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Approved For Release 2000/08/07 : CIA-RDP96-00788R000100330001-5 REAGAN EXPECTED TO BID ALLIES AGT AGAINST TERRORISM President Reported Prepared to Join Mrs. Thatcher in Plea at Summit Talks By STEVEN R. WEISMAN Special to The New York Times LONDON, June 5 — President Rea- gan and Prime Minister Margaret Thatcher conferred today amid indica- tions that they would press other West- em leaders this week for a commit- ment to improve efforts to combat ter- rorism. ; American and British officials said political issues in general could over- shadow economic matters on the offi- cial agenda. They said that during mealtime dis- cussions the leaders would pay particu- Jar. attention to relations with the Soviet Union and the crisis in the Per- sian Gulf resulting from air attacks in the war between Iran and Iraq. Cooperation Is Sought Mrs. Thatcher, the host of the eco- nomic conference of major industrial democracies, has been interested in a public statement condemning terror- ism ever since a British police officer was killed in April by gunfire from in- side the Libyan Embassy. Asenior Reagan Administration offi- cial said today that Mr. Reagan would join Mrs. Thatcher in trying to per- suade other leaders at the conférence that more can be done to share intelli- gence information on the whereabouts of known terrorists. He said there was also a need for Western countries to in- crese the resources used to combat ter- rorism. Mr. Reagan, who arrived here from Dublin last night, spent the fifth day of his 10-day European trip largely out of public view. He and his wife, Nancy, had lunch with Queen Elizabeth Il-and the Duke of Edinburgh at Buckingham. Palace and dinner with Mrs. Thatcher, Frustration in Washington An Administration official, discuss- ing terrorism, said today that there was frustration in Washington about the lack of cooperation among Westera créased. allies even as terrorist acts have in,. American allies, he said, are reluc- tant to share information with the United States because they prefer to act alone and because they fear that in- formation given to Washington might be disclosed. —_ Because of objections from France and other countries, the official said, participants at the conference’ may well not say anything significant about terrorism even if informal agreements are reached. But he said Mr. Reagan hoped something concrete could be de- cided, even if it is not disclosed. “We really want to get on. with a pro- cess that leads to results,”’ the official said, asking not to be identified. But he added there would be ‘‘no U.S.- or Brit- ish-led harangue’’ on the subject. French officials have belittled the idea of addressing terrorism in the elaborate surroundings of a summit conference and are considered likely to oppose any sort of public statement on the subject. Mrs. Thatcher, meanwhile, was said by British officials to be interested in establishing a ‘diplomatic blacklist” prohibiting diplomats charged with harboring terrorists. or other abuses from being allowed into other coun- tries. British officials said Mrs. Thatcher, who will determine the conference agenda, expects relations with the Soviet Union will also be reviewed by. the leaders. She was said to have wel- comed Mr. Reagan’s conciliatory com- ments toward Moscow in his speech to the Irish Parliament Monday. Presidential aides said Mr. Reagan was also pleased at the reaction to the speech. In it, he reiterated that he was ready to negotiate with the Soviet Union and suggested a new willingness to discuss the Soviet demand for a re- nunciation of the use of force by West- ern allies. The initial reaction from Moscow to Mr. Reagan’s speech has been nega- tive. The Administration official who asked not to be identified said today that Mr. Reagan was disappointed but not surprised by the reaction. ‘‘It’s con- sistent with what they’ve been saying for three or four months,” he said, add- ing that the reaction was not “‘alarm- In general, the official said, the West- erni.allies have come to feel that the Soviet Union is in a state of leadership transition and introspection as it strug- les over how to deal with the West. e Russians are also thought to be un- certain because of the American elec-. tion, he said. ; Soviet internal politics are expected to be discussed at the London meeting, the official said. But he added that he expected no change in the consensus that the West should not try bold initia- tives now to revive the nuclear arms control: negotiations that have -been deadlocked and cut off. Relations With Soviet Discussed An American official said tonight SPECIAL EDITION -- TERRORISM -- 26 JUNE 1984 NEW YORK TIMES 6 June 1984 Pg. 1 after the dinner between Mr. Reagan and Mrs. Thatcher that the two leaders had discussed relations with the Soviet Union at some length. He said they had had a talk that was “theoretical and theological’’ in nature on how to induce Moscow to return to nuclear arms talks. The official said the two leaders both felt Moscow was now ‘‘frustrated’’ be- cause of failures in its economy and be- cause of renewed willingness in the West to rebuild its military. On economic matters, Mrs. Thatcher has let it be known that she is increas- ingly concerned about high interest rates and budget deficits in the United States. At a news conference last week, she suggested she would raise these sub- jects at the conference and also at her separate meeting with Mr. Reagan today. She told reporters that deficit spending and high interest rates violate the principles of ‘‘prudent banking.” A British official said tonight that at the dinner with Mr. Reagan, Mrs. Thatcher raised the economic issues but that there was no intention to “put the President in the docket’’ at the con- ference on the deficit or other such issues. He also said Mrs. Thatcher had thanked the President for his com- ments in Ireland this week denouncing terrorism in Northern Ireland. The Prime Minister also discussed Central America with Mr. Reagan, ac- cording to the officials, and counseled “caution”? on recent United States ac- tions, in particular the mining of Nica- raguan harbors by insurgents acting with the assistance of the Central Intel- ligence Agency. Little Criticism Expected - In general, British officials and aides toother participants at the meeting say they do not expect criticism of Mr. Reagan to be as strong at this confer- ence as it has been in the past. They: say that Mr. Reagan long ap. proved himself adept at parrying diffi- cult questioning about the subject by asserting amiably that he is working hard to bring interest rates and deficits down and that in any case the world economy has improved greatly in the last few years. - Administration aides said again today that they expected very little trouble from allies at the conference, and indeed they view recent favorable economic trends as vindicating Admin- istration policies. 7 In another development today, Sec- retary of State George P. Shultz met briefly here today with Defense Secre- tary Moshe Arens of Israel. Larry Speakes, the White House spokesman, said they discussed the situation in the Persian Gulf and Lebanon and other matters. Mr. Speakes and other officials said: that Mr. Shultz was to have met last: week with Mr. Arens in Washington but that the meeting had to be put off be-. cause the Secretary was tied up with other matters. The spokesman gave-nd- further details of the discussions. Approved For Release 2000/08/07 : CIA-RBP96-00788R000100330001-5