Simon Tells Soviet Leaders They Can Expect Mfn by Year’s End

The status of the reputed compromise between the Ford Administration and Congressional leaders on the Jackson Amendment appeared uncertain again today as reports from Moscow indicated an unbending attitude by the Soviet Union toward any linkage of trade with emigration rights. There was not the faintest suggestion of any compromise on the issue in Soviet Communist Party Secretary Leonid Brezhnev’s tough speech last night at a dinner marking the opening of a session of the U.S.-Soviet Trade and Economic Council.

The remarks of U.S. Treasury Secretary William Simon to reporters at Moscow Airport today, as he enplaned for Washington after two days of discussions with Brezhnev and other Russian leaders, clearly indicated that in his view the U.S.-Soviet trade pace has languished too long without implementation. Simon said he told Soviet officials during their talks this week that they could expect the USSR would be granted most favored nation status–meaning tariff concessions–by the end of this year. The implication was that the Trade Reform Bill would be passed by then.

Senate sources indicated this week that favorable action would be taken on the measure because of assurances from Secretary of State Henry A. Kissinger that the Russians were prepared to ease their restrictions on the emigration of Jews and other Soviet citizens. But there was no hint of any such readiness in Brezhnev’s words last night.

BLUNT WARNING FROM BREZHNEV

The Soviet leader declared bluntly. “Attempts to condition the development of trade and economic ties by putting demands to the Soviet Union on questions totally unconnected with the trade and economic fields and related entirely to the state’s internal affairs are utterly irrelevant and unacceptable. It is high time,” Brezhnev said “that there was a clear understanding that such efforts are interference in internal affairs and do nothing but harm, including to the and economic relations between our countries.”

He warned that “Unless timely concern is shown for the elimination of such negative factors, further development of cooperation could be substantively held up.” Brezhnev went on to express optimism that improved business and economic relations with the U.S. “will be determined by real economic and political interests of the two states and not by the egotistical calculations of certain individuals and not by political groups whose mentality has not yet been freed from the out-dated legacy of the Cold War.”

Simon told reporters afterwards that he did not consider Brezhnev’s remarks surprising because “we share the desire to get a resolution to most favored nation and the trade bill.” Apparently referring to the fact that more than a year has elapsed since the U.S.-Soviet trade bill was signed during former President Nixon’s first summit trip to Moscow without final action by Congress, Simon added, “It has seemed an Interminably long time for them (the Russians) to wait and an Interminably long time for us too.”

SOVIET ARMS FOR EGYPT

Meanwhile, an Egyptian military mission began talks in Moscow today with Soviet Defense Ministry officials on possible new arms supplies for Egypt. The talks began after an announcement that Brezhnev will visit Cairo next Jan. for a meeting with President Anwar Sadat. The Egyptians have been seeking Soviet agreement to such a meeting for several months. They are apparently encouraged by signs that the Kremlin is prepared to thaw its relations with Cairo that had cooled perceptibly at the time of former President Nixon’s visit to the Egyptian capital last June.

Reports that the Soviet Union may soon send arms shipments to Egypt were today dismissed by State Department spokesman Robert Anderson as “hypothetical.” When a reporter challenged him that it was not hypothetical, Anderson said he did not have details and would not get involved in the report.