Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 10, 1990 TAG: 9007100369
SECTION: NATIONAL/INTERNATIONAL PAGE: A1 EDITION: METRO
SOURCE: Associated Press
DATELINE: HOUSTON LENGTH: Medium
Trade and environmental disputes, as well as Japan's unpopular campaign to ease sanctions against China, also tested the harmony as the 16th annual economic summit began its first post-Cold War session.
At a dinner in a Houston mansion where President Bush was host, the leaders focused on Soviet aid and China. Their foreign ministers, dining at a restaurant, grappled with the same issues. A U.S. official said the problems "have not been put to bed," but said that some recent liberalization in Beijing will be welcomed.
French presidential spokesman Hubert Vedrine said "there are still differences of opinion" on how to deal with the Soviet aid question in a political communique to be issued today.
A tentative draft, awaiting final approval by the leaders, made no direct reference to the Soviets' plight, but prescribed "economic assistance as appropriate" to countries moving toward democracy. That leaves the door open for summit countries to act individually.
"Very good discussions," Bush said as the initial talks concluded. On the overriding issue, no one was pretending the leaders had found commond ground - but Monday's meeting seemed to eliminate any formal objections to any of the allies sending cash to Moscow.
West Germany, France and Italy are ready to send direct aid to the Soviets, while the United States, Britain and Japan are pressing for additional economic reform. Canada is in the middle, extending commercial credits but not cold cash.
"It's premature to say they have settled on any one course of action," White House spokesman Marlin Fitzwater said after the leaders' first meeting. "Our feeling is individual countries certainly are free to follow their own dictates on these matters."
"We must not put ourselves in the position . . . of propping up regimes that have only half-changed so we make it easier for them to avoid the full rigors of change," said Britain's Margaret Thatcher, emphasizing her opposition to Soviet aid.
On the other side, France's Francois Mitterrand said, "If we don't decide now to help the Soviet Union there is a risk that there will be no progress, no further reform" of the Soviet political system. Mitterrand and West German Chancellor Helmut Kohl have pushed for a $15 billion aid package.
Diplomatic sources said six of the nations are inclined to maintain trade restrictions against China, with only Japan poised to end the commercial sanctions imposed after last year's anti-democracy crackdown.
On economic disputes, Europeans are resisting Bush's staunch demand for phasing out farm subsidies over the next 10 years and, together with Canada, are pushing Washington for agreement on new steps to halt global warming.
Putting the best face on environmental differences, Fitzwater said the leaders would pronounce general agreement on issues such as protection against pollution, preservation of forests and other global problems.
Kohl disputed Bush, saying that decisive measures - rather than more study - are urgently needed to reduce the "greenhouse effect," the gradual warming of the Earth attributed to emissions from autos and manufacturing.
On trade, Bush argued "very forcefully" for phasing out billions of dollars of agricultural subsidies but met resistance from European leaders. The White House fears that global free trade talks will collapse without a resolution of the farm dispute.
by CNB