ROANOKE TIMES

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

DATE: THURSDAY, July 12, 1990                   TAG: 9007120322
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: HOUSTON                                LENGTH: Medium


SUMMIT PRODS U.S.S.R.

Western leaders prodded Mikhail Gorbachev on Wednesday to overhaul the sputtering Soviet economy, offering "meaningful and sustained" aid if Moscow reduces military spending and eliminates subsidies to communist allies like Cuba.

"I hope the Soviets will view this as positive," President Bush said in wrapping up the 16th annual economic summit of the United States, Britain, France, West Germany, Japan, Italy and Canada.

After three days of tough debate, the leaders achieved an eleventh-hour compromise to reduce agricultural subsidies and avoided a showdown on global warming. The agreements let each leader claim success.

On aid to Moscow, the so-called Group of Seven said any country could act on its own, but there was no endorsement of West German and French proposals for coordinated Western assistance. "We're not urging everybody to move in lockstep," said Bush, who joined Britain and Japan in opposing direct aid.

The first reaction out of Moscow was favorable. Foreign Ministry spokesman Gennady Gerasimov said his country welcomed new approaches that "correspond to the spirit of the times."

It was a landmark economic summit, the first since democracy swept through Eastern Europe.

The leaders hailed Gorbachev's efforts to salvage the Soviet economy and adopt democratic reforms. They offered immediate technical assistance and commissioned a study of Soviet needs.

Dangling a carrot before Gorbachev, they said prospects for "meaningful and sustained economic assistance" would be enhanced by Soviet decisions "to introduce more radical steps toward a market-oriented economy, to shift resources substantially away from the military sector and to cut support to nations promoting regional conflict."

U.S. officials said direct aid would depend on Gorbachev's success in these areas.

"I wouldn't set a time frame on when and if the United States decides to go forward," Bush said.

He pointedly remarked, "I'm not enthusiastic about the intercontinental ballistic missiles aimed at U.S. cities" and he said he found $5 billion a year in Soviet aid to Cuba "a little contradictory."

According to a Rand Corp. study, the Soviets provide $5 billion a year to Cuba, $1 billion to North Korea, $1.5 billion to Syria, $1 billion to Libya and $2.5 billion to Vietnam - countries the administration accuses of promoting conflict in their regions.

Not everyone was happy with the U.S. position or the Soviet study, which will take half a year.

Italian Prime Minister Giulio Andreotti said, "When someone is ill, you don't want to wait for medicine." Yet, French President Francois Mitterrand called the six-month deadline "the best we could hope for."



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