Schmidt hopes for change over pipeline

Press, 21 July 1982, Page 8

Schmidt hopes for change over pipeline

NZPA-Reuter Bonn . The West German Chancellor (Mr Helmut Schmidt) who is on his way to the United States, will seek the help of the American Secretary of State (Mr George Shultz) to try to overcome President Ronald Reagan's opposition to the Soviet-West gas pipeline scheme, Government sources say. The nine-day visit was originally intended as a holiday, but Mr Schmidt’s concern over the growing rift between the United States and its allies has forced a change in his plans, they said. Mr Shultz, who took office earlier this week, is a friend of Mr Schmidt’s, and is reputed to have warmer ties with Mr Reagan than Alexander Haig, his predecessor as head of the State Department. This has led to hopes in Bonn that he may influence Mr Reagan to withdraw a ban on the use of United States turbine . parts produced abroad for the line being built to pipe natural gas from Siberia to western Europe. A Bonn Government spokesman, Klaus Boelling, told a news conference yesterday that United StatesWest European relations had worsened since the ban was added to earlier United States sanctions against the East bloc.

Mr Reagan has repeatedly voiced fears that the pipeline dehr with Moscow will make West Germany too dependent on Soviet energy, which Mr Schmidt denies. But there is more tied up in the deal than gas. The ban on the use of. foreign-based United States technology has put thousands of jobs at risk in West European countries experiencing high unemployment.' < Mr Boelling said that 'the talks between Mr Schmidt and Mr Shultz would cover a wide range of topics, including East-West relations and ■ security. Mr Schmidt would make clear West Germany’s wish for substantial progress

at the _ United States-Soviet ■ talks in Geneva on limiting mediunp range nuclear mis■sites in Europe and reducing strategic arms. Bonn officials said that Mr Schmidt, was also likely to press Mr Shultz, for direct ■v United States talks with the Palestine Liberation Organisation to help end the crisis in Lebanon. Mr. Schmidt’s/'immediate destination is Houston, where, she will meet prominent Texas politicians and lecture on the Atlantic partnership. He also flies to San Francisco to meet Mr Shultz, and will stay at his home for two days before visiting other parts of California.