TURMOIL IN THE EAST BLOC : U.S. to Ease Curbs on Trade With East Bloc : Foreign policy: The Administration acts to head off a confrontation with its West European allies.

The Bush Administration, bowing to pressure from America’s major allies, has agreed to back a gradual easing of restrictions on the sale of Western goods and technology to Eastern Europe in response to the rapid political changes there, officials said Monday.

The decision, made at a meeting of the National Security Council, initially will affect only the sale of some advanced computers, machine tools and telecommunications equipment to Poland and Hungary. But it could be broadened later to include other products and countries.

The change marks a major turning point in America’s longstanding opposition to any relaxation of restrictions on the sale of strategic goods and technology to the East Bloc. Deputy Secretary of State Lawrence S. Eagleburger described the shift as “significant.”

It also constitutes the first time that Washington has differentiated between the East Bloc and the Soviet Union, which was not included in the liberalization plans announced Monday. U.S. officials said it is still far too early to include Moscow in any such change.

The decision marks an effort to head off a possible setback for the United States at the next meeting of the Western allies, to be held in Paris on Feb. 14-15. There had been hints that some allies might bolt if Washington did not ease its policy.

Bush Orders Review

To sweeten the offer, the White House said Monday that Bush also has ordered “an expeditious but comprehensive review” of “how to adapt our export controls to the changing strategic picture.” The White House added that the Administration will make “follow-on proposals” later.

Monday’s proposal would allow the allies to sell East Bloc countries computers up to six times more powerful than those permitted under current rules. It also would relax some restrictions on the export of fiber optic cables and some sophisticated machine tools.

But the new guidelines would not allow unrestricted sales of more sophisticated technology, such as transmission equipment needed to set up a fiber optic network or digital switches such as those that Poland and Hungary want for modernizing their telecommunications systems.

According to senior Administration officials, the proposal does not include specifics on which products and systems might be sold. Instead, it merely sets broad parameters, with the terms to be negotiated among America and its allies.

U.S. officials said the goal ultimately would be to move toward a system similar to that now in force for exports to China: Equipment and technology up to a certain level of sophistication may be sold at will; other items require case-by-case approval.

It was not immediately clear whether the other Western allies will be satisfied with the Administration’s move. U.S. officials in Western Europe and Japan began sounding out the allies Monday. As a hedge, the White House called the decision “preliminary.”

The action follows three weeks of often-bitter wrangling within the Administration between the Commerce and State departments, which want to liberalize the rules, and the Pentagon, which opposes any relaxation.

Cocom in Jeopardy

U.S. officials have been fearful that if the Administration does not move soon, the allies simply would abandon the existing restrictions, jeopardizing the continuation of Cocom--the 17-country compact that regulates sales of Western goods and technology to the East Bloc.

The group, known formally as the Coordinating Committee on Multilateral Export Controls, historically has followed U.S. dictates on strategic sales.

In recent months, however, West Germany, France and other Western allies have been complaining that U.S. rules are too stringent and fail to account for the sweeping political changes in Eastern Europe.

At a meeting of Cocom members in July, the United States was outvoted 16 to 1 on whether to allow sales of more machine tools to Poland and Hungary--an easing that had been sought by West Germany, Britain and Holland.

In a carefully worded statement, Press Secretary Marlin Fitzwater told reporters Monday that the Administration’s new export-control policy is “a prudent change that will not jeopardize the critical strategic interests we share with our allies.”

Still to be considered by the White House is a proposal by Commerce Secretary Robert A. Mosbacher to negotiate with Poland and Hungary to set up detailed procedures in those countries for safeguarding the security of any new technology.

If the current rules win allied approval, the Administration also is expected to publish detailed guidelines as to specifically which products and technologies Cocom would be expected to approve.