...Western Europe, p. 2 Asia, p. 9 Peking, Moscow, p. 12

U.S.-CHINESE COMMUNIQUE, KISSINGER REMARKS

Summary

Media in major foreign news centers greeted yesterday's U.S.-Chinese commu-
nique and Henry Kissinger's press conference statements as confirming accel-
erated progress toward normalization of relations between Washington and
Peking.

Headlines and comment stressed the proposed establishment of liaison offices as
the principal achievement:

--"... The basic relationship is now firmly established and formalized by official
missions"(_Times_ of London).

--They will be "tantamount to real embassies" (_Figaro_ of Paris).

--Opening such offices "followed the course of Nixon's policy of introducing
China as a third force in the game of world politics, thereby further reducing
the confrontation of East and West" (_Tagesspiegel_, West Berlin).

--"An epoch-making advance toward normalization" (Asahi of Tokyo).

Most observers called attention to the unresolved question of Taiwan's status.
The London _Financial Times_ summed up, "The Chinese may be slightly more
anxious to see the problem of Taiwan finally resolved. But they must be
relishing the special relationship which they seem to have been accorded by
Washington."

Underlying much discussion was concern about possible Soviet reaction. West
German television said the U. S. and China were "proceeding calmly" while
"seeming to be careful not to offend Moscow." _La Stampa_ of Turin predicted
"concern in the Soviet Union and Japan" over the developments.

Taiwan papers played an ROC denunciation of any agreement between the U.S.
and mainland China as "null and void."

Peking media carried the communique. No comment on Mr. Kissinger's press
conference has been monitored. Moscow TASS briefly reported the communique
and cited Mr. Kissinger as saying that "the U.S. and the PRC had a different
approach" on Taiwan.

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London: Great Expectations

British media treatment of the joint communique and Mr. Kissinger's news conference reflected general satisfaction and great expectations for the future of U. S. -PRC relations.

"Confirms Three-Cornered Pattern"

The independent *Times* of London said "the basic relationship is now firmly established and formalized by official missions." From that relationship, it said, "will follow more trade and other exchanges and eventually full diplomatic relations.

"Unless China suddenly retreats into another phase of internal turmoil... the three-cornered pattern of world power is confirmed, with Europe and Japan strongly emerging.

"The U. S. now has a good but difficult hand to play, and it will not be easy for it to sink back into isolationism."

"Special Relationship?"

The independent London *Financial Times* said the communique was confirmation of "a major step forward" in normalization of relations. It forecast some delay in establishment of full diplomatic relations because of pending questions concerning Taiwan but added, "There is no reason, however, to believe that either side is particularly concerned about this delay....

"Test of Cooperation at Vietnam Conference"

The conservative *Daily Telegraph* commented in an editorial, "It is a momentous event that America and mainland China are to establish official missions in each other's capitals after a void which has lasted 24 years."

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The paper remarked that "how far cooperation extends to the complex and pressing problem of Indochina will be seen when the Vietnam conference begins next week at which the American Secretary of State and the Chinese Foreign Minister will be able to do business without embarrassment."

## French Emphases

Reporting the communique and the press conference, French media stressed the agreement to establish liaison offices and commented that Taiwan no longer appears a serious obstacle to good relations between the U. S. and the PRC.

Government-run television saw the relationship in a period of "acceleration" despite Taiwan, and noted that Mr. Rogers will open discussions with Chi Peng-fei next week in Paris.

## "Tantamount to Embassies"

The Washington correspondent of middle-of-the-road Figaro of Paris called the agreement "a very important step." He interpreted the "liaison offices" envisioned for the two capitals as "tantamount to real embassies." He said "the Taiwan obstacle has been skirted," and added:

> "This major concession on the part of the leaders in Peking gives an idea of the value they attach to improving their relations with the U. S...."

Noting Mr. Kissinger's announcement that Secretary Rogers would begin discussions next week with the Chinese Foreign Minister on outstanding issues between the U. S. and the PRC, the correspondent added the observation that "Nixon's adviser wishes similar relations to be established between Washington and Hanoi."

## "Three Reasons for Speed-up"

Adalbert de Segonzac, U. S. correspondent of pro-Government France-Soir, reporting on the communique and Mr. Kissinger's news conference, suggested three reasons for "this determination to step up a normalizing process which not so long ago Washington expected would take years."

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For one thing, he wrote, "Mao and Chou are getting old and they want to leave their successors a clear and irreversible situation. Second, the existence of Taiwan no longer constitutes an obstacle... Third, the Soviet Union paradoxically has much to do with the Sino-American rapprochement. The Chinese, for whom the conflict with the Soviets remains the major concern, view normalization of relations with the U.S. as help in facing the Russian danger."

"American motives are more complex and subtle. They hope that their Chinese flirtation will oblige the USSR to concentrate its attention on its Asian frontiers, and also that it will prompt the USSR to make advances to them to offset the Washington-Peking rapprochement."

"However, the Americans realize that this tactic is not without danger. That is why they can be expected to make a conciliatory gesture toward the USSR to avoid the backlash which their daring Chinese policy might entail. Incidentally, they look for Brezhnev to advance his visit to the U.S. --it is now expected to take place in June instead of in the fall as scheduled."

### West German TV: "Careful Not to Offend Moscow"

West German television and newspapers gave prominent play to the press conference and to the agreement to establish liaison offices.

The anchorman on the second television network's main newscast last night said Washington and Peking were "proceeding calmly and without showmanship" in establishing their new relationship while "seeming to be careful not to offend Moscow...."

"Not too long ago it would have seemed inconceivable that agreement could have been reached without announcement of U.S. withdrawal from Taiwan. But times change...."

### "Rogers Meeting at Paris Will Be the Test"

The network's Washington correspondent said it was not surprising that neither the communique nor the press conference was very revealing about specifics of U.S.-China relations. "On the contrary," he said, "any hint of commitments would be inconsistent with the very delicate character of the relationship and could perhaps block future possibilities."

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"Calling their mutual representation offices 'liaison offices' is a good example of how to describe complicated matters. Liaison offices, not the expected trade missions, were established. The liaison staffs will have nearly diplomatic status, and thereby political functions. This is more honest than an economic camouflage....

"In a few days, the Soviet and Chinese foreign ministers will sit down at the same table with Rogers. This first test of multipolarity is more important for the U.S. role in Asia than the exchange of correspondents and the settlement of property questions which can be left to the near-diplomatic liaison missions."

Independent *Stuttgarter Zeitung* asserted on Wednesday that Mr. Kissinger's and Vice President Agnew's visits to Asian capitals "revealed the outline of future U.S. policy--U.S. withdrawal from Vietnam does not mean renunciation of the American presence in the Pacific area....

"Peking-Washington interests coincide on many issues... Both want to prevent unilateral great-power hegemony in the Asian-Pacific area. Nixon articulated this in China. The Vietnamese cease-fire has freed the Sino-American relationship of the last remaining burden.

"American concessions in Taiwan or Korea are unavoidable. The disarming of critical spots and the newly established U.S.-Chinese community of interests will permit a sober relationship to grow. But we must not see this as collusion against the USSR...."

## West Berlin: "New Problems for Soviet Policy"

Independent *Tagesspiegel* of West Berlin on Wednesday carried the view of Alexander Korab, a commentator on East European affairs, who declared that Moscow "seems surprised at the quick change in American policy in Asia."

Since President Nixon's visit to Moscow last year, Korab said, "the Kremlin has promoted the impression that Nixon and Kissinger, after some temporary escapades in China, had returned to the principle of the polarity of two world powers."

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He contended that the USSR could not indicate in its domestic or foreign pro-
paganda that it had been wrong about the U. S. --especially in view of its hopes
for U. S. assistance in relieving "its present economic misery"--and therefore
had no choice but to attack China, accusing it of "serving the imperialist forces
and generating anti-Sovietism....

"Moscow also expressed disappointment over Peking's full use of its influence in the Hanoi-Washington negotiations. In addition, the specter of normalization of U. S. -Chinese relations alarms the Kremlin because it poses new problems for Soviet policy in Asia. Brezhnev's and Kosygin's plan to encircle China and create a Soviet-influenced security pact area in Asia seems even more unrealistic than it used to appear.

"Finally, the role of Japan is involved in this complicated game...
and here again, the Soviets see themselves in a bind, for the new
arrangement in Southeast Asia and the flexibility which has arisen
among Washington, Hanoi, Peking and Tokyo does anything but
strengthen Moscow's position. In the coming talks with Japanese
negotiators, Gromyko will not have an easier, but a more difficult
situation."

"Liaison Offices Follow Nixon Course"

Today the paper asserted that the proposed opening of liaison offices in Washington and Peking "follows the course of Nixon's policy of introducing China as a third force in the game of world powers, thereby further reducing the confrontation of East and West." It observed that Mr. Kissinger's statement that normalization of Sino-American relations was not directed against any third party "was meant for Soviet ears."

The paper observed that the Vietnam war "had lost its importance" as an issue
dividing the U. S. and China, but that the problem of Taiwan remained, "other-
wise full diplomatic relations would have been established." Its editorial con-
cluded:

"Kissinger made reduction of the U. S. forces on Taiwan dependent on reduction of the perils in Southeast Asia. This linkage is addressed to Peking and might be a stimulus for the great international Vietnam conference....

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"Peking has understood that the military danger no longer comes from Taiwan but rather from the northern frontier where the Soviets have concentrated more than 40 divisions. This perception has become a guideline of Chinese policy."

Rome TV: "The Flexibility of Pragmatism"

State-controlled Italian television summarized the communique and ran excerpts of Mr. Kissinger's press conference. A New York correspondent for the network declared:

"For the first time, Peking will have representatives in the capital of a country that has diplomatic relations with Taiwan. This document is perhaps a demonstration of the flexibility of pragmatism...."

"Basic Choice for Peking"

Independent-conservative Corriere della Sera of Milan asserted today:

"Communist China has made a basic choice. For Peking, the normalization of relations with the U.S. takes precedence over all other issues--including Taiwan...."

"Concern in USSR and Japan"

A New York correspondent of left-of-center La Stampa of Turin predicted that "today's events will cause concern in the Soviet Union and Japan...."

"From now on Russia will be forced to speed up its negotiations on disarmament with Europe and the U.S., and Japan will be forced to make trade concessions. Nixon's grand design will be realized."

Swedish TV: Kissinger Footage

Swedish state television carried footage on the news conference, and two major papers commented on the state of U.S.-PRC relations.

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# "What Does New Phase Mean for Asia?"

Liberal *Dagens Nyheter* of Stockholm declared, "Mr. Kissinger's success in China is now confirmed." It added:

"We all would like to think that common sense has been the determining factor on both sides.

"But our feelings become mixed when we look beyond the geniality of Kissinger and his Chinese hosts and think of all that remains to be done in Indochina.

"What the new phase in relations between the U.S. and China really means in a wider Asian perspective we only dimly begin to discern."

# "Some Disquieting Aspects"

A leading provincial paper, liberal *Goteborgs Posten*, cautioned that "the Russians have long been suspicious of the contacts between Washington and Peking, and it is necessary to proceed with caution in order not to irritate the Soviets."

The paper referred to a recent article by a Soviet general in the East Berlin paper *Neues Deutschland* alleging that "imperialist states" were exploiting anti-Soviet currents in Peking, and concluded:

"American-Chinese cooperation has many positive elements, but it also has its disquieting aspects."

No. 22

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Tokyo: "Epoch-Making"

Japanese television networks and newspapers today gave top coverage to the
communique and Washington correspondents' reports of the press conference.

Asahi, Japan's leading paper in circulation and prestige, hailed the establishment of liaison offices as "an epoch-making advance toward normalization" which "will have major effects on political and economic relations between the two countries."

Independent-moderate Yomiuri of Tokyo, the nation's second largest paper, headlined: "Sino-U.S. Relations Virtually Restored..."

The paper said the liaison offices "can be interpreted as a major advance of 'actual normalization of relations' between the U.S. and China, while shelving the Taiwan problem."

"More Positive Chinese Attitude"

Moderate Tokyo Shimbun said in a front-page report from Washington:

"U.S. -Chinese relations have advanced to a stage one step short of the formal exchange of ambassadors within a year of President Nixon's historic visit to China...."

"China's approval of establishment of an actual 'diplomatic mission' in Washington, even before the U.S. has cut its ties with Taiwan, means that the Chinese side is taking a more positive attitude toward improvement of U.S. -China relations."

TV Uses Videotape

Japan's NHK-TV carried a brief videotape via satellite of the news conference, noting especially that Mr. Kissinger had said the liaison office representatives would have diplomatic privileges.

The network said he had also emphasized the importance of U.S. -Japanese relations at his news conference and stated that normalization of U.S. -China relations would not impair U.S. relations with Japan.

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Ohira Statement
==============

It reported that Foreign Minister Ohira had welcomed the communique as
"realistic and flexible." It quoted him as stating:

"Japan will continue to maintain the U.S. - Japan security
treaty because there is no basic change in the international
situation as a result of the U.S. - China communique."

The network's Hong Kong correspondent said it was believed there that the U.S. had made a concrete promise on the Taiwan problem in the Peking talks, and that it was a U.S. promise to withdraw its troops from Taiwan which led to agreement on the establishment of liaison offices.

Seoul Headline Emphases
=======================

South Korean headlines stressed the exchange of liaison offices, the disclosure
that Secretary Rogers will meet with Chi Peng-fei, and Mr. Kissinger's
assertion the U.S. has no immediate plan to withdraw its forces from Taiwan.

Taipei: ROC Denunciation
=========================

Taiwan papers gave heavy play to the Republic of China Foreign Ministry statement denouncing any agreement reached between the U.S. and mainland China as "null and void."

The leading privately-owned *United Daily News* of Taipei carried the full U.S.-PRC communique. Wire service reports on the Kissinger briefing received prominent treatment, stressing that the U.S. will continue diplomatic relations with the Republic of China.

"A Grave Adventure"

Although the communique came after normal press deadlines today in Taipei,
three morning papers reacted editorially.

The privately owned *China Times* said the fact that the "Maoists" had agreed
to "establishment of 'government-to-government' relations--next only to formal
ties" showed this was "indeed another 'breakthrough' in the normalization of
U.S. -Chinese Communist relations." It noted that the U.S. "will honor its
commitments to the Republic of China and will continue to maintain a formal
diplomatic relationship and other friendly ties with us."

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However, the paper added:

> "We have reason to think that the establishment of the so-called liaison office would boost the status of the Maoists both militarily and politically, thus enabling them to acquire more swiftly the role of one of the superpowers while mitigating the Russian threat.... Let us frankly say the breakthrough ... is a grave adventure for the U.S. and the world."

The *United Daily News* called the U.S. move "an extremely unfriendly act toward the people and Government of the Republic of China and also a serious violation of traditional friendship and alliances between the two countries."

"Communists Want Intelligence Center in U.S."

The official *China Daily News* said of the establishment of liaison offices:

> "The main purpose of the Chinese Communists is to set up an intelligence center in the heart of the U.S.... to facilitate their scheme of infiltration and subversion. The U.S. thinks this would help to promote closer U.S.-Chinese Communist ties, but it is actually courting trouble..."

This afternoon's privately owned *Min Tzu Evening News* of Taipei said the U.S. had "obviously infringed on the Republic of China's sovereignty" and asked:

> "Is America's national faith and prestige founded by the forefathers going to be buried by President Nixon?"

Hong Kong Views

Pro-Communist *Ta Kung Pao* of Hong Kong stated today that the communique "contains certain concrete steps to promote bilateral relations..."

> "From now on, through the efforts of both sides, the wish of the Chinese and American people for a normalization of the relations between the two countries is certain to come about at an early date."

Independent *Ming Pao* of Hong Kong remarked today that "the Far East will be even more stable and peace even more assured...."

No. 22

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Sao Paulo: "Bipolar World Breaking Up"

Conservative *O Estado de Sao Paulo* suggested on Wednesday that the "pre-occupation of Soviet leaders with all indications of a U.S.-China rapprochement shows what a decisive influence relations between Washington and Peking can have on international affairs. The world's recent bipolar structure is breaking up."

Santiago: "Soviets Feel Under Pressure"

Independent-conservative *El Mercurio* of Santiago asserted yesterday that the "Soviet leaders... feel even more under pressure to improve their relations with Washington... The skillful handling of this Soviet concern is one aspect... of the successful foreign policy designed by Kissinger and adopted by Nixon."

Peking: Communique Text, No Comment on Kissinger

Peking NCNA circulated the text of the joint communique in its domestic services and in its international English service.

Radio Peking broadcast the text in its domestic Mandarin service.

Moscow: Treatment of Communique

Moscow TASS briefly reported yesterday that "Washington today released a communique" (without noting that it was a joint communique scheduled for simultaneous release in Peking) concerning Mr. Kissinger's discussions in Peking. The agency noted that the communique mentioned broadening of contacts between the U.S. and China, and the establishment of liaison offices in each other's capitals.

TASS Cites Kissinger on Taiwan

TASS later reported Mr. Kissinger's press conference which, it said, "was devoted to the results of his trip to the DRV, the PRC and Japan."

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The report said Mr. Kissinger stated that the aim of his visit to Hanoi was to
move from "hostility to normalization" of Washington-Hanoi relations. It said
Mr. Kissinger referred the press to the communique for information on his
stay in Peking.

TASS continued:

"Asked whether there was any agreement on the withdrawal of American troops from Taiwan, Kissinger said that the U.S. and the PRC had a different approach to this problem. Kissinger said that America would continue to maintain diplomatic relations with Taiwan. The level of American troops in Taiwan is not subject to discussion, he said, adding that it will be determined in accordance with the general propositions of the 'Nixon Doctrine' and the level of danger in that area. There are no plans now for withdrawing American troops from Taiwan, Kissinger said."

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The Remarkable Mr. K

IF HENRY KISSINGER had done nothing else during his service as President Nixon's foreign affairs aide, he has buried for all time the old-style, cookie-pencher diplomat.

Mr. Kissinger doesn't wear striped trousers and insist that every "it" be dotted and every "t" crossed. He just gets remarkable things done which couldn't be done by conventional diplomacy.

The agreement announced yesterday, that China and the United States will establish official government liaison offices, is just the latest example. The agreement is diplomatically contradictory. The offices, Mr. Kissinger said, will have full diplomatic privileges but will in no way imply establishment of formal diplomatic relations.

Kissinger

In other words, China will set up shop in Washington with an office empowered to sign trade agreements, grant visas and send messages home by code. The head of the office, like our man in Peking, will have full diplomatic privileges. But, by definition of the agreement, he will not be a diplomat in that he will have no diplomatic title, and the existence of the office is not a diplomatic breakthrough.

As Alice complained to the White Queen, that is impossible to believe. But was the White Queen — and Mr. Kissinger

— might say, that's only because Alice, and we, haven't been trying hard enough. Sometimes, the Queen said, she practiced so hard she was able to believe six impossibles before breakfast.

So we believe. Protocol and all that to the contrary, the offices will be set up and the business of normalizing relations will go ahead.

Official normalization is farther in the future. As Chinese officials have repeatedly said, there can be no regular diplomatic relations until the Taiwan question is settled. China argues, as does Chiang Kai-shek, that Taiwan is a province of China and its legal position is not subject to debate.

Thus, when there is already one Chinese embassy in Washington, representing Chiang, it is impossible to have another representing Peking. We would not, Chinese officials have asked rhetorically, exchange ambassadors with a country which still recognized the Confederacy, would we?

Obviously not, and our continued recognition of Chiang is about the same thing. But Mr. Kissinger hinted that an end to this obsolete policy may not be too far off.

Meanwhile, what has been worked out is the next best thing. We do not expect wonders in the world of trade. But the new offices are another long step in the long road back from Chinese-American isolation. As the old lullaby says, we don't know what to call them but they're mighty like a rose.

DURING THE '60s there was a loud outcry against college students who "destroyed property" during their war protests.

I'm curious where this loud outcry is now. In contrast to the spontaneous violence and destruction by college students, we now have organized, premeditated violence and destruction of property by adults, union leaders.

Is property destruction by adults at Kalkaska and Roscommon acceptable and different from property destruction at Columbia University?

MARGARET STANFORD
Bloomfield Hills

## Station Owners Not Greedy

The remarks of one reader regarding greedy gasoline dealers were not factual or fair.

Surveys taken since the gas tax increase show that the average selling price has not been increased more than the two cents.

Under the Phase II price regulations, the selling price was frozen at most brand stations at 39.9 cents per gallon. With the additional two cents this would have been increased to 41.9 cents. Yet, the very nature of the gasoline business has not allowed the dealers to charge anywhere near that figure.

Dealers throughout Michigan are selling gasoline at a profit margin that is at depression levels. In the city of Detroit, 35 percent of the dealers went broke in 1972.

With competition as it is in this business, there is no way that any dealer can get more than the public wants to pay. The price of gasoline in Detroit has been lower than anywhere else in the United States for many years.

CHARLES E. SHIPLEY
Executive Director
Retail Gasoline Dealers Association

## The Real Peace Makers

HONESTY DEMANDS that we recognize the valiant resistance of the Vietnamese people, North and South, to American aggression. It was this resistance, supported by the American peace movement, which brought about the peace. Our POW's owe their release to the Vietnamese resistance and the peace movement. Without their efforts, the men sent to Vietnam to kill would be

Letters to the editor must be signed and addressed. Names will be withheld only for good reasons.

trained street drugs my children have encountered. I can only correlate with Judges Crockett's and Mphy's call for a one-man grand jury. The police department has had long enough to bring this devastation to an end. It has not been able so. I cannot agree with Police Commissioner Nichols. Can he truly and in clear conscience, that drug trade has been stopped, or at least slowed? The police department will not gain confidence of the citizenry until more is done to show this ugliness.

One only has to look in the records of the past to see the countless robberies and murder affiliated with drugs to know the job has not been done completely. Sentencing the addict to jail not going to eliminate the true offender. To honorable judges who truly want to bring this an end, I and the countless other afflicted families will forever be grateful for the apprehensions of those responsible.

MARIO DIMAMBRO
Dearborn Heights

## Lux Courts

YOUR DECLANT articles on the porno establishments offer an excellent example of the lax within our courts. The inability to define obscenity seems to be the reason no necessary laws were enacted. It seems ironic that the same august body of judges had no difficulty in legalizing abortion but are stuck on the question of obscenity.

LOIS ESSELTON
Dearborn

## Gas Tax Lament

I WISH GOV. Mulliken would stop and think once about what he is doing. The two-cent tax increase is getting out of hand. Now we paying more than 40 cents per gallon for gas with our cars get only 10 miles per gallon. And so the reason we get only 10 miles per gallon on

JOSÉ

Bill Anderson

Henry K. and Soviet 'slot machine'

WASHINGTON — The faceless, but much vaunted, staff of Henry Kissinger has been dealing with critical problems of the United States in "piecemeal" fashion, a former administration official charges in a censored report to be made public today.

Dr. William R. Van Cleave, an associate professor of the school of politics and International Relations at the University of Southern California land former adviser to the Defense Department on the Strategic Arms Limitation Talks], also warned that the United States has been playing with Russia like a "slot machine."

"Negotiating with the Russians," he said, "is like putting a coin in a slot machine — sometimes you will get a payoff, but not very often." He said in previously secret testimony to Congress that the United States, in its first SALT talks, viewed the situation as "if it were a scientific-analytical matter. The Soviets regarded it as a political process."

Van Cleave criticized the American negotiations by saying "most of the U. S. negotiating took place within the U. S. government and the U. S. delegation. We negotiated with ourselves and then attempted to explain our auto-negotiated position to the Soviets."

"Its [America's] SALT proposal was not a negotiating position," he said. "It was an end product."

Sen. Henry M. Jackson [D., Wash.], who was successful in prodding the administration into adding safeguards to the first SALT talks, will release Van Cleave's testimony given at hearings of the Senate subcommittee on national security and international operations. The testimony has been examined and cleared by the Department of Defense, where Van Cleave was a special assistant in the office of Secretary Melvin Laird from 1969 to 1971.

Pentagon censors left public many of Van Cleave's remarks that were critical of the National Security Council, operated by Kissinger, along with testimony that Defense and State Department recommendations during the SALT negotiations were often ignored by the White House.

He said there was such a mish-mash of burocrats involved in the talks that, "in effect, U. S. SALT positions and proposals were already negotiated and compromised positions by the time they reached the Soviets."

The SALT expert painted a picture for the subcommittee of the United States needing "a guiding, coherent set of strategic and arms control objectives other than merely reaching agreement [and] also have a guiding strategy of negotiation based on well-thought out principles."

He recommended that the administration "stop playing intellectual games

and focus on tough, realistic bargaining." Van Cleave also said a determined effort should be made in future talks to "get the right people involved" and to fix responsibility.

The implication thruout his lengthy testimony was that Kissinger's staff was far too shallow. He said if the NSC does continue to have the major responsibility [in SALT II talks], then "the staff must become more competent and more representative, and less private and less incestuous."

Van Cleave in his appearance last July 25 said President Nixon never asked for any votes from his security council. "President Nixon asked for no majority votes and did not make decisions based on such votes, or necessarily even a consensus," he said.

"He [Nixon] made his own decisions, aided to one degree or another by Dr. Kissinger. Sometimes they reflected the sense of the NSC meeting. Sometimes they did not. But the responsibility was his." He added that the NSC staff was "undermanned in quantity and if not in quality at least in required backgrounds, expertise, and competence."

Jackson said that, "if the second round of SALT is to reach a more stable and reassuring conclusion, the executive branch must recognize the faults and failures of the U. S. approach to SALT I."

Page 6

TH

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## Blank Vote Approved

The approval of the "blank vote" by the Supreme Electoral Council is, as we have always maintained, an implementation of the democratic process. It allows the citizen —who is compelled by law to vote— to say that he does not like any of the choices that are given him, thus widening his orbit of decision,

It interprets the law liberally: in the sense that a man must go to the voting-place and cast a ballot, but he can cast a blank ballot if that is his choice.

The decision of the Electoral Council is a wise one.

## The Air Gets Worse

New statistics released by the Ministry of Health here indicate that the incidence of deaths from bronchitis in Caracas has risen sharply over the last ten years — despite increasing medical care.

The reason given by the Ministry is the increasing air-pollution in Caracas, due to the growing number of motor vehicles. It is reported that concentrations of carbon monoxide and of hydrocarbons —as well as of dust particles and lead— are above "acceptable" levels in certain heavily-congested areas.

The fact that Caracas is in a valley probably does not help matters either.

The Caracas situation is, of course, the same that is occurring in most cities of the world. As medical care improves —and becomes necessarily more expensive— the environment worsens; and the first cannot possibly compensate for the second, so the result is a net deterioration in health.

In the United States, remedies are at least being attempted (although very far from realization). In Venezuela, there is still no conscience of the peril.

## Kissinger

Henry Kissinger has been spending time in Peking and Hanoi, mending fences and exploring the possibilities of peaceful cooperation. There are rumors that he may go to Havana, and that he may assume the role of mediator in the Middle East between Arabs and Jews.

If this is all true, he is destined for just about the most important role of the century: world peacemaker. And if he achieves peace and harmony on those fronts by patient negotiation, he will go down in history as one of the great of all time.

It is difficult to believe, even if one hopes it can be true. If Kissinger succeeds, he will prove that the talents of a single man can buck the forces of history and change the face of the world.

ST. PAUL SUNDAY PIONEER PRESS, FEB. 18, 1973

MET

SEVEN

This is Henry Kissinger of Washington. — AP Photo.

Henry and Actress Claire Bloom in New York. She's a friend of Henry. — AP Photo.

## So You Think You Saw Kissinger Here

By Larry Adcock
Staff Writer

CLARENCE R. SIMONOWICZ never went to Harvard. He went to Michigan State University. He is Polish-Catholic, not German-Jewish.

But like Dr. Henry Kissinger, affectionately known by his bevy of Hollywood starlets as 'Henry the K,' Clarence Simonowicz has the same blue eyes, curly brown hair and dark horn-rimmed glasses.

The almost total physical resemblance, in fact, is quite remarkable.

"AND I LIKE GIRLS, TOO," grinned "Clarence the S."

Simonowicz gets needled because of the resemblance "oh, two or three times a week, depending on how he's (Kissinger) doing on the political scene."

Simonowicz, 33, 2180 Upper Afton Road, is assistant director of the St. Paul City Planning Department.

His coworkers, neighbors, friends and strangers whose mouths fall open when they see him at an airport, have all commented on his similarity to Kissinger, but Simonowicz shrugs it off with an "I've never seen a resemblance myself."

Others certainly have.

RECENTLY, Simonowicz purchased two suits from the men's department at Penney's. The clerk wrote up his bill, and sent the clothing for alteration under the name "Kissinger."

"A week or so later, my wife had a helluva time getting the suits. She asked for them under Simonowicz, and the man said they didn't have that name on record. Then she said, 'all right, try Kissinger.' Sure enough, she got the suits that way," Simonowicz related.

"The funniest thing is when people come up to me and say, 'Don't I know you from somewhere?'"

"Or they'll rib me with 'how's the weather in Paris, Hank?' or, 'How's it going in Vietnam?'"

"The first time Mayor (Lawrence) Cohen saw me, he came up to me and said it sure would be nice if we could have Henry Kissinger working for the city," Simonowicz said.

HENRY KISSINGER is noted for his secrecy and his surprises, like when he was in Peking while supposedly in India.

... Could it be? Is he in St. Paul while he's supposedly in Washington?

This is Clarence Simonowicz of St. Paul. — Staff Photo.

Clarence and Shirley Sailors in St. Paul. She's a colleague of Clarence. — Staff Photo.

...ASIAN TRIP ENDS, p. 1

...TRADE AND MONETARY OUTLOOK, p. 9

KISSINGER VISITS TO PEKING AND TOKYO

Summary

Media in many countries reported Henry Kissinger's visits to Peking and Tokyo at the end of his Asian trip.

Newspapers and television widely carried pictures of his meeting with Mao Tse-tung, generally concluding that the event indicated an acceleration of U.S. - Chinese rapprochement.

The conservative London *Daily Telegraph* said the Peking visit "seems to have been successful beyond even the most optimistic expectations," and the *Daily Express* added, "Suddenly the hopes of a world without terrible tension seem to be close to realization."

Observers in Britain, West Germany, and Switzerland concluded that China welcomed a strong American presence in Asia. Bonn's *General-Anzeiger* remarked in this regard, "Brezhnev's sudden desire to visit the U.S. earlier than the foreseen date indicates that Moscow does not want to be overtaken by Peking."

Of the visit to Tokyo, Japanese media said Mr. Kissinger's talks there centered on Indochina reconstruction and China policy.

(See page 16 for trade and monetary aspects of the Tokyo visit.)

Soviet media held to brief, factual reports of the Peking visit, and charged that the Tokyo trip was "being undertaken to apply new pressure on Japan" (Moscow radio).

Peking treatment of the China visit was sustained and prominent, although brief. Hanoi media have not mentioned that Mr. Kissinger was in Peking.

*

*

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London: "China Welcomes U.S. Presence"

British papers speculated on the significance of Mr. Kissinger's visits to China and Japan for U.S. -Chinese and world power relations.

The conservative London *Daily Telegraph* judged yesterday that the Peking visit "seems to have been successful beyond even the most optimistic expectations....

"No insuperable problems seem to have arisen regarding Formosa, where the achievement of China's aims seems to be a matter of time and tact and ways and means. Less thorny is the question of China's desires for the withdrawal of America's rapidly dwindling forces from the rest of the Asian mainland, and even less so that of American power in the Western Pacific.

"The reason is that China welcomes a strong American presence, in places where her own prestige is not too directly involved, as a protection against Russian expansion. This is the key to the amazing reversal of China's policy towards America in the space of two years--from hostility to thaw, from thaw to detente, thence to rapprochement, and now to what could be the beginning of entente.

"Common fears and interests are great levelers of ideological walls; and old-fashioned diplomacy, reasserting itself, makes friends of those who have nothing in common."

"Kremlin to Be Reassured?"

Today the paper's Washington correspondent, Stephen Barber, reported that "it can be expected that steps will be taken quickly to reassure the Kremlin leaders that Mr. Nixon is seeking an Asian peace based on triangular stability between the big powers, rather than plotting to gang up against Russia."

"To this end, it is understood diplomatic feelers are out to set more definite dates for the visit to Washington of Mr. Brezhnev..."

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# "U. S. -Japan-China Alliance Prospect"

The liberal *Guardian* stated today that "the Soviet Union... will no doubt be quick to see Chairman Mao's talks with Dr. Kissinger as another example of anti-Soviet collusion.... The Russians now seem convinced that the Chinese flirtation with the Japanese and the Americans is going much farther and faster than expected."

"Suddenly the prospect opens up of a triple alliance--the U. S., Japan and China--directed against the Soviet Union."

# "Asian Nations Need to Know"

The Peking correspondent of the independent *Times* of London, David Bonavia, argued today that "it has to be recalled that the political life of a dozen Asian countries hangs in the balance of America's relations with China, and those countries in particular have a claim to some insight into what is being discussed."

In this regard he remarked that "an astonishing fact is that at this moment the Chinese leadership probably has more intimate insights into the latest thinking at the White House than any of America's allies or even the Secretary of State."

Yesterday he wrote that the Peking visit "seems to remove most remaining doubts about the solidity of future relations between China and the U. S.... However meager the information released about Dr. Kissinger's talks, Chairman Mao would not have received him in this manner if serious and constructive results had not been achieved in the earlier discussions with Mr. Chou."

"Green lights seem to be flashing between Washington and Peking, now that the Vietnam cease-fire has been signed.... The first reasonable assumption is that the general understanding to solve the Taiwan question has been converted into some kind of framework for negotiations, if not an actual agreement."

# "Hope of a World Without Tension"

The conservative London *Daily Express* summed up today:

"Instead of making propaganda speeches, Dr. Kissinger applies the patient, step-by-step approach.... Suddenly the hopes of a world without terrible tension seem to be close to realization."

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## Paris TV: "Very Important Progress"

State-run French television's first network judged that Mr. Kissinger, "tirelessly pursuing the task of a secret and smiling diplomat," had achieved "very important progress" in U. S. -Chinese relations and made "interesting suggestions" on Japan's possible role in the reconstruction of Vietnam.

## Rome TV: "Aim of Japan Trip"

An analyst on state-controlled Italian TV maintained last night that the purpose of the Tokyo trip had been "to prevent Japan's feeling left out of things by her American ally and, consequently, tempted to follow an independent policy. This is what happened last year when Tanaka, irritated at Nixon's trip to Peking--and at not being informed about it in advance--stole a march on the Americans by speeding like lightning to China and bringing diplomatic recognition back with him to Tokyo."

Independent-conservative *Corriere della Sera* of Milan suggested that the object of the trips to Hanoi, Peking and Tokyo was to "establish in the post-Vietnam period a series of politically different relations with more or less 'non-aligned' countries that are no longer asked for ideological guarantees."

Influential left-of-center *La Stampa* of Turin reported on Sunday that "in the opinion of some Asian journalists, Kissinger can win China just at a time when the U. S. is losing Japan. Negotiations with Tokyo seem more difficult than with Peking today."

## West German TV: "China Wants U. S. to Keep Bases"

West German television's Asia correspondent noted last night that a year ago Peking was interested in large-scale American withdrawal from Asia, whereas "now the Chinese want the U. S. to keep its bases in Taiwan, Thailand and the Philippines to block" Soviet intentions to "encircle" China. He said that the U. S. and China were now in agreement on the U. S. presence. The Taiwan issue still prevents "normalization" of U. S. -China relations, he stated, "but Henry Kissinger certainly does not mind that because a good relationship with China would burden the relationship with the USSR, on which detente and disarmament in Europe depends."

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"By improving relations with China without endangering U. S. relations with the USSR, Henry Kissinger succeeds in a balancing act and diplomatic victory which, in the long run, will make up for the military loss in Vietnam."

Bonn's independent _General-Anzeiger_ asserted today that the U. S. and China would continue to strengthen their relationship despite the Taiwan issue, and that the U. S. would "stress that it is not trying to play off China against the USSR." However, the paper said, "Brezhnev's sudden desire to visit the U. S. earlier than the foreseen date indicates that Moscow does not want to be over-taken by Peking."

### West Berlin: "U. S. - Chinese Action Before Vietnam Conference"

Pro-Social Democratic _Spandauer Volksblatt_ stated today that the U. S. and China "had ironed out major differences in advance of the international conference on Vietnam."

### Vienna: "Chinese Attentive on 'Year of Europe'"

Independent _Die Presse_ of Vienna suggested today that the Chinese leaders had "listened very attentively" to Mr. Kissinger's interpretation of the "Year of Europe" and "seized every opportunity to encourage a quicker and more efficient integration of the European states."

### "Chinese Presented Their Bill"

Hugo Portisch wrote on Saturday in independent _Kurier_ that "the struggle for Indochina" between the USSR and China had now been resolved in favor of the latter and that China had "done considerably more than Moscow" to end the war in Vietnam. Mr. Kissinger's visit, he declared, was the occasion for the Chinese "to present their bill," and speculated on what China's "price" might be:

"It is an adjustment of both sides' interests. America is reducing its military presence on the approaches to China, but U. S. troops are withdrawn on a schedule and to points which the security requirements of both states permit, and more important, in a manner which prevents a third power from deriving an advantage."

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"Presumably this could antagonize the USSR, and provoke its resistance during the forthcoming Indochina conference. But this is not necessarily so. While China fears a Soviet thrust into the vacuum left by the Americans, Moscow dislikes the idea of China gaining too much influence and prestige....

"A year ago when Nixon went to China a new formula--the triangular balance--was coined. This was easily said but no one could imagine what the results would be in practice. Today we are witnessing developments taking shape which were initiated at that time."

Zurich: "U.S. Wants Presence in Asia"

Switzerland's independent Neue Zuercher Zeitung said Mr. Kissinger's itinerary was a "reflection of the emphatic American wish to maintain its presence in Asia and perhaps more ambitious aims as well."

It declared that U.S. "intentions to deal" with the Middle East, the anti-hijacking pact with Cuba, dollar devaluation as a "constructive accommodation with Europe" indicated that the Administration "does not want to withdraw into isolationism now that its Vietnamese entanglement has been ended, and that it wants to take care of its global responsibilities by selective methods."

Noting the "swift transition" from war to "political-economic engagements" by the U.S. and North Vietnam, the paper asked:

"Does this indicate that the peace is safer and the conditions created by the Paris agreement more stable than generally assumed?... Is Hanoi interested in some balance of power in its own area?..."

"Last but not least, America's European policy has been waiting to benefit from the energies set free in Vietnam...."

Stockholm: "Taiwan Still the Main Problem"

Liberal Dagens Nyheter of Stockholm warned today against overemphasizing the significance of Dr. Kissinger's meeting with Mao Tse-tung, who, it said, had "seen personally quite a few visitors lately."

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The paper cautioned:

> "It is also important to remember that the U.S. has shown no intention to date of writing off Taiwan completely and thus eliminating its main problem with China. Until this happens it does not seem likely that ambassadors can be exchanged between the U.S. and China."

## Malta: "China May Welcome U.S. Presence in Asia"

The conservative *Times of Malta* remarked today that the Peking talks "may open the way for wider cooperation between the U.S. and China..."

> "China's main preoccupation... appears to be the fear of Russia, with whom she has a long border but none-too-good relations. China would no doubt welcome continued U.S. presence in Southeast Asia to offset Soviet pressure on China. The Russians might increase this pressure if the security conference and the troop-cut talks in Europe are successful."

## Tokyo TV: Indochina, China Emphasizes

Japanese television networks today reported that Mr. Kissinger's talks yesterday with Prime Minister Tanaka and Foreign Minister Ohira had centered on Indo-china reconstruction and China policy.

Publicly financed NHK-TV said Mr. Kissinger "is believed to have explained to the Japanese side that normalization of U.S. -China relations will progress at a fast tempo from now on.... His unusual meeting" with Mao Tse-tung "indicates that China appreciates Kissinger's role in bringing peace to Vietnam" and points to rapid progress in normalization of U.S. -China relations.

Moderate *Yomiuri* of Tokyo suggested that the trip to Japan may have been "produced" as part of the "cool Kissinger diplomacy," because the U.S. could not ignore Japan's role while developing Asia policy under the Nixon Doctrine in the post-Vietnam period.

The paper reported that "there are already voices within the Government saying the U.S. may press Japan for Vietnam aid at Nixon's pace."

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["## Moscow: Brief Account of Peking Trip", "Soviet media held to brief, factual reports of Mr. Kissinger's visit to Peking, citing NCNA for their only characterization of his consultations: \"The nature of the questions discussed is not revealed but as the Chinese News Agency says, it was 'an open conversation on a wide range of questions and it was held in an easy atmosphere'" (Moscow TASS in English on Sunday reporting the meeting with Mao).", "## \"New Pressures on Japan\"", "In contrast, the Tokyo visit provoked comment. A Moscow radio domestic service commentator said in part:", "\"The recent devaluation of the dollar was to a great extent directed against Japan, which in the past few years has to a considerable degree squeezed U. S. monopolies not only out of their traditional markets abroad but also out of markets in the U. S. itself....", "\"Kissinger's present visit is being undertaken to apply new pressure on Japan.... The Land of the Rising Sun must now pay for the dollars received from the U. S. after the end of World War II and for the many years of the unilateral orientation of the Japanese economy and foreign trade toward the U. S. But there is no doubt that the sharp rivalry of the two big capitalist states and the trade war between them will be further aggravated.\"", "## East European Concern About Maoism", "Treatment of the Peking visit in some other East European countries was more revealing of concern at the prospect of Sino-U. S. rapprochement than Soviet media allowed. For example, a commentator writing for the Polish Press Agency (PAP) today said \"most probably we will be seeing soon new important events in the field of American-Chinese relations.\"", "PAP said that \"in conclusion, the commentator asks whether the Sino-American normalization will be serving detente or will it be spearheaded against the interests of third countries?... The alliance between imperialism and Maoism, the nature of which we have learned over the past decade, must prompt vigilance.\"", "No. 21", "8", "2/20/73"]

Peking: Factual Treatment

Communist Chinese media gave sustained and prominent, although brief, factual treatment of events during the visit to Peking.

Hanoi: No Mention

North Vietnamese media have not mentioned that Mr. Kissinger was in Peking.

POST-DEVALUATION PROSPECTS FOR TRADE NEGOTIATIONS

Summary

Media in Western Europe discussed weekend developments on the trade and monetary scene in the light of the coming trade negotiations with the U. S.

Some observers interpreted President Nixon's reported remarks yesterday to AFL-CIO leaders as indicating a protectionist trend.

For example, a Washington correspondent of the London *Daily Telegraph* predicted that the Administration trade bill would use "strongly protectionist" language as "a matter of political necessity... in the wake of the devaluation of the dollar... and continuing doubts in Washington that this will bring about a turnaround in trade."

Several saw the European visit of economic emissary Peter Peterson as one of a series of moves preparing the terrain for tough negotiations and eventual monetary reform.

The *Handelsblatt* of Duesseldorf said the U. S. was engaged in "fact-finding, testing reactions, defining starting positions and evolving alternatives" for trade negotiations "in order to develop a flexible response to the European challenge."

Japan's NHK-TV suggested that Prime Minister Tanaka's instructions to his cabinet today on liberalizing economic measures may have been influenced by Henry Kissinger's reported urging of import liberalization in his talks in Tokyo.

(For treatment of other aspects of the Kissinger visit see page 7.)

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Duesseldorf: U.S. "Fact-Finding" and Peterson Mission

Duesseldorf's right-center business-oriented Handelsblatt judged yesterday that the U.S. was currently engaged in "fact-finding, testing reactions, defining starting positions and evolving alternatives" to certain provisions of the Administration's trade bill "in order to develop a flexible response to the European challenge." Such activity "is accompanied by a certain amount of verbal saber-rattling," it said, referring to remarks by Secretary Shultz, the "hint" that the U.S. would link troop presence in Europe to trade concessions and the denial by Secretary Rogers that this was the case. It concluded:

"In Bonn, Peterson was told that the salubrious effect of this stimulation of the political climate is limited.... The broad variety of subjects in the Bonn round indicates that the U.S. wants to negotiate on several tracks, bilaterally and multilaterally, GATT, EEC and NATO....

"The edge in information that the Nixon Administration gains by sending one hard-boiled crew after another to West European capitals should not be underrated....

"In past years, the U.S. wrote off trade barriers erected by its European partners as the price it had to pay for a strategic advance base and for Europe's political union. Now it is becoming increasingly clear that in view of America's Asian policy and Europe's deadlocked efforts to achieve political union, this type of bookkeeping has lost its appeal for Washington."

"Is Europe Realistic Enough?"

The Bonn correspondent of right-center Die Welt of Hamburg said Mr. Peterson had "mainly concentrated on asking questions" during his Bonn discussions. He concluded that the U.S., "pondering its relations with Europe... sees a linkage in problems of troop levels, trade, monetary and other policy matters." He said it was "entirely wrong" to accuse the U.S. of "extortion," concluding:

"In a speech in New York, Peterson developed an impressive general concept of future Atlantic relations... a clear concept

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which everyone will approve who is in earnest about the
Atlantic Alliance. His discussion partners in Bonn found
Peterson realistic. But is Western Europe, particularly
the FRG, sufficiently realistic to know that readiness for
comprehensive partnership and fair burden sharing is the
only means of preventing erosion of the Alliance?.... Con-
cessions, even sacrifices, are required on both sides. This
presupposes that the governments set forth the need for them
credibly and do not yield to neutralist or isolationist trends."

West Berlin: "U.S. Will Not Withdraw Troops"

Pro-Social Democratic Spandauer Volksblatt on Saturday welcomed the dollar devaluation but warned that "urgent reorganization of the international monetary system" was necessary to prevent another dollar crisis.

It noted Secretary Rogers' press conference remark that the U. S. would not link U. S. troop strength in Europe to trade concessions and asserted that Europe "would have to protect itself from demands expressed by Congressional circles." The paper concluded:

"The U.S. does not seriously intend to withdraw its troops from Europe, for voluntarily cutting off its relations with Europe would mean giving up its role as a world power. A majority of the Congress would not be so foolish.

"A rigorous joint struggle is necessary to ensure the dollar's recovery before the next crisis. Europeans should realize that a further illness of the dollar will not be to Europe's advantage. On the contrary, a new anti-Americanism cannot at all replace a necessary trade partnership with the U.S., still the world's most powerful industrial state."

Paris: "Peterson Kicks Off Nixon Round"

French commentators saw a lack of European unity to meet an aggressive U. S. trade and monetary position.

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Gabriel Farkas stated today in mass-circulation pro-Gaullist France-Soir that the visit of Mr. Peterson "is the kick-off of preparations for the Nixon Round." He wrote:

> "American senators, farmers, industrial leaders and labor union leaders no longer accept that Europe and Japan should be allowed to hamper the export of goods in which the U.S. is highly competitive: farm products and industrial equipment of high technology. To get satisfaction they are ready to push Nixon to a real trade war...."

> "Meanwhile, on the monetary front, the devalued dollar is doing as much damage as a fox in a hen house."

## "Dissolution of EEC?"

A by-line writer in Gaullist La Nation declared, "The devaluation of the American currency is not a defensive but an offensive move...."

> "If the Americans achieve their ends in the Nixon Round, no tariff protection will be left around the Common Market. But it is the Customs Union that gives Europe its cohesion. If it disappeared, the Common Market would lose substance and dissolve into a free-trade area under Atlantic-American hegemony. Hence the imperative requirement...to go beyond the Customs Union and come to a real economic and monetary union."

## "Nixon's Tough Resolve"

Roger Massip wrote Saturday on page one of prestigious Figaro of Paris that the monetary crisis "has once again highlighted the weakness of the European Community facing an America that appears to be bidding fair to give its own interest top priority even to the detriment of its alliances." He declared:

> "The recent positions of the Nixon Administration showing a firm resolve for tough negotiation on lowering tariff and non-tariff barriers so as to restore the U.S. trade balance and the new U.S. tendency to short-circuit international organizations to better achieve its goals, make it obvious that Europe does not have much time left to organize an effective defense..."

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# "Fear of U.S. Troop Reduction"

A by-line writer in financial *Les Echos* of Paris asserted that "even though the leaders in Washington are careful not to link the presence of American troops in Europe with economic problems, there is fear in European capitals that sooner or later a reduction of the American military setup will have to be faced." He speculated:

> "And what if Europe said 'Go ahead and withdraw your 300,000 GIs'? ... Is it illusory to believe that this decision might... bring about that healthy beginning that would lead Europeans to examine the final purpose of their common undertaking...?"

## London: "Nixon Seeks Union Help on Trade Policy"

British papers reported President Nixon's meeting with union leaders in Bal Harbour as a move to gain labor support for trade negotiation authority while forestalling any movement for extreme protectionist measures.

The conservative *Times* of London today carried Washington correspondent Fred Emery's story under the heading, "Union Leaders Applaud Mr. Nixon as He Seeks Their Support for New Trade Policy." Emery wrote: "This striking display of cordiality... illustrated the political turnabout the President has achieved with the union leaders.... It can only help the President in the process of securing the trade authority he seeks...."

## "A Stick-and-Carrot Bill"

In the independent *Sunday Times*, Henry Brandon predicted that "the Administration's trade bill will serve both as a stick and a carrot. On closer examination it may prove to be more a stick than a carrot. The U.S. Government continues, one is reassured, to believe in liberal trade policies, but the current situation, in the eyes of the economic policy-makers, demands achieving the goal through less than liberal policies."

The paper also carried an article asserting that "the U.S. served notice last week that it is not happy with the way the world's economy is being run." It said the U.S. was "still serious about reforming the world's monetary

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system--despite the ease with which the dollar devaluation was effected last week. Monetary officials in Washington consider that they were lucky to get the conditions that brought off the devaluation--massive speculation plus a helpful attitude in Europe. These conditions might not prevail another time, they argue."

## Meany Remarks and "Moderate Approach"

Washington correspondent Peter Jenkins reported today in the liberal *Guardian* of Manchester and London that George Meany's remarks yesterday after Mr. Nixon's meeting with the union leaders "were quickly interpreted to mean that Mr. Nixon was succeeding in his endeavor to head off protectionist extremes by adopting a more moderate protectionist approach towards the European Community and Japan."

Another *Guardian* correspondent in Washington said on Saturday that "in spite of the price rises, most of the big and powerful unions here are still supporting Mr. Nixon's policy of wage controls. In America the quid pro quo is the unions' hope that the President will adopt a rigidly protectionist stance on international trade, thereby protecting American industry and labor."

"But there are some doubts here that the White House is ready to give the unions all they want on this score, and so objections to the food price rises may yet be an issue to confront Mr. Nixon rather than simply the hapless manager of the local supermarket."

## "Trade Bill Will Sound Protectionist"

In the conservative *Daily Telegraph*, a U.S. correspondent wrote today that when the Administration's trade proposal reaches Congress "it can be safely predicted that the bill...will be in language that will make it sound as strongly protectionist as the most ardent 'America-Firster' could desire." He reasoned that "this is a matter of political necessity, especially in the wake of the devaluation of the dollar last week and the continuing doubts in Washington that this will bring about a turnaround in trade."

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# "Devaluation Lessens Chance of Trade War"

The independent London Sunday *Observer* urged that the "temporary solution to the world's monetary problems" brought about by devaluation of the dollar "be more constructively used than the last was to build a new international monetary system that will not periodically erupt with these absurd squalls of paper money moving across the exchanges." It added:

> "That said, the settlement has two solid advantages: It should improve the American trade balance and it should lessen the chance of a trade war. Moreover, although mercifully sterling almost escaped involvement in the whole crisis, the result of its resolution has been to effect a further devaluation of the pound of about another 3 or 4 per cent. As this was becoming necessary in view of our rapidly deteriorating balance of payments, it must be regarded as something of a blessing."

## Zurich: "Trade Bill Will Have Positive Effect"

The Washington correspondent of prestigious independent *Neue Zuercher Zeitung* wrote Sunday that President Nixon "sees import restrictions as a trump card for easing trade," while the U.S. decision to devalue the dollar showed "realization of the limitations of a policy of 'Let George do it.'"

He judged that the Administration's trade bill will have "a positive effect" on trade liberalization "if we consider the fact that the Administration's irresolution on one hand and the strong emphasis on trade within the framework of monetary reform on the other have doubtless contributed to the serious tension within the Western economic and political community..."

## Vienna: "Opportunities for Western Europe"

An analyst on Austrian national radio said Friday that "despite the obvious dissonance" among the West European nations in their approach to the dollar crisis, "the political opportunities of Europe west of the iron curtain have never been so great as they are today...."

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"President Nixon is determined to... form a new relationship with Europe... tailored to U.S. interests.

"Although the conferences in Helsinki and Vienna are secondary fronts in this big game, they are by no means insignificant. They will demonstrate that Europe is capable of political unity and, when necessary, of speaking with one voice to Washington and Moscow."

### Tokyo TV: Trade Liberalization and the Kissinger Visit

(See page 7 for general treatment of the Kissinger visit.)

Publicly financed NHK-TV said today that Prime Minister Tanaka had instructed the Government to carry out further measures in the field of trade and capital liberalization. It added that Mr. Tanaka's move "may be tied to the Kissinger visit, as the U.S. official is believed to have strongly pressed for trade and capital liberalization measures in Monday's talks with Tanaka."

The Kyodo news agency said today that Mr. Tanaka had ordered his cabinet ministers to work out over-all trade and economic countermeasures against the recent flotation of the yen. It said he had "stressed among other points the need for import liberalization of farm produce," and added:

"Observers said that Tanaka's remarks regarding farm produce were apparently made because Henry Kissinger... had urged import liberalization by Japan in his talks with Tanaka."

### "Easing New U.S.-Japan Tensions"

Independent-liberal Asahi, Japan's top-circulation newspaper, said today:

"It... seems that in view of the devaluation of the dollar and the shift of the yen to a floating system... consideration is being given to easing the new tension between the U.S. and Japan, which is arising in connection with the imbalance in the trade accounts."

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The paper added that "it is said" that Mr. Kissinger "is not an expert on economic problems and it is not clear what concrete discussions were conducted on U.S. -Japan trade questions."

The English-language *Mainichi Daily News* of Tokyo and Osaka reported on Friday that Minister of International Trade and Industry Yasuhiro Nakasone told a meeting of the Asian Affairs Research Council in Tokyo that "Japan has not tried hard enough to foresee and understand President Nixon's hopes and pattern of behavior."

Mr. Nakasone was reported to have said that in his second term, President Nixon's efforts "will be geared toward recovering U.S. prestige by restoring the domestic economy and recovering the dollar's strength." He reportedly added, "Washington is more or less oriented toward Europe" and "the Europe-oriented policy...may be partially due to Dr. Kissinger's personality."

Mr. Nakasone reportedly hinted "that the Tokyo-Washington communication was not as smooth as U.S. communication with European countries" in the current monetary difficulties.

### Bangkok: "U.S. Has Helped With Devaluation"

Some dozen newspapers in Bangkok had commented on the devaluation of the dollar and the baht.

A columnist wrote in prestigious *Siam Rath*:

> "America has helped remedy the problem of trade between Thailand and Japan through its effort to solve its financial problem in the world market... This seems to indicate that Thailand ought to obtain benefits from this devaluation of the baht."

*Prachatipatai* asserted that while "the increased prices of foreign goods will help reduce our deficit trade balance... there is no hope that our deficit will be reduced greatly."

The *Financial Post*, weekly supplement of the English-language *Bangkok Post*, observed:

> "It is the continuation of this psychological link between the two currencies which seems to have been the Bank of Thailand's

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prime reason for devaluing the baht alongside the dollar,
and yet the dollar is no longer in a position internationally
to provide the baht with this psychological support..."

Rio: "U.S. Could Create Worse Difficulties"

Conservative Jornal do Commercio of Rio de Janeiro declared on Friday:

"It is evident that the American economy is sick. If
the U.S. Government decides to take drastic measures
in order to protect its national interests at any cost, it
may create even greater difficulties than those which
have already appeared abroad."

No. 21

18

2/20/73

Kissinger with Pham Van Dong: 'Reparations'?

Roger Pic-Gamma

Nixon's Touchy IOU to Hanoi

In pursuance of its traditional policy,
the United States will contribute to
healing the wounds of war and to post-
war reconstruction of the Democratic
Republic of Vietnam and throughout
Indochina.

-Chapter VIII, Article 21 of the
Agreement on Ending the War

American economic aid to North Viet-
nam was first promised by President
Lyndon Johnson in 1965, and Richard
Nixon has made it one of the building
blocks of his own Paris truce. During
his three-day stay in Hanoi last week,
Presidential adviser Henry Kissinger
began redeeming that IOU with an
agreement on the formation of a Joint
Economic Commission to direct U.S. re-
construction funds. But working out the
details with the North Vietnamese and
all the other interested parties may be
child's play for the Nixon Administration
compared with the problem it now faces
in getting a balky Congress to follow
through. "These senators," said one of
them angrily, "just don't like what the
North Vietnamese did to our boys."

Kissinger's visit to Hanoi produced a
renewed commitment by both sides-at
least on paper-to the "full and scrupu-
lous implementation" of the current
cease-fire and other elements of the
peace agreement. There was also a
discussion of steps to "normalize" rela-
tions between the U.S. and North Viet-
nam, a remarkable development so soon
after eight years of bitter war, climaxed
by the U.S. bombing of Hanoi. But the
most concrete achievement of the nine-
teen hours of talks that Kissinger held
with Premier Pham Van Dong and Paris
negotiator Le Duc Tho was clearly the
agreement on a joint commission-and
its implied expectation of significant U.S.

economic aid. Washington sources said
that three representatives from each
side would probably be ready to meet
in about a month.

Neither side was yet ready to put a
price tag on the reconstruction effort,
however, and reports conflicted on
whether a total expenditure was dis-
cussed at all. In Washington, White
House spokesman Ronald Ziegler said
the talks had not gone that far, but
North Vietnam's Xuan Thuy told a Rome
newspaper: "This was one of the points
Kissinger went to Hanoi to discuss."
President Nixon himself has long since
backed away from his earlier proposal of
a five-year, $7.5 billion aid program for
all of Indochina, with some $2.5 billion
going to Hanoi.

**Mutiny:** The President's caution was
well warranted; judging by the grum-
bling on Capitol Hill, a nickel for the
north would be too much. Locked in a
grim battle for power with the President
(NEWSWEEK, Feb. 19) and dismayed at
the cutbacks in domestic spending out-
lined by Mr. Nixon, Congress is outright
mutinous at the prospect of aid to Indo-
china. "I just can't see any money voted
for Hanoi," one Senate Republican lead-
er told NEWSWEEK chief Congressional
correspondent Samuel Shaffer. "It just
won't wash. How can a senator support
cuts in hospital beds, flood-prevention
projects, aid to public schools and the
like-and then vote money for the same
thing for Hanoi?"

Mail from the grass roots has been al-
most universally hostile to the proposal.
Last week alone, GOP Sen. Dewey Bart-
lett of Oklahoma received 150 letters
from his constituents-and every one
condemned the plan. "In a prize fight,
you don't give the prize to the loser,"
wrote a conservative resident of Harbor

City, Calif., to Democratic Sen. Alan
Cranston. "Don't rebuild North Vietnam.
I won't pay taxes to help Communism."
Some liberals, for their part, fear that
economic aid to the North would only
serve to promote continued U.S. involve-
ment in Southeast Asia-the sort of com-
mitment that originally led to American
military intervention-and they are not
much happier at the idea of giving
South Vietnam approximately $700 mil-
lion a year for nonmilitary purposes.

The White House hopes to ride out the
current wave of opposition, letting
enough time pass to take away the taint
of "reparations." Then it will weigh in
with a strong pitch for the program as a
"very good investment" for future peace,
as Secretary of State William Rogers puts
it, and a means for maintaining some
U.S. control over postwar developments.
The strategy calls for private talks with
influential congressmen and the creation
of a multinational mechanism through
which U.S. funds can be mingled with
contributions from other sources. Japan,
Norway and the World Bank already
have signaled their interest in aiding In-
dochina, and Moscow and Peking might
conceivably be persuaded to chip in as
well. In the meantime, the Joint Eco-
nomic Commission will be assessing dam-
age in the north and making plans for
reconstruction similar to those being
drawn in the south.

**Fiat:** Ultimately, reports NEWSWEEK White House correspondent Henry Trewhitt, the Administration plans to go to Congress with an inflated request that it fully expects to be whittled down to just under the sum that Mr. Nixon intended in the first place. The Pentagon budget was purposely rejiggered this year to include large pockets of fat that could be diverted into such aid funds, and some Administration aides maintain that the President could divert them by Executive fiat even if Congress balks. But this would mean a major battle, and

Newsweek, February 26, 1973

NATIONAL AFFAIRS

the President is more likely to go to the people with a hard-sell campaign that portrays Congressional opposition as a threat to peace.

For the moment, however, the White House is taking a gingerly, vaguely optimistic stance on the whole program. "It is not going to be easy," Rogers conceded at a news conference. "But we don't think it is going to fail. We think that as in the past Congress, when it finally finds out all the facts and gives full consideration to the problems and the implications of failing to help-I think Congress will react responsibly."

ALABAMA:

Questions About Wallace

For more than a decade, he has been the man-in-motion of American politics— a rebel with a cause who has never enjoyed power nearly as much as the pursuit of it. But now, nine months after a would-be assassin crippled him in a shopping center in Laurel, Md., the chase may be ending for Gov. George Wallace. His health, after six operations, remains chancy. He is tormented by pain and depression. His hold on the day-to-day conduct of the affairs of Alabama has loosened. His prospects for re-election as governor next year are clouded. His permanent Presidential campaign is broke and languishing. And suddenly a few brave souls around Montgomery have begun thinking, and saying, the unthinkable: that the time has come at last for Wallace to quit running.

Wallace, 53, lay in the University of Alabama Medical Center in Birmingham last week recuperating from his latest surgery, for prostate trouble. The bullets from his press staff were, as usual, optimistic: the staff said the governor had recovered bladder and bowel control, and thus left the impression that his waist-down paralysis might be easing. But his doctors, also as usual, were less bullish. "The return of these body functions does not alter the fact of paralysis," one of them told NEWSWEEK's Henry P. Leifermann. Wallace's powers of recovery have slowed—this latest hospital stay far outran the expected week or ten days—and so has his energy for his rigorous course of physical therapy; he has begun letting other people push his wheelchair. Friends fret about his recurring low spirits and his now chronic pain. "They keep George so sedated that half the time he's in a haze," said one Wallace man. "Every 45 minutes they bring him some kind of medication, just like clockwork."

The governor, who has rarely shown great interest in the routine of governing, now displays less than ever. He has never reoccupied his office full-time; instead, between hospital stays, he has secluded himself in the governor's mansion with his wife, Cornelia, and run the state by telephone. Operative control has passed largely to state finance director Taylor Hardin and a kitchen Cabinet made up

of Wallace's brother Gerald and two well-heeled backers, Oscar Harper and Frank Long—all of whom purport to speak for Wallace. The arrangement keeps the state going, but not without embarrassments. Less favored officials charge the palace guard with cutting them off from the governor and with favoring their own friends with state contracts, leases and other plums.

**Heresy:** The result has been some who's-in-charge-here muttering around Montgomery—and the further erosion of Wallace's political standing in his own home state. One old adversary, Harold Martin, editor and publisher of the capital's two dailies, made so bold as to propose in a speech two weeks ago that the legislature pension Wallace and turn the state over to a caretaker committee until the '74 election. The speech set off something less than a ground swell—only one legislator publicly seconded Martin—but that such a heresy was uttered at all was a measure of Wallace's reduced fortunes. His re-election is no longer simply assumed. Some of his handlers are banking on a big sympathy vote—"It never hurt," says one, "to run a little as a martyr"—but neutral spectators give the edge to Wallace's most likely challenger, ex-Gov. Albert Brewer.

To lose in 1974 would be a disaster for 1976; even Wallace's invincibly cheery campaign director, Charles Snider, concedes that "he needs the governorship

to continue." His national campaign, $250,000 in debt, put out a direct-mail solicitation last fall—and raised barely enough to keep its headquarters suite in Montgomery afloat. The staff has been cut down to Snider, one assistant and five secretaries, and the monthly newsletter missed two issues for want of money. In desperation, the management has booked Wallace into one country-music fund-raiser next month in Dallas and possibly several more thereafter—in spite of the fact that the governor has been canceling far more public bookings than he has kept. "He knows," Snider says flatly, "that he's got to participate."

Wallace remains a tough and resilient man despite his wounds, and it is as dangerous now as ever to count him prematurely out of a fight. He insisted last week that he can run the state from his hospital suite as well as anywhere—"They leave me alone up here"—and that he is indeed still in charge. "You know," he said, "when you been shot up like I have, it takes time to recover ... I've been doing my therapy. I can get well." His doctors insist, moreover, that his current malaise is temporary—that the latest operation particularly "kind of got to him," as one put it, but that he will adjust to his paralysis "in time." They clearly wish they could hurry the process.

The Wallace of 1973 reminds old friends of the Wallace of 1968, when his first wife, Lurleen, died of cancer

Wally McNamara—Newsweek

Wallace: The end of the long-distance run?

Peter L. Gould
Cornelia Wallace

Gerald Wallace

Taylor Hardin

Newsweek, February 26, 1973 □

29

Gales

The Macbeaths

Labour Editor

which ever sharply they may feel obliged to talk and however

Seclusion and confusion in Peking

Peking, Feb 19

"We are all Washington watchers now" was how a member of Peking's diplomatic community summed up the present visit of Dr Henry Kissinger. The complete seclusion in which he has allowed himself to be enfolded by his Chinese hosts, and the sparseness of official announcements of his meetings with Chinese leaders, are phenomena more familiar to "China watchers" than to people accustomed to the usually flamboyant style of American public affairs. Among foreign diplomats and correspondents in Peking, who have been equally excluded from contact with Dr Kissinger, there is a feeling that the American special envoy has adopted a mantle of secrecy which is perhaps greater than that demanded of him by his hosts. For the foreign press to be unable to photograph Dr Kissinger without a powerful telephoto lens, let alone receive even the most anodyne statement from him, seems to be going a bit far.

There is some hope, following the communiqué issued after Dr Kissinger's talks in Hanoi, that some similar statement will be issued here to mark his departure on Monday, giving at least some indication of the broad areas of discussion between him and Premier Chou En-lai. In the meantime it is possible to speculate everything or nothing about the talks, and whether this is helpful to the general state of world affairs is doubtful.

An astonishing fact is that at

this moment the Chinese leadership probably has more intimate insights into the latest thinking at the White House than any of America's allies or even the Secretary of State. If this produces solutions to the long vexed problems of Asia, it is something to be welcomed. But, although diplomacy by its nature must have elements of secrecy, there is a general recognition that totally secret diplomacy has its dangers. Both Premier Chou and Dr Kissinger are wise enough to know that the world will clamour for some account of their consultations.

The question is why everyone has to hang so breathlessly on a final communiqué when it would be possible to issue terse statements hinting at the areas of mutual interest which are being covered. During the recent talks here between Sir Alec Douglas-

Home and Chinese leaders, including Premier Chou, the Foreign Office representatives found it possible to keep the British press reasonably well briefed on the talks without breaching any Chinese confidences or creating diplomatic embarrassments. It can be argued that Dr Kissinger's talks are much more delicate and that the Chinese are especially sensitive to premature leaks on their contents. But it has to be recalled that the political life of a dozen Asian countries hangs in the balance of America's relations with China and those countries in particular have a claim to some insight into what is being discussed.

The secrecy surrounding Dr Kissinger's talks has wider implications for the future of China's role in international relations. At a recent conference

in Geneva on problems of trade and aid, the Chinese delegate made cogent observations on the subject and went so far as to demand that all countries should be included in talks on stabilizing the world's currencies. By implication this means that China feels she has something to say on this subject even though her own currency is not freely convertible. Chinese views on the matter, as those of a large trading power, can only be welcomed, even if they are hard to reconcile with those of the major financial powers, whom she accuses of trying to retain too much influence on world financial affairs. But if China's views on such subjects are to be fed usefully into the forum of world discussions, statements at international conferences will not be enough.

The world needs to know more about the workings of the Chinese economy and the policy thinking of her leaders. As China develops and deepens her potentially fruitful relationship with western countries, she will find that they are dismayed by the tight information policies applied in communist countries. People who have developed an admiration for many aspects of Chinese life will feel that she has little to hide. Already a growing spirit of frankness is apparent in dealings between Chinese officials and western representatives and it is to be hoped this will continue.

David Bonavia

Macbeaths
Labour Editor

The press which ever nothing and munity at large from the pounded by in a joint for the youth

The program of realization be very exuberant movement accept the choice made that is, a favorable provision for moderation in the real free

"In this way by workers for the sphere in the sphere, recreation, hygiene, region etc. The trade assumes here the income groups contribution to improved level

"The burdens naturally be borne ing to the ability of the country. Accordingly the wishes in the program also be seen in the efforts towards the facilitation of income

Given this statement and belief, both statesmanly and scientific, the Ministry studied the M Survey for 1973 with the 3.5 per cent figures. Economic Survey Old Moore's Almanac for financial year to end in 1973, also, from computerized of trends, and nobody's findings. Wages has tended to be ba

Times Diary

administration were discussed with passion. The proposed legislation would also require any owner whose dog had had to be put to death, and any person who would have to be put to death, to be licensed by a specialist.

JAPANESE MORNING PRESS HIGHLIGHTS

February 20, 1973

LEAD STORIES: All morning papers except the Nihon Keizai gave frontpage top play to Special Assistant KISSINGER's meeting with Prime Minister TANAKA and Foreign Minister OHIRA, held on Feb. 19.

The Asahi's top story carried the headlines "Special Assistant KISSINGER Meets Prime Minister and Others; 'Post Vietnam' Discussed; Co-operation in Rehabilitation Plan Sought?; Views Exchanged over Development of Relations with China, Too." It said: US Presidential Special Assistant KISSINGER came to Japan by a special plane, which arrived at Haneda at 2:48 p.m. on Feb. 19, on his way home from his visit to Hanoi and Peking, and held talks with Prime Minister TANAKA and Foreign Minister OHIRA at the Prime Minister's Official Residence, for about one hour and 50 minutes from 3:40 p.m., that day. The talks were also participated in by Foreign Ministry American Affairs Bureau Director General OKAWARA from the Japanese side, US Ambassador to Japan INGERSOLL from the US side, and one interpreter each from the two sides. At the talks, the Japanese side listened to Special Assistant KISSINGER's explanation of the results of his visit to North Vietnam and China, and views were exchanged on the Indo-China peace and post-war rehabilitation problems and Japan's and America's policies toward China. It is said, moreover, that frank and friendly talks were also held about US-Japan relations, including economic problems. At the US side's strong request, however, the contents of the talks have not been made public at all, on the grounds that they were held before the Special Kissinger's reporting the results of the series of his visits this time to President NIXON.

This is KISSINGER's third visit to Japan, as Presidential Special Assistant, following June and August, last year. At a press conference following the talks, the Foreign Minister said that the US side's understanding was obtained,

- 2 -

and only announced as follows: 1) Prime Minister TANAKA, Foreign Minister OHIRA, and Special Assistant KISSINGER exchanged views on a frank and friendly basis, with regard to many problems in which Japan and the US are interested in common; 2) the Indo-China problem was discussed, and the Japanese side listened to Special Assistant KISSINGER'S explanations on the subject of U.S. policy with keen interest. /
as to his visit to Hanoi, /and it hoped that Vietnam peace will become stabilized quickly, and that post-war rehabilitation will start; and 3) the Japanese side listened to his explanation as to his visit to China, with keen interest, and views were exchanged on the development of Japan's and America's relations with China; and 4) talks were also held about bilateral relations between the US and Japan.

KISSINGER's visit to Japan this time has been realized immediately after the Special Assistant's talks with North Vietnamese leaders about Indo-China consultations/ peace and aid for rehabilitation and also after his talks with Chairman MAOZ, Premier CHOU En-lai, and other Chinese leaders on Sino-American relations and the post-Vietnam situation in Asia. Particularly because of this fact, it is observed that even at the talks held that day, considerable time was devoted to discussing general discussions on the Asian situation. In connection with the problem of rehabilitating Indo-China, the Foreign Minister stated, "Stress was laid on our listening to (the Special Assistant's) explanations, and I think that they were talks which were very suggestive and useful for the Japanese side to consider policies in the future. The Japanese side went no further than to explain its basic posture, and it did not touch upon the amount of aid and other problems."

However, the US side says that "we expect Japan to play an important role in extending aid for the rehabilitation of Indo-China" (State Secretary ROGERS). It seems that at the talks held that day, concrete discussions were conducted on the method of extending aid for the rehabilitation of Indo-China, the amount

["- 3 -", "of aid, and other problems, and while the US side asked for co-operation with\nits aid plan. It is also observed that the US side sought an explanation as to\nsays that it/\nthe policy of our country which/it/x/x/x/x_x_x_x_x_x_x_x_x_x_x_x

- 4 -

Suggestions for Obtained'; Tradem and Currency Countermeasures Discussed, Too;
Satisfied with Talks: Special Assistant KISSINGER." The paper's top story said;
Prime Minister TANAKA and Foreign Minister OHIRA held talks with US Presidential
Special Assistant KISSINGER at the Prime Minister's Official Residence,
for about one hour and 50 minutes from 8:34 p.m. on Feb. 19. At the talks,
considerably加深了 deeply-probing views were exchanged on KISSINGER's visit
to Hanoi and Peking, the Asian situation, centering on the rehabilitation of
Indo-China, and the China problem. The Japanese side is appreciating the
results of the talks, saying that "we have obtained precious suggestions."
In regard to the rehabilitation of Indo-China, it was confirmed that Japan
and the US will extend their co-operation, while establishing close contacts.
However, this Special Assistant KISSINGER is said to have strongly asked Japan
to play fulfill a leading role. Discussions were also conducted on economic
correction of problems, such as the US-Japan trade imbalances and currency countermeasures.

Special Assistant KISSINGER's visit to Japan was announced suddenly on the
night of the 14th, after he completed his visit to Hanoi. At the outset of the
talks held on the 19th, KISSINGER clarified that his visit to Japan this time
had been ordered by President NIXON before his departure from America.

The detailed contents of the talks have not been clarified at all. However,
Special Assistant KISSINGER explains explained the results of his talks with
North Vietnamese and Chinese leaders, and he sought Japan's co-operation
in regard to the rehabilitation of Indo-China. Especially in connection with
this problem, KISSINGER explains stated that it is desirable for the Japanese
side to take the initiative, because there are various views within the US
Government and the Congress. Thus, he emphasized the role to be played by Japan.
In this connection, a Government source said, "It will still take time
to realize aid to Indo-China, but it will be necessary for Japan to conduct
considerable study, including the methodology." So saying, this source implied

- 5 -

that KISSINGER asked for "large-scale aid."

The Prime Minister and the Foreign Minister seem to have conveyed the view that they will positively tackle the problem of aid for rehabilitation of Indo-China, ascertaining the moves of the Paris International Conference, slated for the 26th, and that the Japanese Government, on its part, is desiring the extending of multilateral aid, centered on the UN. The Foreign Minister said that they "did not touch upon the amount of aid," but it seems that the Japanese side expressed its intentions. At the same time, it is said that the Japanese side in order to push the rehabilitation of Indo-China, the Japanese side stated that it is ready to hold an international conference of aid-giving nations and various countries around that area, in Tokyo, and that it sought the understanding and co-operation of the US Government.

In regard to the China problem, the fundamental contents of KISSINGER's talks with Chinese leaders became a focal point. KISSINGER seems to have explained such complex problems as the improvement of Sino-American relations and the role to be played by China after the Vietnam ceasefire. Sino-American relations are said to have developed, with regard to the exchange of newspapermen between the two countries. The Japanese side seems to have asked about the schedule for the withdrawal of the US Forces from Taiwan, in connection with the Vietnam ceasefire.

Special Assistant KISSINGER also held talks with Chinese leaders about the Laos and Cambodia problems, but at the talks held that day, he said to have expressed a severe view as to the future of Cambodian peace.

The talks, held that day, were also participated in by Foreign Ministry American Affairs Bureau Director General OKAWARA and Second North American Affairs Division Director UKAWA, from the Japanese side, and by Ambassador to Japan INGERSOLL and National Security Council staff member HOLDRIDGE, from the

- 6 -

The US side, Special Assistant KISSINGER has also held a dinner party, held at a restaurant within Tokyo Metropolis, on the night of the 19th, under Foreign Minister OHIRA's sponsorship, and he will leave for Washington on the 20th.

After the talks, the following statement was issued:

1. Prime Minister TANAKA, Foreign Minister OHIRA, and Special Assistant KISSINGER held talks in Tokyo on the 19th, and exchange frank and friendly views as to many matters in which Japan and the US are interested in common.

2. The problems of Indo-China peace and post-war rehabilitation were discussed. The Prime Minister and the Foreign Minister listened with keen interest to the Special Assistant's remarks made by the Special Assistant as to his latest visit to North Vietnam, and they stated that they are hoping for the early stabilization of Vietnam peace and the start of post-war rehabilitation.

3. The Prime Minister met and the Foreign Minister listened with keen interest to the remarks made by the Special Assistant as to his latest visit to China, and views were exchanged on the development between the US and Japan and China.

4. Discussions were also conducted on various other problems concerning US-Japan relations.

At a press conference following the talks, Foreign Minister OHIRA stated as follows:

The major aim of the talks was to listen to explanations by Mr. KISSINGER who/visited North Vietnam and China. They were useful talks. In regard to aid for the rehabilitation of Indo-China, the Japanese side only explained its basic attitude, and it did not touch upon concrete contents, including its intention on the amount of aid. We also listened to Mr. KISSINGER's

8

- 7 -

explanation as to his talks with North Vietnam's Vietnamese leaders, but
views were not exchanged as to how the US and Japan will cope with the situation
in the future.

However, we listened to explanations made by Mr. KISSINGER, and we obtained
precious suggestions as to how our country should tackle policies toward Vietnam
and Asia. (Full translation)

Special Assistant KISSINGER, who came out from the room after completing the
talks, stated as follows, with a smile: "Officially, I can say nothing, but
I was satisfied with the talks." Prime Minister TANAKA, who came out from the
Prime Minister's Official Residence, following the Special Assistant, said,
"I listened to reports made by the US side, with entering on political problems,
from beginning to end." (Full translation)

EDITORIALS:

The Yomiuri, in its first editorial titled "Resumption of UN Disarmament Committee Session and Japan's Role," said that Japan should meet the session of the UN Disarmament Committee in Geneva, which will reopen on the 20th, with a definite disarmament policy. The paper said that the present world situation, which is characterized by the easing of tension on a lasting basis, offers an excellent chance for disarmament.

The paper argued, above all, that Japan should continue efforts for prohibition of underground nuclear tests and chemical weapons. The paper also hoped that China and France will take part in the Disarmament Committee so that the Committee, which has been dominated by the US and the Soviet Union, will function satisfactorily under the new international situation.

In its second weekly editorial titled "Establish Countermeasures Against Reliance on Imported Lumber," the Yomiuri noted that the basic plan concerning forest resources, which has been approved at the Cabinet meeting, expects that the nation will have to rely on imported lumber for more than one-half of the total lumber supply it needs for about 30 years to come. The paper stressed the necessity of securing lumber from abroad on a stabilized basis and restudying the policy toward indigenous forest resources. The paper also pointed out the importance of developing substitute building materials to reduce the consumption of lumber at home.

The Asahi, in its first editorial titled "Use Fluctuation Market System for Stabilization of Prices," urged the Government to make the fullest use of the virtual revaluation of the yen as part of the over-all measures for halting the progress of inflation. The paper pointed out that the inflationary tendency became even more conspicuous than before after the revaluation of the yen carried out late in 1971 and that the decline in the prices of imported goods, which was caused by the slow revaluation, especially

brought benefits only to the producers and merchants, and not to the consumers.
The paper also emphasized that a change in the foreign exchange rate alone
does not have the effect of halting the progress of inflation. The paper
urged the Government and the Bank of Japan to continue the tight-money
policy. In its second editorial titled "Establish Flexible and Multilateral
Policy of Securing Enriched Uranium Supply," the Asahi said that Japan, which
has been relying solely on the world US for the supply of enriched uranium
it needs, will be affected very seriously if the plan to establish rigid
conditions for sale of enriched uranium, which has been proposed to US
Congress, is implemented. The paper also said it will be impossible for
Japan to begin producing enriched uranium on a full scale at home before 1985.
The paper pointed out the necessity of building enriched uranium plants
jointly with the US, France and other foreign countries. Lastly, the paper
argued that Japan should maintain its principle of developing atomic
energy openly, even when it must co-operate with other countries for this
purpose.

The Sankei, in its first editorial titled "Take Lessons from American Movement for Economization of Energy," said it has great international significance that the US, which is most self-sufficient in energy among nations, has started a drive for world reduction of the consumption of oil, gas and electric power. The paper said it is clear that this drive will be followed by the efforts for expansion of energy imports. The paper said that Japan, which relies mostly on the supply from abroad for the energy resources it needs, must revise its energy policy which was established when the supply of low-priced world fuels was abundant. In its second editorial titled "How to Appreciate School Records," the Sankei

2