East German Leaders Talk to Opposition : Reform: New Forum activists are cautiously optimistic at dialogue seeking an end to political upheaval.

Communist leaders in East Berlin and Dresden met opposition activists today for the first substantive talks on how to end East Germany’s worst political upheavals in 36 years.

The Communist Party leader in the capital, Politburo member Guenter Schabowski, conferred with two scientists who helped found New Forum, which claims 26,000 members and is the largest opposition group.

In the southern industrial city of Dresden, party leader Hans Modrow organized a conference with opposition supporters and other local citizens. Modrow is reputed to be the leading advocate of reform in the political establishment.

After his two-hour meeting with Schabowski, scientist Jens Reich told reporters he believes the authorities are serious about starting a dialogue with the opposition.

“We will see, but I would say cautiously that I have a positive impression,” Reich said.

He said Schabowski had hinted at more competitive elections and a new law permitting street demonstrations.

But he said Schabowski had told him and fellow scientist Sebastian Pflugbeil that it was outside his authority to legalize New Forum.

The authorities are trying to overcome a crisis in which hundreds of thousands of people, inspired by changes in the Soviet Union, Poland and Hungary, have demonstrated for democracy this month in all big East German cities.

More than 120,000 of East Germany’s 16.6 million people have fled to the West this year, about half of them by crossing Hungary’s border with Austria, open since mid-September, or by seeking refuge in West German embassies in Eastern Europe.

The unrest is the worst since Soviet forces suppressed a workers’ uprising in 1953. It prompted the replacement of Erich Honecker as party leader last week by Egon Krenz, who has pledged dialogue with everyone who respects East German laws.

Krenz promised this week that all East Germans would soon have passports and the right to travel without restrictions to Western countries and West Berlin.

But members of New Forum, a group embracing a wide spectrum of non-Communist activists, have made clear that free travel to the West will not be enough to satisfy their demands for change.

They want the lifting of media censorship, an end to official privileges, legalization of opposition groups, a relaxation of the rigid ideological discipline in education and free, competitive elections.

In East Berlin, East Germany’s official lawyers’ organization today demanded liberal changes to the criminal code.