Soviets Claim GOP Loss Shows Reagan Era ‘Is on the Wane’

The Soviet media said today that the Republicans’ Senate setback indicates that “the Reagan era is on the wane” and blamed it on President Reagan’s foreign policy, while Asian nations worried about the financial implications of the Democratic victory.

In Moscow, the Novosti press agency said U.S. voters showed second thoughts about Reagan’s policies in South Africa, Central American and Chile.

“Another factor is the Republican Administration’s attitude to Soviet-American relations,” the agency said. “It is the only Administration in many years which has not concluded treaties with the Soviet Union on limiting and reducing arms.”

Democrats captured 55-45 control of the Senate today, ravaging Republicans in a coast-to-coast landslide. They also held their control of the House, even picking up a few new seats.

Chavez and Hawkins

Tass press agency singled out the Senate defeats of Paula Hawkins in Florida and Linda Chavez in Maryland as particularly telling since both were staunch Reagan supporters and the President campaigned heavily for them.

In Hong Kong, the world’s third-largest financial center after New York and London, stock prices tumbled throughout the afternoon as early returns trickled in.

The Hong Kong market’s Hang Seng index, comparable to the Dow Jones in the United States, fell a total of 62.11 points to 2,203.71 and brokers said any further change will depend on how the U.S. markets responded to the election news.

Most of the drop was explained by fears that a Democratic Senate will be more likely to approve tough protectionist trade legislation damaging to the Hong Kong economy.

Le Monde Cautious

The French newspaper Le Monde called for prudence before declaring the end of “the Reagan era.”

The fact that the Republicans won the statehouses could establish areas of power over the next few years, especially in the South where the party has not been strong since Reconstruction, Le Monde said.

“The prospects on a Soviet-American accord on arms reductions are better than ever,” it added.

In Italy, Christian Democrat Sen. Angelo Bernassola, a member of the Italian Senate’s foreign affairs committee, said he is convinced that the election “will not weaken Reagan’s foreign policy, in particular where it concerns negotiations with the Soviet Union and defense relations with the European allies.”

Peruvian Hails Result

In Peru, Vice President Luis Alberto Sanchez lauded the return of Democratic dominance of the Senate and said it “will prevent greater arrogance by Reagan.”

In Japan, the Democratic dominance of the mid-term elections also prompted concern over a rise in protectionist pressures.

Leading Japanese newspapers warned of stepped-up pressure from Washington on Japan to ease its export drive and open its markets to more imports.

“We strongly hope against protectionism,” said one senior Japanese official involved in trade negotiations with the United States.