Summit Scorecard

The developments: Leaders of the seven largest industrial democracies, hoping to exploit a possible Syrian-engineered breakthrough in the Middle East peace effort, called on Israel to stop building new settlements in the occupied territories. They also urged the Arabs to end their boycott of firms that trade with Israel. In a separate declaration, they agreed that the United Nations should set up a register of arms transfers to keep tabs on the world arms trade.

Despite earlier indications that the seven intend to hold firm against providing any massive cash aid to the Soviet Union, Secretary of State James A. Baker III Baker assured reporters: “He ( Soviet President Mikhail S. Gorbachev ) will not leave here empty-handed.”

A German government spokesman said the Group of Seven agreed to hold annual meetings with the leader of the Soviet Union. Chancellor Helmut Kohl is due to host next year’s summit in Munich.

On tap today: The seven are scheduled to meet with Gorbachev at the end of their summit. President Bush and the Soviet leader are slated to meet for lunch. Gorbachev is seeking added political momentum for his economic reform program.

Japan has been a sleeper at this year’s summit, uncharacteristically speaking out aggressively against any serious measures to aid the Soviets. The Japanese want to press for the return of the four northernmost Kuril Islands, seized by the Soviets at the end of World War II.

Quotable: We are at a point where direct, bilateral negotiations may indeed be possible, but obviously it depends upon what the reaction of other governments is. . . . There are plenty of hurdles when you start talking about the Middle East peace process.”

--Secretary of State Baker

By the numbers: The United States still has the highest standard of living among the seven summit countries. Canada is next with 94% of the U.S. level; Japan, 76%; Germany, 72%: France, 70%; Britain, 69%; Italy, 67%.

The United States continues to lag behind its two biggest competitors in investment in new factories and equipment. In 1990, investment by U.S. businesses totaled only 12.6% of the economy’s output--compared to 14.1% for Germany and 23.4% for Japan.

Remembrances: Although this will be the first Western economic summit at which Gorbachev has actually been a guest, it’s the third at which he has been a key topic for discussion. He captivated the Paris summit in 1989 by sending the Western heads of government a letter asking for inclusion in the annual parley. And last year, when the G-7 met in Houston, Gorbachev was on the Western leaders’ minds. The major battle was over whether to advance the Soviets massive aid. The cautious U.S. stance ruled the day.