Dr. Henry Kissinger forecasts the 1980s as "a period of challenge, and also of opportunity". "Our major difficulties will be at the beginning of the eighty's", he said, "it is important in this period to maintain the world balance of power in order to discourage aggressive countries from military adventures".

In an exclusive interview with correspondents of the Xinhua News Agency and the People's Daily in Washington on the eve of the new year, Dr. Kissinger reviewed the world situation around a tea table in his suite. He led the Chinese journalists to see the photos he took with Chairman Mao Zedong and Premier Zhou Enlai hung on the wall at an end of his room. He said he was particularly moved when he was invited by Premier Zhou to meet him in the hospital in Beijing in 1974. "This was the last time I met the Premier", he said with deep feeling.

Full story of the interview follows:

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Q: What do you think of the prospect of the world situation in the 1980s? Some people foresee the 1980s as a decade of difficulties or dangers politically and economically. Do you share this view?

A: I think it will be a period of challenge, and also of opportunity. It is important in this period to maintain the world balance of power in order to discourage aggressive countries from military adventures. That will be a difficult task, but it is within our capabilities. I think it is also important to encourage restraint in the conduct of foreign policy and to prevent the taking of unilateral advantage by any country, and to oppose it if there is an attempt to take unilateral advantage. Third, I think it is important to have serious negotiations to settle outstanding conflicts. And then, one has to deal with the world economic situation, in energy, in the development of the third world countries. I think, if I look ahead to the eighty's, our major difficulties will be at the beginning of the eighty's. If we meet those with courage and vision, I am very hopeful that the eighty's will be a constructive period.

Q: Do you think there is the danger of a global war or regional wars?

A: I think the danger of regional wars is greater than the danger of global wars. But our task is to prevent both global and regional wars. If we make the necessary preparations, and with the necessary determination, we can avoid both.

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Q: What are the danger areas do you see in the 1980s?

A: There is of course what has been called the arc of danger stretching from Pakistan through the Persian Gulf. That is the area which is at this moment in the greatest turmoil. There is also challenges in Africa and other problems in Europe, but the most immediate problem is in the area that is extending from the Mid-East into Southeast Asia.

Q: The U.N. Security Council has passed a resolution on Indo-China, calling for withdrawal of all foreign forces from invaded countries, Kampuchea and Laos. How can this resolution be put into practice?

A: I negotiated the Paris Agreement which required that all the armies of Indo-China stay within their national borders, and those who are not should return to their national borders. I still think this was a good provision. I believe that this can be done. Peace is always in danger when any country engages in military occupation of its neighbours.

I think we should all maintain the principle that each country of Indo-China has the right to its own national independence and determine its own future free of foreign intervention.

Q: Would you comment on the recent NATO decision to deploy new theater nuclear system in Europe?

A: Yes, I Strongly support that decision. It was necessary to maintain the military balance within Europe and also within the world.

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Q: What sort of posture of expansion do you expect the Soviet Union and its proxies to project to the rest of the world during the 1980s?

A: I think the major problem is for the United States and its friends to maintain adequate strength and at the same time be willing to negotiate serious issues. And then the problem of Soviet posture will take care of itself.

Q: Now that the U.S. Administration has decided to increase its military budget to <u>balance with increasing Soviet threat</u>, what is your position with regard to the SALT II treaty?

A: As you know, I put forward three requirements with respect to the SALT II treaty. I have been working closely with a group of senators which is headed by Senator Nunn and Senator Warner who have recently signed a letter to the President with a number of other concerns and they will be having discussions with the Administration. I shall work very closely with that group. Until that group and I have had a chance to meet in January and discuss with the Administration I cannot go further.

Q: Do you think the United States is going conservative or neo-conservative, as some Americans use the new term?

A: These terms in America are of course very relative. But I think there is a definite shift in a more conservative direction. What it means in foreign policy is a greater recognition that power is an important factor in international relations and that America must be strong. It means willingness to negotiate but without illusions. It means strengthening

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friendships between the United States and other countries
that have similar approaches. I think it is a positive
evolution of American domestic event.

Q: With all these world problems in mind, what do you think the U.S. and other countries concerned should do to make the world more stable and secure in the 1980s?

A: The U.S. and other countries must have an adequate understanding of the dangers they face and meet them forthrightly. Second, they must work in developing their economic potential which is very great. Third, they must cooperate closely with the countries of the third world in order to give them hope for the future. On that basis I think a very positive evolution of the eighties is foreseeable.

Q: As one of the bridge-builders between the People's Republic of China and the United States of America, how do you assess the development of this new relationship since the Shanghai Communique or since normalization? What are the prospects for the development of this relationship in the coming decade and what impact will this have on international peace and security?

A: Since the Shanghai Communique, I believe that relations between the two countries have constantly improved. There were occasional set-backs, but if you look at the main line the relations between China and the United States have been constantly improving. And the normalization was a very important and very decisive step in this direction. I strongly favour a continuing

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strengthening of this relationship in all fields. I notice
the trade proposals, the visit of leading American personages
to China and the reciprocal visits here will create a web of
relationship which I expect will continue to expand in the
eighty's and which will become one of the ~~preliminary~~ principal
factors in international politics and ever more important as
China's modernization proceeds, even though it is already
very important.

May I add my very best wishes to the Chinese Government and
people for a successful new year and for even closer relations
between our two peoples. I have very great affection for the
Chinese people.