Congress

Senate OKs $30.6 billion tax cut bill. The Senate March 22 approved a $30.6 billion tax cut bill. The vote was 60-29. In an earlier vote Feb. 27, the House had approved tax cut legislation whose net cost for 1975 and 1976 was estimated at $21.3 billion. [See p. 137E1] (For a breakdown of the net cost of the Senate and House bills, see below.)

In an effort to reconcile the widely differing versions, House and Senate conferees began work March 24 on devising a compromise measure that would satisfy legislators in both chambers, thereby allowing Congress to adjourn for its Easter recess after having completed work on the controversial tax cut legislation.

Action on the Senate bill came after several days of parliamentary maneuvering on proposed amendments, including debate over whether to exempt small, independent oil producers from repeal of the 22% oil depletion allowance. Although the issue was resolved when it was decided on an 82-12 vote to grant the exemption to small producers, other procedural problems slowed final consideration of the tax cut bill reported to the Senate floor by the Finance Committee.

Majority Leader Mike Mansfield (Mont.) broke the impasse March 20 when he proposed that the Senate scrap the committee bill and substitute a streamlined compromise version. His pro-

March 29, 1975

193

The Apollo-Soyuz mission.

So the $250 million was spent for the ASTP but the project was not expected to be followed up. The U.S. in 1974 had asked the Soviet Union to agree to a second joint flight but was turned down by the Russians because of what they said was a lack of time, a space official disclosed July 13. The U.S. request had been made by George M. Low, deputy administrator of NASA. He had suggested that two Soviet and three American spacemen dock with a Soviet Salyut space station and work together in earth orbit for as long as two weeks.

U.S. astronauts visit Soviet base—American astronauts, following a tour of the Soviet launching facilities before the Apollo-Soyuz mission, said May 14 they were impressed by what they had seen. The crew of Thomas P. Stafford, Donald K. (Deke) Slayton and Vance Brand said that the facilities were three to four times bigger than Florida's Kennedy Space Center.

Although each nation's crew had made several trips to the other's country, this was the first time the Americans had been to the Soviet launching site. [See p. 352G1] In 1973 Stafford had insisted on a tour of the site, explaining that he would not get into a spacecraft he had not been in on the ground.

The Baikonur facilities, as they were called, and the adjacent city of Leninsk, where the Soviet space personnel lived, was so secret that they had been omitted from unclassified Soviet maps and census reports (they were listed as Tyuratam). According to the U.S. astronauts, Leninsk was lined with boulevards and dotted with new apartment buildings up to seven stories high.

The terrain of the launching facilities, located 1,400 miles southeast of Moscow, was described by the Americans as made up of "rolling hills" similar to the topography of Southern California. They said the living facilities for Soviet astronauts at Leninsk were better than those for Americans at Cape Canaveral, Fla. The astronauts were flown into the Leninsk airport at night and were flown out the next night presumably to keep them from getting an overall view of the city.

On May 17, it was reported that the U.S. and Soviet crews and ground controllers in Houston and Moscow had completed a week-long practice mission for the upcoming Apollo-Soyuz rendezvous. The Soviet cosmonauts worked in a computer-operated Soyuz simulator while the Americans operated an Apollo simulator. The flight controller in the Houston Space Center said the greatest problem was coordination between the two nations when problems occurred. He said, however, that the two would have much more time to work out solutions to any difficulties during the actual mission.

Earlier Soviet space flight overlaps ASTP—At the same time as the Apollo-Soyuz Test Project, the Soviets had another pair of cosmonauts in space. Launched May 24 in a Soyuz 18 vehicle, they were performing experiments on a Salyut 4 space station. The Salyut 4,

which had been used in January in an earlier Soviet space mission, was positioned 100 miles above the ASTP.

The two cosmonauts, Lt. Col. Pyotr Klimuk, 33 and Vitaly Sevastyanov, 40, had been in orbit 52 days on July 15, when the latest Soviet flight began. The men had surpassed the Soviet record for time in space, which had been a month-long visit to Salyut 4 accomplished in January. [See p. 90C1]

Sen. William Proxmire (D. Wis.), concerned over the Soviet Union's ability to maintain two space missions at the same time, asked the National Aeronautics and Space Administration (NASA) July 3 to postpone the Apollo-Soyuz project until the Soyuz 18 was brought back to earth. The space agency denied the request, pointing out that the Russians had two separate mission control centers to monitor the two missions. [See 1974, p. 1034A1]

In a press conference held by Soyuz commander Leonov June 26, it was disclosed that the two cosmonauts aboard the space station would remain in orbit through the end of July. One reason for the stepped-up Soviet activities, experts believed, was to bolster the image of Soviet space exploration.

The Russians had received a serious setback in their program April 7 when a manned Soyuz spacecraft, launched April 5, was brought back to earth after it went off course. The cosmonauts were picked up by a search-and-rescue unit in Western Siberia, according to the official press agency Tass. The Soviets April 8 blamed the aborted flight on a now-obsolete rocket booster. The rocket was not being used in the Apollo-Soyuz project.

The Soviet Union launched two unmanned spacecraft six days apart, on June 8 and June 14, to explore Venus and the surrounding space. Although not publicly stated, it was expected that one or both of the spacecrafts, designated Venera 9 and Venera 10, would land on the surface of Venus.

The Central Intelligence Agency reported in detail to Congress June 4 on its secret monitoring of the Soviet space program and on safety risks that might be involved in the U.S.-Soviet space mission. According to reports, nothing had come out of the hearing which would require cancellation of the mission because of physical risk or national security.

Russians launch ASTP publicity campaign—In a turnabout from previous coverage of space missions, the Soviet Union blanketed its people, and the world, with its side of the Apollo-Soyuz project. Previously, missions had been publicized only after completion of a successful flight.

Long before launching, in May, foreign newsmen were permitted to visit the U.S.S.R.'s main flight control center in Kaliningrad (near Moscow). [See p. 352A2] Soviet journalists, for the first time, were allowed to interview the cosmonauts in their quarters prior to launch. Finally, an unusually candid press conference was held July 14 with Soviet space officials.

The most novel publicity was the live

television broadcast of the mission. The Russian people, who had never seen a live Soviet space shot before, crowded before television sets in homes, offices and stores. The Soyuz launch blast-off was shown and later the American. In all, on the first day of the joint project, Russian television had five hours of live Apollo-Soyuz programming plus news recaps.

But the Soviet government rejected requests by newsmen to see the Soviet launch itself. Instead, 400 foreign newsmen and 300 Soviet reporters followed the mission's events on closed-circuit color television sets in a press center set up by the Soviet Foreign Ministry in a downtown Moscow hotel.

Officials said only that the media's presence at the launch pad was not provided for in the original Soviet-American agreement. No Soviet newsmen were at Cape Canaveral (although they were not kept away) but many flocked to the Houston Space Center.

## Middle East

U.S. colonel released in Beirut. U.S. Army Col. Ernest R. Morgan was released in Beirut July 12 after being held hostage for 13 days by a left-wing faction of the Palestine Liberation Army. His release had come after a free distribution of two truckloads of rice and sugar in the devastated Al Maslakh quarter of Beirut in an effort to fulfill terrorist demands. [See p. 504F2]

(A U.S. State Dept. official termed the food giveaway a "purely Lebanese affair.")

The release was greeted with relief by the U.S., Lebanon, and PLO leader Yasser Arafat who had castigated the kidnappers July 11 on Cairo radio as "a grave embarrassment for the Palestinian cause."

After his release, Morgan was taken to see Lebanese Premier Rashid Karami. Morgan said he had been seized when he went out "to buy some newspapers."

In a communique July 12 the kidnappers stated that one of the reasons they had freed Morgan was that he was a black and blacks rarely obtained high rank in the U.S. Army. His release, they said, was intended to safeguard black American relations with the Arab cause.

## European Security

CSCE summit set for July 30. The 35 nations participating in the Conference on Security and Cooperation in Europe (CSCE) formally agreed July 19 to conclude their two years of negotiations with a July 30 summit meeting in Helsinki, Finland, to sign a charter on broad aspects of East-West relations and ratify Europe's post-war borders as inviolable. The 100-page draft agreement, none of its provisions binding, was approved July 3. [See p. 84C3; 1972, p. 948F3]

The Soviet Union July 14 hailed the agreement as an expression of "the posi-

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The results of the peace-loving Socialist foreign policy." The CSCE had emerged from a Warsaw pact proposal made in 1969 [See 1969, p. 160D3] which expressed a Soviet plan first proposed in 1954 as a substitute for a German peace treaty. [See 1954, pp. 90B2, 41B1] Soviet Communist Party General Secretary Leonid Brezhnev had June 15 made his planned summit meeting with U.S. President Gerald Ford in Washington contingent upon the successful summit conclusion of the CSCE. [See p. 303A1] The White House announced July 19 that the President would attend the Helsinki summit.

The long-delayed agreement to hold the summit came after disputes in the Mediterranean region were resolved. Cyprus had contested Turkey's insistence on the insertion of a phrase in the conference's final document which, the Cypriots said, could be construed as ridding Ankara of an obligation to give prior notification of military movements along sensitive parts of its Mediterranean coast. Malta had refused to consent to the summit finale until a clause calling for the withdrawal of U.S. and Soviet forces from the Mediterranean was inserted. In a compromise text, the Eastern and Western military blocs agreed to espouse a reduction of armed forces in the Mediterranean.

## Disarmament

Kissinger, Gromyko see progress. U.S. Secretary of State Henry A. Kissinger and Soviet Foreign Minister Andrei A. Gromyko held talks in Geneva July 10-11 and reported "progress" on issues dividing them in nuclear arms negotiations. They also discussed the Middle East.

Kissinger observed: "We reviewed the outstanding issues in a number of categories and progress was made in narrowing the differences and understanding each other's position." He said the two nations would work "with optimism for concluding an agreement on the basis of the Vladivostok principles." giving impetus on the stalled Strategic Arms Limitation Talks (SALT II) being held in Geneva. [See p. 313B2; 1974, p. 973A1]

Gromyko confirmed at a July 11 press conference that an "understanding" had been reached with the U.S. for on-site inspection of peaceful nuclear explosions. [See pp. 502G2, 313C2; 1974, p. 525B2] However, Gromyko added that, generally, "we believe national means of verification are adequate," indicating that the verification issue remained a major one in the context of strategic arms.

As outlined July 10 by a senior American official aboard Kissinger's aircraft, the major issues were:

* Verification, or how to count and ascertain the number of multiple independently targetable re-entry vehicles (MIRVs), with regard to the multiple-warhead limit of 1,320. The Soviet Union had tested its biggest missile, the SS-18, with both single and multiple warheads and therefore maintained that not all SS-18s should be counted within the MIRV limit. [See below] The U.S.S.R.

held that the U.S. should accept Moscow's word on the number of SS-18s MIRVed, giving rise, in Washington's view, to a difficult verification problem.

* Cruise missiles. These subsonic, jet-powered missiles, fireable from aircraft, ships and submarines, could be fitted with nuclear warheads and were considered highly accurate long-range weapons which could open a new era in tactical and strategic warfare. [See below] The U.S. held that these missiles should not be limited by the Vladivostok ceiling of 2,400 on strategic offensive weapons, while the Soviet Union, sought to include them or ban them entirely.

* The Soviet supersonic bomber known, in the West, as Backfire. Moscow and Washington disagreed on whether the Backfire was a strategic bomber and, thereby, whether to restrict it under the 2,400 limit on delivery systems. The U.S. maintained that since the Backfire could be used for long-range bombing missions, it should be included.

(Prior to his Geneva talks with Gromyko, Kissinger had met in Paris July 10 with French President Valery Giscard d'Estaing and reported "good progress" in working out procedures for a preparatory conference of oil-consuming and oil-producing nations. [See p. 273C3]

Schlesinger sees Soviet missile buildup. U.S. Secretary of Defense James R. Schlesinger said June 20 that significant Soviet advances toward "major counterforce capabilities" were "not helpful for stability" in limiting the arms race. [See pp. 395A1, 119G2] He said the Soviet Union had deployed 60 large intercontinental ballistic missiles (ICBMs) fitted with multiple warheads in the past six months. (If so armed, these would be the first Soviet MIRVed missiles. The U.S. already had 902 MIRVed missiles. 550 Minuteman III ICBMs and 352 Poseidon submarine-launched ballistic missiles.)

Schlesinger described as operational 50 Soviet SS-19 missiles each of which could carry six MIRVs and 10 SS-17s which could carry four multiple warheads each. The SS-18 was expected soon to be deployed with MIRVs. [See below]

**Soviet missile tests reported**—The Soviet Union announced June 7 the "successful" completion of missile tests begun June 1 in the Pacific Ocean. Although Moscow did not indicate the type of missile projected, the U.S. Defense Department announced June 6 that the U.S.S.R. had launched the SS-18, its largest missile, from Central Russia into the Pacific, about 600 miles north of Midway Island. The Pentagon said the missiles had carried dummy multiple warheads. [See p. 84B3]

Cruise missile developments emerge. The long-range cruise missile (LRCM), a new type of weapon with the "potential to make war more casual and less politically responsible," was being developed by the U.S. Air Force and Navy, according to an article by Kosta Tsipis, a nuclear physicist at the Massachusetts Institute of Technology's Center for International

Studies, in the April issue of the Bulletin of the Atomic Scientists. The LRCM developments were also detailed in the New York Times June 16.

Able to fly at low altitudes for up to 1,500 miles, the LRCM could deliver a thermonuclear warhead, similar to the Minuteman III warhead, with very high accuracy, within 30 yards of target. Recent advances in the development of small highly efficient turbo-fan jet engines had made the long-range flights possible: new developments in the microminiaturization of electronic components had made possible the high-precision guidance system, based on terrain matching and recognition.

The LRCM's high accuracy made it a potential first strike weapon that could be used in a pre-emptive attack to eliminate an enemy's missile force. Tsipis stated. "Since high accuracy and large payload make the lethality of the cruise missile quite high..., the kill probability of this weapon against any target will be virtually 100 percent."

Citing an analysis by Tsipis in the Stockholm International Peace Research Institute Center's Yearbook, the Times quoted him as saying the technological advances represented in the cruise missile "could drastically alter the conduct of both tactical and strategic warfare." The installation of cruise missiles on nuclear attack submarines would "aggravate what perhaps is the only chronic problem of the sea-based deterrent, its command and control. The proliferation of nuclear weapons on [nuclear attack submarines] will complicate further the operation and control of these weapons and could increase the probability of accidental launch or misperceived attacks." Tsipis said in the Bulletin article.

The cruise missile had thus far aroused little debate in Congress. The Time reported a recent attempt by Sen. William D. Hathaway (D, Maine) to cut funds for the cruise missile program had been defeated in the Senate, 72-16. Secretary of Defense James R. Schlesinger argued in favor of LRCM development in his annual address to Congress in February. [See p. 119F2] He said the air-launched cruise missile would "enhance the capability" of manned bombers to penetrate heavy defense and that the submarine-launched cruise missile would provide a "unique potential for unambiguous controlled, single-weapon response from relatively invulnerable submarines." He also pointed out that while cruise missiles were "relatively low" in cost, they "would impose on the Soviet Union large additional expenditures for air defense to counter them." (The U.S. reportedly had 486 cruise missiles with a 45-mile range, the Soviet Union none. [See 1974, p. 478D3])

The cruise missile, not limited by any strategic arms agreement, [See above] also raised the specter of critical verification problems, for the long-range strategic version was virtually indistinguishable, without dismantling, from the short-range tactical version, the Times said.

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relieved of his position on the Communist Party's ruling Politburo April 16. There was no indication that he had also been deprived of his post as chairman of the All-Union Central Council of Trade Unions, to which he was assigned in 1967 in a mass demotion of proteges of deposed Premier Nikita Khrushchev. [See 1967, p. 302F3]

According to the Central Committee resolution announcing the action, Shelepin had been dropped from the Politburo "in connection with his own request," but Western news reports indicated that his ouster may have had political implications. The 56-year-old Shelepin had been viewed as a potential challenger of Communist Party General Secretary Leonid I. Brezhnev and his removal from the Politburo was seen as strengthening Brezhnev's hand. Shelepin had been the youngest member of the body.

The Central Committee proceedings that day also reaffirmed Brezhnev's decade policy in a major foreign policy statement and set the 25th Communist Party Congress for Feb. 24, 1976.

## Turkey

**Demirel wins narrow confidence vote.**

The right-of-center coalition government formed by Premier Suleyman Demirel won a 222-218 vote of confidence in Parliament April 12. [See p. 224F2] There were two abstentions and five absentees among the 447 deputies serving in the 450-seat Grand National Assembly.

When its formation was announced March 31, the four-party coalition controlled 227 seats, but defections narrowed the majority. The leftist Ankara daily Yeni Ortam charged that Demirel had manipulated the absence of two deputies by promising that he would discontinue land reforms in Urfa Province, where both had large land holdings, and that a third deputy had been held under surveillance in a hotel during the vote.

Fighting broke out among observers and deputies after the vote's results were announced. The speaker of the Assembly, Kemal Guven, suffered a heart attack during the fracas. Mehmetlai Arsan, an independent leader, reportedly drew a gun when he was attacked by members of the opposition Republican People's Party for voting in favor of the government.

**Greek Aegean islands buildup charged.**

Turkey, in a letter to United Nations Secretary General Kurt Waldheim April 10, accused Greece of violating an international peace treaty by establishing military installations on the Dodecanese Islands in the Aegean Sea. [See p. 149B1]

Reiterating an April 3 protest, Ankara charged that Athens was violating the 1947 Treaty of Paris under which the World War II Allies and Italy ceded the islands to Greece on the condition that they remained demilitarized. [See 1947, p. 101K] The April 3 protest also charged that Athens was in violation of the 1923 Treaty of Lausanne which restricted military forces that Greece could maintain on Lesbos, Chios, Samos and Ikarisa to local

recruits to police.

The Greek fleet was reportedly anchored off the islands of Lesbos and Chios April 3 while Greek military leaders inspected units on the islands and on the Greek-Turkish frontier, the London Times reported. (Greece began moving troops and equipment into the eastern Aegean islands, which lay within a few miles of the Turkish coast, soon after Ankara's invasion of Cyprus in July 1974, the Times report said. [See 1974, p. 590G2])

Athens had charged March 20 and 27 and April 3 that Turkey had violated Greek air space over the islands, a charge which Ankara denied April 8, declaring the Aegean an "open sea." A statement by the Turkish Foreign Office, reported March 26, said that Turkish antiaircraft gunners had fired on a Greek military jet that violated Turkey's air space in the area.

(According to the London Times April 8, Turkey had issued a note during the military operations in Cyprus in July directing all aircraft coming across the Aegean to notify Turkish authorities before reaching the international "flight information region" [FIR] line between Greece and Turkey. Athens later declared the FIR off-limits to all international flights. As a result, the report said, only Turkish and Greek military aircraft had been flying in the area between the Turkish warning limit and the FIR line.)

## West Germany

**State elections held.** The Christian Democratic Union (CDU) retained control of the state legislature of Schleswig-Holstein in elections held April 13, but suffered its first vote decline in a state poll in the past two years. [See p. 149G2] The CDU won 50.4% of the vote, down from 51.9% in the 1971 elections in the state. [See 1971, p. 356F1] The Social Democrats polled 40.1%, a .9% drop from 1971; their allies in the federal government, the Free Democrats, nearly doubled their 3.8% vote in 1971 to 7.1%, giving them more than the 5% minimum vote required for legislative representation.

Chancellor Helmut Schmidt hailed the results in a radio interview later April 13. He said the population had regained confidence "in the social-liberal coalition and in the way we handle political and economic problems." The results were viewed as a setback for the state's governor, Gerhard Stoltenberg, a candidate for the CDU post of shadow chancellor, soon to be selected.

In state parliamentary elections in the Rhineland-Palatinate, March 9, the CDU won 53.9% of the vote, an increase of 3.9% over the 1971 elections. The Social Democrats obtained 38.5%, an unexpectedly low decline of 2%, and the FDP polled 5.6%, a loss of .3%. Led by national party Chairman Helmut Kohl, a native of the Rhineland-Palatinate, the CDU campaigned mainly on economic and law-and-order issues. [See 1971, p. 303B1]

**Alleged East German spy charged.** Gunter Guillaume, arrested in 1974 as an East German spy, was formally charged with high treason and breach of official secrets March 10. Guillaume's wife, Christel, was also charged with treason and aiding the breach of official secrets. The arrests, and subsequent scandal, had led to the resignation of Chancellor Willy Brandt. [See 1974, p. 374B2]

The Guillaumes would be tried in the state supreme court of North Rhine-Westphalia in Dusseldorf. They were accused of working for East Germany's State Security Ministry since 1956, when they moved to West Germany as refugees.

**Parliamentary probe splits.** A special parliamentary inquiry completed its investigation into the Guillaume spy affair Jan. 31 without reaching a consensus. The nine-man committee representing all parties in the Bundestag (lower house of parliament) split along party lines. The government deputies absolved ministers and other officials of breach of duty in the engagement and continued employment of Guillaume in the Chancellery, while opposition members blamed ministers, senior civil servants and security men for a series of errors. An independent investigating commission had issued a report in 1974 blaming an aide of former Chancellor Brandt and the security services in the affair. [See 1974, p. 1068A2]

**Newsmen's rights broadened.** Parliament approved legislation Feb. 21 giving journalists the right to refuse to divulge the source of their information. The new law prohibited authorities from seizing documents, notes and tape recordings. It gave police permission to confiscate publications only if a judge granted authority.

**VW sets massive cutbacks.** The Volkswagen (VW) auto company announced April 15 it would reduce its 133,000-member work force by 25,000 by the end of 1976. The decision was made April 14 by VW's supervisory board in an effort to cut the company's first financial loss, recorded in 1974. [See p. 32D1; 1974, p. 697E3] The supervisory board was composed of union, government and management representatives.

VW said it would continue to use attrition and early retirement to reduce the number of its employes, but conceded that dismissals would also be needed. Under the plan VW's home plant at Wolfsburg would eliminate nearly 6,000 jobs; additional dismissals would be spread among VW's other plants. The cuts also hit VW's major subsidiary, Audi NSU, whose main plant at Neckarsulm would eliminate 3,400 jobs and cut output to one-third of capacity. Two smaller Audi-NSU plants in nearby towns would be closed.

Chancellor Helmut Schmidt approved the program as economically necessary and expressed his confidence in VW management. VW was 40% owned by the federal government and the state government of Lower Saxony.

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The highlight of the trip was the summit meeting of North Atlantic Treaty Organization (NATO) heads of state in Brussels May 29-30. In addition to the NATO summit, Ford also held bilateral meetings in Brussels with European officials, including French President Valery Giscard d'Estaing who had not attended the NATO sessions. Ford later met with Egyptian President Anwar Sadat in Austria and with Spanish and Italian leaders in their respective capitals.

* "Fourth, let us cooperate in developing a productive and realistic agenda for detente, an agenda that serves our interests and not the interests of others who do not share our values." He also asserted the need to implement the "promises" made at the Conference on Security and Cooperation in Europe (CSCE) in order to give legitimacy to the talks, "whatever euphoric or inflated emphasis the Soviet Union or other participants may try to give it." [See p. 193A2] He further cited the need for "good faith" at the Vienna talks on mutual and balanced force reductions in Europe. [See p. 99C3]

* "Fifth,... we must strengthen our own democratic institutions and encourage the growth of truly democratic processes everywhere." He singled out Spain and proposed that the alliance "consider how to relate Spain with Western defense." In his May 30 press conference, however, Ford acknowledged "the unlikelihood of it taking place in the future or the immediate future." [See below, p. 373A1]

FACTS ON FILE

World News Digest with Index

© 1975 by Facts On File, Inc.

Volume 35, No. 1804

June 7, 1975

THIS WEEK'S NEWS HEADLINES

World Affairs

Pages 389-392

U.S. Affairs

President Ford vetoed jobs bill; signed roads, SEC bills; Barteis quit as drug agency head; Ford stressed defense, energy bills.

Clean air progress report.

Pages 392-400

Other Nations

Finland cabinet quit.

Italy probed bribe charges.

Portugal freed ex-minister.

Also: news of British Solomon Islands, Bulgaria, Cameroon, Ghana, Seychelles.

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penate for the loss of "between 30% and 50% of our purchasing power lately because of world inflation." A State Department official who had met with the shah said the Iranians "want a price increase and they've begun talking it up big."

The shah lauded the U.S. decision to use force to free the Mayaguez as "a very healthy development." [See pp. 349A1] He also disclosed plans for a Persian Gulf security arrangement based on an Iranian-Iraqi accord and joined by other nations in the area.

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(In a speech May 12 before the World Affairs Council of St. Louis, Mo., Kissinger, commenting on the Communist victories in Asia, had warned the Soviet Union that its "willingness... to exploit strategic opportunities—even though some of these opportunities presented themselves more or less spontaneously and not as a result of Soviet action—constitutes a heavy mortgage on detente." Gromyko, speaking at a Warsaw Pact anniversary meeting in Moscow May 14, publicly rebuked Kissinger by name—a highly unusual gesture—for certain of his May 12 remarks. He said that Kissinger's espousal of detente and his opposition to military budget cuts "do not quite jibe, to put it mildly.")

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The Soviet guided-missile destroyers Boikiy and Zhguchiy docked in Boston harbor for a five-day visit, while the U.S. guided-missile destroyer Tatnali and the guided-missile frigate Leahy moored at Leningrad's Vasilyevsky Island port.

### European Community

The talks focused on a compromise agreement that included fixing export credit terms for five-year transactions at a minimum of 8% interest for "rich" nations and 71.2% for other nations. U.S. Treasury Undersecretary Jack Bennett described the proposed interest floor as "ridiculously low," but said the U.S. would accept it "as a minimum." However, two nations had opposed the compromise, he added. Unidentified sources said the opponents were France and Japan.

Under the compromise, countries planning to violate the terms of the agreement would be required to give 30 days notice.

The current "gentleman's agreement" set minimum rates at 7.5%, although various European nations had offered lower credit terms to the Soviet Union for large transactions. [See pp. 230C2, 99F2]

China agrees to ties. Sir Christopher Soames, the EEC commissioner for

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