Reagan, Mitterrand Clash Over Date for Trade Talks

The Western economic summit deadlocked Friday night in a major clash between President Reagan and French President Francois Mitterrand over U.S. demands for early talks on trade liberalization.

Reagan, with the support of most other leaders at the seven-power meeting of industrialized democracies, urged a new round of trade talks early in 1986.

He won the support of West German Chancellor Helmut Kohl and Japanese Prime Minister Yasuhiro Nakasone, but Mitterrand blocked agreement.

“France refuses to sign any communique which makes any explicit reference to new multilateral trade negotiations commencing at the beginning of 1986,” French government spokesman Michele Vauzelle told reporters.

The summit leaders met for a total of six hours in two sessions, one in the ornate Palais Schaumburg and, in the afternoon, around an oval table in the NATO Room of the sleekly modern West German chancellery building next door.

Earlier, the summit gave its support to the U.S. position at the Geneva disarmament talks, but ruled out explicit support for Reagan’s “Star Wars” defense program.

On the trade crisis, the French spokesman said Mitterrand accused the United States of “seeking to precipitate these negotiations and jeopardize the delicate edifice of the common agricultural policy, which we are prepared to defend tooth and nail.”

The common agricultural policy is the bedrock of the 10-nation European Common Market, providing guaranteed incomes for 8 million farmers.

Because of the deadlock, Vauzelle said, “the announcement of a date (for new trade talks) cannot be made at this time.”

Faced by intensive protectionist pressure in the Congress, Reagan sought trade talks to seek worldwide reduction of trade barriers to make it easier for the United States to export high technology products and services, as well as agricultural surpluses.

Mitterrand also wants the question of trade talks to be linked with monetary reform to tie the runaway dollar more closely to other major currencies.

Senior American officials said, “There is no final agreement on the trade round and a firm date. President Reagan doesn’t think a vague statement would be satisfactory.”

However, the officials added, “It will not be the end of the world if we do not get it (the trade talks).”

In agreeing to back the American position on the arms talks, the leaders made no mention of “Star Wars.”

“We appreciate the positive proposals of the United States of America” in Geneva, the leaders said in a summit political declaration marking the 40th anniversary of the end of World War II.

“We urge the Soviet Union to act positively and constructively in order to achieve significant agreements there,” the joint statement said.

Asked, however, whether there would be any statement on Reagan’s Strategic Defense Initiative, the formal name for “Star Wars,” West German Foreign Minister Hans-Dietrich Genscher replied, “Nein.”

But U.S. officials said they considered that the support for the American position at Geneva implied support both for a reduction in strategic nuclear weapons and research into space-based anti-missile systems.

The United States also failed to win specific endorsement for its decision to impose a trade embargo on Nicaragua, announced shortly after Reagan’s arrival in Bonn Wednesday.

“There was no attempt to put the Americans in the dock as it were, but it would be fair to say that certain reservations were expressed about the effectiveness of sanctions,” a British official said. “No one spoke in favor of sanctions except (U.S. Secretary of State George) Shultz.”

The Nicaraguan question was discussed at a meeting of foreign ministers, while the heads of state and government of the seven summit powers--the United States, Canada, Britain, France, Italy, West Germany and Japan--debated world economic and trade issues.

An Italian spokesman said that Foreign Minister Giulio Andreotti voiced the objection of the entire European Community to sanctions, saying that they are ineffective. The foreign ministers, including Shultz, renewed support for the Contadora initiative for a peaceful and democratic solution to the Central American crisis without outside intervention.

A British official said fear was expressed that sanctions could drive Nicaragua further into the arms of the Soviet Union and Cuba.

In the main talks about world trade and economic issues, there was considerable criticism about the U.S. budget deficit and high interest rates propelling the dollar upward against foreign currencies.

“This was the biggest complaint,” said West German spokesman Peter Boenisch.

He said the leaders had rejected Reagan’s call for them to expand their economies in order to act as “locomotives” for world growth, apparently fearing that this would spark inflation.