TIMMONS AND COMPANY, INCORPORATED

1850 K STREET, N.W. WASHINGTON, D.C. 20006 (202) 331-1760

WILLIAM E. TIMMONS
President

TOM C. KOROLOGOS
Executive Vice President

MICHAEL L. REED
Vice President

HOWARD G. PASTER
Vice President

KENNETH M. DUBERSTEIN
Vice President

MARY A. SIDLEY
Vice President

MICHAEL J. BATES
Director of Research

January 19, 1984

MEMORANDUM FOR: THE HONORABLE HENRY A. KISSINGER

FROM: TOM C. KOROLOGOS

SUBJECT: USIA

As a member of the U.S. Advisory Commission on Public Diplomacy, I periodically get the so-called USIA Wireless File. The enclosed contained a great deal about you and the Commission. The "Congressional Report" and "U.S. Opinion" were particularly interesting.

JAN 20 1984

Attachment

THIS IS THE "HOUSEWIRE," THE CENTRAL EDITION OF THE USIA WIRELESS FILE. IT IS PREPARED DAILY BY THE AGENCY'S PRESS AND PUBLICATIONS SERVICE. ARTICLES FROM THE HOUSEWIRE ARE COMBINED WITH OTHERS OF SPECIAL REGIONAL INTEREST TO FORM THE FIVE REGIONAL EDITIONS -- AFRICA, EAST ASIA/PACIFIC, EUROPE, LATIN AMERICA, NEAR EAST/SOUTH ASIA -- THAT ARE TRANSMITTED OVERSEAS.

THURSDAY, JANUARY 12, 1984

| | COUNT | PAGE |
| :--- | :--- | :--- |
| (VOA EDITORIAL) THE KISSINGER COMMISSION | 360 | 3 |
| CONGRESSIONAL REPORT (REACTION TO KISSINGER COMMISSION REPORT) | 690 | 5 |
| (U.S. OPINION) THE KISSINGER REPORT | 710 | 7 |
| DEFENSE DEPARTMENT REPORT (SHOOTDOWN OF U.S. HELICOPTER OVER HONDURAS) | 460 | 10 |
| WHITE HOUSE REPORT (SOVIET SPEECH, HELICOPTER ATTACK, RUMSFELD) | 795 | 12 |
| NEWS ROUNDUP (FS) | 300 | 15 |
| REAGAN 'DETERMINED' TO STABILIZE U.S.-CHINA RELATIONS (ARTICLE ON REAGAN/ZHAO MEETING, WHITE HOUSE BRIEFING) | 890 | 17 |
| ECONOMIC HIGHLIGHTS (BUSINESS SPENDING, GOVERNMENT WASTE, BUDGET COMMENTS) | 990 | 20 |
| SHULTZ SAYS CONCESSIONS ON INF TALKS NOT APPROPRIATE (EXCERPTS: SHULTZ REMARKS ON 'WORLDNET') | 4,000 | 23 |
| NEW U.S. RELATIONSHIP WITH LATIN AMERICA 'CRUCIAL' (TRANSCRIPT: KISSINGER 'WORLDNET' INTERVIEW) | 5,920 | 33 |
| KISSINGER: STOP CENTRAL AMERICA ARMS BUILDUP (EXCERPTS: KISSINGER INTERVIEW ON 'WORLDNET') | 2,920 | 48 |
| REAGAN-ZHAO TALKS COVERED GLOBAL, BILATERAL SPECTRUM (TRANSCRIPTS: REAGAN, ZHAO DEPARTURE STATEMENTS) | 740 | 56 |
| U.S. MUST BE 'REALISTIC' ABOUT EAST-WEST RELATIONS (TRANSCRIPT/HIGHLIGHTS: SHULTZ "WORLDNET" | | |

[c]

USIA WIRELESS FILE

(xx401,x,
*TX-401 (1/12/84) PMK/TX/RL

(VOA EDITORIAL) THE KISSINGER COMMISSION (360)

(FOLLOWING IS A VOA EDITORIAL REFLECTING THE VIEWS OF THE
U.S. GOVERNMENT.)

IN A DEMOCRACY LIKE OURS, FOREIGN POLICY REFLECTS THE
BELIEFS AND INTERESTS OF THE PEOPLE. OF COURSE, THERE ARE
DEBATES ABOUT FOREIGN AFFAIRS -- AND VIGOROUS ONES, TOO. BUT
UNDERLYING THOSE DEBATES -- INDEED, MAKING DEBATE POSSIBLE --
IS A BROAD, SHARED COMMITMENT TO THE PRINCIPLES THAT UNIFY
US: SUPPORT FOR DEMOCRACY ITSELF, CONCERN ABOUT HUMAN RIGHTS
AND WELFARE, AND DEDICATION TO PRESERVING OUR NATIONAL
SECURITY.

TO ACHIEVE THOSE SHARED GOALS, AMERICAN PRESIDENTS HAVE
OFTEN SOUGHT NON-PARTISAN ADVICE. IN THAT SPIRIT, PRESIDENT
REAGAN COMMISSIONED A GROUP LAST SUMMER TO ANALYZE THE
SITUATION IN CENTRAL AMERICA AND GIVE ITS ADVICE ON A LONG-
TERM U.S. POLICY "THAT WILL BEST RESPOND TO THE CHALLENGE OF
SOCIAL, ECONOMIC, AND DEMOCRATIC DEVELOPMENT IN THE
REGION..."

ON JANUARY 11 THAT GROUP -- THE NATIONAL BIPARTISAN
COMMISSION ON CENTRAL AMERICA -- PRESENTED ITS FINAL REPORT
TO THE PRESIDENT. IN THE REPORT, THE COMMISSION MEMBERS --
FROM BOTH MAJOR AMERICAN POLITICAL PARTIES, AND OF WIDELY
DISPARATE VIEWS -- REACHED A REMARKABLE DEGREE OF CONSENSUS
AND COMMON UNDERSTANDING OF THE CRISIS IN CENTRAL AMERICA AND
THE POLICIES NEEDED TO ADDRESS IT.

FOR INSTANCE, THE REPORT CONCLUDED THAT THROUGH THE ROOTS
OF THE CRISIS IN CENTRAL AMERICA ARE PARTLY INDIGENOUS -- DUE
TO MISERABLE CONDITIONS OF LIFE AND SLOW MOVEMENT TOWARDS
REFORM -- THESE PROBLEMS HAVE BEEN EXPLOITED BY THE SOVIET
UNION AND CUBA, WHICH, ACTING THROUGH NICARAGUA, ARE SEEKING
TO EXPAND THEIR INFLUENCE AND ESTABLISH CLIENT TOTALITARIAN
REGIMES. TO MEET THIS THREAT TO REGIONAL WELFARE AND
HEMISPHERIC SECURITY, THE COMMISSION RECOMMENDED A
COMBINATION OF ECONOMIC AND SECURITY ASSISTANCE IN ORDER TO
SUPPORT DEMOCRATIC DEVELOPMENT, IMPROVE HUMAN RIGHTS AND
LIVING CONDITIONS, AND PROVIDE FOR SECURITY AGAINST VIOLENT
INSURGENCY.

[L.C.]

USIA WIRELESS FILE

(xx401,x,
*PO-401 (1/12/84) GOULD/PMK
CONGRESSIONAL REPORT, THURSDAY, JANUARY 12, 1984 (690)
(REACTION TO KISSINGER COMMISSION REPORT)

REACTION TO CENTRAL AMERICAN REPORT DIVIDED --

EARLY CONGRESSIONAL REACTION TO THE KISSINGER COMMISSION'S
JUST-RELEASED RECOMMENDATIONS REGARDING CENTRAL AMERICA
GENERALLY SPLIT ALONG PARTY LINES. REPUBLICANS SUPPORTED
MOST COMMISSION PROPOSALS WHILE LEADING DEMOCRATS EXPRESSED
VARYING RESERVATIONS.

AS NEW YORK TIMES CAPITOL HILL CORRESPONDENT MARTIN
TOLCHIN SUMMED UP: "THE INITIAL REACTION SUGGESTED THE REPORT
HAD FAILED TO GALVANIZE CONGRESS IN THE MANNER OF PREVIOUS
PRESIDENTIAL COMMISSIONS, SUCH AS THOSE ON THE MX MISSILE AND
ON SOCIAL SECURITY, WHICH PROVIDED THE BASIS FOR COMPROMISE
LEGISLATION ON POLITICALLY SENSITIVE ISSUES."

SOME REPUBLICANS, NOTABLY SENATOR ROBERT KASTEN AND
REPRESENTATIVE JACK KEMP, EXPRESSED OPTIMISM THAT A
BIPARTISAN CONSENSUS COULD BE REACHED. KASTEN SAID HE HAD
RECEIVED ENCOURAGING COMMENTS FROM SENATE MAJORITY LEADER
HOWARD BAKER AND SENATE BUDGET COMMITTEE CHAIRMAN PETE
DOMENICI.

BAKER SAID "THE IMPORTANT THING IS THAT THE KISSINGER
COMMISSION AGREED UNANIMOUSLY ON THE MAJOR FEATURES, WHICH
ARE NOT TO LET EL SALVADOR GO DOWN THE DRAIN AND THAT CUBA
AND THE SOVIET UNION ARE NOT GOING TO RUN CENTRAL AMERICA
THROUGH A SURROGATE IN NICARAGUA."

REPUBLICAN SENATOR JOHN CHAFEE SAID SEVERAL SENATORS
RAISED QUESTIONS ABOUT THE VALUE OF ECONOMIC AID WITHOUT
PEACE IN THE REGION BUT "SET GREAT STORE BY" THE APPARENT
CONSENSUS AMONG COMMISSION MEMBERS.

DEMOCRATIC REPRESENTATIVE DANTE FASCELL, WHO IS ACTING
CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE, SAID "WHILE
THERE ARE SOME DISAGREEMENTS AMONG THE MEMBERS, THE
OUTSTANDING FACT IS THAT PROMINENT DEMOCRATS AND REPUBLICANS
REPRESENTING A WIDE POLITICAL SPECTRUM HAVE COME TO A BASIC
ACCORD ON THE MAIN U.S. POLICIES NEEDED TOWARD CENTRAL
AMERICA."

"IT IS SIGNIFICANT THAT THE COMMISSION MEMBERS, BOTH
LIBERALS AND CONSERVATIVES, AGREED THAT INDIGENOUS SOCIAL AND
ECONOMIC INEQUITIES ARE A PRINCIPAL CAUSE OF THE TURMOIL" IN
THE AREA, FASCELL ADDED.

HOWEVER, FASCELL COMMENTED THAT CONGRESS WOULD BE
"RELUCTANT" TO VOTE FOR 8,400 MILLION DOLLARS IN AID, AS THE

[L]

USIA WIRELESS FILE

COMMISSION RECOMMENDS, AT A TIME OF GROWING DEFICITS AND REDUCTIONS IN DOMESTIC PROGRAMS.

SENATE MINORITY LEADER ROBERT BYRD ALSO QUESTIONED THE SIZE OF THE PROPOSED AID PACKAGE. "IT IS HIGHLY QUESTIONABLE FOR A NATION THAT IS RACKING UP 200,000 MILLION DOLLARS A YEAR IN DEFICITS TO CONSIDER POURING" SUCH A SUM INTO CENTRAL AMERICA "AT THIS TIME," BYRD SAID.

REPRESENTATIVE DICK CHENEY, CHAIRMAN OF THE HOUSE REPUBLICAN POLICY COMMITTEE, PRAISED THE REPORT AND SAID "WE'VE GOT TO ACT," BUT CAUTIONED THAT ADMINISTRATION REJECTION OF A PROPOSAL TO TIE MILITARY AID IN EL SALVADOR TO IMPROVEMENTS IN HUMAN RIGHTS COULD JEOPARDIZE THE TWO-YEAR 400 MILLION DOLLAR INCREASE IN MILITARY AID RECOMMENDED BY THE COMMISSION.

IN NOVEMBER, PRESIDENT REAGAN VETOED LEGISLATION THAT TIED U.S. AID TO EL SALVADOR TO CERTIFICATION OF HUMAN RIGHTS PROGRESS. FOLLOWING THE RELEASE OF THE KISSINGER COMMISSION REPORT, THE PRESIDENT EXPRESSED CONFIDENCE THAT A METHOD OF MONITORING HUMAN RIGHTS PROGRESS IN EL SALVADOR CAN BE WORKED OUT WITH CONGRESS.

OTHER DEMOCRATIC PARTY SPOKESMEN QUESTIONED THE BIPARTISAN SUPPORT CITED BY REPUBLICAN SPOKESMEN.

AT A PRESS CONFERENCE JANUARY 11, CHRISTOPHER DODD, A MEMBER OF THE SENATE FOREIGN RELATIONS SUBCOMMITTEE ON WESTERN HEMISPHERE AFFAIRS, SAID "THE REPORT IDENTIFIES THE PROBLEMS BUT OFFERS NO SOLUTION BEYOND SPENDING 8,000 MILLION DOLLARS AND INCREASING MILITARY AID. I DON'T THINK THERE'S GOING TO BE ANY GROUNDSWELL OF SUPPORT."

DODD IS THE AUTHOR OF THE ORIGINAL CERTIFICATION LEGISLATION WHICH PLACED CONDITIONS ON U.S. MILITARY AID TO EL SALVADOR. HE SAID HE WOULD REINTRODUCE SIMILAR LEGISLATION AFTER CONGRESS RECONVENES JANUARY 23.

MICHAEL BARNES, CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON LATIN AMERICA, AND ONE OF EIGHT CONGRESSIONAL ADVISORS TO THE COMMISSION, SAID "OUR REAL OBJECTIVE IN THE REGION IS PEACE, AND THE WHOLE THRUST OF THE REPORT IS THAT THE WAY TO ACHIEVE PEACE IS BY SENDING MORE ARMS."

MEANWHILE, 32 HOUSE DEMOCRATS URGED PRESIDENT REAGAN TO UNDERTAKE MAJOR CHANGES IN U.S. POLICY IN CENTRAL AMERICA. THEY RECOMMENDED "A SHIFT FROM MILITARY CONFRONTATION TO NEGOTIATED SETTLEMENTS OF THE CONFLICTS, AN END TO U.S. COVERT ACTIONS IN NICARAGUA, AND A LINKING OF FURTHER AID TO EL SALVADOR TO HUMAN RIGHTS CERTIFICATION."

*item*

USIA WIRELESS FILE

(xx402,x,
*PO-402 (1/12/84) WHD/SG
(U.S. OPINION) THE KISSINGER REPORT (710)

(U.S. MEDIA HAVE ALREADY COMMENTED EXTENSIVELY ON THE
KISSINGER COMMISSION REPORT ON CENTRAL AMERICA. FOLLOWING IS
A SAMPLING.)

THE WALL STREET JOURNAL:

IF WE CARE WHAT HAPPENS TO THE PEOPLE WHO LIVE IN CENTRAL AMERICA, IT'S EVIDENT THAT THE KISSINGER COMMISSION'S ENDORSEMENT OF SIGNIFICANTLY INCREASED MILITARY AID FOR EL SALVADOR IS PROPER. IT'S PROPER BECAUSE THE CONGRESSIONAL ALTERNATIVE -- MINIMAL MILITARY AID CONTINGENT ON FREQUENT HUMAN-RIGHTS CERTIFICATIONS -- GUARANTEES AN EXTENDED POLITICAL, MILITARY AND ECONOMIC QUAGMIRE...

WE HAVE SOME SERIOUS RESERVATIONS ABOUT THE REPORT'S COMMITMENT TO IDEAS SUCH AS MORE AGENCY-TO-GOVERNMENT AID TRANSFERS THROUGH ITS PROPOSED CENTRAL AMERICAN DEVELOPMENT ORGANIZATION. WHAT'S IMPORTANT NOW, HOWEVER, IS TO FOCUS ON THE NEAR-TERM POLITICAL REACTION TO THE COMMISSION'S REPORT...

IF THE U.S. SHOWS IT'S WILLING TO CONTRIBUTE MILITARY AID SUFFICIENT TO ROLL BACK THE MARXIST ASSAULT ON THE REGION, THEN IT WILL BE WORTH PRESSING THE EFFORT FOR POLICIES THAT WILL CREATE SUSTAINABLE DEMOCRATIC INSTITUTIONS AND REAL GROWTH IN CENTRAL AMERICA.

THE BALTIMORE SUN:

WE AGREE WITH HENRY KISSINGER, WHO IN TURN DISAGREED WITH THE COMMISSION'S MAJORITY, IN QUESTIONING THE WISDOM OF SETTING CONDITIONS ON AID TO EL SALVADOR IN A MANNER THAT COULD LEAD TO A COMMUNIST TAKEOVER. IN THE BODY OF ITS REPORT, THE COMMISSION SUCCINCTLY NOTED THAT THE BELEAGURED SALVADORAN GOVERNMENT IS INVOLVED IN A TWO-FRONT WAR -- ONE AGAINST LEFTIST INSURGENTS AND THE OTHER AGAINST RIGHTWING TERRORISTS TIED UNCOMFORTABLY CLOSE TO ELEMENTS IN THE SALVADORAN ARMY. IT WOULD MAKE NO MORE SENSE TO PUNISH THE SALVADORAN GOVERNMENT FOR LACK OF PROGRESS IN COMBATTING THE DEATH SQUADS THAN IN BATTLING INSURGENTS SEEKING TO SHOOT THEIR WAY TO POWER.

SINCE THE COMMISSION ACCEPTS THE THESIS OF THE TWO-FRONT WAR, ITS DEMAND THAT AID BE MADE STRICTLY CONDITIONAL BECOMES AN EXERCISE IN PIETY. BUT WE WOULD CAUTION THE ADMINISTRATION NOT TO GET HUNG UP ON THIS MATTER AND LOSE SIGHT OF LARGER OBJECTIVES.

[L]

USIA WIRELESS FILE

PAGE 8

TO BUILD A BIPARTISAN COALITION ON A CONTROVERSIAL FOREIGN
POLICY ISSUE REQUIRES HERCULEAN CARPENTRY. IT BECOMES MORE
DIFFICULT IN AN ELECTION YEAR. IF PRESIDENT REAGAN HAS TO
SWALLOW THE KIND OF CERTIFICATION PROCESS FOR SALVADORAN AID
HE HAS TOLERATED FOR THREE YEARS, THEN LET HIM SWALLOW.

* JOSEPH HARSCH IN THE CHRISTIAN SCIENCE MONITOR:

HENRY KISSINGER IS FAMOUS FOR HIS ABILITY TO FIND A MIDDLE
GROUND BETWEEN PRESUMABLY IRRECONCILABLE POSITIONS. BUT WHEN
THE HISPANIC VOTE IN THE UNITED STATES JUST MIGHT DETERMINE
THE OUTCOME OF THE '84 ELECTIONS, THE PROBLEM OF FINDING THAT
MIDDLE WAY FOR CENTRAL AMERICA HAS STRAINED EVEN DR.
KISSINGER'S TALENTS AS THE GREAT MEDIATOR.

* THE WASHINGTON POST:

THE REPORT MAKES A POWERFUL AND INTELLIGENT CASE THAT WHAT
HAPPENS IN CENTRAL AMERICA IS IMPORTANT TO THE UNITED STATES
-- SOMETHING THAT MANY AMERICANS HAVE BEEN SLOW TO RECOGNIZE.
AND FROM THIS IT PROCEEDS WITH FLAWLESS LOGIC TO THE
PROPOSITION THAT AMERICANS SHOULD BE PREPARED TO EXPEND
SUBSTANTIALLY MORE IN AID AND IN POLITICAL ENERGY THAN THEY
ARE SPENDING NOW. IT IS A TRIBUTE TO THE SERIOUSNESS OF THE
COMMISSION MEMBERS AND THE EFFICIENCY OF THE KISSINGER
OPERATION THAT MANY ALL-TOO-FAMILIAR COMMISSION PITFALLS WERE
AVOIDED AND THAT CONSENSUS WAS ACHIEVED ON A NUMBER OF
IMPORTANT POINTS. THERE WAS SOMETHING LESS THAN CONSENSUS,
HOWEVER, ON HOW THE COMMISSION'S AGREED-ON-GOALS WERE TO BE
ACHIEVED, AND THIS IN A WAY THAT GOES TO THE HEART OF THE
MATTER...

MANY OF THE COMMISSION'S SUGGESTIONS -- SUCH AS CLAMPING
DOWN ON SALVADORAN NATIONALS IN MIAMI WHO SUPPORT THE DEATH
SQUADS -- SHOULD BE ACCEPTED REGARDLESS OF WHAT ELSE HAPPENS.
MEANWHILE, THE DEBATE OVER CENTRAL AMERICA POLICY IS LIKELY
TO GO ON, INTENSIFIED BY THIS REPORT.

* THE NEW YORK TIMES:

THIS DISTINGUISED PANEL HAS FOR THE MOST PART CONFERRED
BIPARTISAN BLESSINGS ON THE ADMINISTRATION'S BASIC
CONTENTS -- THAT THE UNITED STATES INDEED HAS A VITAL
STAKE IN CENTRAL AMERICA AND THAT MASSIVE AID IS NEEDED TO
COUNTER LEFTIST REVOLUTIONS ENCOURAGED BY MOSCOW AND
HAVANA...

THE KISSINGER REPORT RECOMMENDS MUCH THAT IS URGENT,
WORTHWHILE AND FEASIBLE. THE FACT THAT CENTRAL AMERICA
FINALLY COMMANDS SERIOUS ATTENTION IN THE UNITED STATES
MARKS A SALUTARY CHANGE. AND THE COMMISSION'S SEARCH FOR

USIA WIRELESS FILE

(xx403,x,
*PO-403 (1/12/84) O'C/WHD/PMK

DEFENSE DEPARTMENT REPORT, THURSDAY, JANUARY 12, 1984
(SHOOTDOWN OF U.S. HELICOPTER OVER HONDURAS) (460)

NEWS BRIEFING -- PENTAGON SPOKESMAN AND ASSISTANT SECRETARY
OF DEFENSE MICHAEL BURCH BRIEFED ON THESE TOPICS:

U.S. HELICOPTER DOWNED BY NICARAGUAN FORCES --

BURCH SAID NICARAGUAN FORCES SHOT DOWN A U.S. HELICOPTER FLYING NEAR THE BORDER BETWEEN HONDURAS AND NICARAGUA JANUARY 11. AFTER THE PILOT RADIOED THAT HIS CRAFT HAD BEEN HIT, HE MADE A CONTROLLED EMERGENCY LANDING ON A HONDURAN ROAD NEAR THE BORDER OF NICARAGUA. WHILE TAKING COVER IN A DITCH, THE PILOT WAS STRUCK BY SMALL ARMS FIRE, BURCH SAID, AND LATER DIED IN A NEARBY HOSPITAL.

ASKED WHETHER THE HELICOPTER MIGHT HAVE OVERFLOWN NICARAGUAN AIRSPACE, BURCH SAID IT WAS IMPOSSIBLE TO KNOW NOW WHETHER IT HAD DONE SO OR NOT. HE INDICATED THAT ONLY THE PILOT MIGHT HAVE KNOWN, SINCE THE TWO PASSENGERS WERE NOT AVIATORS.

BURCH SAID THAT A STANDING NOTICE TO AIRMEN REQUIRED THAT AIRCRAFT STAY AT LEAST FIVE NAUTICAL MILES FROM THE NICARAGUAN BORDER AT ALL TIMES, AND THAT THE FLIGHT PLAN FOR THE DOWNED HELICOPTER WOULD HAVE KEPT IT AT LEAST THAT FAR FROM THE BORDER.

HE SAID THAT THE HELICOPTER LANDED ON A HONDURAN ROAD APPROXIMATELY 25 TO 30 METERS FROM THE BORDER.

FOLLOWING IS THE TEXT OF THE STATEMENT BY BURCH:
(BEGIN TEXT)

AT APPROXIMATELY NINE A.M. EASTERN STANDARD TIME YESTERDAY, JANUARY 11, AN ARMY OH-58 HELICOPTER CARRYING THE PILOT AND TWO PASSENGERS WAS FLYING BETWEEN SAN LORENZE AND AGUACATE, HONDURAS.

THE UNARMED HELICOPTER RECEIVED FIRE FROM WHAT WE NOW BELIEVE TO BE NICARAGUAN FORCES -- WHAT WE NOW BELIEVE IS WHAT WE NOW KNOW WERE NICARAGUAN FORCES.

AFTER THE PILOT RADIOED THAT HIS CRAFT HAD BEEN HIT HE MADE A CONTROLLED EMERGENCY LANDING ON A HONDURAN ROAD NEAR THE BORDER OF NICARAGUA. GROUNDFIRE CONTINUED FROM THE NICARAGUAN FORCES AS THE PILOT AND PASSENGERS GOT OUT OF THE HELICOPTER AND ATTEMPTED TO TAKE COVER IN A DITCH.

[c]

USIA WIRELESS FILE

WHILE IN THE DITCH, THE PILOT, WHO WAS AN ARMY WARRANT OFFICER, WAS STRUCK BY SMALL ARMS FIRE.

THE TWO PASSENGERS, BOTH ARMY ENGINEERS, BOTH CAPTAINS, WERE NOT HIT.

HONDURAN SOLDIERS STATIONED NEAR THE BORDER CAME TO THEIR RESCUE. THEY ASSISTED IN GETTING THE PASSENGERS TO CIENFUENTES. THERE DOCTORS ATTEMPTED TO TREAT THE PILOT BUT WERE UNABLE TO SAVE HIM.

THE PASSENGERS WHO WERE UNHARMED WERE EVENTUALLY TAKEN TO PANABOLA AIRBASE.

HONDURAN FORCES ATTEMPTED TO SECURE THE DOWNED HELICOPTER, BUT ATTEMPTS YESTERDAY TO PUT IT ON A LOWBOY TRAILER WERE UNSUCCESSFUL BECAUSE OF FIRE FROM THE NICARAGUAN SIDE OF THE BORDER.

DURING THE NIGHT THEY WERE FINALLY ABLE TO GET THE HELICOPTER ON A TRAILER AND HAVE REMOVED IT FROM THE IMMEDIATE VICINITY OF THE BORDER.

(END TEXT)

*item*

(c)

USIA WIRELESS FILE

(xx403,x,
*TX-403 (1/12/84) SULLIVAN/SG/PMK

WHITE HOUSE REPORT, THURSDAY, JANUARY 12, 1984 (795)
(SOVIET SPEECH, HELICOPTER ATTACK, RUMSFELD)

NEWS BRIEFING -- DEPUTY PRESS SECRETARY LARRY SPEAKES
COVERED THESE TOPICS:

SOVIET SPEECH GOALS OUTLINED --

SPEAKES SAID THAT PRESIDENT REAGAN PLANS TO DEVOTE AN
ENTIRE SPEECH TO THE STATE OF RELATIONS BETWEEN THE UNITED
STATES AND THE SOVIET UNION BECAUSE HE WANTS MOSCOW TO KNOW
HE IS "DETERMINED TO MAINTAIN A REALISTIC AND PRODUCTIVE
WORKING RELATIONSHIP" BETWEEN THE TWO COUNTRIES.

THE SPEECH IS TO BE DELIVERED JANUARY 16 AT 1500 GMT FROM
THE EAST ROOM, TO AN AUDIENCE OF CABINET OFFICERS, FORMER
GOVERNMENT OFFICIALS AND MEMBERS OF CONGRESS. SPEAKES SAID
IT IS NOT DESIGNED TO MAKE NEW PROPOSALS, BUT TO EXPLAIN THE
PRESIDENT'S ATTITUDE AND POLICY TOWARD MOSCOW.

HE SAID THE PRESIDENT BELIEVES IT IS "TIMELY AND
APPROPRIATE TO PROVIDE A GENERAL TREATMENT OF U.S.-SOVIET
RELATIONS. THE PRESIDENT WANTS THE SOVIET LEADERSHIP AND THE
SOVIET PEOPLE TO KNOW THAT WE ARE DETERMINED TO MAINTAIN A
REALISTIC AND PRODUCTIVE WORKING RELATIONSHIP BETWEEN OUR TWO
COUNTRIES."

"I WOULD SAY THE PREMISE OF THE SPEECH IS NOT TO MAKE NEW
PROPOSALS -- WE HAVE DIPLOMATIC CHANNELS FOR THAT -- BUT TO
EXPLAIN THE PRESIDENT'S ATTITUDE AND POLICY TOWARD THE SOVIET
UNION. THE PRESIDENT IS SPEAKING OUT BECAUSE HE HAS A
GENUINE DESIRE TO IMPROVE THE RELATIONSHIP WITH THE SOVIET
UNION AND BELIEVES IT WILL BE HELPFUL AT THIS TIME TO SPEAK
OUT ON HIS GOALS," SPEAKES SAID.

SPEAKES TOLD QUESTIONERS THAT THE REPORT ON POSSIBLE
SOVIET VIOLATIONS OF THE SALT ONE AND SALT TWO AGREEMENTS "IS
NEARING COMPLETION" AND WILL BE SENT TO CONGRESS IN THE NEXT
TWO TO THREE WEEKS. BRIEFINGS FOR CONGRESS WILL START IN THE
NEXT FEW DAYS, HOWEVER.

THE ADMINISTRATION IS NOT EMBARRASSED BY THE TIMING OF THE
REPORT AND THE SPEECH, "(WASHINGTON POST COLUMNIST) MARY
MCGRORY NOTWITHSTANDING," SPEAKES SAID. MCGRORY HAD A
JANUARY 12 COLUMN ASSERTING THAT WHITE HOUSE OFFICIALS ARE
"UNHAPPY AT THE AWKWARD COINCIDENCE" OF THE TWO EVENTS.

USIA WIRELESS FILE

HE SAID ONE REASON THE SPEECH IS APPROPRIATE AND TIMELY
NOW IS THE FORTHCOMING MEETING IN STOCKHOLM BETWEEN SECRETARY
OF STATE SHULTZ AND SOVIET FOREIGN MINISTER GROMYKO.

THE SPEECH WILL BE SEEN VIA SATELLITE TO EUROPE, IN PART
BECAUSE THE PRESIDENT WANTS EUROPEANS TO "UNDERSTAND OUR
POLICY AS WELL AS THE SCVIETS AND THE AMERICAN PEOPLE. THEY
CAN UNDERSTAND THE PRESIDENT BETTER WHEN THEY HEAR HIM SPEAK
IN A FASHION WHERE HE LAYS IT ALL OUT."

ASKED IF THE SPEECH IS IN PART DIRECTED AT A DOMESTIC
AUDIENCE FEARFUL OF A NEW COLD WAR, SPEAKES SAID, "WE'RE
DOING WHAT WE THINK IS RIGHT; POLITICS BE DAMNED."

HE SAID REAGAN MAY REFER TO THE ATTACHED SOVIET VIOLATIONS
IN HIS SPEECH. WHEN ASKED IF REAGAN STILL REGARDS MOSCOW AS
THE "FOCUS OF EVIL," SPEAKES SAID, "HE HASN'T CHANGED. YOU
MAY REGARD THAT AS HIS CFINION."

CHOPPER ATTACK CONDEMNED --

SPEAKES ISSUED A STATEMENT CONDEMNING THE NICARAGUAN
ATTACK ON A U.S. HELICOPTER NEAR THE NICARAGUA-HONDURAS
BORDER AND CALLING THE SUBSEQUENT SHOOTING OF THE AMERICAN
PILOT ON THE GROUND "RECKLESS AND UNPROVOKED."

SPEAKES SAID THE PRESIDENT HAS NOT ORDERED AN
INVESTIGATION INTO POSSIBLE VIOLATION OF HIS DIRECTIVE ON
AVOIDING TERRITORY NEAR NICARAGUA'S BORDERS DURING THE
MILITARY OPERATION "BIG FINE TWO." HE SAID THE DEFENSE
DEPARTMENT IS INVESTIGATING THE CRASH AS A MATTER OF ROUTINE.

SPEAKES SAID ANY FURTHER U.S. ACTION, BEYOND THE STRONG
PROTEST LODGED WITH MANAGUA, WOULD DEPEND ON NICARAGUA'S
RESPONSE TO THE PROTEST.

FOLLOWING IS THE TEXT OF SPEAKES' STATEMENT:
(BEGIN TEXT)

THE PRESIDENT TODAY CONDEMNED THE SHOOTING DOWN OF AN
UNARMED AMERICAN HELICOPTER BY THE NICARAGUAN MILITARY. THE
FATAL ATTACK ON THE AMERICAN AND HIS TWO U.S. PASSENGERS
OCCURRED AFTER THE AIRCRAFT WAS DOWNED IN HONDURAN TERRITORY,
AND AFTER THE PILOT HAD LEFT THE HELICOPTER. THIS WE REGARD
AS RECKLESS AND UNPROVOKED.

A BRAVE AMERICAN WAS KILLED, CHIEF WARRANT OFFICER JEFFREY
C. SCHWAB OF JOLIET, ILLINOIS, THE PILOT OF THE HELICOPTER.
THE PRESIDENT OFFERS HIS DEEPEST CONDOLENCES TO HIS FAMILY.

THE INCIDENT WAS PROTESTED IMMEDIATELY IN THE STRONGEST
TERMS TO THE NICARAGUAN GOVERNMENT AND WE ARE AWAITING ITS
EXPLANATION OF THE EVENT. WE HAVE PUT THE NICARAGUANS ON
NOTICE THAT THIS ACTION IS UNACCEPTABLE.

(END TEXT)

[L.C.]

USIA WIRELESS FILE

RUMSFELD IN SYRIA --

SPEAKES SAID THE PRESIDENT'S MIDEAST ENVOY IS IN DAMASCUS. HE SAID THE UNITED STATES ASSUMES RUMSFELD WILL MET WITH PRESIDENT ASSAD. SPEAKES WOULD NOT SAY WHEN THE MEETING IS EXPECTED OR HOW LONG RUMSFELD INTENDED TO STAY IN DAMASCUS.

COMMENTING ON A NEWS REPORT SAYING REAGAN HAD DECIDED TO
KEEP THE U.S. MARINES IN BEIRUT AT THEIR AIRPORT LOCATION,
SPEAKES SAID NO DECISION WAS NECESSARY SINCE NO CHANGE IN
POLICY WAS INVOLVED.

*item*

[c]

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(xx404,x,
*PO-404 (1/12/84) O'C/SG
(FOLLOWING FS MATERIAL, BASED ON PRESS REPORTS, IS FOR
DISTRIBUTION TO MISSION STAFF ONLY AND NOT FOR PUBLICATION)

NEWS ROUNDUP, THURSDAY, JANUARY 12, 1984 (300)

FIGHTING CONTINUES IN BEIRUT --

FIGHTING CONTINUED AROUND THE SOUTHEAST EDGES OF BEIRUT
JANUARY 12 AS EFFORTS TO REACH AGREEMENT ON A DISENGAGEMENT
PLAN SEEMED TO MAKE LITTLE PROGRESS.

THE SHELLING BY TANKS AND MORTARS EXTENDED TO NEARBY TOWNS
IN THE ALEY MOUNTAINS NEAR BEIRUT, WITH THE LEBANESE ARMY
PITTED AGAINST MOSLEM DRUZE MILITIAMEN.

THE DISENGAGEMENT PLAN IS STILL OPPOSED BY DRUZE LEADER
WALID JUMBLATT, WHO IS SUPPORTED BY SYRIA.

SOVIETS DENY PIPELINE DAMAGE --

A SOVIET OFFICIAL DENIED JANUARY 11 THAT THE SIBERIA-TO-
EUROPE NATURAL GAS PIPELINE WAS SERIOUSLY DAMAGED BY AN
EXPLOSION LAST MONTH, BUT ADMITTED THERE HAD BEEN A FIRE.

EARLIER REPORTS HAD SAID AN EXPLOSION AND FIRE IN DECEMBER
DESTROYED THE URENGOY CONTROL CENTER AND CITED FRENCH EXPERTS
WHO BELIEVED THE PROJECT MIGHT NOT BE FULLY OPERATIONAL UNTIL
THE END OF 1985.

TSONGAS ANNOUNCES RETIREMENT --

SENATOR PAUL TSONGAS OF MASSACHUSETTS JANUARY 12 ANNOUNCED
THAT HE WILL NOT SEEK REELECTION TO A SECOND TERM THIS FALL.

TSONGAS, 42, SAID A CHRONIC ILLNESS LEFT HIM "NO OTHER
CHOICE." HE DID NOT SPECIFY THE NATURE OF THE ILLNESS, BUT
SAID IT WAS NOT SO SERICUS HE COULD NOT HAVE CAMPAIGNED AND
SERVED A SECOND TERM.

HE SAID, HOWEVER, THAT "TO AVOID FURTHER SACRIFICE TO THE
FAMILY IN THE YEARS AHEAD, I WOULD HAVE HAD TO TAKE MY SENATE
RESPONSIBILITIES FAR LESS SERIOUSLY."

STOCKS UP --

THE DOW JONES AVERAGE OF 30 INDUSTRIALS ROSE 1.99 POINTS
TO CLOSE AT 1,279.31 JANUARY 12.

[L.C.]

USIA WIRELESS FILE

(xx404,x,
*TX-404 (1/12/84) SULLIVAN/PMK/TX/RL/LB
REAGAN 'DETERMINED' TO STABILIZE U.S.-CHINA RELATIONS (890)
(ARTICLE ON REAGAN/ZHAO MEETING, WHITE HOUSE BRIEFING)
BY ALEXANDER M. SULLIVAN
USIA WHITE HOUSE CORRESPONDENT

*
WASHINGTON -- PRESIDENT REAGAN IS "MORE DETERMINED THAN EVER" TO PLACE U.S. RELATIONS WITH THE PEOPLE'S REPUBLIC OF CHINA "ON A STABLE AND ENDURING FOOTING," HE SAID JANUARY 12.

IN REMARKS AT THE CONCLUSION OF PREMIER ZHAO ZIYANG'S STATE VISIT TO WASHINGTON, THE PRESIDENT SAID HE IS "MORE CONVINCED THAN EVER" OF THE "IMPORTANCE OF GOOD U.S.-CHINA RELATIONS." HE SAID LEADERS OF THE TWO COUNTRIES "SHOULD COME TOGETHER REGULARLY TO COMPARE NOTES." ZHAO LEFT FOR SAN FRANCISCO AND NEW YORK FOLLOWING SIGNING OF TWO COOPERATIVE AGREEMENTS IN THE WHITE HOUSE EAST ROOM.

REAGAN SAID HE AND ZHAO HAD DISCUSSED A VARIETY OF BILATERAL AND INTERNATIONAL ISSUES, INCLUDING SECURITY ON THE KOREAN PENINSULA AND THE KNOTTY PROBLEM OF UNOFFICIAL U.S. TIES TO THE REPUBLIC OF CHINA ON TAIWAN.

HE SAID HE AND ZHAO, EVEN WHERE THEY DISAGREED, "WERE ABLE TO CLARIFY OUR RESPECTIVE POSITIONS." AND HE NOTED THAT ALTHOUGH THEIR RESPECTIVE STRATEGIES MAY DIFFER, "OUR GOALS REMAIN THE SAME. WE BOTH ARE COMMITTED TO PEACE AND STABILITY IN THE WORLD..."

REAGAN SAID THE TWO NATIONS HAD MADE "CONSIDERABLE PROGRESS" IN THEIR BILATERAL RELATIONS, AND HE POINTED OUT THE ECONOMIC COOPERATION BETWEEN WASHINGTON AND BEIJING, "DESPITE OCCASIONAL PROBLEMS, IS HEALTHY AND HOLDS ENORMOUS PROMISE."

TO HELP REALIZE THAT PROMISE, THE TWO LEADERS TOOK PART IN THE SIGNING OF TWO PACTS, ONE RENEWING A COOPERATIVE AGREEMENT ON SCIENCE AND TECHNOLOGY, AND THE SECOND ESTABLISHING AN ACCORD ON COOPERATION IN INDUSTRIAL TECHNOLOGY.

THE RENEWAL WAS SIGNED BY THE PRESIDENT'S SCIENCE ADVISER, GEORGE KEYWORTH, AND KEYWORTH'S COUNTERPART, ZHAO DONGWAN. THE INDUSTRUAL AGREEMENT WAS SIGNED BY THE PRESIDENT AND THE PREMIER.

THE SCIENCE AND TECHNOLOGY AGREEMENT IS A FIVE-YEAR EXTENSION OF THE PACT ORIGINALLY SIGNED IN 1979 DURING THE VISIT OF CHINESE LEADER DENG XIAOPING. THERE ARE 21 SAPARATE PROTOCOLS COVERING AREAS RANGING FROM HEALTH TO BASIC SCIENCE TO MARINE FISHERIES.

USIA WIRELESS FILE

[L]

THE NEW INDUSTRIAL AGREEMENT WILL FOCUS ATTENTION ON AREAS
OF GREATEST CHINESE INTEREST, INCLUDING DEVELOPMENT OF COAL
AND PETROLEUM RESOURCES AND EXPANSION OF TRANSPORTATION AND
TELECOMMUNICATIONS FACILITIES.

A SENIOR ADMINISTRATION OFFICIAL, COMMENTING ON ZAHO'S
HEAVY SCHEDULE OF MEETING WITH REAGAN AND OTHER TOP U.S.
OFFICIALS, SAID THE VISIT HAD "LIVED UP VERY WELL TO THE
OBJECTIVES WE HAD SET FOR IT."

IN ADDITION TO HIS SESSIONS WITH REAGAN -- WHICH INCLUDED
A FINAL 10-MINUTE PRIVATE MEETING WITH ONLY INTERPRETERS
PRESENT JANUARY 12 -- ZHAO MET SEPARATELY WITH SECRETARY OF
STATE SHULTZ DEFENSE SECRETARY WEINBERGER, TREASURY SECRETARY
REGAN AND COMMERCE SECRETARY BALDRIGE. HE MET WITH
CONGRESSIONAL LEADERS AND IS SCHEDULED TO MEET IN NEW YORK
THIS WEEKEND WITH FORMER SECRETARIES OF STATE VANCE AND
KISSINGER AND WITH FORMER NATIONAL SECURITY AFFAIRS ADVISER
BRZEZINSKI.

THE OFFICIAL SAID THE TWO COUNTRIES SIGNIFICANTLY NARROWED
THEIR DIFFERENCES IN DISCUSSION OF A NUCLAR ENERGY AGREEMENT.
ALTHOUGH NOTABLE OBSTACLES REMAIN -- MAINLY ON THE
REQUIREMENTS OF GUARANTEES ABOUT RE-PROCESSING OF NUCLAR FUEL
REQUIRED BY U.S. LAW -- THE OFFICIAL SAID THE TWO SIDES
"WORKED OUT CLEARER POSITIONS" ON THE POINTS IN CONTENTION.

HE DREW ATTENTION TO A NEW STATEMENT OF NON-PROLIFERATION
POLICY ISSUED BY THE PREMIER JANUARY 21 HE QUOTED THE PREMIER
AS SAYING THAT CHINA DOES NOT ADVOCATE OR ENOURAGE THE SPREAD
OF NUCLEAR WEAPONS. HE SAID THAT STATEMENT AND CHINA'S
ACCEPTANCE OF INTERNATIONAL ATOMIC ENERGY AGENCY SAFEGUARDS,
WERE "IMPORTANT STEPS IN THE EVOLUTION" OF BEIJING'S NUCLEAR
POLICY.

THE OFFICIAL SAID HE COULD NOT PREDICT WHETHER THE TWO
SIDS WOULD BE ABLE TO MAKE SUFFICIENT PROGRESS ON THE
AGREEMENT TO PERMIT ITS SIGNATURE WHEN PRESIDENT REAGAN
VISITS CHINA IN APRIL. HE SAID WASHINGTON WELCOMES ZHAO'S
NUCLEAR POLICY STATEMENT. IN THE PAST, CHINA HAS SUPPLIED
NUCLEAR RESOURCES TO NATIONS WHICH HAVE NOT ADHERED TO THE
NUCLEAR NON-PROLIFERATION TREATY, SUCH AS ARGENTINA.
ARGENTINA, UNDER ITS PREVIOUS MILITARY RULERS, WAS THOUGHT TO
BE ATTEMPTING DEVELOPMENT OF NUCLEAR WEAPONS.

THE OFFICIAL SAID THAT IN ADDITION TO DISCUSSION OF THE
KOREAN PENINSULA BY REAGAN AND ZHAO, SHULTZ AND FOREIGN
MINISTER WU ALSO DISCUSSED THE MATTER JANUARY 11. HE SAID
THE UNITED STATES IS "LOOKING SERIOUSLY" AT THE PROPOSAL BY
NORTH KOREA FOR TALKS ON UNIFICATION INVOLVING THE UNITED
STATES, SOUTH KOREA AND NORTH KOREA.

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USIA WIRELESS FILE

BUT THE OFFICIAL NOTED THAT WASHINGTON IS "ACUTELY
CONSCIOUS" THAT THE PROPOSAL COMES FROM A NATION HELD
RESPONSIBLE FOR THE BOMB EXPLOSION IN RANGOON, BURMA, WHICH
KILLED FOUR SOUTH KOREAN CABINET OFFICERS AND A DOZEN OTHER
SOUTH KOREAN NATIONALS, AND WHICH ATTEMPTED TO INFILTRATE
SABOTEURS INTO SOUTH KOREA LAST MONTH.

HE SAID WASHINGTON IS SEEKING AS WELL TO SEPARATE
SUBSTANCE FROM PROPAGANDA IN NORTH KOREA'S PROPOSAL, WHICH,
HE NOTED, WAS MADE PUBLICLY, NOT THROUGH DIPLOMATIC CHANNELS.

A NEW ELEMENT IN THE BROADCAST PROPOSAL, HE SAID, IS THE
STATED WILLINGNESS OF NORTH KOREA TO HOLD DIRECT DISCUSSIONS
WITH THE GOVERNMENT OF SOUTH KOREA. ALTHOUGH SOUTH KOREA
ISSUED A STATEMENT DEMANDING AN APOLOGY FROM NORTH KOREA FOR
THE RANGOON BEFORE CONSIDERING THE NEW PROPOSAL, THE OFFICIAL
POINTED OUT SOUTH KOREA HAS REPEATEDLY STATED ITS DESIRE TO
PURSUE REDUCTION OF TENSIONS ON THE PENINSULA.

HE SAID WASHINGTON BELIEVES THAT "BENEATH THE SURFACE OF
THE PUBLIC PRONOUNCEMENTS," CHINA IS "SERIOUSLY LOOKING" FOR
WAYS TO REDUCE TENSION. HE CALLED THAT "A PROMISING
DEVELOPMENT."

*item*

(L)

USIA WIRELESS FILE

(xx401,x,
*EC-401 (1/12/84) JS/JF/TE/GB
ECONOMIC HIGHLIGHTS, THURSDAY, JANUARY 12, 1984 (99)
(BUSINESS SPENDING, GOVERNMENT WASTE, BUDGET COMMENTS)

U.S. BUSINESS PLANS STRONG INVESTMENT INCREASES --

NONFARM BUSINESSES IN THE UNITED STATES PLAN 1984
INCREASES IN NEW PLANT AND EQUIPMENT EXPENDITURES THAT ARE
LARGER THAN USUAL FOR THIS STAGE OF THE ECONOMIC RECOVERY.

THE DEPARTMENT OF COMMERCE REPORTED JANUARY 12 THAT
BUSINESSES PLAN TO INCREASE NEW PLANT AND EQUIPMENT SPENDING
BY 9.4 PERCENT AFTER ADJUSTMENT FOR INFLATION. THIS FOLLOWS
A DECLINE OF 3.5 PERCENT FROM 1982 TO 1983.

THE AVERAGE INCREASE IN BUSINESS SPENDING FOR THE SECOND
YEAR OF POST-1950 RECOVERIES HAS BEEN ABOUT 7.5 PERCENT,
ACCORDING TO ONE COMMERCE DEPARTMENT ECONOMIST. IF THE
PATTERN OF BUSINESSES UNDERESTIMATING ACTUAL INVESTMENT
DURING THE MIDDLE STAGES OF RECOVERY CONTINUES TO HOLD TRUE,
HE ADDED, THEN ACTUAL PLANT AND EQUIPMENT EXPENDITURES COULD
BE HIGHER THAN THE 9.4 PERCENT.

THE 3.5 PERCENT DROP IN SPENDING LAST YEAR WAS ALSO
SLIGHTLY STEEPER THAN THE AVERAGE DROP OF ABOUT THREE PERCENT
FOR THE POST-1950 RECOVERIES.

THE 9.4 PERCENT FIGURE APPLIES TO THE NONFARM ECONOMY AS A
WHOLE. THE PLANNED INCREASE IN THE MANUFACTURING SECTOR
ALONE IS EVEN SHARPER.

IN A STATEMENT, SECRETARY OF COMMERCE MALCOLM BALDRIGE
COMMENTED:

"CAPITAL EXPENDITURES PLANNED FOR THIS YEAR SHOULD RAISE
REAL PURCHASES OF NEW PLANT AND EQUIPMENT NEAR A RECORD HIGH.
BUSINESSES ARE RAPIDLY INCREASING INVESTMENT IN NEW
FACILITIES AS THE ECONOMY CONTINUES EXPANDING.

"I AM PARTICULARLY PLEASED BY THE 13-PERCENT REAL GAIN IN PURCHASES OF PLANT AND EQUIPMENT THAT MANUFACTURERS ANTICIPATE FOR 1984. TWO RECESSIONS AND THE RUNUP OF THE DOLLAR HAVE EXACTED HEAVY TOLLS IN MANY SECTORS, AND SUBSTANTIAL MODERNIZATION PROGRAMS TO IMPROVE PRODUCTIVITY ARE NEEDED TO RESTORE U.S. TECHNOLOGICAL LEADERSHIP. CAPITAL SPENDING NOT ONLY PROVIDES JOBS AND INCOME IN THE SHORT RUN, BUT ALSO ENSURES DEVELOPMENT OF PRODUCTIVE CAPACITY NEEDED TO SUSTAIN REAL ECONOMIC GROWTH IN THE YEARS TO COME."

BY MAJOR SECTORS, SOME OF THE LARGEST PLANNED INCREASES
INCLUDE 33.7 PERCENT IN MOTOR VEHICLES AND 24.1 PERCENT IN
ELECTRICAL MACHINERY.

*

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USIA WIRELESS FILE

PAGE 21

REPORT RECOMMENDS GOVERNMENT COST-CUTTING MEASURES --

A PRIVATE SECTOR STUDY COMMISSION APPOINTED BY PRESIDENT REAGAN SAYS IT CAN SAVE THE FEDERAL GOVERNMENT 424,000 MILLION DOLLARS OVER THREE YEARS THROUGH COST-CUTTING AND REVENUE-ENHANCING MEASURES -- IF ALL 2,478 OF ITS RECOMMENDATIONS ARE ADOPTED.

THE CHAIRMAN OF THE PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL, J. PETER GRACE, TOLD REPORTERS JANUARY 12 THAT THE COMMISSION'S 656-PAGE, TWO-VOLUME REPORT ON INEFFICIENCY IN THE FEDERAL GOVERNMENT REPRESENTS "THE MOST EXTENSIVE ANALYSIS OF GOVERNMENT OPERATIONS EVER UNDERTAKEN."

GRACE SAID THE REPORT WAS PUT TOGETHER BY OVER 160 BUSINESS EXECUTIVES AND A STAFF OF 2,000 VOLUNTEERS, AND TOOK 18 MONTHS TO PREPARE. THE SURVEY SUGGESTS ACTIONS THAT THE PRESIDENT, THE U.S. CONGRESS AND INDIVIDUAL FEDERAL AGENCIES COULD TAKE TO REDUCE UNNECESSARY COSTS.

THE REPORT WARNS THAT WITHOUT MAJOR CHANGES IN GOVERNMENT OPERATIONS THE ANNUAL BUDGET DEFICIT COULD INCREASE TO AN ASTRONOMICAL 2,000,000 MILLION DOLLARS BY THE YEAR 2000 -- USING CURRENT DOLLARS AND ASSUMING A SEVEN-PERCENT RATE OF INFLATION EACH YEAR TILL THAT TIME. IF THE SURVEY'S PLAN IS IMPLEMENTED, HOWEVER, THE DEFICIT WOULD BE ONLY 37,000 MILLION DOLLARS IN 2000, ACCORDING TO THE REPORT. LAST YEAR'S DEFICIT STOOD AT A RECORD 195,400 MILLION DOLLARS.

GRACE SAID THAT OF THE TOTAL SAVINGS POSSIBILITIES RECOMMENDED BY THE SURVEY, ABOUT 94,000 MILLION DOLLARS ARE FROM DEFENSE-RELATED AREAS. FOR EXAMPLE, THE REPORT RECOMMENDS A THREE-YEAR SAVING OF 3,100 MILLION DOLLARS FROM CLOSING EXCESS MILITARY BASES. GRACE SAID ANOTHER 60,900 MILLION DOLLARS IN SAVINGS OVER THREE YEARS WOULD RESULT FROM REVISION OF FEDERAL RETIREMENT PLANS, WHICH HE SAID CURRENTLY OFFER GOVERNMENT EMPLOYEES THREE TO SIX TIMES THE BENEFITS OF PRIVATE PENSION PLANS.

THE REPORT POINTS OUT THAT 73 PERCENT OF ITS RECOMMENDATIONS WOULD REQUIRE CONGRESSIONAL ACTION, WHILE 27 PERCENT COULD BE IMPLEMENTED BY PRESIDENTIAL AUTHORITY.

BIPARTISAN COMMITTEE URGES ACTION ON DEFICITS --

THE HUGE FEDERAL BUDGET DEFICITS IN PROSPECT IN COMING YEARS THREATEN TO REIGNITE INFLATIONARY PRESSURES AND CAUSE OTHER DAMAGE, ACCORDING TO THE BIPARTISAN "COMMITTEE TO FIGHT INFLATION." IT SAYS THE REAGAN ADMINISTRATION AND CONGRESS MUST ACT QUICKLY TO REDUCE THEM.

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USIA WIRELESS FILE

PAGE 22

THE COMMITTEE, CREATED IN 1980 AND MADE UP OF FORMER TOP GOVERNMENT OFFICIALS INCLUDING FOUR FORMER SECRETARIES OF THE TREASURY, RELEASED A STATEMENT TO REPORTERS JANUARY 12.

IT REJECTS THE NOTION THAT DEFICITS MIGHT BE BROUGHT DOWN SIMPLY THROUGH THE EFFECTS OF ECONOMIC GROWTH IN COMING YEARS, WITH NO TAX INCREASES. THE COMMITTEE SAYS THE CURRENT PROJECTIONS OF LARGE DEFICITS ALREADY ASSUME A PERSISTENTLY HIGH LEVEL OF GROWTH IN COMING YEARS THAT IS UNLIKELY TO BE ACHIEVED.

THE COMMITTEE OUTLINED A PACKAGE OF SPENDING CUTS AND TAX INCREASES THAT IT FEELS COULD BE ENACTED TO LOWER THE DEFICITS, BUT EMPHASIZED THAT OTHER COMBINATIONS WOULD BE ACCEPTABLE. "THE NEED TO TAKE PROMPT ACTION AGAINST THE PROSPECTIVE DEFICITS VASTLY OUTWEIGHS THE NEED TO DO SO IN ANY PARTICULAR WAY," IT STATED.

ONE OF THE REQUIREMENTS FOR A SUCCESSFUL ATTACK ON THE PROBLEM, ACCORDING TO THE COMMITTEE, IS THAT "BOTH THE PUBLIC AND OUR ELECTED LEADERS...ACCEPT THE FACT THAT SOME HIGHLY MERITORIOUS PROVISIONS OF OUR PRESENT TAX AND/OR SPENDING PROGRAMS MUST BE MODIFIED IN THE GREATER INTEREST OF NARROWING THE PROSPECTIVE DEFICITS."

THE COMMITTEE, WHOSE PRINCIPAL CONCERN IN THE PAST HAS BEEN OVER INFLATION, ALSO STATED THAT A PERSISTENT LEVEL OF INFLATION OF AROUND FIVE PERCENT -- WHICH IS FORESEEN BY A NUMBER OF ANALYSTS -- "IS NOT ACCEPTABLE."

THE MOST URGENT REQUIREMENT FOR KEEPING THE TREND OF INFLATION DOWNWARD IS THAT THE FEDERAL RESERVE -- THE U.S. CENTRAL BANK -- AVOID EXCESSIVELY STIMULATIVE MONETARY POLICIES, IT SAID. BUT IT WARNED THAT THE EFFECTS OF THE LARGE BUDGET DEFICITS AND THE PROBLEMS OF DEBTOR NATIONS MAY PUT THE FEDERAL RESERVE "UNDER SEVERE PRESSURE TO ABANDON THE PRESENT ANTI-INFLATION STANCE OF MONETARY POLICY IN AN EFFORT TO BRING...(INTEREST RATES) DOWN -- AN EFFORT THAT WILL NOT SUCCEED."

*item*

Ld

USIA WIRELESS FILE

(xx425,x,

*PO-405 (1/12/84) RD/DJM/PMK

(EXCERPTS: SHULTZ REMARKS ON 'WORLDNET') (4000)

* WASHINGTON -- SECRETARY OF STATE SHULTZ TOLD AN INTERNATIONALLY-TELEVISED NEWS CONFERENCE JANUARY 12 THAT IT WOULD NOT BE APPROPRIATE TO OFFER CONCESSIONS SOLELY FOR THE SAKE OF RESUMING NEGOTIATIONS WITH THE SOVIET UNION ON REDUCING INTERMEDIATE-RANGE NUCLEAR FORCES (INF) IN EUROPE.

RESPONDING TO QUESTIONS FROM EUROPEAN JOURNALISTS ON "WORLDNET," THE U.S. INFORMATION AGENCY'S PUBLIC AFFAIRS PROGRAM TRANSMITTED WORLDWIDE BY SATELLITE TELEVISION, SHULTZ SAID THAT HE WAS PREPARED TO DISCUSS "THE FULL RANGE OF ISSUES" WHEN HE MEETS WITH SOVIET FOREIGN MINISTER ANDREI GROMYKO JANUARY 18 IN STOCKHOLM.

SHULTZ DECLINED TO SPECULATE ON THE MOTIVES FOR THE SOVIETS' BREAKING OFF THE GENEVA INF NEGOTIATIONS LAST NOVEMBER, BUT HE SAID "ONE OF THE SEEMING OBJECTIVES" APPEARED TO BE TO TRY TO SPLIT THE ATLANTIC ALLIANCE.

SHULTZ EMPHASIZED THAT THE UNITED STATES IS PREPARED TO RESUME THE ARMS TALKS IN GENEVA. HE ALSO SAID THAT THE UNITED STATES HAS NO INDICATION THAT THE SOVIET GOVERNMENT IS IN ANY WAY PARALYZED AND "SO FAR AS WE KNOW, MR. ANDROPOV REMAINS IN CHARGE."

HE SAID THE UNITED STATES IS READY FOR WARMER RELATIONS WITH MOSCOW, POINTING OUT THAT IT TAKES TWO PARTIES TO BRING ABOUT A "THAW" IN RELATIONS.

THE SECRETARY SAID THE WESTERN ALLIES WOULD PUT FORWARD CONCRETE PROPOSALS AT THE STOCKHOLM CONFERENCE ON DISARMAMENT IN EUROPE (CDE) NEXT WEEK AIMED AT INCREASING CONFIDENCE AND REDUCING TENSIONS IN EUROPE.

SHULTZ ALSO MADE THE FOLLOWING POINTS:

-- THE KISSINGER COMMISSION'S REPORT ON CENTRAL AMERICA REPRESENTS "AN OUTSTANDING CONTRIBUTION TO OUR THINKING" ABOUT THAT REGION. MEMBERS OF THE COMMISSION AGREED ON "SOME VERY FUNDAMENTAL THINGS, INCLUDING FIRST AND FOREMOST THE IMPORTANCE TO THE UNITED STATES OF RECOGNIZING THE PROBLEMS IN CENTRAL AMERICA" AND DOING SOMETHING "COMPREHENSIVE" ABOUT THOSE PROBLEMS.

-- HUMAN RIGHTS ARE "AN ESSENTIAL INGREDIENT" OF U.S. FOREIGN POLICY AND "IT'S PART OF OUR WAY OF LIFE...TO BE CONCERNED ABOUT THE FATE OF HUMAN BEINGS EVERYWHERE," ESPECIALLY IN PLACES LIKE CENTRAL AMERICA WHERE THE UNITED STATES IS HEAVILY INVOLVED. THERE IS "NO DIFFERENCE OF OPINION WITHIN THE UNITED STATES ON THE IMPORTANCE OF THIS

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USIA WIRELESS FILE

OBJECTIVE AND... GIVEN THAT FACT... WE WILL FIND THE BEST POSSIBLE WAY OF GETTING AT THAT BROAD OBJECTIVE."

-- DISCUSSIONS WITH THE SYRIANS ABOUT THE LEBANESE SITUATION HOPEFULLY WILL BECOME "INCREASINGLY SERIOUS." IT IS HOPED THAT "SOME CONCRETE STEPS MAY BE WORKED OUT" DURING U.S. NEGOTIATOR RUMSFELD'S UPCOMING DISCUSSIONS IN SYRIA, THAT ARE EXPECTED TO INCLUDE TALKS WITH PRESIDENT ASSAD. THE "PROCESS OF DISCUSSION TOWARD THE OBJECTIVE" OF "GREATER STABILITY AND PEACE IN LEBANON IS VERY MUCH IN PROCESS."

-- IF THE SITUATION IN LEBANON STABILIZES OVER TIME, UNIFIL (U.N. INTERIM FORCE IN LEBANON) WILL HAVE A DIFFERENT ROLE AND MANDATE. UNIFIL HAS A "POTENTIAL ROLE" IN "OBSERVING WHAT GOES ON AROUND THE PALESTINIAN REFUGEE CAMPS," AND "THERE WILL BE OTHER ROLES THAT UNIFIL CAN PERFORM -- PERHAPS EVEN IN AND AROUND BEIRUT, BUT THAT REMAINS TO BE SEEN." SOVIET AND SYRIAN UNWILLINGNESS TO SEE U.N. REPRESENTATION IN THESE KINDS OF FUNCTIONS HAS BEEN A PROBLEM "RIGHT FROM THE BEGINNING" AND IS THE REASON "WHY UNIFIL WASN'T USED IN THE FIRST PLACE IN BEIRUT."

-- A SUMMIT MEETING BETWEEN PRESIDENT REAGAN AND SOVIET LEADER ANDROPOV SHOULD ONLY TAKE PLACE IF THERE IS "A REASONABLE EXPECTATION OF SOME WORTHWHILE RESULTS." HAVING A MEETING "FOR THE SAKE OF A MEETING COULD DO POSSIBLY MORE HARM THAN GOOD, IN THE SENSE THAT INEVITABLY PEOPLE'S HOPES AND EXPECTATIONS ARE RAISED SIMPLY BY VIRTUE OF THE PROSPECT OF A MEETING."

-- IT IS IMPERATIVE THAT THE IRAN-IRAQ WAR BE ENDED. THAT CONFLICT HAS BEEN DESTRUCTIVE TO BOTH COUNTRIES, AND THERE IS ALSO THE THREAT THAT THE "IMPACT OF THAT WAR WILL SPILL OVER" INTO OTHER GULF COUNTRIES AND HAVE A "DELETERIOUS" EFFECT ON THE FLOW OF CIL TO EUROPE AND JAPAN.

-- THE U.S. INTERVENTION IN GRENADA RESPONDED TO "A UNIQUE SET OF CIRCUMSTANCES" AND WAS "CLEARLY CALLED FOR BY... WHAT WAS LEFT OF THE GOVERNMENT IN GRENADA, ON THE ONE HAND, AND... THE SURROUNDING DEMOCRATIC STATES AND THEIR OWN CONCERNS, ON THE OTHER, IN AN APPEAL TO THE UNITED STATES TO HELP THEM." THE UNITED STATES ALSO SOUGHT TO PROTECT THE LIVES OF U.S. CITIZENS ON GRENADA "PARTICULARLY IN LIGHT OF THE FACT" OF THE EARLIER "TRAUMATIC EXPERIENCE WITH HOSTAGE-TAKING IN IRAN."

FOLLOWING ARE EXCERPTS OF THE NEWS CONFERENCE:

(BEGIN EXCERPTS)

*

QUESTION: IF I MIGHT BEGIN OUR DISCUSSION BY FOCUSING ON NEXT WEEK'S STOCKHOLM MEETING, THIS WILL BE THE FIRST TIME IN SOME MONTHS FOR AMERICAN AND SOVIET OFFICIALS TO MEET AT THIS

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USIA WIRELESS FILE

LEVEL. MIGHT I ASK YOU WHAT YOU HOPE MIGHT BE ACCOMPLISHED
BY YOUR MEETING WITH MR. GROMYKO?

SHULTZ: OF COURSE THE MAIN THING IS THAT WE WILL HAVE A
MEETING, AND AS FAR AS WE'RE CONCERNED, WE'RE PREPARED TO
DISCUSS THE FULL RANGE OF ISSUES, TO PUT FORWARD OUR IDEAS,
TO LISTEN TO THEIRS, AND TO HAVE A DIALOGUE ABOUT THEM.

WHAT WILL BE ACCOMPLISHED, OF COURSE, REMAINS TO BE SEEN,
AND DEPENDS, OBVIOUSLY, NOT ONLY ON WHAT WE BRING TO IT, BUT
WHAT THEY BRING TO IT AS WELL.

Q: ARE YOU ABLE TO OFFER THE SOVIETS ANYTHING SPECIFIC IN STOCKHOLM? MIGHT YOU SUGGEST, FOR EXAMPLE, THAT THERE BE NO FURTHER DEPLOYMENT OF INF WEAPONS SUCH AS CRUISE MISSILES IN EUROPE FOR THE TIME BEING IN ORDER TO HELP GET THE TALKS IN GENEVA RESTARTED?

A: I THINK THAT THE POSITIONS THAT WE HAVE TAKEN IN THE
NATO ALLIANCE ARE VERY REASONABLE POSITIONS IN GENEVA AND I
DON'T THINK IT'S APPROPRIATE TO OFFER SOME SORT OF CONCESSION
FOR THE SAKE OF RESUMING THE TALKS AS SUCH AND AS FAR AS THE
DEPLOYMENTS ARE CONCERNED THERE HAS BEEN A SCHEDULE THAT HAS
BEEN AGREED ON FOR A LONG TIME AND THAT'S PROCEEDING.

I MIGHT POINT OUT, AS I AM SURE EVERYONE KNOWS THAT
THROUGHOUT THE PERIOD IN WHICH THE ALLIES HAVE BEEN TALKING
WITH THE SOVIET UNION THEY HAVE BEEN DEPLOYING AT A VERY
CONSIDERABLE RATE AND THEY HAVE KNOWN OF OUR DEPLOYMENT
SCHEDULE. SO THIS IS SIMPLY STANDING BY THE DECISIONS THAT
HAVE BEEN MADE. OBVIOUSLY, IF AN AGREEMENT CAN BE REACHED
THAT CHANGES OUR DEPLOYMENT SCHEDULE, WE WOULD BE HAPPY ABOUT
THAT, BUT IT WOULD HAVE TO BE A MUTUAL AGREEMENT OF SOME
SORT.

Q: WHAT DO YOU THINK YOU CAN DO TO IMPROVE RELATIONS WITH
MOSCOW?

A: WE HAVE TO MAINTAIN OUR POSITION OF BEING REALISTIC
ABOUT THE SITUATION AND CANDID IN DESCRIBING IT. ALL OF
HISTORY SUGGESTS THAT IT IS WEAKNESS THAT CAUSES DANGER SO WE
MUST MAINTAIN OUR STRENGTH AND THE STRENGTH OF OUR ALLIANCES.
BUT ALSO, WE MUST BE REASONABLE AND WE MUST BE READY FOR
DIALOGUE AND CONSTRUCTIVE DISCUSSION AND WE ARE.

I THINK MAINTAINING OUR POSTURE AND BEING READY TO DISCUSS
ANY OUTSTANDING ISSUE IS THE RIGHT WAY FOR US TO PROCEED.

Q: HOW DO YOU PLAN TO WITHDRAW THE AMERICAN PEACEKEEPING
FORCE FROM LEBANON? BEFORE LEAVING LEBANON, DO YOU PLAN TO
HAVE A SPECIFIC AGREEMENT WITH SYRIA?

A: WE WERE ASKED BY THE GOVERNMENT OF LEBANON TO COME
THERE AND TO MAKE A CONTRIBUTION TOWARDS STABILITY AND PEACE
IN THAT COUNTRY. I HAVE NO DOUBT THAT THE PRESENCE OF THE
MULTINATIONAL FORCE, OUR OWN FORCE AND THOSE OF THE FRENCH

USIA WIRELESS FILE

AND THE ITALIANS AND THE BRITISH HAVE MADE A CONTRIBUTION AND WILL CONTINUE TO DO SO. WE WILL CONTINUE WORKING FOR THAT STABILITY THAT HAS BEEN SO ELUSIVE IN LEBANON.

Q: MR. SECRETARY, WHAT DO YOU EXPECT FROM THE DEVELOPMENT IN CENTRAL AMERICA AFTER YOU HAVE BEEN GIVEN THE KISSINGER REPORT?

A: THE KISSINGER REPORT IS AN OUTSTANDING CONTRIBUTION TO OUR THINKING ABOUT CENTRAL AMERICA. OBVIOUSLY, IT HAS BENEFITED FROM THE TREMENDOUS LEADERSHIP THAT HENRY KISSINGER HAS GIVEN IT, BUT IT HAS HAD AN OUTSTANDING MEMBERSHIP OF PEOPLE REPRESENTING A BROAD SPECTRUM OF VIEWS IN THE UNITED STATES AND LEADERS IN BOTH POLITICAL PARTIES. THEY HAVE AGREED ON SOME VERY FUNDAMENTAL THINGS, INCLUDING FIRST AND FOREMOST THE IMPORTANCE TO THE UNITED STATES OF RECOGNIZING THE PROBLEMS IN CENTRAL AMERICA AND DOING SOMETHING ABOUT THEM AND THE DOING SOMETHING MUST, AS THE REPORT SAYS, BE COMPREHENSIVE.

Q: ACCORDING TO SOME REPORTS THERE SEEMS TO BE A MORE OPTIMISTIC VIEW OF THE POSSIBILITY OF A THAW BETWEEN WASHINGTON AND MOSCOW. WOULD YOU CONSIDER YOUR UPCOMING MEETING WITH MR. GROMYKO AS A TEST OF CREDIBILITY OF THE POSSIBILITY OF A THAW BETWEEN THE TWO CAPITALS?

A: WELL, I CAN ONLY SPEAK ABOUT THE UNITED STATES' SIDE OF IT AND FOR THAT MATTER, JUDGING FROM MY DISCUSSIONS WITH MY FELLOW FOREIGN MINISTERS IN THE NATO COUNTRIES, TO A CERTAIN EXTENT ON BEHALF OF THEM, WE ALL SHARE THE VIEW THAT WE MUST, ON THE ONE HAND, LOOK TO OUR STRENGTH AND BE PREPARED TO DEFEND OUR VALUES AND OUR INTERESTS. BUT WE ALSO PREPARED FOR COOPERATION AND FOR TALKS AND DISCUSSIONS IN AN EFFORT TO BE CONSTRUCTIVE WITH THE SOVIET UNION AND THE EASTERN EUROPEAN COUNTRIES AND WE ARE.

SO WE ARE PREPARED FOR A "THAW," TO USE YOUR WORDS, BUT WHETHER THERE IS ONE WILL REFLECT WHAT THE DESIRES OF THE SOVIET UNION ARE. IT TAKES TWO TO THAW.

Q: HOW IMPORTANT IS THE HUMAN RIGHTS ISSUE FOR YOU IN THE FRAMEWORK OF DR. KISSINGER'S REPORT ON CENTRAL AMERICA?

A: THE HUMAN RIGHTS DIMENSION OF THE UNITED STATES' FOREIGN POLICY IS AN ESSENTIAL INGREDIENT. IT'S PART OF OUR

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WAY OF LIFE, PART OF OUR SYSTEM TO BE CONCERNED ABOUT THE
FATE OF HUMAN BEINGS EVERYWHERE -- IN OUR OWN COUNTRY AND
AROUND THE WORLD, PARTICULARLY IN PLACES WHERE WE ARE HEAVILY
INVOLVED, AS IN CENTRAL AMERICA.

SO THERE IS, I THINK, NO DIFFERENCE OF OPINION WITHIN THE
UNITED STATES ON THE IMPORTANCE OF THIS OBJECTIVE AND I FEEL
THAT, GIVEN THAT FACT, THE MEANS OF ATTAINING IT WE WILL
DEBATE ABOUT, BUT WE WILL FIND THE BEST POSSIBLE WAY OF
GETTING AT THAT BROAD OBJECTIVE WHICH IS IMPORTANT TO US AND
BUILT IN TO OUR WAY OF LIFE.

Q: COULD THERE BE ANY REAL SOVIET MOVE WITH AN AILING ANDROPOV IN THE KREMLIN?

A: THERE'S NO INDICATION THAT WE HAVE THAT THE SOVIET
GOVERNMENT IS IN ANY WAY PARALYZED. THEY ARE IN OPERATION
AND, SO FAR AS WE KNOW, MR. ANDROPOV REMAINS IN CHARGE. SO
WE ARE DEALING WITH AN OPERATIVE GOVERNMENT AND HAVING
CONVERSATIONS WITH THEM AND IT'S A GOING CONCERN AS FAR AS WE
CAN SEE IT.

Q: IS IT REALLY POSSIBLE THAT UNITED NATIONS TROOPS CAN
REPLACE THE MULTINATIONAL FORCE IN LEBANON?

A: OVER A PERIOD OF TIME, AS THINGS STABILIZE -- IF THEY
DO AND WE HOPE THAT THEY WILL -- CERTAINLY THE ROLE OF
UNIFIL, PRESUMABLY, WILL CHANGE AND IT WILL GET A DIFFERENT
MANDATE.

AMONG OTHER THINGS, I AM SURE THAT THERE IS A POTENTIAL
ROLE FOR UNIFIL IN OBSERVING WHAT GOES ON AROUND THE
PALESTINIAN REFUGEE CAMPS AND I AM SURE THAT THERE WILL BE
OTHER ROLES THAT UNIFIL CAN PERFORM -- PERHAPS EVEN IN AND
AROUND BEIRUT, BUT THAT REMAINS TO BE SEEN.

THE PROBLEM HAS BEEN, RIGHT FROM THE BEGINNING, AS I AM
SURE YOU KNOW, THAT THE SOVIET UNION AND -- MORE RECENTLY;
THE SYRIANS HAVE NOT BEEN WILLING TO SEE UNITED NATIONS
REPRESENTATION IN THESE KINDS OF FUNCTIONS AND THAT'S THE
REASON WHY UNIFIL WASN'T USED IN THE FIRST PLACE IN BEIRUT.

PERHAPS YOU REMEMBER ABOUT TWO OR THREE MONTHS AGO WHEN
THE CEASE-FIRE WAS ARRANGED, IT WAS ALSO AGREED THAT THERE
WOULD BE OBSERVERS AND THERE ARE UNITED NATIONS OBSERVERS IN
BEIRUT AND THEY ARE TRAINED AND ARE THERE AND KNOW HOW TO DO
IT. AND YET, IT WASN'T POSSIBLY TO DEPLOY THEM AND HAVE THEM
PUT INTO PLACE BECAUSE SYRIA, AND PRESUMABLY WITH THE THREAT
OF A SOVIET VETO HANGING OVER IT, WOULDN'T GO ALONG WITH IT.

I WOULD HOPE THAT THERE WOULD BE A MORE CONSTRUCTIVE
ATTITUDE TOWARDS THE USE OF UNITED NATIONS FORCES.

Q: CAN YOU GIVE US AN ASSESSMENT OF WHAT IS THE REAL RUSSIAN AIM IN STOPPING THE ARMS CONTROL NEGOTIATIONS?

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PAGE 28

A: IT IS TOUGH FOR ME TO SPECULATE ON WHAT IT IS THAT'S MOTIVATING THE SOVIET NEGOTIATORS AND THE SOVIET GOVERNMENT AND WHAT THEY ARE TRYING TO ACHIEVE. I DO THINK THAT ONE OF THE SEEMING OBJECTIVES IS SOMEHOW TO SPLIT OUR ALLIANCE, AND THEREFORE I THINK IT'S BEEN VERY IMPORTANT THAT THE ALLIANCE HAS HELD TOGETHER SO WELL, AND AS A MATTER OF FACT, IT ALMOST SEEMS AS THOUGH THE MORE THERE ARE THREATS, THE STRONGER THOSE WHO ARE THREATENED BECOME, NOT ONLY OURSELVES, BUT OTHERS IN ASIA. THE SOVIET THREATS AGAINST JAPAN HAVE PRODUCED A REACTION IN JAPAN THAT'S A STRONGER AND MORE DETERMINED ONE, AND SO ON.

I THINK PEOPLE JUST FEEL THAT WAY.

BUT THE IMPORTANT THING FOR US TO DO, OF COURSE, IS TO BE THINKING WHAT IS ON THE MINDS OF THE OTHER SIDE. BUT WE HAVE TO BE CLEAR, ALWAYS, ABOUT OUR OWN SIDE, AND KEEP REMINDING OURSELVES THAT THE NAME OF THE GAME HERE IS STRENGTH AND DETERMINATION AND UNITY, COHESIVENESS ON THE ONE HAND, AND REASONABLENESS, AND READY TO WORK OUT PROBLEMS, ON THE OTHER.

Q: COULD YOU SAY A LITTLE BIT OF WHAT SPECIFIC PROPOSALS YOU INTEND TO MAKE WHEN YOU MEET MR. GROMYKO NEXT WEEK, FOR EXAMPLE, ON HOW THE ARMS CONTROL NEGOTIATIONS COULD BE RESUMED OR WOULD YOU MERELY INTEND TO LEAVE IT TO HIM TO SAY HOW THEY WANT TO LEAVE IT?

A: I DON'T THINK IT'S APPROPRIATE FOR ME TO LAY OUT MY HAND IN HOW I WILL APPROACH THE TALKS WITH MR. GROMYKO. BUT INSOFAR AS THE ARMS CONTROL TALKS ARE CONCERNED, ON THE INF TALKS, WE'RE PREPARED TO RESUME THEM. THE SOVIET UNION HAS SAID THEY ARE NOT.

ON THE S.T.A.R.T. TALKS AND THE MBFR TALKS, IN BOTH OF THOSE CASES THE TALKS ARE AJOURNED AND UNLIKE PAST TIMES THE SOVIET UNION HAS DECLINED TO SET A DATE AT WHICH THEY WOULD BE RESUMED. SO, THERE'S A DIFFERENCE BETWEEN THE POSITION THEY TOOK IN INF AND THE POSITION THAT THEY HAVE TAKEN IN S.T.A.R.T. AND MBFR, AND JUST WHAT THAT MEANS AND WHAT WILL EMERGE FROM THAT REMAINS TO BE SEEN. BUT I DO THINK IT'S WELL TO NOTE THE DIFFERENCE.

AS FAR AGAIN, AS PRECISELY WHAT I WILL BE SAYING AND THE APPROACH I WILL BE TAKING WITH MR. GROMYKO, I THINK THAT'S BEST LEFT TO ME.

Q: I UNDERSTAND THAT THE U.S. GOVERNMENT IS CONCERNED ABOUT POSSIBLE VIOLATIONS OF BOTH THE SALT AND THE ABM TREATY PROVISIONS. DO YOU INTEND TO RAISE THIS QUESTION WITH MR. GROMYKO IN STOCKHOLM, AND WHAT DOES THIS IMPLY FOR THE FUTURE OF U.S.-SOVIET RELATIONS?

A: I THINK THE QUESTION OF ADHERENCE TO AGREEMENTS IS ALWAYS A VERY IMPORTANT ONE AND WE HAVE STUDIED, EVERYONE

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STUDIES, THE QUESTION OF WHETHER OR NOT AGREEMENTS REACHED
ARE ADHERED TO. WE HAVE COMPLAINED TO THE SOVIET UNION ON
MANY OCCASIONS WHEN WE HAVE FELT THAT WE HAD EVIDENCE THAT
AGREEMENTS WERE NOT BEING ADHERED TO.

A WELL-KNOWN EXAMPLE IS THE USE OF CHEMICAL AND BIOLOGICAL
WEAPONS, AND THERE IS MASSIVE EVIDENCE OF THEIR USE IN
AFGHANISTAN AND KAMPUCHEA. THE EVIDENCE HAS BEEN BROUGHT
FORWARD PUBLICLY AND, AS A MATTER OF FACT, OVER A YEAR AGO,
IN THE DECEMBER, 1982 NATO FOREIGN MINISTERS' COMMUNIQUE,
THIS WAS REGISTERED.

SO, I THINK THE QUESTION OF ADHERENCE TO AGREEMENTS IS A
VERY IMPORTANT ONE AND WE CERTAINLY WILL BE BRINGING THIS TO
THE ATTENTION OF THE SOVIET UNION IN A VARIETY OF WAYS, AND
HAVE BEEN.

Q: WHAT KIND OF CONCRETE CONFIDENCE-BUILDING MEASURES
WOULD YOU LIKE TO SEE ADCPTED AT THE STOCKHOLM CONFERENCE?

A: WE HAVE BEEN DISCUSSING EXACTLY THAT ISSUE WITH OUR
NATO ALLIES, AND TRYING TO EVOLVE A POSITION THAT WE ALL
THINK IS A GOOD ONE, AND I AM CONFIDENT THAT WE'LL BE IN A
POSITION, WHEN WE GET TO STOCKHOLM, TO STATE IT. AND I THINK
THAT'S THE APPROPRIATE PLACE TO DO IT.

BUT I THINK THERE ARE CONCRETE THINGS THAT CAN BE DONE
THAT SHOULD INCREASE CONFIDENCE AND A GREATER SENSE OF
SECURITY IN EUROPE, AND WE'VE TRIED TO IDENTIFY THESE THINGS
AS PRACTICAL, DOABLE, WORKABLE THINGS, AND WE'RE GOING TO LAY
THEM OUT IN STOCKHOLM.

Q: HOW SERIOUS ARE THE OPENINGS FROM SYRIA, AND HOW EASY
IS IT TO NEGOTIATE WITH A COUNTRY THAT MR. WEINBERGER
CONSIDERS RESPONSIBLE FOR THE OCTOBER 23 MASSACRE?

A: THE DISCUSSIONS WITH SYRIA, WE HOPE, WILL BE
INCREASINGLY SERIOUS AND AMBASSADOR RUMSFELD, AS I SAID
EARLIER ON THE PROGRAM, WILL BE THERE BY THIS WEEKEND, AND WE
EXPECT THAT HE WILL TALK WITH PRESIDENT ASSAD, AND WE HOPE
THAT AND EXPECT THAT SOME CONCRETE STEPS MAY BE WORKED OUT.
BUT, OF COURSE, THAT REMAINS TO BE SEEN.

THERE HAS EVOLVED A SECURITY PLAN THAT CERTAINLY WOULD BE
AN ADVANCE OVER THE PRESENT SITUATION, AND IT IS ENCOURAGING,
IN A SENSE, THAT IT GOES BEYOND GENERALITIES AND GETS INTO
VERY EXPLICIT AND CONCRETE OPERATIONAL DETAILS. SO YOU KNOW
THAT THE PEOPLE WHO HAVE BEEN DISCUSSING IT ARE VERY SERIOUS
AND ARE TRYING TO WORK OUT SOMETHING THAT WILL WORK.

AND THAT'S OBVIOUSLY, A FIRST STEP. ON THE OTHER HAND,
THE COMPLETE WITHDRAWAL OF FOREIGN FORCES AND THE EMERGENCE
OF A BROADLY BASED GOVERNMENT OF LEBANON ARE THE THINGS THAT
ARE NECESSARY FOR THE TRUE STABILITY THAT WE SEEK.

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I THINK THAT IT'S ALSO IMPORTANT, IN ALL OF THESE MATTERS, WHETHER WE'VE DEALING WITH SYRIA OR THE SOVIET UNION OR EXAMINING OUR OWN POSTURE, THAT WE BE REALISTIC AND THAT WE BE CANDID AND STATE WHAT WE THINK THE FACTS ARE, SO THAT EVERYTHING PROCEEDS ON THE BASIS OF THE FACTS, AS WE SEE THEM, AND NOT ON THE BASIS OF SOME WISHFULNESS, OR ON THE BASIS OF BRUSHING ASIDE IMPORTANT FACTS AND ACTING AS THOUGH THEY AREN'T THERE.

I WOULD SAY THAT OLD COMMENT, "THE WISH IS FATHER TO THE THOUGHT, IS A FORMULA FOR DISASTER.

Q: ASSUMING THERE IS AN IMPROVEMENT IN MR. ANDROPOV'S HEALTH, IS THERE ANY SERIOUS THOUGHT GIVEN IN WASHINGTON TO THE POSSIBILITY OF A SUMMIT MEETING BETWEEN MR. REAGAN AND MR. ANDROPOV IN 1984?

A: PRESIDENT REAGAN HAS ALWAYS TAKEN THE ATTITUDE THAT HE WOULD BE GLAD TO MEET WITH HIS SOVIET COUNTERPART, AND HE WROTE A LETTER TO MR. BREZHNEV WHEN HE WAS ALIVE, TO THAT EFFECT, AND HE HAS MADE NUMEROUS STATEMENTS TO THAT EFFECT, INSOFAR AS MR. ANDROPOV'S CONCERNED.

I THINK IT'S IMPORTANT, AND I WOULD SAY FROM WHAT I HAVE SEEN AND HEARD, THE SOVIET UNION AGREES ON THIS, THAT ANY MEETING OF THAT KIND BE ONE FROM WHICH THERE IS A REASONABLE EXPECTATION OF SOME WORTHWHILE RESULTS. JUST TO HAVE A MEETING FOR THE SAKE OF A MEETING COULD DO POSSIBLY MORE HARM THAN GOOD, IN THE SENSE THAT INEVITABLY PEOPLE'S HOPES AND EXPECATATIONS ARE RAISED SIMPLY BY VIRTUE OF THE PROSPECT OF A MEETING.

AND SO I THINK WE HAVE TO BE VERY CAREFUL WITH THOSE HOPES AND EXPECTATIONS, BECAUSE THEY'RE IMPORTANT TO US. AND WE SHOULD OBVIOUSLY WANT TO HAVE A MEETING, AND WE DO. BUT WE WANT ONE THAT WILL ACCOMPLISH SOMETHING.

Q: LOOKING BEYOND STOCKHOLM, DO YOU STILL SEE A CHANCE IN THE NEAR FUTURE FOR A NEW ARMS CONTROL AGREEMENT WITH THE SOVIET UNION, DESPITE THE FACT THAT THE SOVIETS ARE DEPLOYING A VAST NUMBER OF NEW MISSILES EVERY WEEK IN EASTERN EUROPE?

A: OF COURSE THERE IS ALWAYS THE PROSPECT THAT THERE MAY BE ONE. IN ORDER FOR THERE TO BE ONE THERE HAS TO BE DISCUSSION, AND THERE ARE FORUMS THAT ARE THERE.

WE'RE READY TO DISCUSS AND WE'VE MADE PROPOSALS AND WE'VE CHANGED AND ADJUSTED OUR PROPOSALS AS WE'VE HEARD SOVIET VIEWS ABOUT THEM, AND TRIED, ALWAYS, TO LOOK AT WHAT WE HAVE PUT ON THE TABLE AND BE SURE IT'S REASONABLE AND TO BE SURE THAT OUR NEGOTIATORS ARE THERE IN A SPIRIT OF GIVE AND TAKE.

WE'LL CONTINUE TO BE THERE IN THAT SPIRIT AND WE'LL ALSO CONTINUE TO LOOK TO OUR STRENGTH AND OUR SECURITY AND OUR DEFENSE NEEDS SO THAT THE SOVIET UNION WILL KNOW THAT THE

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UNITED STATES WILL DEFEND ITS VALUES AND DEFEND ITS
INTERESTS. BUT WE ARE ANXIOUS TO DEVELOP WORTHWHILE
AGREEMENTS, IF IT'S POSSIBLE TO DO SO, AND OF COURSE, THAT
DEPENDS UPON WHAT KIND OF RESPONSIVENESS THERE MAY BE FROM
THE SOVIET SIDE.

Q: I HAVE A QUESTION ON ARMS DELIVERIES BY TWO EUROPEAN POWERS TO THE MIDDLE EAST. ONE BY THE FRENCH TO IRAQ WHERE THE FRENCH MINISTER CHEYSSON TOLD ME THAT ONE OF THE REASONS WHY HE DOES IT IS TO COUNTER THE POSSIBILITY OF A PURE SOVIET INFLUENCE ON IRAQ. DOES THAT HELP? DOES IT REALLY HAVE THIS EFFECT?

AND THEN ABOUT GERMANY WHICH WANTS TO SELL ARMS TO SAUDI ARABIA. THE ISRAELIS FEEL VERY THREATENED BY IT, AND IN VIEW OF THE PAST, ARE VERY UPSET ABOUT IT BECAUSE THE GERMANS, OF ALL PEOPLE, WOULD BE DELIVERING ARMS TO WHAT ISRAELI CONSIDERS ITS ENEMIES.

SO, THE QUESTION IN THAT CASE IS DOES, IN YOUR VIEW, SAUDI ARABIA NEED THEM, IN VIEW OF THE FACT THAT YOU ARE DELIVERING THINGS LIKE AWACS, WHICH WOULD AT LEAST HELP THEM ENOUGH, I WOULD THINK?

A: ON THE LATTER QUESTION, OF COURSE, A COUNTRY, IS SUPPOSE, IS ITS OWN JUDGE OF WHAT ITS NEEDS ARE, AND THE COUNTRY THAT IS DOING THE SELLING OF ARMS HAS TO DECIDE ABOUT ITS OWN POLICY THERE. BUT IN TERMS OF ASSESSING THE NEED, OBVIOUSLY IT'S UP TO THE SAUDI ARABIANS TO ASSESS THEIR NEEDS.

INSOFAR AS ARMS SALES TO IRAQ IS CONCERNED, I'M SURE THERE IS MERIT TO THE ARGUMENT THAT THE FRENCH FOREIGN MINISTER ADVANCES. I THINK THAT THE REAL PROBLEM THERE IS TO GET THAT WAR BETWEEN IRAQ AND IRAN, WHICH HAS BEEN SO DESTRUCTIVE TO BOTH COUNTRIES, TO GET THAT WAR SETTLED AND TO GET THEM INTO SOME KIND OF CONSTRUCTIVE DISCUSSION.

AMONG OTHER THINGS, THERE IS A THREAT THAT THE IMPACT OF THAT WAR WILL SPILL OVER INTO THE GULF, INTO OTHER GULF COUNTRIES AND HAVE A DELETERIOUS IMPACT ON THE FLOW OF OIL TO EUROPE AND TO JAPAN, AND SO THAT'S SOMETHING THAT HAS TO WORRY EVERYBODY AND WE WANT TO DO EVERYTHING THAT WE CAN TO SEE THAT THAT DOESN'T COME TO PASS.

I THINK THE MAIN OBJECTIVE SHOULD BE TO GET THE WAR STOPPED. A SECOND OBJECTIVE, AS IN THE UNITED NATIONS RESOLUTION WHICH WE SUPPORTED, WAS TO CONFINE THE WAR SO IT DOESN'T SPILL OVER INTO THE GULF AREA, AND WE WOULD LIKE TO SEE ARMS SALES TO IRAN AND IRAQ REDUCED.

Q: IN OCTOBER THE UNITED STATES INTERVENED MILITARILY IN GRENADA. DO YOU SEE A POSSIBILITY OR A DANGER OF A SIMILAR SITUATION EVOLVING IN CENTRAL AMERICA, A SITUATION IN WHICH

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THE UNITED STATES WILL FEEL IT SHOULD INTERVENE MILITARILY IN CENTRAL AMERICA ITSELF?

A: NO, THERE IS NO INDICATION OF THAT. I THINK THE RESCUE MISSION IN GRENADA WAS SOMETHING CLEARLY CALLED FOR BY WHAT WAS LEFT OF GOVERNMENT IN GRENADA, ON THE ONE HAND, AND THE SURROUNDING DEMOCRATIC STATES AND THEIR OWN CONCERNS, ON THE OTHER, IN A PLEA TO THE UNITED STATES TO HELP THEM. IT WASN'T JUST THE UNITED STATES. WE WERE HELPING THEM AND ALSO TRYING TO PROTECT THE LIVES OF OUR AMERICAN CITIZENS THERE, AND PARTICULARLY IN THE LIGHT OF THE FACT THAT WE DID HAVE ONE VERY TRAUMATIC EXPERIENCE WITH HOSTAGE-TAKING IN IRAN AND WE AREN'T ABOUT TO SEE THAT HAPPEN AGAIN.

SO, I THINK THE GRENADA RESCUE EFFORT WAS AN IMPORTANT THING FOR THE UNITED STATES TO DO, RESPONDING TO A UNIQUE SET OF CIRCUMSTANCES.

(END EXCERPTS)

*item*

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PAGE 33

(xx405,x,

*TX-405 (1/12/84)

NEW U.S. RELATIONSHIP WITH LATIN AMERICA 'CRUCIAL' (5,820)

FOLLOWING ARE HIGHLIGHTS OF THE JANUARY 12 INTERVIEW OF
DR. HENRY KISSINGER (IN BRUSSELS) BY LATIN AMERICAN
JOURNALISTS (IN LATIN AMERICA) ON THE USIA SATELLITE
TELEVISION PROGRAM "WORLDNET," AND THE TRANSCRIPT OF THAT
PROGRAM:

(BEGIN HIGHLIGHTS)

-- THE BASIC THEME OF THE REPORT BY THE NATIONAL BIPARTISAN
COMMISSION ON CENTRAL AMERICA IS THAT THERE ARE ECONOMIC,
SOCIAL AND POLITICAL CONDITIONS IN CENTRAL AMERICA THAT NEED
TO BE REMEDIED; THAT MANY OF THESE CONDITIONS HAVE INDIGENOUS
ROOTS THAT GO BACK A LONG TIME; THAT THESE CONDITIONS ARE
EXACERBATED BY SECURITY CONSIDERATIONS INVOLVING OUTSIDE
POWERS.

-- THE SEVEN PROPOSALS FOR A DIPLOMATIC SOLUTION ARE
CONSISTENT WITH THE 21 PRINCIPLES OF THE CONTADORA GROUP,
INCLUDING THE GOAL OF REDUCING AND EVENTUALLY ELIMINATING ALL
FOREIGN MILITARY BASES AND ADVISORS FROM CENTRAL AMERICA.
UNTIL THAT GOAL IS ACHIEVED, AND AS LONG AS LARGE AMOUNTS OF
FOREIGN MILITARY EQUIPMENT FLOW INTO NICARAGUA, THE REPORT
RECOMMENDS INCREASING U.S. MILITARY AID TO OTHER COUNTRIES IN
THE REGION. "WHAT WE CANNOT RECOMMEND IS THAT ONE COUNTRY
RECEIVES ARMS FROM CUBA AND THE SOVIET UNION WHILE THE UNITED
STATES UNILATERALLY CUTS DOWN ITS ARMS INTO THE AREA."

-- INDIGENOUS REVOLUTION SHOULD NOT BE A SECURITY CONCERN TO
THE UNITED STATES. WHAT CREATES THE CONCERN IS FOREIGN
INTERVENTION. THE THREAT THAT IS REPRESENTED BY THE
SANDINISTAS IS THE ACCUMULATION OF SOVIET AND CUBAN WEAPONS,
AND THE INSTALLATION OF A LARGE INTELLIGENCE APPARATUS FROM
CUBA, THE SOVIET UNION AND EASTERN EUROPE.

-- "IF NICARAGUA IS PREPARED TO BECOME A CENTRAL AMERICAN
STATE, AND NOT AN OUTPOST OF A GLOBAL EFFORT," KISSINGER
SAID, "THEN WE FACE A TOTALLY DIFFERENT SITUATION. AND IF
NICARAGUA OBSERVES THE PROMISES IT HAS MADE TO THE O.A.S.,
AND THE PROPOSALS OF THE CONTADORA GROUP IN THE DIRECTION OF
DEMOCRACY, THEN I BELIEVE... COOPERATION BETWEEN THE UNITED
STATES AND NICARAGUA IN THE FRAMEWORK OF A CENTRAL AMERICAN
EFFORT IS POSSIBLE."

-- THE COMMISSION DOES NOT ADVOCATE SACRIFICING RESPECT FOR
HUMAN RIGHTS TO ACHIEVE THE OVERALL OBJECTIVE OF DEFEATING
REBEL FORCES. "OUR COMMISSION HAS SPECIFICALLY MADE MILITARY

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PAGE 34

AID CONDITIONAL ON DEMONSTRATED PROGRESS TOWARD DEMOCRATIC INSTITUTIONS, INDEPENDENT JUDICIAL SYSTEMS AND A NUMBER OF OTHER SIMILAR CRITERIA. I HAVE POINTED OUT IN A CLARIFYING NOTE THAT IN THE INTERPRETATION OF THIS, ONE SHOULD NOT BRING ABOUT -- IN THE NAME OF HUMAN RIGHTS -- A VICTORY OF THE MARXIST-LENINISTS WHO HAVE NEVER RESPECTED HUMAN RIGHTS IN ANY OF THE COUNTRIES IN WHICH THEY HAVE GOVERNED."

-- DISTRIBUTION OF WEALTH IN CENTRAL AMERICAN COUNTRIES MUST BE SETTLED BY THE POLITICAL PROCESSES OF EACH COUNTRY; IT DOES NOT BEHOOVE THE UNITED STATES TO OFFER A DETAILED PROGRAM ON THIS SUBJECT. HOWEVER, KISSINGER SAID, "IT IS OUR VIEW THAT WHEN A COUNTRY IS DEMOCRATIC, THE NORMAL DEMOCRATIC PROCESSES WILL SEE TO IT THAT THERE IS A GREATER DEGREE OF SOCIAL JUSTICE THAN IN TOTALITARIAN OR IN AUTHORITARIAN REGIMES."

-- "AS LONG AS THERE ARE CIVIL WARS GOING ON IN SO MANY OF THE COUNTRIES OF CENTRAL AMERICA, AND AS LONG AS THERE IS A GREAT SENSE OF INSECURITY, IT WILL BE VERY DIFFICULT TO INDUCE PRIVATE INVESTMENT TO GO THERE." THEREFORE, IMMEDIATE ECONOMIC AID TO THE REGION WILL HAVE TO COME FROM GOVERNMENTAL SOURCES IN THE UNITED STATES OR FROM INTERNATIONAL SOURCES SUCH AS THE WORLD BANK.

-- KISSINGER BELIEVES THE UNITED STATES SHOULD GIVE THE HIGHEST PRIORITY TO HELP COSTA RICA MEET ITS NEEDS. "IT GOES WITHOUT SAYING THAT WE CONSIDER COSTA RICA, OF ALL THE COUNTRIES THAT WE VISITED, THE ONE THAT MOST FULLY MEETS OUR CRITERIA FOR DEMOCRATIC PROGRESS, AND THEREFORE, THE COUNTRY IN WHICH WE BELIEVE IT IS OF THE GREATEST IMPORTANCE TO TAKE IMMEDIATE STEPS TO ACHIEVE THE GOALS OF THE COMMISSION."

-- PRESIDENT REAGAN IS NOT OBLIGATED TO ACCEPT THE COMMISSION'S PROPOSALS, NOR IS IT CERTAIN THAT CONGRESS WOULD APPROVE THE RECOMMENDED LEVELS OF AID IF IN FACT THE PRESIDENT ACCEPTS THE REPORT.

-- IT IS NECESSARY FOR THE UNITED STATES TO FIND A BIPARTISAN BASIS FOR FOREIGN POLICY. "WE CANNOT EVERY FOUR AND EIGHT YEARS CHANGE OUR FUNDAMENTAL POLICY BECAUSE OUR PRESIDENT CHANGES. WE'LL BECOME A FACTOR OF INSTABILITY IN THE WORLD. AND A NEW RELATIONSHIP WITH LATIN AMERICA IS OF CRUCIAL IMPORTANCE FOR ALL OF THE NATIONS OF THIS HEMISPHERE. SO WE HOPE VERY MUCH THAT WHAT OUR REPORT WILL DO IS TO SPARK AN INTEREST, A CONCERN AND A PERMANENT COMMITMENT OF THE UNITED STATES TO THE ECONOMIC AND SOCIAL PROGRESS, NOT ONLY OF CENTRAL AMERICA, BUT OF THE ENTIRE WESTERN HEMISPHERE..."

(END HIGHLIGHTS)

*

(BEGIN TRANSCRIPT)

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WELCOME TO THE FIRST TRANSMISSION ON THE AMERICAN REPUBLIC
NET. I AM YOUR HOST, HARRY ELLIS. WITH TODAY'S PROGRAM THE
AMERICAN REPUBLICS NET JOINS USIA'S WORLDNET CLOSED CIRCUIT
TELEVISION SYSTEM WHICH HAS BEEN OPERATING TO EUROPEAN
CAPITALS SINCE NOVEMBER 1983.

OUR PROGRAM TODAY WILL FEATURE A VIDEO DIALOGUE WITH
PARTICIPANTS IN THE GIVE CITIES THAT COMPRISE THE AMERICAN
REPUBLICS NET -- BUENOS AIRES, CARACAS, MEXICO CITY, RIO DE
JANEIRO AND SAN JOSE. FOR TODAY, JOURNALISTS AND OTHERS
INVITED BY OUR EURONET POSTS IN BONN, BRUSSELS, GENEVA, THE
HAGUE, LONDON, PARIS AND ROME WILL BE LISTENING IN AS WELL.

DURING THIS VIDEO DIALOGUE YOU WILL HAVE THE OPPORTUNITY
TO ASK QUESTIONS OF OUR GUEST. WITH US FROM A STUDIO IN
BRUSSELS. BELGIUM IS FORMER SECRETARY OF STATE, DR. HENRY
KISSINGER, CHAIRMAN OF THE BIPARTISAN COMMISSION ON CENTRAL
AMERICA.

DR. KISSINGER, WELCOME TO THE AMERICAN REPUBLIC NET.

KISSINGER: IT'S A PLEASURE TO BE ON THE PROGRAM.

ELLIS: BEFORE WE BEGIN, LET ME CALL YOUR ATTENTION TO THE
TECHNICAL COMPLEXITY OF TODAY'S PROGRAM. TWO EARTH
SATELLITES ARE LINKING WASHINGTON WITH DR. KISSINGER IN
BRUSSELS AND THE PARTICIPATING POSTS IN LATIN AMERICA. WE
WILL ALSO BE USING SIMULTANEOUS INTERPRETERS. THIS COMBINES
TO PRODUCE SOME SHORT TIME LAG BETWEEN QUESTIONS AND ANSWERS.
PLEASE BEAR WITH US.

NOW, DR. KISSINGER, JUST TO SET THE FRAMEWORK FOR OUR
DISCUSSION, I WAS STRUCK BY ONE SENTENCE IN THE COMMISSION
REPORT WHICH SAID, "WHATEVER THE SHORT-TERM COSTS OF TAKING
ACTION NOW, THEY ARE NOTHING AS COMPARED WITH THE LONG-TERM
COSTS IF NOTHING IS DONE."

COULD YOU SPECIFY WHAT THOSE LONG-TERM COSTS MIGHT BE?

KISSINGER: LET ME FIRST STRESS WHAT I THINK IS THE BASIC
THEME OF OUR REPORT. THE BASIC THEME OF OUR REPORT IS THAT
THERE ARE ECONOMIC, POLITICAL AND SOCIAL CONDITIONS IN
CENTRAL AMERICA THAT NEED REMEDYING AND THAT MANY OF THESE
CONDITIONS HAVE INDIGENOUS AND GO BACK FOR A LONG TIME.

THESE THEN ARE EXACERBATED BY SECURITY CONSIDERATIONS THAT
INVOLVE OUTSIDE POWERS AND ALL OF THIS HAS TO BE MESHED
TOGETHER IN A DIPLOMATIC FRAMEWORK. IN OUR VIEWS, IF THE
URGENT ECONOMIC, SOCIAL AND POLITICAL REFORM MEASURES ARE NCT
TAKEN, THE INTERNAL SITUATION IN THE COUNTRIES CONCERNED CAN
ONLY WORSEN. THEREFORE, THE SECURITY PROBLEM CAN ONLY GET
MORE COMPLICATED.

AT THE SAME TIME I WANT TO STRESS ONE OF THE BASIC THEMES
OF OUR REPORT, WHICH IS THAT WE HAVE TO COMMIT OURSELVES AS A

USIA WIRELESS FILE

NATION, THE UNITED STATES, TO A LONG-TERM EFFORT -- NOT JUST
TO DEAL WITH THE SECURITY PROBLEM BUT TO BRING ABOUT THE
POLITICAL, ECONOMIC AND SOCIAL ASPIRATIONS OF THE PEOPLE OF
THE AREA.

QUESTION: BEARING IN MIND THAT YOU HAVE DONE ON CENTRAL
AMERICA, TO WHAT POINT DO YOU BELIEVE THAT THE UNITED STATES
WILL CONTINUE TO PRESSURE CENTRAL AMERICA FUNDAMENTALLY ON
NICARAGUA -- UNTIL THEY ACHIEVE DEMOCRACY OR UNTIL THE
PRESENT SANDINISTA GOVERNMENT FALLS DOWN BY SOME OTHER
METHOD?

ANSWER: WE HAVE STATED CERTAIN PRINCIPLES IN THIS REPORT
THAT WE APPLY TO ALL CENTRAL AMERICAN COUNTRIES, INCLUDING
NICARAGUA, AND THOSE REFLECT THE PLEDGES THAT NICARAGUA GAVE
TO THE ORGANIZATION OF AMERICAN STATES IN 1979 AND REFLECT, I
MUST SAY, THE ASPIRATIONS THAT THE PEOPLE OF ARGENTINA HAVE,
TO WHICH THEY HAVE PAID SUCH ELOQUENT TRIBUTE IN THEIR RECENT
ELECTION, WHICH IS OUR COMMITMENT TO PLURALISM AND DEMOCRACY.

IT IS NOT A QUESTION OF PRESSURING NICARAGUA; IT IS A
QUESTION OF STATING WHAT OUR FUNDAMENTAL OBJECTIVES IN THE
AREA ARE. WE HAVE INVITED IN OUR REPORT FOR NICARAGUA TO
PARTICIPATE IN THE ECONOMIC PROGRAMS, SUBJECT TO THE SAME
CONDITIONS ALL OTHER COUNTRIES IN CENTRAL AMERICA MUST MEET,
WHICH IS TO SHOW PROGRESS TOWARDS HUMAN RIGHTS AND A
PLURALISTIC DEMOCRACY. THERE IS NO SPECIAL DISCRIMINATION
AGAINST NICARAGUA.

Q: HOW IS IT THAT ONLY NOW WASHINGTON REMEMBERS THAT
CENTRAL AMERICA REPRESENTS INTERESTS THAT ARE VITAL TO THE
UNITED STATES?

A: THAT IS A VERY GOOD QUESTION AND I THINK THAT IT IS
UNDOUBTEDLY TRUE THAT THE UNITED STATES HAS GIVEN PRIORITY TO
OTHER CRISES IN THE WORLD.

WHEN ONE IS IN HIGH OFFICE IT IS UNFORTUNATELY THE CASE
THAT ONE DEALS FREQUENTLY WITH THE URGENT RATHER THAN THE
IMPORTANT AND OVER THE LAST 15 TO 20 YEARS OTHER PARTS OF THE
WORLD HAVE PREOCCUPIED AMERICAN POLICYMAKERS OF BOTH
POLITICAL PARTIES.

SO THE CRITICISM OR THE COMMENT THAT MAY BE MADE THAT IT
WAS A WORSENING SECURITY SITUATION THAT TRIGGERED OUR
INTEREST IS UNDOUBTEDLY CORRECT. NOW THE CHALLENGE TO US AND
TO OUR FRIENDS IN LATIN AMERICA IS TO MAKE SURE THAT WHATEVER
TRIGGERED OUR CONCERN, WE NOW PUT INTO PRACTICE OUR
UNDERSTANDING THAT WHAT WE NEED FOR CENTRAL AMERICA, AND, AS
WE SAY IN OUR REPORT, FOR ALL OF THE WESTERN HEMISPHERE, IS A
LONG-TERM POLICY THAT IS ADDRESSED TO THE ASPIRATIONS OF THE
PEOPLE AND THAT IS BACKED BY CONCRETE UNITED STATES MEASURES,

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INCLUDING UNDERSTANDING FOR THE ECONOMIC AND SOCIAL
DIFFICULTIES OF THE COUNTRIES CONCERNED.

Q: THE COMMISSION'S REPORT HAS RECEIVED SOME CRITICISM IN THE SENSE THAT ITS SPIRIT IS ATTEMPTING TO SAY OR CONTRADICTS SOME OF THE PROPOSALS MADE BY THE CONTADORA GROUP. IS THIS TRUE?

A: I DON'T BELIEVE THAT IS TRUE. WE VISITED MEXICO, VENEZUELA AND PANAMA AND WE, AS A COMMISSION, ALSO HAD A MEETING WITH THE PRESIDENT OF COLOMBIA.

I BELIEVE THAT THE PROPOSALS WE HAVE MADE FOR A DIPLOMATIC SOLUTION, WHICH WE HAVE SUMMED UP IN SEVEN PROPOSALS, ARE CONSISTENT WITH THE 21 PRINCIPLES OF THE CONTADORA GROUP AND IN THE REPORT WE HAVE SPECIFICALLY ENDORSED THE 21 PRINCIPLES OF THE CONTADORA GROUP AND I WANT TO USE THIS OCCASION TO EXPRESS MY APPRECIATION AND THAT OF MY COLLEAGUES TO THE PRESIDENT OF MEXICO AND THE FOREIGN MINISTER FOR THE TIME THEY GAVE US TO EXPLAIN THE POSITION OF BOTH MEXICO AND THE CONTADORA GROUP.

SO I BELIEVE THAT THE SPECIFICS THAT WE HAVE PUT FORWARD IN OUR NEGOTIATING POSITION ARE COMPATIBLE AND GROW OUT OF THE CONTADORA PRINCIPLES AND WE HAVE SPECIFICALLY ENDORSED THE EFFORTS OF THE CONTADORA COUNTRIES.

Q: THE KISSINGER REPORT PROPOSES THE SENDING OF MORE ARMS, WEAPONS, TO CENTRAL AMERICA. THIS IS AGAINST THE CONTADORA POLICY WHICH DEALS WITH A DEMILITARIZATION OF THE AREA. HOW CAN YOU EXPLAIN THIS CONTRADICTION?

A: THE REPORT OF THE BIPARTISAN COMMISSION FOR CENTRAL AMERICA PROPOSES AS A DIPLOMATIC SOLUTION THAT A LIMIT BE PUT ON THE IMPORTATION OF ALL OUTSIDE ARMS, THAT THE ARMIES AND THE ARMED FORCES IN THE AREA BY REDUCED.

WE WOULD PREFER TO 1979 LEVELS, BUT WE DID NOT PUT A PRECISE NUMBER ON IT, BUT BE SUBSTANTIALLY REDUCED -- THAT ALL FOREIGN MILITARY ADVISERS AND ALL FOREIGN MILITARY BASES BE REMOVED IN ALL CENTRAL AMERICAN COUNTRIES, NOT SIMPLY IN NICARAGUA, BUT IN ALL OTHER COUNTRIES. ALL OF THESE PRINCIPALES ARE ALSO PRINCIPLES OF CONTADORA.

UNTIL THESE ARE ACHIEVED, AND SO LONG AS 15,000 TONS A YEAR OF FOREIGN MILITARY EQUIPMENT FLOW INTO NICARAGUA, FOR THAT LENGTH OF TIME WE DO RECOMMEND THAT THE UNITED STATES ADD TO ITS MILITARY ASSISTANCE TO THE THREATENED -- TO THE OTHER COUNTRIES OF CENTRAL AMERICA.

BUT WE SPECIFICALLY STRESSED THAT WHAT WE WOULD PREFER IS A STRICT LIMITATION ON THE IMPORTATION OF ARMS, AND THE ELIMINATION OF ALL FOREIGN MILITARY ADVISERS AND, OF COURSE, THIS WOULD APPLY TO THE UNITED STATES AS WELL AS TO ANY OTHER COUNTRY.

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SO, THE OBJECTIVE WE HAVE IS EXACTLY THE SAME AS THAT OF THE CONTADORA GROUP. WHAT WE CANNOT RECOMMEND IS THAT ONE COUNTRY RECEIVES ARMS FROM CUBA AND THE SOVIET UNION WHILE THE UNITED STATES UNILATERALLY CUTS DOWN ITS ARMS INTO THE AREA.

Q: MANY PEOPLE BELIEVE THAT THE KISSINGER REPORT TO DATE WILL AUTOMATICALLY BECOME AND IMMEDIATELY BECOME AND IMMEDIATELY BECOME THE U.S. POLICY TOWARDS CENTRAL AMERICA. IS PRESIDENT REAGAN OBLIGED TO ACCEPT THE RECOMMENDATIONS OF THIS REPORT?. AND IF PRESIDENT REAGAN DOES ACCEPT THE RECOMMENDATIONS IN ITS ENTIRETY, DO YOU FEEL THAT IT IS POSSIBLE FOR THE U.S. CONGRESS TO APPROVE 8,000 MILLION DOLLARS IN ECONOMIC ASSISTANCE FOR CENTRAL AMERICA DURING THE NEXT FIVE YEARS?

A: THE ANSWER TO BOTH QUESTIONS IS NOT. PRESIDENT REAGAN IS NOT OBLIGED TO ACCEPT THE RECOMMENDATIONS OF THE COMMISSION, NOR IS IT CERTAIN THAT THE CONGRESS WILL THEN ACCEPT HIS RECOMMENDATIONS WERE HE TO ACCEPT THE RECOMMENDATIONS OF THE COMMISSION.

BUT I HOPE YOU HAVE NOTICED THAT YESTERDAY, IN MEETING WITH THE COMMISSION, PRESIDENT REAGAN SPOKE WITH CONSIDERABLE WARMTH ABOUT THE FINDINGS, WITHOUT COMMITTING HIMSELF IN DETAIL TO ALL OF OUR RECOMMENDATIONS.

WITH RESPECT TO THE CONGRESS, I BELIEVE THAT IT IS A NECESSITY FOR THE UNITED STATES TO FIND A BIPARTISAN BASIS FOR FOREIGN POLICY. WE CANNOT EVERY FOUR AND EIGHT YEARS CHANGE OUR FUNDAMENTAL POLICY BECAUSE OUR PRESIDENT CHANGES. WE WOULD BECOME A FACTOR OF INSTABILITY IN THE WORLD.

AND A NEW RELATIONSHIP WITH LATIN AMERICA IS OF CRUCIAL IMPORTANCE FOR ALL OF THE NATIONS OF THIS HEMISPHERE. SO, WE HOPE VERY MUCH THAT WHAT OUR REPORT WILL DO IS TO SPARK AN INTEREST, A CONCERN AND A PERMANENT COMMITMENT OF THE UNITED STATES TO THE ECONOMIC AND SOCIAL PROGRESS, NOT ONLY OF CENTRAL AMERICA, BUT OF THE ENTIRE WESTERN HEMISPHERE, AND CONSIDERING THE FACT THAT WE REPRESENT THE 12 CITIZENS OF WIDELY DIFFERENT VIEWS WHO ACHIEVED, AFTER ALL, UNANIMITY ON THE KEY RECOMMENDATIONS, THAT IF THAT COULD BE DONE AMONG OUR 12 PEOPLE OF SUCH DIFFERENT BACKGROUND, HOPEFULLY IF THE ADMINISTRATION ADOPTS THE KEY ELEMENTS OF OUR PROGRAM, IT WILL BE ABLE TO ENLIST ENOUGH SUPPORT IN THE CONGRESS.

SOONER OR LATER SOMETHING LIKE THIS WILL HAVE TO BE DONE.

Q: THE COMMISSION'S REPORT POINTS OUT THE IMMEDIATE URGENCY THAT NICARAGUA REPRESENTS THE THREAT THAT IT REPRESENTS TO THE DEMOCRACIES OF THE REGION.

A: THAT'S CORRECT.

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Q: THIS HAS TO DO WITH A CAUSE AND EFFECT BETWEEN THE REGIME AND THE THREAT THAT THE SANDINISTA REGIME IN NICARAGUA HAS VIS-A-VIS THE DIPLOMATIC AND MILITARY SUPPORT AND INTELLIGENCE SUPPORT RECEIVED FROM CUBA, OR DOES IT HAVE TO DO WITH -- AND WITH THE SOVIET UNION. FURTHERMORE, THIS HAS TO DO WITH AN IDEOLOGICAL STATEMENT MADE BY THE SANDINISTA REGIME AND THEIR THREAT OF EXPORTING THEIR REVOLUTION TO THE REST OF THE AREA, AND THE THREAT THAT THIS REPRESENTS TO DEMOCRACY.

HOWEVER, THE GUERRILLA FORCES IN EL SALVADOR -- CAN THIS LEAD TO THE UNIFICATION OF EL SALVADOR?

A: I'M NOT ABSOLUTELY SURE --

Q: WHAT LINKAGE IS THERE BETWEEN THE SOVIET UNION AND CUBA, DIRECTLY THROUGH NICARAGUA?

A: WE ARE MAKING THE POINT REPEATEDLY IN THE REPORT THAT INDIGENOUS REVOLUTIONS SUCH AS, FOR EXAMPLE, THE MEXICAN REVOLUTION WAS IN ITS DAY, SHOULD NOT BE A SECURITY CONCERN TO THE UNITED STATES. WHAT CREATES THE CONCERN IS THE FOREIGN INTERVENTION AND THE UTILIZATION OF LARGE QUANTITIES OF FOREIGN MILITARY EQUIPMENT, SOVIET AND CUBAN MILITARY EQUIPMENT, AND OF THE SOVIET-CUBAN INTELLIGENCE APPARATUS WHICH WILL THEN CREATE A PRESSURE ON ALL SURROUNDING COUNTRIES, A POINT WHICH WAS MADE TO US IN MANY OF THE COUNTRIES, IN ALL OF THE COUNTRIES OF CENTRAL AMERICA, AND INCLUDING SOME OF THE CONTADORA COUNTRIES, THAT WE VISITED.

NOW, THE THREAT THAT IS REPRESENTED BY THE SANDINISTAS IS THE ACCUMULATION OF SOVIET AND CUBAN WEAPONS, THE INSTALLATION OF LARGE INTELLIGENCE -- A LARGE INTELLIGENCE APPARATUS FROM -- WHICH AGAIN IS RUN BY THE CUBANS BUT HAS EAST GERMANS, BULGARIANS AND OTHER SOVIET INTELLIGENCE EXPERTS ATTACHED TO IT. IF NICARAGUA IS PREPARED TO BECOME ANOTHER CENTRAL AMERICAN STATE, A CENTRAL AMERICAN STATE, AND NOT AN OUTPOST OF A GLOBAL EFFORT, THEN WE FACE A TOTALLY DIFFERENT SITUATION.

AND IF NICARAGUA OBSERVES THE PROMISES IT HAS MADE TO THE OAS, AND THE PROPOSALS OF THE CONTADORA GROUP IN THE DIRECTION OF DEMOCRACY, THEN I BELIEVE NOT ONLY AN ACCEPTANCE, BUT A COOPERATION BETWEEN THE UNITED STATES AND NICARAGUA IN THE FRAMEWORK OF A CENTRAL AMERICAN EFFORT, IS POSSIBLE. BUT WHEN IT BECOMES THE HEADQUARTERS OF ALL INSURGENT ACTIVITY IN THE REGION, THEN, INDEED, IT BECOMES A THREAT TO DEMOCRACY AND THEN TO THE DEMOCRACY OF ALL OTHER COUNTRIES, TO COSTA RICA, OF THE HOPES FOR DEMOCRACY IN SALVADOR, AND EVEN AS WE FOUND WHEN WE WERE IN VENEZUELA, IT IS SOME CONCERN TO THE LEADERS OF VENEZUELA.

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Q: HOW DOES THE UNITED STATES EXPECT TO MAINTAIN PEACE THROUGHOUT CENTRAL AMERICA AS THE SAME TIME WHEN IT IS MAINTAINING A MARINE CONTINGENT STATIONED IN HONDURAS? AND ON THE OTHER HAND, IF THEY DO NOT RECOGNIZE THE GUERRILLA FORCES AS REPRESENTATIVE OF AN OPINION OF THE LOCAL SOCIAL GROUPS?

A: IN THE CHAPTER ON NEGOTIATIONS IN THIS BIPARTISAN REPORT, WE HAVE UNANIMOUSLY RECOMMENDED THAT ALL FOREIGN MILITARY CONTINGENTS AND ALL FOREIGN MILITARY BASES BE REMOVED FROM CENTRAL AMERICA ON A RECIPROCAL BASIS. AND WE HAVE SPECIFICALLY SAID THAT WE APPLY THIS TO CUBAN ADVISERS IN NICARAGUA, AND TO AMERICAN MILITARY CONTINGENTS IN HONDURAS. SO, WE ARE SPECIFICALLY DEALING WITH THE QUESTION THAT YOU HAVE RAISED WITH RESPECT TO THE MILITARY THING.

NOW I HAVE FORGOTTEN WHAT THE OTHER QUESTION WAS. THERE WERE TWO.

ONE QUESTION WAS HOW CAN WE DO IT, MAINTAINING OUR MILITARY BASES, AND THEN THERE WAS A SECOND PART OF THAT QUESTION WHICH HAS SLIPPED MY MIND.

Q: ON THE OTHER HAND, DOESN'T THE UNITED STATES RECOGNIZE THAT THE GUERRILLA FORCES ARE REPRESENTATIVES OF SOME OPINION OF THE LOCAL COMMUNITY?

A: THAT IS NOT THE ISSUE. THE GUERRILLA FORCES, OBVIOUSLY, REPRESENT SOME OPINION.

WE, AGAIN, HAVE PROPOSED IN THIS REPORT THAT AFTER THE PRESIDENTIAL ELECTION WHICH WILL TAKE PLACE IN SALVADOR ON MARCH 25TH, AND WE HAVE MADE THAT RESTRICTION ONLY BECAUSE WE ARE NOW ALREADY TOWARDS THE MIDDLE OF JANUARY, AND IT WILL BE DIFFICULT TO NEGOTIATE A NEW PROCEDURE BEFORE THESE ELECTIONS, BUT AS SOON AS THAT IS COMPLETED, AN ELECTORAL COMMISSION BE CREATED TO WHICH THE GUERRILLA FORCES BE INVITED, WHICH WOULD THEN ARRANGE FOR ELECTIONS FOR A PARLIAMENT AND FOR MUNICIPAL ELECTIONS IN WHICH THE GUERRILLA FORCES WOULD BE INVITED TO PARTICIPATE, TO HELP DRAW UP THE RULES OF THE ELECTION, AND TO MAKE RECOMMENDATIONS WITH RESPECT TO THE SECURITY FRAMEWORK.

THE ISSUE IS NOT WHETHER THE GUERRILLA FORCES REPRESENT AN OPINION, BUT WHETHER THE OPINION THEY REPRESENT IS PREPARED TO TOLERATE OTHER OPINIONS. OUR IMPRESSION IS THAT THEY ARE A PART OF THE GUERRILLA MOVEMENT THAT HAVE A DEMOCRATIC TRADITION, PEOPLE LIKE (HUMBERTO) UNGO FOR EXAMPLE. THERE ARE OTHER SIGNIFICANT ELEMENTS OF THE GUERRILLA MOVEMENT THAT ARE MARXIST-LENINIST, TOTALITARIAN, AND THAT HAVE NEVER TOLERATED ELECTIONS IN ANY AREA THAT THEY CONTROL.

BUT WHETHER IF ANY GROUP THAT IS PREPARED TO PARTICIPATE IN A FREE, DEMOCRATIC PROCEDURE, AND IS WILLING TO HELP WORK

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OUT THE GUARANTEES FOR SUCH A PROCESS WOULD, UNDER THE RECOMMENDATIONS OF OUR COMMISSION BE INVITED TO PARTICIPATE. AND EVERY GROUP WOULD HAVE THE RIGHT TO PARTICIPATE.

Q: THE POLICIES OF THE REAGAN ADMINISTRATION VIS-A-VIS THE GOVERNMENT OF GUATEMALA HAVE POINTED OUT A MORE IMMEDIATE OBJECTIVE -- PARDON ME, IT MUST BE NICARAGUA -- OF ISOLATING THIS FROM THE MANAGUA REGIME. AND ANOTHER IS TO BRING ABOUT A CHANGE TO THE EXISTING GOVERNMENT. MY QUESTION: IS THERE SOME POSSIBILITY TO HAVE WASHINGTON ABANDON THESE OBJECTIVES AND FIND CO-EXISTENCE, OR A WAY TO CO-EXIST WITH THE SANDINISTA GOVERNMENT?

A: I CAN ONLY SPEAK FOR THE COMMISSION. I AM NOT SPEAKING FOR THE REAGAN ADMINISTRATION, NOT BECAUSE I DISAGREE WITH IT, BUT BECAUSE MY ASSIGNMENT WAS TO ACHIEVE A SET OF RECOMMENDATIONS DUE TO THIS BIPARTISAN GROUP, AND I WANT TO STRESS AGAIN THAT THIS GROUP OF AMERICANS THAT INCLUDED THE FORMER CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE, THE HEAD OF THE LABOR UNIONS IN THE UNITED STATES, ACHIEVED UNANIMITY ON ALL OF THE KEY RECOMMENDATIONS.

NOW THE QUESTION IS CAN WE ACHIEVE CO-EXISTENCE WITH THE SANDINISTA REGIME? IT IS NOT CORRECT THAT THIS REPORT RECOMMENDS A CHANGE OF THE SANDINISTA REGIME. WHAT THIS REPORT RECOMMENDS IS THAT THE SANDINISTA REGIME IN NICARAGUA, JUST AS ALL OTHER REGIMES IN THE REGION, SUBMIT ITSELF TO ELECTORAL PROCESSES.

IF ONE LOOKS AT LATIN AMERICA AT THIS MOMENT, ONE OF THE DISTINGUISHING FEATURES IS THE SPREAD OF DEMOCRATIC PROCESSES. IT HAS OCCURRED IN ARGENTINA. IT IS TAKING PLACE IN BRAZIL. THERE HAS JUST BEEN AN ELECTION IN VENEZUELA. SALVADOR IS TRYING, IN A VERY COMPLICATED SITUATION.

IF THE SANDINISTAS COULD WIN AN ELECTION OR WILL WIN AN ELECTION IN NICARAGUA, THAT THE ORGANIZATION OF AMERICAN STATES OR THE CONTADORA COUNTRIES WOULD EXPRESS REFLECTS FREE DEMOCRATIC PROCEDURES, THE UNITED STATES SHOULD, ACCORDING TO THE VIEW OF OUR COMMISSION, AND WOULD, ACCORDING TO MY VIEW, HAVE NO DIFFICULTY -- BE PREPARED TO CO-EXIST WITH THE SANDINISTA REGIME.

BUT, IN ORDER TO CO-EXIST, THE SANDINISTA REGIME OR ANY OTHER GOVERNMENT IN NICARAGUA MUST STOP TURNING ITSELF INTO A FOREIGN MILITARY BASE. THE AMOUNT OF WEAPONS THAT ARE BEING INTRODUCED INTO NICARAGUA, THE MILITARY ORGANIZATION THAT IS BEING CREATED, THE INTELLIGENCE APPARATUS THAT HAS COME INTO BEING, ARE REALLY INCOMPATIBLE WITH CENTRAL AMERICAN RELATIONSHIPS. IT WILL MEAN THAT ONE COUNTRY WILL REPRESENT SUCH A TREMENDOUS WEIGHT ON ALL THE OTHERS.

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SO, WE THINK THERE SHOULD BE A GENERAL REDUCTION OF ARMS
FORCES AND OF FOREIGN MILITARY AND INTELLIGENCE INTERVENTION
IN THE REGION.

Q: THE COMMISSION'S REPORT SPEAKS OF FUNDAMENTAL U.S.
INTERESTS AND I WANTED TO KNOW DOES THIS MEAN TO PLACE THE
UNITED STATES OVER AND ABOVE THE SOVEREIGNTY OF ANY ONE OF
THE COUNTRIES OF THE HEMISPHERE?

A: ABSOLUTELY NOT. I SUSPECT THAT FOR OBVIOUS REASONS
YOU LADIES AND GENTLEMEN WHO ARE ASKING ME QUESTIONS HAVE NOT
HAD AN OPPORTUNITY TO READ THE ENTIRE REPORT, BECAUSE IT WAS
ONLY RELEASED YESTERDAY AND I SUPPOSE THERE HASN'T BEEN TIME
TO TRANSLATE THE ENTIRE REPORT INTO YOUR LANGUAGES.

INCIDENTALLY, I WOULD LIKE TO POINT OUT THAT WE HAVE MADE
AN EFFORT, WHICH MAY NOT BE ALL THAT BRILLIANT, TO TRANSLATE
THE REPORT INTO SPANISH, OUT OF RESPECT FOR THE COUNTRIES
CONCERNED. WHEN YOU SEE THE ENTIRE REPORT YOU WILL FIND THAT
THE FIRST CHAPTER OF THE REPORT DEALS WITH THE ISSUE THAT THE
UNITED STATES CANNOT DEAL WITH CENTRAL AMERICA EXCEPT IN THE
CONTEXT OF A WESTERN HEMISPHERE REALTIONSHIP.

SECONDLY, THAT THIS WESTERN HEMISPHERE RELATIONSHIP MUST
BE BASED ON DEMOCRACY, SOCIAL PROGRESS, RECIPROCITY, AND THE
RECOGNITION OF THE SOVEREIGNTY AND RESPECT OF THE
INDEPENDENCE OF ALL OF THE COUNTRIES CONCERNED.

WE DO NOT CLAIM, IN THIS REPORT, THAT THE UNITED STATES
HAS A RIGHT TO DICTATE TO THE COUNTRIES OF CENTRAL AMERICA OR
TO THE COUNTRIES -- OR ANY OTHER COUNTRY OF THE WESTERN
HEMISPHERE. WE ARE PROPOSING A COOPERATIVE RELATIONSHIP THAT
CAN BE ESTABLISHED. WE HAVE ENDORSED THE EFFORTS AND THE
GOALS OF THE CONTADORA GROUP, AND I THINK WHEN YOU READ THE
ACTUAL TEXT OF THE REPORT, AT LEAST I HOPE THAT WILL BE THE
REACTION.

OUR NEIGHBORS TO THE SOUTH OF US, NOT JUST IN CENTRAL
AMERICA, WILL SEE THAT IT REPRESENTS AN ATTEMPT TO TURN THE
UNITED STATES TOWARDS A NEW, COOPERATIVE, RELATIONSHIP IN THE
WESTERN HEMISPHERE, DEALING WITH IMMEDIATE CONCERNS,
INCLUDING SUCH ISSUES AS DEBT AND ECONOMIC PROGRESS FOR ALL
OF THE COUNTRIES IN THE HEMISPHERE, AND NOT ON THE BASIS OF
UNITED STATES DICTATION, BUT ON THE BASIS OF COOPERATION AND
MUTUAL RESPECT.

indeed, we are recommending a central american development
organization which would be run by the nations of central
america, and in which the united states, as the principal
donor, would have only one voice.

Q: SPEAKING OF ECONOMIC ASSISTANCE, THOUGH THE PRIVATE SECTOR WILL PARTICIPATE, MOST OF THE AID, WILL THIS NOT LEAD TO THE CREATION OF SECTORS WHICH ARE TOO BROAD?

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A: SPEAKING NOW ABOUT CENTRAL AMERICA, NOT LATIN AMERICA AS A WHOLE, WE INVITED VARIOUS PRIVATE SECTOR GROUPS TO TESTIFY BEFORE THE BIPARTISAN COMMISSION, AND SOME OF THEM SUBMITTED PAPERS OF CONSIDERABLE INTEREST AND IMPORTANCE.

THE REALITY OF THE SIUTATION IS, HOWEVER, THAT AS LONG AS THERE ARE CIVIL WARS GOING ON IN SO MANY OF THE COUNTRIES OF CENTRAL AMERICA, AND AS LONG AS THERE IS A GREAT SENSE OF INSECURITY, IT WILL BE VERY DIFFICULT TO INDUCE PRIVATE INVESTMENT TO GO THERE.

THEREFORE, IN THE FIRST PHASE, IN THE IMMEDIATE PHASE, MUCH OF THE ASSISTANCE WILL HAVE TO COME FROM GOVERNMENTAL SOURCES IN THE UNITED STATES, OR FROM INTERNATIONAL SOURCES, SUCH AS THE WORLD BANK AND OTHER INSTITUTIONS OF A SIMILAR KIND.

AS THE SECURITY SITUATION STABILIZES, IT WILL BE POSSIBLE TO INTEREST, I AM SURE, MORE PRIVATE INVESTMENT IN THE AREA. AND ONE HAS TO REMEMBER THAT CENTRAL AMERICA GREW AT THE RATE OF SEVEN AND EIGHT PERCENT IN THE 1960'S AND 1970'S, UNTIL THE GLOBAL ECONOMIC RECESSION, TO A LESSER EXTENT THE DEBT PROBLEM, AND THE INSURGENT ACTIVITY COMBINED TO LOWER THE LEVEL OF ECONOMIC ACTIVITY.

AS A GENERAL GOAL, OUR COMMISSION IS AIMING FOR A GROWTH RATE OF THREE PERCENT UNTIL 1990, WHICH WOULD RETURN CENTRAL AMERICA BY 1990 TO THE STANDARD OF OR TO THE PER CAPITA INCOME THAT IT ENJOYED IN 1978, AND THAT IS NOT A VERY AMBITIOUS GOAL, AND IT IS, IN OUR VIEW, THE ABSOLUTE MINIMUM THAT IS NECESSARY IN ORDER TO GIVE HOPE TO THE PEOPLE.

BUT I MUST SAY, UNFORTUNATELY, IT WILL NOT, IN THE FIRST PLACE, BE POSSIBLE TO BRING ABOUT A GREAT DEAL OF PRIVATE INVESTMENT IN THAT AREA UNTIL THE SECURITY SITUATION IMPROVES.

Q: IN ACCORDANCE WITH WHAT THE MEMBERS OF THE COMMISSION EXPRESSED WHEN THEY VISITED HERE, COSTA RICA, WE ARE TO EXPECT THAT ECONOMIC AID WILL BE A PRIORITY TOWARDS THIS COUNTRY, BECAUSE IT IS HOPED THAT THERE WILL BE NO INSURGENTS. WOULD THIS BE DIFFERENT FROM WHAT CAN BE DONE POLITICALLY THROUGHOUT CENTRAL AMERICA?

A: FIRST OF ALL, LET ME TAKE THIS OPPORTUNITY TO SAY THAT ALL OF THE MEMBERS OF THE COMMISSION WERE ENORMOUSLY IMPRESSED BY THEIR VISIT TO COSTA RICA. THE COSTA RICAN GOVERNMENT HAS CREATED A COUNTERPART COMMISSION TO US WHICH HAD WORKED OUT DETAILED PROPOSALS OF HOW ECONOMIC AND SOCIAL PROGRESS COULD BE ASSISTED BY EFFORTS OF THE UNITED STATES AND INTERNATIONAL AGENCIES.

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I BELIEVE THAT THE QUESTIONER IS CORRECT. I WOULD THINK THAT THE HIGHEST PRIORITY SHOULD BE GIVEN TO THE COSTA RICA NEEDS AND IT WOULD BE WITHIN THE SPIRIT OF THE COMMISSION IF THIS WERE TO BE THE POLICY OF THE UNITED STATES GOVERNMENT.

Q: THE COMMISSION'S REPORT, OR AT LEAST WHAT WE KNOW OF THE REPORT, INDICATES THAT IN THE DISTRIBUTION OF WEALTH THROUGHOUT CENTRAL AMERICA, WHICH TOOK PLACE DURING THE 1970'S, THERE WAS A BETTER DISTRIBUTION OF WEALTH. IT IS OUR OPINION THAT EVEN IN PANAMA AND COSTA RICA THIS MUST CONTINUE TO IMPROVE.

IN YOUR REPORT, WHAT TYPES OF COOPERATION ARE YOU CONSIDERING WILL CONTRIBUTE TO A BETTER DISTRIBUTION OF THE WEALTH THROUGHOUT THAT AREA?

A: IT GOES WITHOUT SAYING THAT THE DISTRIBUTION OF WEALTH WITHIN A COUNTRY IS OBVIOUSLY A MATTER THAT IS PRIMARILY -- THAT MUST BE SETTLED BY THE POLITICAL PROCESSES OF THAT COUNTRY. IT DOES NOT BEHOOVE THE UNITED STATES TO COME FORWARD WITH A DETAILED PROGRAM FOR THE DISTRIBUTION OF -- WITH A MORE EQUITABLE DISTRIBUTION OF WEALTH, FOR THE MORE EQUITABLE DISTRIBUTION OF THE ECONOMIC PROGRESS THAT WILL BE MADE.

IT IS OUR VIEW THAT WHEN A COUNTRY IS DEMOCRATIC, THAT NORMAL DEMOCRATIC PROCESSES WILL SEE TO IT THAT THERE IS A GREATER DEGREE OF SOCIAL JUSTICE THAN IN TOTALITARIAN OR IN AUTHORITARIAN REGIMES, AND SO WE BELIEVE THAT IN COSTA RICA AND PANAMA, WHICH WERE THE PURPOSES OF ECONOMIC AND SOCIAL PROGRAMS, WE INCLUDE IN OUR ECONOMIC PROPOSAL THAT IN THOSE TWO COUNTRIES THE OBJECTIVE CONDITIONS FOR MAKING PROGRESS ARE BETTER THAN THEY ARE IN SOME OF THE OTHER COUNTRIES OF CENTRAL AMERICA, AND WE HAVE EVERY CONFIDENCE THAT THE GOVERNMENT OF COSTA RICA, ABOUT WHICH YOU WERE ASKING ME, GIVEN ADEQUATE RESOURCES, WILL MAKE A MAJOR EFFORT TO MAKE SURE THAT THEY WILL BE -- THAT THE BENEFITS OF ECONOMIC GROWTH WILL SPREAD AMONG THE ENTIRE POPULATION AND NOT SIMPLY TO A PRIVILEGED OLIGARCHY.

Q: REPRESENTATIVE MIKE BARNES YESTERDAY DENOUNCED THE COMMISSION'S REPORT AND SUGGESTED THAT IF NO AGREEMENT WAS MADE WITH THE SANDINISTA GOVERNMENT, THEN PERHAPS THE U.S. GOVERNMENT SHOULD USE FORCE. WHAT IS EXACTLY YOUR VIEW ON THIS?

A: MICHAEL BARNES SAID THAT?

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MICHAEL BARNES SAID THAT HE WAS IN GREATER AGREEMENT WITH THE ECONOMIC AND SOCIAL PROPOSALS THAN HE WAS WITH THE SECURITY PROPOSALS AND HE DOES NOT BELIEVE THAT ADDITIONAL MILITARY AID SHOULD BE USED. THE COMMISSION DOES NOT SAY FORCE SHOULD BE USED IN NICARAGUA.

THE COMMISSION SAYS THAT WHEN VITAL AMERICAN INTERESTS ARE AT STAKE AS THE ABSOLUTELY LAST RESORT, THAT THEN FORCE IS ONE OF THE MEASURES. I THINK ANY ONE OF YOUR COUNTRIES WOULD SAY THE SAME THING ABOUT ITS VITAL SECURITY INTERESTS AS AN ABSOLUTELY LAST RESORT. THAT IS AN AXIOM OF FOREIGN POLICY.

THE REPORT DOES NOT RECOMMEND THE USE OF MILITARY FORCE. IN FACT, IT SAYS SPECIFICALLY THAT ALL THE MEANS EITHER OF NEOGIATION AND OF OTHER MEASURES HAVE NOT BEEN EXHAUSTED.

SO I BELIEVE THE QUESTION IS BASED ON THE MISUNDERSTANDING EITHER OF WHAT MR. BARNES SAID -- I DON'T THINK HE SAID THAT, I READ HIS STATEMENT -- AND IT IS CERTAINLY BASED ON A MISUNDERSTANDING OF WHAT THE COMMISSION HAS SAID.

Q: YOUR PLAN DISCARDS THE POSSIBILITY OF NICARAGUA PARTICIPATING IN THE ECONOMIC SYSTEM THAT THE COMMISSION PRESENTS, BUT IF THE SANDINISTAS CONTINUED TO PROMOTE THE INSURGENCE IN THE NEIGHBORING COUNTRIES HOW CAN YOU GUARANTEE THIS PARTICIPATION OF THE POLITICAL PARTIES TO PARTICIPATE FREELY ON THE ONE HAND?

ON THE OTHER HAND, ANOTHER QUESTION, THE OAS IS ALREADY BEING UNDERMINED WHEN THE CENTRAL AMERICAN DEVELOPMENT ORGANIZATION, CADO, HAS BEEN CREATED, WHICH WOULD BE THE ORGANIZATION THAT WOULD CARRY OUT THIS PLAN. DO YOU BELIEVE THAT THIS UNDERMINES THE OAS?

A: TO TAKE THE SECOND QUESTION FIRST, I DON'T SEE WHY THE CENTRAL AMERICAN DEVELOPMENT ORGANIZATION SHOULD UNDERMINE THE OAS. THERE ARE OTHER REGIONAL GROUPINGS -- THERE IS THE ANDEAN GROUPING, THERE HAS BEEN A CENTRAL AMERICAN COMMON MARKET, THERE HAS BEEN A CENTRAL AMERICAN DEFENSE GROUPING BEFORE.

SO THE IDEA THAT THE FIVE COUNTRIES OF CENTRAL AMERICA -- IN THIS CASE THE SEVEN COUNTRIES BECAUSE WE INCLUDE PANAMA AND THE ANTILLES -- IN THE ECONOMIC AND SOCIAL PROGRAM WOULD FORM AN ORGANIZATION BY WHICH CAN MAKE JOINT PLANS FOR ECONOMIC DEVELOPMENT IS IN NO SENSE CONTRADICTORY TO THE OAS BECAUSE, OF COURSE, THE NATIONS WOULD REMAIN PARTICIPANTS IN THE OAS AND IT WOULD BE CARRYING OUT AN INSTITUTIONALIZATION THAT HAS EXISTED PREVIOUSLY IN CENTRAL AMERICA THAT EXISTS IN OTHER PARTS OF THE WESTERN HEMISPHERE.

WITH RESPECT TO NICARAGUA, ALL WE ARE ASKING OF NICARAGUA IN ORDER TO PARTICIPATE IN THE ECONOMIC BENEFITS THAT WE ARE PROPOSING IS THAT IT MEETS EXACTLY THE SAME CONDITIONS THAT

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WE ARE ASKING OF ALL OTHER COUNTRIES IN THE REGION, NAMELY, PROGRESS TOWARDS DEMOCRACY AND PLURALISM.

OF COURSE, IF NICARAGUA CONTINUES TO UNDERMINE DEMOCRACY IN THE REGION, IF NICARAGUA INSISTS ON CONTINUING TO PERMIT INSURGENCIES IN THE REGION, IT WOULD BE RIDICULOUS FOR US TO GIVE IT THE MEANS TO DO IT MORE EFFECTIVELY AND IT WOULD BE ABSURD TO TALK THAT IT CAN THEN BE PART OF A COOPERATIVE CENTRAL AMERICAN STRUCTURE.

NICARAGUA WILL HAVE TO CHOOSE BETWEEN WHETHER THEY WANT TO EXPORT REVOLUTION OR WHETHER THEY WANT TO BE PART OF A CENTRAL AMERICAN COOPERATIVE SYSTEM. BUT WE ARE ASKING NO MORE OF NICARAGUA IN THAT RESPECT THAN OF GUATEMALA, SALVADOR, HONDURAS AND ANY OF THE OTHER COUNTRIES THAT ARE CONCERNED.

Q: IN THE FRAMEWORK OF THE CONTADORA GROUP, IT IS ALSO ESTABLISHED THAT THERE BE AN ECONOMIC DEVELOPMENT SYSTEM SOMEHOW SIMILAR TO THAT OF THE KISSINGER REPORT WITH RESPECT TO SOME OF THE POLITICAL ASPECTS. DO YOU BELIEVE THE PROPOSAL WITHIN THE FRAMEWORK OF THE CONTADORA GROUP COULD WORK TOGETHER WITH THE PROPOSALS MADE BY THE BIPARTISAN COMMISSION IN THE FUTURE?

A: ABSOLUTELY. WE SPECIFICALLY RECOMMEND -- FIRST OF ALL, WE ARE PUTTING FORWARD THE CENTRAL AMERICAN DEVELOPMENT ORGANIZATION AS AN IDEA THAT WE SHOULD THINK SHOULD BE ELABORATED AT A MEETING BETWEEN HIGH OFFICIALS OF THE CENTRAL AMERICAN COUNTRIES AND AMERICAN OFFICIALS BECAUSE WE DO NOT THINK IT SHOULD BE A BLUEPRINT HANDED DOWN FROM WASHINGTON.

SECONDLY, WE SPECIFICALLY SAY THAT THE CONTADORA COUNTRIES SHOULD BE ASSOCIATED WITH THIS OR COULD BE ASSOCIATED WITH THIS IN AN ADVISORY OR ANY OTHER CAPACITY IN WHICH THEY WANT TO PLAY A ROLE. IF THE CONTADORA COUNTRIES AND THE CENTRAL AMERICAN COUNTRIES COME UP WITH AN ALTERNATIVE ECONOMIC DEVELOPMENT SCHEME THAT EMBODIES PARALLEL PRINCIPLES, AND I BELIEVE OUR PRINCIPLES ARE PARALLEL TO THE CONTADORA GROUP, I AM SURE THAT MY COLLEAGUES ON THE COMMISSION AND I WOULD WELCOME THIS.

WE BELIEVE THAT THIS PROGRAM WILL BE MORE EFFECTIVE, THE MORE IT REFLECTS THE ASPIRATIONS OF THE PEOPLE THAT ARE MOST DIRECTLY AFFECTED BY IT.

Q: DR. KISSINGER PRETENDS TO MAINTAIN TO SUPPORT TO THE UTILIZATION OF ANY METHOD EVEN THOUGH THERE IS A MINIMUM RESPECT FOR HUMAN RIGHTS IN ORDER TO DEFEAT THE GUERRILLAS?

A: NO -- FIRST OF ALL, OUR COMMISSION HAS MADE MILITARY AID CONDITIONAL ON DEMONSTRATED PROGRESS TOWARDS DEMOCRATIC INSTITUTIONS, INDEPENDENT JUDICIAL SYSTEMS AND A NUMBER OF OTHER SIMILAR CRITERIA.

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I HAVE POINTED OUT IN MY CLARIFYING NOTES THAT IN THE
INTERPRETATION OF THIS ONE SHOULD NOT BRING ABOUT IN THE NAME
OF HUMAN RIGHTS A VICTORY OF THE MARXIST-LENINISTS WHO HAVE
NEVER RESPECTED HUMAN RIGHTS IN ANY OF THE COUNTRIES IN WHICH
THEY HAVE GOVERNED, BUT STILL THERE IS A HUGE AREA IN WHICH
THE UNITED STATES CAN USE ITS INFLUENCE AND MUST USE ITS
INFLUENCE TO BRING ABOUT AN IMPROVEMENT OF HUMAN RIGHTS AND
ARE ASSURED OF THIS ONE CLARIFYING POSITION. IN ADDITION
THERE ARE CERTAIN PRACTICES LIKE THE DEATH SQUADS WHICH
CANNOT BE ACCEPTED BY ANY DEMOCRATIC GOVERNMENT.

SO I SUPPORT MY COLLEAGUES IN THE PROPOSAL THAT SOME
CONDITIONS HAVE TO BE PUT. I CLARIFIED IT, IN PARTICULAR HOW
IT SHOULD BE INTERPRETED, BUT IT EMPHATICALLY DOES NOT MEAN
THAT THE MEMBERS OF THE COMMISSION OR ITS CHAIRMAN WELCOME
ANY METHOD THAT MIGHT BE USED IN THE FIGHT AGAINST THE
GUERRILLAS.

(END TRANSCRIPT)

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(xx406,x,
*PO-406 (1/12/84)

KISSINGER: STOP CENTRAL AMERICA ARMS BUILDUP (2920)
(EXCERPTS: KISSINGER INTERVIEW ON 'WORLDNET')

BRUSSELS -- HENRY KISSINGER, CHAIRMAN OF THE U.S.
BIPARTISAN COMMISSION ON CENTRAL AMERICA, TOLD A TWO-
CONTINENT TELEVISION AUDIENCE JANUARY 12 THAT NICARAGUA MUST
NOT BE ALLOWED TO BECOME "AN OUTPOST" OF SOVIET-CUBAN
MILITARY MIGHT.

THE COMMISSION'S REPORT DELIVERED TO PRESIDENT REAGAN,
KISSINGER SAID, ADVOCATES "STRICT LIMITATIONS ON IMPORTS OF
ARMS" AND ON FOREIGN MILITARY ADVISORS IN CENTRAL AMERICA.
UNTIL THIS COMES ABOUT, HOWEVER, THE UNITED STATES SHOULD
GIVE MILITARY SUPPORT TO ITS ALLIES, KISSINGER INSISTED.

KISSINGER, WHO SPOKE FROM BRUSSELS THROUGH "WORLDNET," A
U.S. INFORMATION AGENCY TELEVISION PROGRAM, MADE THE
FOLLOWING POINTS ABOUT THE COMMISSION'S 132-PAGE REPORT:

-- THE ECONOMIC, SOCIAL AND POLITICAL CONDITIONS IN
CENTRAL AMERICA MUST BE IMPROVED.

-- IN CENTRAL AMERICA, INTERNAL UPHEAVALS WITH INDIGENOUS
CAUSES HAVE BEEN EXACERBATED BY FOREIGN INTERVENTION BY THE
SOVIET UNION AND CUBA.

-- NICARAGUA REPRESENTS A THREAT TO ITS NEIGHBORS.

-- THE UNITED STATES AND ITS CENTRAL AMERICAN ALLIES CAN
COEXIST WITH NICARAGUA IF THE SANDINISTAS COMMIT THEMSELVES
TO PLURALISTIC DEMOCRACY AND TO RESPECT FOR HUMAN RIGHTS.

-- THE 12-MEMBER COMMISSION SUPPORTS A DIPLOMATIC SOLUTION
TO THE CENTRAL AMERICAN CONFLICT.

-- MILITARY AID TO CENTRAL AMERICAN COUNTRIES MUST BE TIED
TO "DEMONSTRATED PROGRESS ON HUMAN RIGHTS."

REPORTERS IN WORLDNET STUDIOS IN ARGENTINA, BRAZIL, COSTA
RICA, MEXICO AND VENEZUELA TOOK PART IN THE CONFERENCE. THE
PROGRAM WAS SEEN AT WORLDNET POSTS IN BONN, BRUSSELS, GENEVA,
LONDON, PARIS, THE HAGUE, ROME, AND STOCKHOLM.

(FOLLOWING ARE EXCERPTS OF THE KISSINGER WORLDNET
TRANSCRIPT)

(BEGIN EXCERPTS)

* WELCOME TO THE FIRST TRANSMISSION ON THE AMERICAN REPUBLIC
NET. I AM YOUR HOST, HARRY ELLIS.... NOW, DR. KISSINGER,
JUST TO SET THE FRAMEWORK FOR OUR DISCUSSION, I WAS STRUCK BY
ONE SENTENCE IN THE COMMISSION REPORT WHICH SAID, "WHATEVER
THE SHORT-TERM COSTS OF TAKING ACTION NOW, THEY ARE NOTHING
AS COMPARED WITH THE LONG-TERM COSTS IF NOTHING IS DONE."

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THESE THEN ARE EXACERBATED BY SECURITY CONSIDERATIONS THAT INVOLVE OUTSIDE POWERS AND ALL OF THIS HAS TO BE MESHED TOGETHER IN A DIPLOMATIC FRAMEWORK. IN OUR VIEWS, IF THE URGENT ECONOMIC, SOCIAL AND POLITICAL REFORM MEASURES ARE NOT TAKEN, THE INTERNAL SITUATION IN THE COUNTRIES CONCERNED CAN ONLY WORSEN. THEREFORE, THE SECURITY PROBLEM CAN ONLY GET MORE COMPLICATED.

AT THE SAME TIME I WANT TO STRESS ONE OF THE BASIC THEMES OF OUR REPORT, WHICH IS THAT WE HAVE TO COMMIT OURSELVES AS A NATION, THE UNITED STATES, TO A LONG-TERM EFFORT -- NOT JUST TO DEAL WITH THE SECURITY PROBLEM BUT TO BRING ABOUT THE POLITICAL, ECONOMIC AND SOCIAL ASPIRATIONS OF THE PEOPLE OF THE AREA....

QUESTION: BEARING IN MIND THE STUDY THAT YOU HAVE DONE ON CENTRAL AMERICA, TO WHAT POINT DO YOU BELIEVE THAT THE UNITED STATES WILL CONTINUE TO PRESSURE CENTRAL AMERICA FUNDAMENTALLY ON NICARAGUA -- UNTIL THEY ACHIEVE DEMOCRACY OR UNTIL THE PRESENT SANDINISTA GOVERNMENT FALLS DOWN BY SOME OTHER METHOD?

A: ...IT IS NOT A QUESTION OF PRESSURING NICARAGUA; IT IS A QUESTION OF STATING WHAT OUR FUNDAMENTAL OBJECTIVES IN THE AREA ARE. WE HAVE INVITED IN OUR REPORT FOR NICARAGUA TO PARTICIPATE IN THE ECONOMIC PROGRAMS, SUBJECT TO THE SAME CONDITIONS ALL OTHER COUNTRIES IN CENTRAL AMERICA MUST MEET, WHICH IS TO SHOW PROGRESS TOWARDS HUMAN RIGHTS AND A PLURALISTIC DEMOCRACY. THERE IS NO SPECIAL DISCRIMINATION AGAINST NICARAGUA....

I BELIEVE THAT THE PROPOSALS WE HAVE MADE FOR A DIPLOMATIC SOLUTION, WHICH WE HAVE SUMMED UP IN SEVEN PROPOSALS, ARE CONSISTENT WITH THE 21 PRINCIPLES OF THE CONTADORA GROUP AND IN THE REPORT WE HAVE SPECIFICALLY ENDORSED THE 21 PRINCIPLES OF THE CONTADORA GROUP....

USIA WIRELESS FILE

PAGE 50

WE WOULD PREFER TO 1979 LEVELS, BUT WE DID NOT PUT A PRECISE NUMBER ON IT, BUT BE SUBSTANTIALLY REDUCED -- THAT ALL FOREIGN MILITARY ADVISERS AND ALL FOREIGN MILITARY BASES BE REMOVED IN ALL CENTRAL AMERICAN COUNTRIES, NOT SIMPLY IN NICARAGUA, BUT IN ALL OTHER COUNTRIES. ALL OF THESE PRINCIPLES ARE ALSO PRINCIPLES OF CONTADORA.

Q: MANY PEOPLE BELIEVE THAT THE KISSINGER REPORT TO DATE WILL AUTOMATICALLY BECOME AND IMMEDIATELY BECOME THE U.S. POLICY TOWARDS CENTRAL AMERICA. IS PRESIDENT REAGAN OBLIGED TO ACCEPT THE RECOMMENDATIONS OF THIS REPORT? AND IF PRESIDENT REAGAN DOES ACCEPT THE RECOMMENDATIONS IN ITS ENTIRETY, DO YOU FEEL THAT IT IS POSSIBLE FOR THE U.S. CONGRESS TO APPROVE 8,000 MILLION DOLLARS IN ECONOMIC ASSISTANCE FOR CENTRAL AMERICA DURING THE NEXT FIVE YEARS?

A: THE ANSWER TO BOTH QUESTIONS IS NO. PRESIDENT REAGAN IS NOT OBLIGED TO ACCEPT THE RECOMMENDATIONS OF THE COMMISSION, NOR IS IT CERTAIN THAT THE CONGRESS WILL THEN ACCEPT HIS RECOMMENDATIONS WERE HE TO ACCEPT THE RECOMMENDATIONS OF THE COMMISSION.

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PAGE 51

WITH RESPECT TO THE CONGRESS, I BELIEVE THAT IT IS A NECESSITY FOR THE UNITED STATES TO FIND A BIPARTISAN BASIS FOR FOREIGN POLICY. WE CANNOT EVERY FOUR AND EIGHT YEARS CHANGE OUR FUNDAMENTAL POLICY BECAUSE OUR PRESIDENT CHANGES. WE WOULD BECOME A FACTOR OF INSTABILITY IN THE WORLD...

AND A NEW RELATIONSHIP WITH LATIN AMERICA IS OF CRUCIAL IMPORTANCE FOR ALL OF THE NATIONS OF THIS HEMISPHERE. SO, WE

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HOPE VERY MUCH THAT WHAT OUR REPORT WILL DO IS TO SPARK AN
INTEREST, A CONCERN AND A PERMANENT COMMITMENT OF THE UNITED
STATES TO THE ECONOMIC AND SOCIAL PROGRESS, NOT ONLY OF
CENTRAL AMERICA, BUT OF THE ENTIRE WESTERN HEMISPHERE, AND
CONSIDERING THE FACT THAT WE REPRESENT THE 12 CITIZENS OF
WIDELY DIFFERENT VIEWS WHO ACHIEVED, AFTER ALL, UNANIMITY ON
THE KEY RECOMMENDATIONS, THAT IF THAT COULD BE DONE AMONG OUR
12 PEOPLE OF SUCH

A: IN THE CHAPTER ON NEGOTIATIONS IN THIS BIPARTISAN REPORT, WE HAVE UNANIMOUSLY RECOMMENDED THAT ALL FOREIGN MILITARY CONTINGENTS AND ALL FOREIGN MILITARY BASES BE REMOVED FROM CENTRAL AMERICA ON A RECIPROCAL BASIS. AND WE HAVE SPECIFICALLY SAID THAT WE APPLY THIS TO CUBAN ADVISERS IN NICARAGUA, AND TO AMERICAN MILITARY CONTINGENTS IN HONDURAS. SO, WE ARE SPECIFICALLY DEALING WITH THE QUESTION THAT YOU HAVE RAISED WITH RESPECT TO THE MILITARY THING...

WE, AGAIN, HAVE PROPOSED IN THIS REPORT THAT AFTER THE PRESIDENTIAL ELECTION WHICH WILL TAKE PLACE IN SALVADOR ON MARCH 25TH, AND WE HAVE MADE THAT RESTRICTION ONLY BECAUSE WE ARE NOW ALREADY TOWARDS THE MIDDLE OF JANUARY, AND IT WILL BE DIFFICULT TO NEGOTIATE A NEW PROCEDURE BEFORE THESE ELECTIONS, BUT AS SOON AS THAT IS COMPLETED, AN ELECTORAL COMMISSION BE CREATED TO WHICH THE GUERRILLA FORCES BE INVITED, WHICH WOULD THEN ARRANGE FOR ELECTIONS FOR A PARLIAMENT AND FOR MUNICIPAL ELECTIONS IN WHICH THE GUERRILLA FORCES WOULD BE INVITED TO PARTICIPATE, TO HELP DRAW UP THE RULES OF THE ELECTION, AND TO MAKE RECOMMENDATIONS WITH RESPECT TO THE SECURITY FRAMEWORK...

Q: IS THERE SOME POSSIBILITY TO HAVE WASHINGTON ABANDON THESE OBJECTIVES AND FIND CO-EXISTENCE, OR A WAY TO CO-EXIST WITH THE SANDINISTA GOVERNMENT?

A: I CAN ONLY SPEAK FOR THE COMMISSION. I AM NOT SPEAKING FOR THE REAGAN ADMINISTRATION, NOT BECAUSE I DISAGREE WITH IT, BUT BECAUSE MY ASSIGNMENT WAS TO ACHIEVE A SET OF RECOMMENDATIONS DUE TO THIS BIPARTISAN GROUP...

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A: ABSOLUTELY NOT... WE DO NOT CLAIM, IN THIS REPORT, THAT THE UNITED STATES HAS A RIGHT TO DICTATE TO THE COUNTRIES OF CENTRAL AMERICA OR TO THE COUNTRIES -- OR ANY OTHER COUNTRY OF THE WESTERN HEMISPHERE. WE ARE PROPOSING A COOPERATIVE RELATIONSHIP THAT CAN BE ESTABLISHED. WE HAVE ENDORSED THE EFFORTS AND THE GOALS OF THE CONTADORA GROUP, AND I THINK WHEN YOU READ THE ACTUAL TEXT OF THE REPORT, AT LEAST I HOPE THAT WILL BE THE REACTION.

INDEED, WE ARE RECOMMENDING A CENTRAL AMERICAN DEVELOPMENT ORGANIZATION WHICH WOULD BE RUN BY THE NATIONS OF CENTRAL AMERICA, AND IN WHICH THE UNITED STATES, AS THE PRINCIPAL DONOR, WOULD HAVE ONLY ONE VOICE.

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A: ...THE REALITY OF THE SIUTATION IS, HOWEVER, THAT AS LONG AS THERE ARE CIVIL WARS GOING ON IN SO MANY OF THE COUNTRIES OF CENTRAL AMERICA, AND AS LONG AS THERE IS A GREAT SENSE OF INSECURITY, IT WILL BE VERY DIFFICULT TO INDUCE PRIVATE INVESTMENT TO GO THERE.

AS THE SECURITY SITUATION STABILIZES, IT WILL BE POSSIBLE TO INTEREST, I AM SURE, MORE PRIVATE INVESTMENT IN THE AREA....

I BELIEVE THAT THE QUESTIONER IS CORRECT. I WOULD THINK THAT THE HIGHEST PRIORITY SHOULD BE GIVEN TO THE COSTA RICAN NEEDS AND IT WOULD BE WITHIN THE SPIRIT OF THE COMMISSION IF THIS WERE TO BE THE POLICY OF THE UNITED STATES GOVERNMENT.

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(xx407,x,
*PO-407 (01/12/84)
REAGAN-ZHAO TALKS COVERED GLOBAL, BILATERAL SPECTRUM (740)
(TRANSCRIPTS: REAGAN, ZHAO DEPARTURE STATEMENTS)

WASHINGTON -- PRESIDENT REAGAN SAYS HIS JANUARY 10-12 TALKS WITH CHINESE PREMIER ZHAO "COVERED A BROAD SPECTRUM OF GLOBAL AND BILATERAL ISSUES" AND HE ENDS THEM "MORE CONVINCED THAN EVER" OF THE IMPORTANCE OF GOOD U.S.-CHINA RELATIONS.

BOTH THE PRESIDENT AND THE PREMIER ASSESSED THE VALUE OF THEIR MEETINGS IN DEPARTURE STATEMENTS MADE AT THE WHITE HOUSE JANUARY 12. FOLLOWING ARE TRANSCRIPTS OF THE TWO STATEMENTS:

(BEGIN REAGAN STATEMENT)

I HAVE COME AWAY FROM MY WORKING SESSIONS WITH PREMIER ZHAO MORE CONVINCED THEN EVER OF THE IMPORTANCE OF GOOD U.S.-CHINA RELATIONS AND MORE DETERMINED THAN EVER TO ENSURE THAT OUR RELATIONSHIP IS PLACED ON A STABLE AND ENDURING FOCTING.

OUR TALKS COVERED A BROAD SPECTRUM OF GLOBAL AND BILATERAL ISSUES. CHINA IS A LEADING NATION ON THE INTERNATIONAL SCENE AND I APPRECIATED HEARING DIRECTLY FROM THE PREMIER ON HIS VIEWS. IT WAS CLEAR DURING OUR DISCUSSIONS THAT CHINA AND THE UNITED STATES AGREE ON A NUMBER OF QUESTIONS AND THAT THE LEADERS OF OUR TWO NATIONS SHOULD COME TOGETHER REGULARLY TO COMPARE NOTES.

EVEN ON MATTERS OF DISAGREEMENT, THE PREMIER AND I WERE ABLE TO CLARIFY OUR RESPECTIVE POSITIONS. THOUGH OUR STRATEGY SOMETIMES CONVERGE AND SOMETIMES DIFFER, OUR GOALS REMAIN THE SAME. WE BOTH ARE COMMITTED TO PEACE AND STABILITY IN THE WORLD SO THAT WE CAN CONCENTRATE OUR ENERGIES AND RESOURCES ON IMPROVING THE WELL-BEING OF OUR PEOPLE.

WITH RESPECT TO OUR BILATERAL RELATIONS, I THINK THAT PREMIER ZHAO WOULD AGREE THAT WE'VE MADE CONSIDERABLE PROGRESS. OUR ECONOMIC COOPERATION, DESPITE OCCASIONAL PROBLEMS IS HEALTHY AND HOLDS ENORMOUS PROMISE.

SEVERAL MONTHS AGO, WE EXPANDED THE POTENTIAL FOR THE TRANSFER OF AMERICAN TECHNOLOGY TO CHINA. OUR SCIENTIFIC AND STUDENT EXCHANGES ARE FLOURISHING. BUILDING ON THIS POSITIVE TREND ARE THE TWO SPECIFIC AGREEMENTS THAT WE SIGN HERE TODAY.

OUR AGREEMENTS AND UNDERSTANDINGS UNDERSCORE MY CONVICTION THAT A MODERN ECONOMICALLY DEVELOPING AND POLITICALLY STABLE CHINA IS IN THE BEST INTEREST OF ALL PEACE-LOVING PEOPLE'S.

NANCY AND I WILL JOURNEY TO CHINA IN APRIL. WE WERE DELIGHTED TO GET TO KNOW PREMIER ZHAO BEFORE OUR VISIT TO HIS COUNTRY AND WE NOW LOOK FORWARD ALL THE MORE TO OUR TRIP,

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KNOWING THAT FRIENDS WILL BE THERE TO MEET US. SO LET ME WISH PREMIER ZHAO A HAPPY CONTINUATION OF HIS TRAVELS IN THE UNITED STATES. I KNOW THAT HE'LL BE WARMLY WELCOMED EVERYWHERE. AND I WON'T SAY GOODBY, MR. PREMIER. I WILL ONLY -- AND TRY TO SAY CORRECTLY -- TSAI JEN, WHICH I'M TOLD MEANS "SEE YOU AGAIN SOON." (END REAGAN STATEMENT)

*

(BEGIN ZHAO STATEMENT)

MR. PRESIDENT, THE VISIT TO THE UNITED STATES BY THE HEAD OF GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA ITSELF FULLY SHOWS THAT THERE'S SOME PROGRESS IN SINO-U.S. RELATIONS. SINCE I SET FOOT ON YOUR LAND, I'VE BEEN DEEPLY IMPRESSED BY THE AMERICAN PEOPLE'S WARM FRIENDSHIP FOR THE CHINESE PEOPLE. I PERSONALLY FEEL THE AMERICAN PEOPLE WANT SINO-U.S. RELATIONS TO DEVELOP, NOT TO STAND STILL, TO ADVANCE, NOT TO RETROGRESS.

THEREFORE, I THINK THERE IS, INDEED, THE BASIS FOR THE AMICABLE COEXISTENCE BETWEEN CHINA AND THE UNITED STATES, AND SUCH A BASIS IS VERY DEEP-ROOTED.

MY COLLEAGUES AND I HAVE HELD FRIENDLY, CANDID AND SERIOUS TALKS WITH THE AMERICAN PRESIDENT AND OTHER LEADERS OF THE AMERICAN GOVERNMENT. THROUGH THESE TALKS, WE ENHANCED OUR MUTUAL UNDERSTANDING. IT UNDOUBTEDLY IS USEFUL TO THE PROMOTION OF THE SINO-AMERICAN RELATIONS ON THE ROAD OF STEADY DEVELOPMENT.

OF COURSE, MUCH REMAINS FIRST TO BE DONE TO REALLY SOLVE THE OUTSTANDING PROBLEMS BETWEEN US AND IMPLEMENT THE COOPERATION WE HAVE ALREADY COMMITTED TO.

BEFORE I LEAVE YOU, I SHOULD LIKE TO THANK YOU ONCE AGAIN FOR YOUR GRACIOUS HOSPITALITY. I WOULD ALSO LIKE TO THANK MRS. REAGAN. I KNOW IT WAS HER THOUGHFUL ARRANGEMENT THAT MADE OUR STAY IN WASHINGTON SO PLEASANT.

MR. PRESIDENT, I LOOK FORWARD TO SEEING YOU AND MRS. REAGAN IN BEIJING THIS SPRING WHEN IT IS WARM AND BEAUTIFUL SO AS TO RECIPROCATE YOUR HOSPITALITY HERE. WHAT IS MORE IMPORTANT IS THAT I LOOK FORWARD TO MORE SUBSTANTIAL CONTENT IN OUR FUTURE TALKS IN BEIJING TO CONTINUE ON THE TALKS WE HAVE ALREADY STARTED IN WASHINGTON. THEN, WE'LL BE ABLE TO SHOW TO BOTH THE CHINESE AND THE AMERICAN PEOPLE'S HOW IMPORTANT THESE MUTUAL VISITS ARE. THANK YOU. (END ZHAO STATEMENT)

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(xx406,x,
*TY-406 (01/12/94)
U.S. MUST BE 'REALISTIC' ABOUT EAST-WEST RELATIONS
(TRANSCRIPT/HIGHLIGHTS: SHULTZ "WORLDNET" INTERVIEW)
(7,965)

WASHINGTON -- U.S. SECRETARY OF STATE GEORGE SHULTZ SAYS THAT RELATIONS WITH MOSCOW CAN BE IMPROVED IF THE UNITED STATES CONTINUES TO BE "REALISTIC ABOUT THE SITUATION," "REASONABLE" AND "READY FOR CONSTRUCTIVE DISCUSSION," AND MAINTAINS ITS OWN STRENGTH AND THAT OF ITS ALLIANCES.

THE WEST, SHULTZ SAID, SHARES THE VIEW THAT IT MUST LOOK TO ITS STRENGTH AND BE "PREPARED TO DEFEND" ITS VALUES AND INTERESTS. IT IS ALSO PREPARED "FOR COOPERATION AND FOR TALKS...IN AN EFFORT TO BE CONSTRUCTIVE WITH THE SOVIET UNION AND THE EASTERN EUROPEAN COUNTRIES," HE ADDED.

IN AN INTERVIEW WITH JOURNALISTS IN SEVEN EUROPEAN CITIES ON THE U.S. INFORMATION AGENCY'S "WORLDNET" SATELLITE TELEVISION PROGRAM JANUARY 12, SHULTZ SAID IN REFERENCE TO HIS FORTHCOMING MEETING WITH SOVIET FOREIGN MINISTER ANDREI GROMYKO THAT THE WEST IS "PREPARED FOR A THAW...BUT WHETHER THERE IS ONE WILL REFLECT WHAT THE DESIRES OF THE SOVIET UNION ARE. IT TAKES TWO TO THAW."

FOLLOWING ARE OTHER HIGHLIGHTS FROM THE SHULTZ INTERVIEW:

SHULTZ-GROMYKO MEETING IN STOCKHOLM:

-- THE MAIN THING IS THAT A MEETING WILL TAKE PLACE. THE U.S. IS PREPARED TO DISCUSS A FULL RANGE OF ISSUES, PUT FORWARD ITS OWN IDEAS AND LISTEN TO SOVIET IDEAS.

CONFERENCE ON DISARMAMENT IN EUROPE (CDE):

-- IT IS NOT APPROPRIATE TO OFFER ANY CONCESSION AT THE CDE "FOR THE SAKE OF RESUMING" THE GENEVA INF TALKS.

-- THE CDE NEEDS TO NEGOTIATE "WORKABLE, OPERATIONAL" MEASURES THAT "BUILD CONFIDENCE AND GIVE GREATER ASSURANCE AND A SENSE OF SECURITY." CONCRETE MEASURES ARE NEEDED MORE THAN "BROAD AND GENERAL STATEMENTS" SUCH AS PLEDGES TO RENOUNCE FORCE, WHICH "MAY OR MAY NOT BE VIOLATED." NATO IS "PURELY A DETERRENT FORCE" AND THE ONLY POSSIBILITY OF AGGRESSION IS FROM THE WARSAW PACT.

-- U.S. HAS NEGATIVE VIEW OF PEACE MOVEMENT DEMAND FOR OBSERVER STATUS WITH RIGHT TO SPEAK AND TAKE POSITIONS AT THE CDE.

REAGAN-ANDROPOV SUMMIT:

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-- PRESIDENT REAGAN HAS ALWAYS SAID HE WOULD BE GLAD TO MEET HIS SOVIET COUNTERPART. THE U.S. AND THE SOVIET UNION AGREE THAT ANY SUMMIT SHOULD HAVE "REASONABLE EXPECTATION OF SOME WORTHWHILE RESULTS."

**ANDROPOV ILLNESS:**

-- THERE IS NO INDICATION THAT THE SOVIET GOVERNMENT IS "IN ANY WAY PARALYZED." AS FAR AS IS KNOWN, ANDROPOV REMAINS IN CHARGE AND THE U.S. IS DEALING WITH AN "OPERATIVE GOVERNMENT."

**NORDIC NUCLEAR-FREE ZONE:**

-- WHAT IS NEEDED IS A ZONE FREE FROM NUCLEAR ATTACK. FOR THE PAST 35 YEARS SUCH AN ATTACK HAS BEEN PREVENTED AND PEACE MAINTAINED BY DETERRENCE. IT IS NOT SO MUCH A QUESTION OF WHERE NUCLEAR WEAPONS ARE STATIONED AS WHERE THEY ARE AIMED. THE KEY IS TO CONCENTRATE ON DETERRENCE BY REDUCTIONS IN THE NUMBER OF NUCLEAR WEAPONS TO EQUAL LEVELS.

**SOVIET SUBMARINES IN SWEDISH WATERS:**

-- SOVIET VIOLATION OF SWEDISH WATERS IS "UNCONSCIONABLE AND TOTALLY OBJECTIONABLE," AND MUST HAVE SOME MILITARY OBJECTIVE.

**SOVIET PROPOSAL ON CHEMICAL WEAPONS:**

-- THE U.S. POSITION IS THAT BIOLOGICAL AND CHEMICAL WEAPONS SHOULD BE PROHIBITED; THE U.S. WOULD WELCOME SIMILAR SOVIET POSITION.

**NATO INF POLICY:**

-- NATO SHOULD HOLD FIRM TO ITS 1979 DUAL-TRACK DECISION AND ITS DEPLOYMENT SCHEDULE. NATO'S POSITION AT GENEVA INF TALKS HAS BEEN REASONABLE AND PRESIDENT REAGAN IS STILL PREPARED TO ACCEPT THE TOTAL ELIMINATION OF LONGER-RANGE INTERMEDIATE NUCLEAR WEAPONS.

**ARMS CONTROL NEGOTIATIONS:**

-- WHILE THE WEST HAS TO THINK "WHAT IS ON THE MINDS OF THE OTHER SIDE," IT SHOULD CONSTANTLY REMIND ITSELF THAT "THE NAME OF THE GAME" IS STRENGTH, DETERMINATION AND UNITY ON THE ONE HAND AND A READINESS TO WORK OUT PROBLEMS ON THE OTHER.

-- THE U.S. IS ANXIOUS FOR "WORTHWHILE" ARMS CONTROL AGREEMENTS AND THAT DEPENDS ON SOVIET RESPONSIVENESS.

**SOVIET VIOLATIONS OF S.A.L.T. AND ABM TREATY:**

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USIA WIRELESS FILE

-- ADHERENCE TO TREATIES IS VERY IMPORTANT AND U.S. HAS BEEN
AND WILL BE BRINGING THIS TO SOVIET ATTENTION "IN A VARIETY
OF WAYS."

KISSINGER REPORT ON CENTRAL AMERICA:

-- THE KISSINGER REPORT IS AN OUTSTANDING CONTRIBUTION TO
U.S. THINKING ON CENTRAL AMERICA. IT HAS AGREED THAT IT IS
IMPORTANT FOR THE U.S. TO DO SOMETHING ABOUT THE ECONOMIC,
POLITICAL AND SECURITY PROBLEMS IN CENTRAL AMERICA. IT IS
HOPED THAT THE RESOURCES THE U.S. IS PREPARED TO COMMIT TO
THAT REGION WILL BE SUBSTANTIALLY INCREASED.

-- IN THE CONTEXT OF THE KISSINGER REPORT, HUMAN RIGHTS IS AN
ESSENTIAL INGREDIENT OF U.S. FOREIGN POLICY.

-- IF THE KISSINGER REPORT IS IMPLEMENTED, IT WILL IMPROVE
THE FLOW OF U.S. SECURITY ASSISTANCE TO CENTRAL AMERICAN
COUNTRIES -- IT WILL GIVE THEM THE "TOOLS AND THEY WILL DO
THE JOB."

EL SALVADOR:

-- THE U.S. WILL ACCEPT AND "LIVE WITH" THE RESULTS OF THE
PRESIDENTIAL ELECTION IN EL SALVADOR.

CENTRAL AMERICA:

-- THE U.S. RESCUE OPERATION IN GRENADA WAS IN RESPONSE TO A
UNIQUE SET OF CIRCUMSTANCES AND THERE IS NO INDICATION THAT
THE SITUATION IN CENTRAL AMERICA MIGHT CALL FOR ANY SIMILAR
U.S. EXERCISE.

NORTH-SOUTH RELATIONS:

-- THE U.S. IS NOW MAKING LARGE CONTRIBUTION TO ECONOMIC
DEVELOPMENT OF THE THIRD WORLD THROUGH THE VIGOROUS EXPANSION
OF THE U.S. ECONOMY WHICH IS PROVIDING A HUGE MARKET FOR ALL.

LEBANON:

-- THE MULTINATIONAL FORCE HAS BEEN MAKING AND WILL CONTINUE
TO CONTRIBUTE TO STABILITY AND PEACE IN LEBANON.

-- IF THE SITUATION IN LEBANON STABILIZES, UNIFIL WILL
PRESUMABLY BE GIVEN A DIFFERENT MANDATE. ONE POTENTIAL
UNIFIL ROLE WOULD BE INSPECTING THE PALESTINIAN REFUGEE
CAMPS.

-- THE U.S. SUPPORTS THE MAY AGREEMENT BETWEEN ISRAEL AND
LEBANON.

-- U.S. HOPES DISCUSSIONS WITH SYRIA WILL BE INCREASINGLY
SERIOUS AND THAT CONCRETE DETAILS CAN BE WORKED OUT BY
AMBASSADOR RUMSFELD AND PRESIDENT ASSAD. A SECURITY PLAN HAS
EVOLVED THAT GOES BEYOND GENERALITIES. BUT THE TRUE

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STABILITY SOUGHT BY THE U.S. CAN ONLY BE ACHIEVED BY A
COMPLETE WITHDRAWAL OF FOREIGN FORCES AND THE EMERGENCE OF A
BROADLY BASED LEBANESE GOVERNMENT.

### PALESTINE LIBERATION ORGANIZATION:

- THE U.S. DOES NOT ACCEPT THE REPORTED VIEW OF THE BRITISH FOREIGN SECRETARY THAT ISRAEL SHOULD ACCEPT THE PLO AS A PARTY TO DISCUSSIONS ON THE FUTURE OF THE WEST BANK.

### ARMS SALES TO MIDDLE EAST:

- GERMAN ARMS SALES TO SAUDI ARABIA: THE SELLER DECIDES ITS OWN POLICY AND THE BUYER ASSESSES ITS OWN NEEDS.

- FRENCH ARMS SALES TO IRAQ: THE U.S. WOULD LIKE TO SEE ARMS SALES TO IRAQ AND IRAN REDUCED. THE REAL PROBLEM IS TO END THE IRAQ-IRAN WAR AND THEN TO PREVENT THE WAR FROM SPILLING OVER INTO THE GULF AREA.

(END HIGHLIGHTS)

(BEGIN TRANSCRIPT)

WELCOME TO WORLDNET. I AM HARRY ELLIS, YOUR HOST IN WASHINGTON. OUR PROGRAM TODAY WILL FEATURE A VIDEO DIALOGUE WITH PARTICIPANTS IN WORLDNET'S SEVEN EUROPEAN CITIES: BONN, BRUSSELS, GENEVA, THE HAGUE, LONDON, PARIS, AND ROME.

FOR TODAY WE ARE ALSO INCLUDING JOURNALISTS FROM STOCKHOLM, THE SITE OF THE UPCOMING CONFERENCE ON CONFIDENCE AND SECURITY-BUILDING MEASURES AND DISARMAMENT IN EUROPE, THE CDE. DURING OUR VIDEO DIALOGUE YOU WILL HAVE THE OPPORTUNITY TO ASK QUESTIONS OF OUR GUESTS. WITH US IN OUR STUDIO IS GEORGE P. SHULTZ, SECRETARY OF STATE.

I'M SURE, MR. SECRETARY, THAT THE QUESITONS FROM OUR EUROPEAN COLLEAGUES WILL BE WIDE-RANGING, BUT IF I MIGHT BEGIN OUR DISCUSSION BY FOCUSING ON NEXT WEEK'S STOCKHOLM MEETING, THIS WILL BE THE FIRST TIME IN SOME MONTHS FOR AMERICAN AND SOVIET OFFICIALS TO MEET AT THIS LEVEL. MIGHT I ASK YOU WHAT YOU HOPE MIGHT BE ACCOMPLISHED BY YOUR MEETING WITH MR. GROMYKO?

Q: MR. SECRETARY, ARE YOU ABLE TO OFFER THE SOVIETS ANYTHING SPECIFIC IN STOCKHOLM? MIGHT YOU SUGGEST, FOR

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Q: MR. SHULTZ, THE SOVIETS SEEM TO BE INTERESTED IN TALKS IN REDUCING CHEMICAL WEAPONS. THE WARSAW PACT IS CALLING FOR INTERNATIONAL TALKS ABOUT THIS SUBJECT. HOW SERIOUS DO YOU THINK THEY ARE?

A: I DON'T KNOW HOW SERIOUS THEY ARE, BUT, OF COUR.E, WE WELCOME TALKS ON BIOLOGICAL AND CHEMICAL WEAPONS. TALKS OF THAT KIND HAVE BEEN GOING ON IN GENEVA FOR SOME TIME AND IT IS OUR POSITION THAT SUCH WEAPONS SHOULD BE PROHIBITED -- THAT IS, WE SHOULDN'T HAVE THEM AND SHOULDN'T USE THEM. THAT IS OUR POSITION AND WE WISH THAT THAT WERE A UNIVERSALLY HELD POSITION.

IF THAT'S A POSITION THAT THEY ARE COMING TO, WE WOULD WELCOME IT.

Q: THE CHRISTIAN DEMOCRATIC PARTY IN HOLLAND -- THAT'S THE LARGEST ONE IN OUR GOVERNING COALITION -- YESTERDAY CAME WITH A PROPOSAL TO REVIEW NATO'S DOUBLE TRACK POSITION. A SECOND PROPOSAL IS NOT TO STATION 562 IN EUROPE, BUT FAR LESS. WHAT IS YOUR OPINION ABOUT THAT?

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A: MY OPINION IS THAT WE, AS AN ALLIANCE, HAVE A DECISION THAT HAS BEEN MADE AND WE SHOULD STICK TO OUR DECISION. THAT DECISION INCLUDES ON THE ONE HAND PROCEEDING TO PROVIDE THE STRENGTH NECESSARY TO DEFEND OURSELVES AND TO DETER AGGRESSION AND AT THE SAME TIME CONSTANTLY TO BE READY TO DISCUSS IN REASONABLE TERMS THE CONSTANT DEPLOYMENT OF THESE WEAPONS.

LET ME REMIND YOU THAT THE PRESIDENT'S POSITION FROM THE BEGINNING HAS BEEN AND HE IS READY TODAY TO ACCEPT THIS, THAT THERE SHOULD BE A COMPLETE ELIMINATION OF ALL OF THESE INTERMEDIATE-RANGE MISSILES -- U.S. MISSILES AND SOVIET MISSILES -- THE SO-CALLED "ZERO OPTION" AND THAT'S WHAT WE PREFER.

Q: MR. SECRETARY YOU ARE TO MEET NEXT WEEK WITH GROMYKO TO SPEAK WITH HIM ABOUT EAST-WEST RELATIONS, BUT DO YOU INTEND ALSO TO TAKE INITIATIVES REGARDING THE NORTH-SOUTH DIALOGUE?

A: INSOFAR AS THE NORTH-SOUTH DIALOGUE IS CONCERNED, I DON'T THINK THAT IT'S ANYTHING THAT WILL BE BROUGHT UP IN STOCKHOLM AS SUCH. THAT CONFERENCE IS DEVOTED TO SOMETHING ELSE. ON THE OTHER HAND, THE NORTH-SOUTH RELATIONS AND THE ECONOMIC HEALTH OF THE DEVELOPING WORLD IS A MATTER OF GREAT IMPORTANCE AND GREAT CONCERN IN THE UNITED STATES AND WE HAVE WORKED VERY HARD TO DO EVERYTHING WE CAN TO BRING THAT DEVELOPMENT ABOUT.

I MIGHT POINT OUT THAT PERHAPS THE LARGEST CONTRIBUTION BEING MADE RIGHT NOW IS THROUGH THE EXPANSION, THE VIGOROUS EXPANSION, OF THE ECONOMY OF THE UNITED STATES AND THAT IS PROVIDING A HUGE MARKET FOR EVERYBODY. IT'S PERHAPS IRONIC GIVEN THE COMPLAINTS THAT HAVE BEEN SO WIDESPREAD ABOUT THE STRENGTH OF THE DOLLAR, THAT THAT STRONG DOLLAR HAS MEANT IN THE PAST 12 MONTHS A HUGE AMOUNT OF IMPORTS INTO THE UNITED STATES IN EXCESS OF OUR EXPORTS BY SOME 70,000 MILLION DOLLARS OR SO.

SO YOU MIGHT SAY THAT WE ARE NOT ONLY EXPANDING HERE IN THE UNITED STATES, BUT WE ARE SHIPPING A LOT OF THAT EXPANSION AROUND THE WORLD, MUCH OF IT TO THE DEVELOPING WORLD.

A: WE WERE ASKED BY THE GOVERNMENT OF LEBANON TO COME THERE AND TO MAKE A CONTRIBUTION TOWARDS STABILITY AND PEACE IN THAT COUNTRY. I HAVE NO DOUBT THAT THE PRESENCE OF THE MULTINATIONAL FORCE, OUR OWN FORCE AND THOSE OF THE FRENCH AND THE ITALIANS AND THE BRITISH HAVE MADE A CONTRIBUTION AND

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CLEARLY, IF THAT IS GOING TO COME ABOUT, SYRIA WILL HAVE TO PARTICIPATE AND SYRIA'S VIEWS REFLECTED. WE UNDERSTAND THAT COMPLETELY AND WE EXPECT THAT OUR SPECIAL NEGOTIATOR, AMBASSADOR RUMSFELD, WILL BE IN DAMASCUS BY THE END OF THIS WEEK AND UNDOUBTEDLY TALKING WITH PRESIDENT ASSAD. WHAT THEY MAY BE ABLE TO WORK OUT REMAINS TO BE SEEN. BUT THE PROCESS OF DISCUSSION TOWARD THE OBJECTIVE, NAMELY, GREATER STABILITY AND PEACE IN LEBANON IS VERY MUCH IN PROCESS.

Q: MR. SECRETARY, THE GERMANS IN STOCKHOLM SEEM TO BE FOCUSING ON THE RENUNCIATION OF FORCE TREATY WITH THE EASTERN BLOC. ON THE OTHER HAND, THE GERMANS HAVE THE IMPRESSION THAT YOU ARE NOT EXACTLY ENTHUSIASTIC ABOUT THIS IDEA. COULD YOU PLEASE EXPLAIN YOUR POSITION?

A: (WHAT) WE NEED, I THINK, IS WORKABLE, OPERATIONAL THINGS THAT BUILD CONFIDENCE AND GIVE GREATER ASSURANCE AND A SENSE OF SECURITY. RENUNCIATIONS OF FORCE, WELL, IT'S PART OF THE UNITED NATIONS CHARTER AND THESE ARE THINGS THAT PEOPLE TEND TO SUBSCRIBE TO, BUT, UNFORTUNATELY, THERE IS ALL TOO MUCH FORCE BEING USED THROUGHOUT THE WORLD.

SO I THINK THAT WHAT WE NEED IN THIS CONFERENCE IS NOT SO MUCH BROAD AND GENERAL STATEMENTS AS CONCRETE THINGS THAT WILL HELP BUILD CONFIDENCE AND REDUCE THE POSSIBILITY THAT FORCE WILL BE USED. SO OUR ATTITUDE IN COMING TO THE CONFERENCE IN STOCKHOLM WILL BE, "LET'S ROLL UP OUR SLEEVES AND GET TO WORK."

IT'S A PROBLEM THAT HAS ECONOMIC ROOTS, IT HAS POLITICAL ROOTS, IT HAS SECURITY ROOTS. SO ALL OF THESE ASPECTS OF THE PROBLEM MUST BE ADDRESSED AND WE ARE REVIEWING, OF COURSE, THE KISSINGER REPORT AND THE PRESIDENT WILL BE ADDRESSING IT.

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BUT AS A GENERAL PROPOSITION WE THINK THAT IT IS AN
OUTSTANDING CONTRIBUTION AND WE HOPE THAT THE CONGRESS WILL
AGREE AND THAT THE RESOURCES THAT THE UNITED STATES IS
PREPARED TO COMMIT TO HELPING CENTRAL AMERICA WILL BE
INCREASED SUBSTANTIALLY AND UNDER THOSE CIRCUMSTANCES WE
THINK THE SITUATION WILL IMPROVE.

NOW, HENRY KISSINGER SAID YESTERDAY IN DISCUSSING THE
REPORT WITH THE PRESIDENT THAT, "I SUPPOSE YOU COULD MAKE AN
ARGUMENT FOR DOING NOTHING, AND CLEARLY YOU CAN MAKE AN
ARGUMENT, AND THE REPORT DOES, OF DOING ENOUGH. THERE ISN'T
ANY ARGUMENT FOR ANYTHING IN BETWEEN. YOU HAVE GOT TO GET IN
AND DO WHAT IT TAKES," AND THAT'S WHAT I AM SURE THE
PRESIDENT WILL WANT TO DO.

Q: MR. SECRETARY, ACCORDING TO SOME REPORTS THERE SEEMS
TO BE A MORE OPTIMISTIC VIEW OF THE POSSIBILITY OF A THAW
BETWEEN WASHINGTON AND MOSCOW. WOULD YOU CONSIDER YOUR
UPCOMING MEETING WITH MR. GROMYKO AS A TEST OF CREDIBILITY OF
THE POSSIBILITY OF A THAW BETWEEN THE TWO CAPITALS?

Q: MR. SECRETARY, HOW IMPORTANT IS THE HUMAN RIGHTS ISSUE
FOR YOU IN THE FRAMEWORK OF DR. KISSINGER'S REPORT ON CENTRAL
AMERICA?

A: THE HUMAN RIGHTS DIMENSION OF THE UNITED STATES'
FOREIGN POLICY IS AN ESSENTIAL INGREDIENT. IT'S PART OF OUR
WAY OF LIFE, PART OF OUR SYSTEM TO BE CONCERNED ABOUT THE
FATE OF HUMAN BEINGS EVERYWHERE -- IN OUR OWN COUNTRY AND
AROUND THE WORLD, PARTICULARLY IN PLACES WHERE WE ARE HEAVILY
INVOLVED, AS IN CENTRAL AMERICA.

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Q: MR. SECRETARY, SOME POLITICAL ANALYSTS SAY THAT IF THE KISSINGER REPORT ON CENTRAL AMERICA IS APPLIED, THIS WILL INEVITABLY LEAD TO A STRONGER U.S. MILITARY INVOLVEMENT IN CENTRAL AMERICA, POSSIBILY A NEW VIETNAM. WHAT IS YOUR REACTION TO THAT?

A: WELL, I DON'T BELEIVE THAT IS THE CASE. WHAT IT WILL DO IS IMPROVE THE FLOW OF SECURITY ASSISTANCE THAT WE ARE ABLE TO PROVIDE TO THE COUNTRIES OF THE REGION AND I THINK YOU SEE THAT OUR FRIENDS IN CENTRAL AMERICA ARE NOT LOOKING FOR THE UNITED STATES TO COME AND DO THE SECURITY JOB. THEY ARE LOOKING FOR HELP AND THEY ARE PREPARED TO DO IT THEMSELVES. THEY WANT THE TOOLS AND THEY WILL DO THE JOB.

Q: MR. SECRETARY, COULD THERE BE ANY REAL SOVIET MOVE WITH AN AILING ANDROPOV IN THE KREMLIN?

Q: IN YOUR OPINION, IS IT REALLY POSSIBLE THAT UNITED NATIONS TROOPS CAN REPLACE THE MULTINATIONAL FORCE IN LEBANON?

AMONG OTHER THINGS, I AM SURE THAT THERE IS A POTENTIAL ROLE FOR UNIFIL IN OBSERVING WHAT GOES ON AROUND THE PALESTINIAN REFUGEE CAMP AND I AM SURE THAT THERE WILL BE OTHER ROLES THAT UNIFIL CAN PERFORM -- PERHAPS EVEN IN AND AROUND BEIRUT, BUT THAT REMAINS TO BE SEEN.

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Q: MR. SECRETARY, CAN YOU GIVE US AN ASSESSMENT OF WHAT IS THE REAL RUSSIAN AIM IN STOPPING THE ARMS CONTROL NEGOTIATIONS? DO YOU FEEL THAT THEY HOPE TO STOP THE IMPLEMENTATION OF THE NATO PLAN THROUGH PRESSURE ON PUBLIC OPINION IN THE WEST OR DO YOU FEEL THAT THEIR MAIN AIM AND REAL AIM IS TO ACHIEVE A BETTER NEGOTIATING POSITION?

A: WELL, IT IS, I THINK, TOUGH FOR ME TO SPECULATE ON WHAT IT IS THAT'S MOTIVATING THE SOVIET NEGOTIATORS AND THE SOVIET GOVERNMENT AND WHAT THEY ARE TRYING TO ACHIEVE. I DO THINK THAT ONE OF THE SEEMING OBJECTIVES IS SOMEHOW TO SPLIT OUR ALLIANCE, AND THEREFORE I THINK IT'S BEEN VERY IMPORTANT THAT THE ALLIANCE HAS HELD TOGETHER SO WELL, AND AS A MATTER OF FACT, IT ALMOST SEEMS AS THOUGH THE MORE THERE ARE THREATS, THE STRONGER THOSE WHO ARE THREATENED BECOME, NOT ONLY OURSELVES, BUT OTHERS IN ASIA. THE SOVIET THREATS AGAINST JAPAN HAVE PRODUCED A REACTION IN JAPAN THAT'S A STRONGER AND MORE DETERMINED ONE, AND SO ON.

I THINK PEOPLE JUST REACT THAT WAY.

Q: MR. SECRETARY, IF YOU WILL FORGIVE ME SAYING SO, YOU'VE BEEN SPEAKING IN GENERALITIES. COULD YOU SAY A LITTLE BIT OF WHAT SPECIFIC PROPOSALS YOU INTEND TO MAKE WHEN YOU MEET MR. GROMYKO NEXT WEEK, FOR EXAMPLE, ON HOW THE ARMS CONTROL NEGOTIATIONS COULD BE RESUMED OR WOULD YOU MERELY INTEND TO LEAVE IT TO HIM TO SAY HOW THEY WANT TO LEAVE IT?

AS FAR, AGAIN, AS PRECISELY WHAT I WILL BE SAYING AND THE APPROACH I WILL BE TAKING WITH MR. GROMYKO, I THINK THAT'S BEST LEFT TO ME.

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A: I THINK THE QUESTION OF ADHERENCE TO AGREEMENTS IS ALWAYS A VERY IMPORTANT ONE AND WE HAVE STUDIED, EVERYONE STUDIES, THE QUESTION OF WHETHER OR NOT AGREEMENTS REACHED ARE ADHERED TO. WE HAVE COMPLAINED TO THE SOVIET UNION ON MANY OCCASIONS WHEN WE HAVE FELT THAT WE HAD EVIDENCE THAT AGREEMENTS WERE NOT BEING ADHERED TO.

IF YOU DON'T ADHERE TO AGREEMENTS, THEN YOU DON'T HAVE MUCH WHEN YOU HAVE AN AGREEMENT.

IT'S ALSO THE CASE THAT WHEN YOU LOOK AT PATTERNS OF BEHAVIOR UNDER AN AGREEMENT AND OBSERVE A PATTERN THAT COMES RIGHT UP TO THE VERY EDGE OF THE AGREEMENT, IT TEACHES YOU SOMETHING ABOUT THE KIND OF CARE THAT NEEDS TO GO INTO THE AGREEMENT IN THE FIRST PLACE, TO SEE THAT TECHNICALLY, ADHERENCE TO THE AGREEMENT WILL BE IN THE TRUE SPIRIT OF THE AGREEMENT.

Q: MR. SCHULTZ, COULD YOU COMMENT ON THE SITUATION IN SURINAME, THE FORMER DUTCH COLONY, AND WHAT IS THE U.S. POSITION ON THAT COUNTRY?

A: THERE IS, AS WE KNOW, A STRIKE THAT INVOLVES THE LARGE ALUMINUM PRODUCTION FACILITIES, AND ALSO INVOLVES THE POWER IN THE AREA, AND SO IT'S A VERY SERIOUS MATTER. WE ARE WATCHING IT CAREFULLY. IT'S AN INTERNAL AFFAIR OF SURINAME AND WE HOPE THAT IT WILL BE RESOLVED IN A SATISFACTORY WAY. WE HAVE RAISED THE QUESTION AND BEEN ASSURED THAT THE SAFETY OF AMERICAN CITIZENS WILL BE ASSURED, AND AT THE SAME TIME WE WATCH THE WHOLE THING VERY CAREFULLY.

Q: MR. SECRETARY, YOU CALLED THE KISSINGER REPORT AN OUTSTANDING CONTRIBUTION. WOULD YOU SAY THAT IT IS SO OUTSTANDING THAT IT HAS SET OUT AN EXAMPLE OF HOW TO LAY OUT THE PRINCIPLES OF FOREIGN POLICY IN OTHER TROUBLE SPOTS IN

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THE WORLD? WOULD YOU BE IN FAVOR OF A NATIONAL BIPARTISAN COMMISSION ON TAIWAN, ON THE MIDDLE EAST, AND SO ON?

A: I THINK THAT THIS IS A CASE WHERE AN OUTSTANDING GROUP OF INDIVIDUALS CAME TOGETHER AND REFLECTED ON A PARTICULAR PROBLEM, WHERE THERE HAS BEEN A LOT OF ARGUMENT IN THE UNITED STATES. AND I THINK THAT IT HAS CONTRIBUTED ON A BROAD AND BIPARTISAN BASIS A VERY POWERFUL AND APPEALING LINE OF THINKING.

ACTUALLY, THE TRADITION IN THE UNITED STATES HAS ALWAYS BEEN THAT OUR FOREIGN POLICY SHOULD BE BIPARTISAN, IN A SENSE NON-PARTISAN. AND WE TRY TO SO CONSTRUCT OURSELVES THAT WHEN WE LOOK ABROAD AND SPEAK ABROAD, WE DO SO WITH ONE VOICE. OBVIOUSLY THERE ARE GREAT DIFFERENCES OF OPINION IN THE COUNTRY FROM TIME TO TIME, BUT BY AND LARGE, I THINK, WE WANT TO CULTIVATE THIS BIPARTISAN SPIRIT.

IT'S NOT NECESSARY TO HAVE A COMMISSION EVERY TIME YOU TURN AROUND, BECAUSE OBVIOUSLY WE'RE STUDYING ALL THESE PROBLEMS ALL THE TIME, AND THERE IS A GREAT DEAL OF DISCUSSION AND CONGRESSIONAL HEARINGS, AND SO ON.

Q: WHAT KIND OF CONCRETE CONFIDENCE-BUILDING MEASURES WOULD YOU LIKE TO SEE ADOPTED AT THE STOCKHOLM CONFERENCE?

Q: ARE THESE MEASURES THAT HAVE ALREADY BEEN ESTABLISHED IN SOME AREAS, THAT IS, WITHIN THE FIELD OF TROOP MOVEMENTS AND MILITARY MANEUVERS, CR DC YOU FORSEE ANY ENTIRELY NEW FIELDS TO BE INTRODUCED AT THE CONFERENCE?

A: I THINK THE CONFIDENCE-BUILDING NOTION TENDS TO INVOLVE THE TYPES OF THINGS THAT YOU HAVE MENTIONED, BUT ON A BROADER SCALE AND IN A MORE COMPLETE EUROPEAN GEOGRAPHIC SCOPE, BUT WE'LL PUT FORWARD PRECISELY IN STOCKHOLM THE KINDS OF THINGS THAT WE HAVE IN MIND.

Q: IN AN EFFORT TO CONVINCE THE SOVIET UNION NOT TO VETO THE SENDING OF THE U.N. FORCE INTO LEBANON, WOULD YOU SUPPORT THE (CANCELLATION) OF THE LAST MAY AGREEMENT BETWEEN LEBANON AND ISRAEL?

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A: NO, I WOULDN'T. I THINK THIS IS AN AGREEMENT, FIRST OF ALL, BETWEEN LEBANON AND ISRAEL. IT'S THEIR AGREEMENT. IT'S NOT FOR THE UNITED STATES TO PRONOUNCE ABOUT IT.

HOWEVER, HAVING BEEN INVOLVED, IT'S A GOOD AGREEMENT AND WE STAND BY THAT AGREEMENT. IT'S UP TO THE PARTIES, OF COURSE, TO THE LEBANESE AND THE ISRAELIS TO REVIEW IT AND DECIDE WHAT THEY WANT. BUT SO FAR AS WE KNOW, THE ISRAELIS STAND BY THE AGREEMENT AND PRESIDENT GEMAYEL HAS MADE THE SAME KIND OF A STATEMENT.

Q: MR. SECRETARY, HOW SERIOUS, FROM YOUR POINT OF VIEW, ARE THE OPENINGS FROM SYRIA, AND HOW EASY IS IT TO NEGOTIATE WITH A COUNTRY THAT MR. WEINBERGER CONSIDERS RESPONSIBLE FOR THE OCTOBER 23 MASSACRE?

I THINK THAT IT'S ALSO IMPORTANT, IN ALL OF THESE MATTERS, WHETHER WE'RE DEALING WITH SYRIA OR THE SOVIET UNION OR EXAMINING OUR OWN POSTURE, THAT WE BE REALISTIC AND THAT WE BE CANDID AND STATE WHAT WE THINK THE FACTS ARE, SO THAT EVERYTHING PROCEEDS ON THE BASIS OF THE FACTS, AS WE SEE THEM, AND NOT ON THE BASIS OF SOME WISHFULNESS, OR ON THE BASIS OF BRUSHING ASIDE IMPORTANT FACTS AND ACTING AS THOUGH THEY AREN'T THERE.

I WOULD SAY THAT OLD COMMENT, "THE WISH IS FATHER TO THE THOUGHT, IS A FORMULA FOR DISASTER."

Q: ACCORDING TO A GERMAN NEWS MAGAZINE, PRESIDENT REAGAN TOLD PRIME MINISTER SHAMIR LAST NOVEMBER IN WASHINGTON, TALKING ABOUT THE POSSIBILITIES OF A NEW EAST-WEST DIALOGUE, "WE HAVE NO PROBLEM WITH THE EUROPEANS; WE HAVE PROBLEMS WITH THE GERMANS." MY QUESTION IS, DO YOU REALLY HAVE DIFFICULTIES WITH THE GERMANS, ESPECIALLY WITH THE BONN GOVERNMENT, ABOUT THE HANDLING OF THE EAST-WEST POLITICS?