ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, June 1, 1990                   TAG: 9006010299
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: The Baltimore Sun
DATELINE: WASHINGTON                                LENGTH: Medium


LEADERS CLAIM PROGRESS

President Bush and Soviet President Mikhail Gorbachev opened their four-day summit Thursday by offering each other new ideas for resolving their dispute over NATO membership for a reunified Germany.

At a White House state dinner in his honor, Gorbachev said his first day of talks with Bush "makes it possible to expect major results from this meeting."

He predicted that it could be the most successful U.S. summit so far.

The new proposals, which were turned over to U.S. and Soviet negotiators for further study, may form the basis of a compromise on the difficult issue.

Officials would not provide details of any potential compromise. But White House spokesman Marlin Fitzwater described it as a "way to meld" U.S. insistence that Germany be a full, military partner in NATO and Soviet fears that a non-neutral Germany could again become a threat to its neighbors.

Gorbachev hinted at progress in an impromptu meeting with reporters after a second round of talks between the presidents.

"I hope that we understand each other's concerns better," he said. "Both the U.S. side and the Soviet side put forth specific suggestions, and I believe, and the president has agreed, that this exchange of views now requires that our foreign ministers have a more in-depth discussion of these issues."

Bush told reporters a short time later that it was Gorbachev who suggested the proposals be turned over to negotiators.

"I took some heart from that," he said. "I was encouraged by that."

The task of hammering out a compromise on Germany was assigned to Secretary of State James Baker and Soviet Foreign Minister Eduard Shevardnadze, who are expected to present their results to the presidents in time for their Saturday session at Camp David.

The outcome is likely to affect a joint statement Bush and Gorbachev are expected to issue on a multination treaty to reduce conventional nuclear arms in Europe. That treaty has been stalled by the dispute over Germany.

Both leaders stressed that they alone could not resolve the issue of Germany's military alliance or its troop strength. But U.S. officials have hinted for days that they might find a way to ease Soviet fears in the context of international arms talks.

There was no sign of progress, however, on a trade agreement that was to have been the foundation of a new economic relationship between the former Cold War adversaries.

Bush has been using the trade pact to try to pressure the Soviets into gentler treatment of the rebellious republic of Lithuania. U.S. official said that the Soviets, in turn, were threatening Thursday to put off signing a new grain deal with the United States that is considered important to American farmers.

The grain agreement, which would have required the Soviets to purchase 10 million tons of wheat, feed grains and soybeans annually for five years, had been considered all but certain to be signed Saturday.

Bush told reporters that the two leaders have not yet discussed the trade issues, holding out the prospect that an agreement could come today.

However, Soviet spokesman Arkady Maslennikov made clear the Soviet pique at the U.S. threat to the trade agreement.

Among the documents to be signed by the two leaders today are the preliminary agreement on reducing strategic nuclear arms, a treaty to end production of chemical nuclear weapons, an accord on the peaceful uses of nuclear energy and a pact creating a student exchange program.

Baker and Shevardnadze are also scheduled to sign three other agreements, on civil aviation, maritime transportation and ocean studies.



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