Reagan Letter May Help Craxi Regain Power

President Reagan’s “Dear Bettino” letter was credited Sunday with making it more likely that Bettino Craxi will be asked to form a government to replace his own, which was toppled by the aftershocks from the Achille Lauro hijacking.

President Francisco Cossiga is expected to announce his choice today of a premier-designate to line up Italy’s 45th government since World War II.

U.S. Deputy Secretary of State John C. Whitehead met Craxi on Saturday to deliver Reagan’s letter and try to smooth relations between the United States and Italy, frayed by developments that followed the hijacking of the Italian cruise ship and the murder of an American passenger.

Reagan wrote that despite “differences on the best way to respond to the hijacking,” the Italian and U.S. governments “share the fundamental commitment on the necessity to respond with firmness to the challenges posed by international terrorism.”

“Reagan’s more than cordial letter arrived” to help clear the way for the choice of premier-designate, wrote La Repubblica, Rome’s left-leaning newspaper.

La Repubblica predicted, along with other major papers, that Craxi is virtually assured of being selected by Cossiga and noted that the Socialist leader “has excellent possibilities” of forming a government.

Leaders of all five parties in Craxi’s coalition said they believe another five-party government is the best solution to the crisis, and some have said they would like to see Craxi again at the helm.

The coalition fell apart when Defense Minister Giovanni Spadolini pulled out his Republican party to protest Craxi’s decision to release Abul Abbas, a Palestine Liberation Organization faction leader accused by the United States of masterminding the hijacking.