‘Impressed’ by Soviet Economic Plan, Bush Says

President Bush, apparently concerned that the harsh comments of his top aides might undercut Soviet President Mikhail S. Gorbachev, said Friday that he is “very impressed” with a Soviet economic reform plan that other Administration officials had written off as inadequate.

“We want to try to be helpful where we can,” Bush said. But he pointedly added that he has made no decisions on Gorbachev’s requests for massive financial credits and for an unprecedented invitation to attend the economic summit of the seven Western industrial democracies scheduled for July in London.

Talking to reporters after a 45-minute meeting with a high-level Kremlin delegation led by one of Gorbachev’s top foreign-policy advisers, Yevgeny M. Primakov, Bush said, “I’m feeling more positive (about Soviet economic efforts), and yet that isn’t to suggest that there are not some big problems.”

Bush’s upbeat tone seemed designed to encourage Gorbachev to keep pursuing efforts to convert the Soviet Union’s cumbersome system of central economic planning into a free market. But Bush did not directly contradict a senior Administration official who said Thursday that Secretary of State James A. Baker III had concluded that Soviet economists do not know how to set up a free market. The official also said Baker believes that the Soviets are unwilling to endure the economic pain that such a conversion inevitably would cause.

“When you’ve had a totally controlled economy and you try to move to a market economy, it’s not easy,” Bush said. Asked if he believes that Moscow is ready to pay the price, the President added, “They certainly say they’re prepared to do that.”

Although the Soviet Union has indicated that it needs $35 billion a year or more in aid--from the United States, European nations and others--for five years or more, Primakov said he did not discuss specific requests with Bush.

Asked by reporters what Moscow wants, Primakov replied, “Patience first, and understanding second.”

White House Press Secretary Marlin Fitzwater, commenting later on Primakov’s remark, said, “The price is right on those two commodities.”

And in the final analysis, patience and understanding are what Bush gave Primakov.

“I was very impressed with Mr. Primakov’s presentation,” Bush said. “I liked what I heard.”

But he added, “We have some decisions ahead of us. . . . I’m not going to suggest that my mind is made up, nor is the Administration position yet firmed up on a wide array of matters with the Soviets.”

In addition to addressing Gorbachev’s request to attend the economic summit and on the broad issue of economic aid, Bush must decide soon if he will approve a $1.5-billion credit line to permit Moscow to buy U.S. agricultural products--and whether he will extend temporary trade concessions that were first offered five months ago.

Fitzwater said Bush must decide by Monday whether he will extend his waiver of last January of a 20-year-old law tying U.S. trade concessions to emigration from the Soviet Union. The law, enacted in a move to pressure the Soviets to stop blocking Jewish emigration, bans trade concessions until Moscow permits free emigration. With Soviet emigration now at flood levels, there seems little doubt that the President will extend the waiver.

Before meeting with Bush, Primakov had held meetings with top-level Administration officials including Baker, Treasury Secretary Nicholas F. Brady and White House economic adviser Michael J. Boskin.

A senior Administration official said Thursday that Baker had concluded that the Soviet economic plan is not strong enough to accomplish the Kremlin’s economic reform goals. Moreover, the official said, Baker warned Primakov that the Soviet Union must reduce its military spending, curtail its support of Cuba and demonstrate new flexibility in its dealings with Latvia, Lithuania and Estonia.