Reagan Denies That He ‘Blinked’ on Daniloff

President Reagan today rejected criticism that he “blinked” in agreeing to an arrangement with Moscow for the release of American reporter Nicholas Daniloff to U.S. diplomats and said there can be no trade for an accused Soviet spy.

“No one on our side has blinked and I didn’t blink,” Reagan said with apparent irritation in response to a question after signing an anti-drug order in the Oval Office.

The President has been subjected to heavy criticism, mainly from his conservative supporters, for agreeing to place accused Soviet diplomat Gennady F. Zakharov in the custody of Soviet diplomats in exchange for the transfer of Daniloff to the U.S. Embassy in Moscow.

Irate critics called it a “swap” after Reagan had pledged there would be no trade.

Not a Surrender

Reagan said he heard critics say over the weekend that the deal made to get Daniloff out of a Soviet jail constituted giving in to the Soviets. “I don’t know where they get that idea,” he said.

“No, we have not blinked,” he said. “He (Daniloff) is a hostage. The individual we’re holding is an accused spy and there can be no trade between those two, nor does Mr. Daniloff believe there should be such a trade.

“I have felt that it is absolutely essential that we get Daniloff out of their hands and out of that cell, which he occupied with what was obviously a Soviet aide and Soviet interrogation,” Reagan said. “That’s our goal and that’s what we’re going to be pushing.”

Earlier, White House Deputy Press Secretary Larry Speakes said the Administration is viewing the Daniloff case with “continuing and increasing concern.”

Summit Question Premature

Speakes also said that it is “premature” to discuss whether the Daniloff case would put a proposed summit meeting between President Reagan and Soviet leader Mikhail S. Gorbachev in jeopardy. White House chief of staff Donald T. Regan said on ABC’s “Good Morning America” program that summit planning, which begins in earnest Friday, would be jeopardized unless the issue is resolved.

In Moscow, meanwhile, Daniloff shrugged off the threat of a spy trial and returned to work today at the offices of U.S. News & World Report. He said he hopes his case will be resolved before Friday’s U.S.-Soviet planning session for the second superpower summit.

“They have many more important things to discuss and prepare,” he said of the scheduled meeting in Washington between Secretary of State George P. Shultz and Soviet Foreign Minister Eduard A. Shevardnadze.

“I hope my case can be settled quickly before they meet,” he said. “If this is not resolved before then, my case becomes a subject of these negotiations and who wants that?”

Daniloff said he finally made telephone contact this morning with the KGB investigating officer handling his case. Under the terms of his release, he is to report daily to the KGB but was unable to make contact during the weekend.