U.S. Near Arms Pact ‘on Our Terms’: Reagan

VENICE, Italy — President Reagan told Europeans today that the United States and Soviet Union are close to an arms agreement that is “very much in our interest and on our terms” to dismantle hundreds of nuclear-tipped missiles in Europe and Asia.

“We’re not there yet, of course; some hard questions remain. But the prospects are good,” Reagan said in a televised address beamed to Europe by the U.S. Information Agency.

Reagan also outlined a series of economic goals for the summit of seven nations that opens here Monday, including elimination of agricultural subsidies by all countries by the year 2000. Reagan called for a renewed commitment to reduce instability in exchange rates and to promote economic growth.

German Economy Slowing

Singling out West Germany, Reagan said its economy is slowing, resulting in retarded business growth across Western Europe.

“It is essential that Germany follow up on its commitment to revive its sluggish economy,” Reagan said. “Japan, too, could help right the imbalance in the world economy by righting the imbalance in its own economy.

“It’s time for Japan to let free the pent-up consumer demand in their nation,” the President said.

On arms control, Reagan noted that he has been the target of peace demonstrations in Europe and said: “Now I wanted to let them know that my heart was with them, that I too yearned for a day when mankind could live free of the terror of nuclear annihilation.

“Well, our persistence and steadfastness could now pay off in an agreement very much in our interest and on our terms.”