MS. FREDERICK: Mr. Frankel, a question for President Ford.

MR. FRANKEL: Mr. President, I'd like to explore a little more deeply our relationship with the Russians. They used to brag back in Khrushchev's day that because of their greater patience and because of our greed for - for business deals that they would sooner or later get the better of us. Is it possible that despite some setbacks in the Middle East, they've proved their point? Our allies in France and Italy are now flirting with Communism. We've recognized the permanent Communist regime in East Germany. We've virtually signed, in Helsinki, an agreement that the Russians have dominance in Eastern Europe. We've bailed out Soviet agriculture with our huge grain sales. We've given them large loans, access to our best technology and if the Senate hadn't interfered with the Jackson Amendment, maybe we - you would've given them even larger loans. Is that what you call a two-way street of traffic in Europe?

MR. FORD: I believe that we have - negotiated with the Soviet Union since I've been president from a position of strength. And let me cite several examples. Shortly after I became president in - December of 1974, I met with - General Secretary Brezhnev in Vladivostok and we agreed to a mutual cap on the ballistic missile launchers at a ceiling of twenty-four hundred - which means that the Soviet Union, if that becomes a permanent agreement, will have to make a reduction in their launchers that they now have or plan to have. I've negotiated at Vladivostok with - Mr. Brezhnev a limitation on the MIRVing of their ballistic missiles at a figure of thirteen-twenty, which is the first time that any president has achieved a cap either on launchers or on MIRVs. It seems to me that we can go from there to - the - grain sales. The grain sales have been a benefit to American agriculture. We have achieved a five and three quarter year - sale of a minimum six million metric tons, which means that they have already bought about four million metric tons this year and are bound to buy another two million metric tons to take the grain and corn and wheat that the American farmers have produced in order to - have full production. And these grain sales to the Soviet Union have helped us tremendously in meeting the costs of the additional oil and - the oil that we have bought from overseas. If we turn to Helsinki - I'm glad you raised it, Mr. - Frankel. In the case of Helsinki, thirty-five nations signed an agreement, including the secretary of state for the Vatican - I can't under any circumstances believe that the - His Holiness, the Pope would agree by signing that agreement that the thirty-five nations have turned over to the Warsaw Pact nations the domination of the - Eastern Europe. It just isn't true. And if Mr. Carter alleges that His Holiness by signing that has done it, he is totally inaccurate. Now, what has been accomplished by the Helsinki agreement? Number one, we have an agreement where they notify us and we notify them of any - military maneuvers that are to be be undertaken. They have done it. In both cases where they've done so, there is no Soviet domination of Eastern Europe and there never will be under a Ford administration.

MS. FREDERICK: Governor Carter?

MR. FRANKEL: I'm sorry, I - could I just follow - did I understand you to say, sir, that the Russians are not using Eastern Europe as their own sphere of influence in occupying mo- most of the countries there and in - and making sure with their troops that it's a - that it's a Communist zone, whereas on our side of the line the Italians and the French are still flirting with the possibility of Communism?

MR. FORD: I don't believe, - Mr. Frankel that - the Yugoslavians consider themselves dominated by the Soviet Union. I don't believe that the Rumanians consider themselves dominated by the Soviet Union. I don't believe that the Poles consider themselves dominated by the Soviet Union. Each of those countries is independent, autonomous: it has its own territorial integrity and the United States does not concede that those countries are under the domination of the Soviet Union. As a matter of fact, I visited Poland, Yugoslavia and Rumania to make certain that the people of those countries understood that the president of the United States and the people of the United are dedicated to their independence, their autonomy and their freedom.

MS. FREDERICK: Governor Carter, may I have your response?

MR. CARTER: (chuckle) Well, in the first place, I'm not criticizing His Holiness the Pope. I was talking about Mr. Ford. The fact is that secrecy has surrounded the decisions made by the Ford administration. In the case of the Helsinki agreement - it may have been a good agreement at the beginning, but we have failed to enforce the so-called basket three part, which insures the right of people to migrate, to join their families, to be free, to speak out. The Soviet Union is still jamming Radio Free Europe - Radio Free Europe is being jammed. We've also seen a very serious - problem with the so-called Sonnenfeldt document, which apparently Mr. Ford has just endorsed, which said that there's an organic linkage between the Eastern European countries and the Soviet Union. And I would like to see Mr. Ford convince the Polish-Americans and the Czech-Americans and the Hungarian-Americans in this country that those countries don't live under the domination and supervision of the Soviet Union behind the Iron Curtain. We also have seen Mr. Ford exclude himself from access to the public. He hasn't had a tough cross-examination-type press conference in over thirty days. One press conference he had without sound. He's also shown a weakness in yielding to pressure. The Soviet Union, for instance, put pressure on Mr. Ford and he refused to see a symbol of human freedom recognized around the world, Aleksandr Solzhenitsyn. The Arabs have put pressure on Mr. Ford, and he's yielded, and has permitted a boycott by the Arab countries of American businesses who trade with Israel, or who have American Jews owning or taking part in the management of American - companies. His own secretary of commerce had to be subpoenaed by the Congress to reveal the names of businesses who were subject to this boycott. They didn't volunteer the information. He had to be subpoenaed. And the last thing I'd like to say is this: This grain deal with the Soviet Union in '72 was terrible, and Mr. Ford made up for it with three embargoes, one against our own ally in Japan. That's not the way to run our foreign policy, including international trade.

MS. FREDERIC: Mr. Trewhitt, a question for Governor Carter.

MR. TREWHITT: Governor, I'd like to pick up on that point, actually, and on your appeal for a greater measure of American idealism in foreign affairs. Foreign affairs come home to the American public pretty much in such issues as oil embargoes and grain sales, that sort of thing. Would you be willing to - to risk an oil embargo in order to promote human rights in Iran and Saudi Arabia, withhold arms from Saudi Arabia for the same purpose? - or - I think you - matter of fact, you've perhaps answered this final part, but would you withhold grain from the Soviet Union in order to promote civil rights in the - in the Serviette Union?

MR. CARTER: I would never single out food as a trade embargo item. If I ever decided to impose an embargo because of a crisis in international relationships, it would include all shipments of all equipment. For instance, if the Arab countries ever again declare an embargo against our nation on oil I would consider that not a military but an economic declaration of war, and I would respond instantly and in kind. I would not ship that Arab country anything - no weapons, no spare parts for weapons, no oil-drilling rigs, no oil pipe, no nothing. I wouldn't single out just food. Another thing that I'd like to say is this: In our international trade, as I said in my opening statement, we have become the arms merchant of the world.

When this Republican administration came into office we were shipping about $1 billion worth of arms overseas, now ten to twelve billion dollars worth of arms overseas to countries that quite often use these weapons to fight each other. The shift in emphasis has been very disturbing to me, speaking about the Middle East. Under the last Democratic administration 60 percent of all weapons that went into the Middle East were for Israel. Nowadays - 75 percent were for Israel before. Now 60 percent go to the Arab countries, and this does not include Iran. If you include Iran, our present shipment of weapons to the Middle East, only 20 percent goes to Israel. This is a deviation from idealism; it's a deviation from a commitment to our major ally in the Middle East, which is Israel; it's a yielding to economic pressure on the part of the Arabs on the oil issue; and it's also a tremendous indication that under the Ford administration we have not addressed the energy policy adequately. We still have no comprehensive energy policy in this country. And it's an overall sign of weakness. When we are weak at home economically - high unemployment, high inflation, a confused government, a wasteful defense establishment, this encourages the kind of pressure that's been put on us successfully. It would've been inconceivable ten - fifteen years ago, for us to be brought to our knees with an Arab oil embargo. But it was done three years ago and they're still putting pressure on us from the Arab countries to our discredit around the world. These are the weaknesses that I see, and I believe it's not just a matter of idealism. It's a matter of being tough. It's a matter of being strong. It's a matter of being consistent. Our priorities ought to be first of all to meet our own military needs, secondly to meet the needs of our allies and friends, and only then should we ship military equipment to foreign countries. As a matter of fact, Iran is gonna get eighty F-14s before we even meet our own Air Force orders for F-l4s. And the shipment of Spruance-class destroyers to Iran are much more highly sophisticated than the Spruance-class destroyers that are present being delivered to our own Navy. This is ridiculous and it ought to be changed.

MR. TREWHITT: Governor, let me pursue that if I may. If I understand you correctly you would in fact to use my examples, withhold arms from Iran and Saudi Arabia even if the risk was an oil embargo and if they should be securing those arms from somewhere else, and then if the embargo came, then you'd respond in kind. Do I have it correctly?

MR. CARTER: If - Iran is not an Arab country, as you know, it is a Moslem country - but if Saudi Arabia should declare an oil embargo against us, then I would consider that an economic declaration of war. And I would make sure that the - Saudis understood this ahead of time so there would be no doubt in their mind. I think under those circumstances they would refrain from pushing us to our knees as they did in 1973 with their previous oil embargo.

MS. FREDERICK: President Ford?

MR. FORD: Governor Carter - apparently doesn't realize that since I've been president we have sold to the Israelis over $4 billion in military hardware. We have made available to the Israelis over 45 percent of the total economic and military aid since the establishment of Israel twenty-seven years ago. So the Ford administration has done a good job in helping our good ally, Israel, and we're dedicated to the survival and security of Israel. I believe that Governor Carter doesn't realize the need and necessity for arms sales to Iran. He indicates he would not make those. Iran is bordered very extensively by the Soviet Union. Iran has Iraq as one of its neighbors. The Soviet Union and the Communist-dominated government of Iraq are neighbors of Iran, and Iran is an ally of the United States. It's my strong feeling that we ought to sell arms to Iran for its own national security, and as an ally - a strong ally of the United States. The history of our relationship with Iran goes back to the days of President Truman when he decided that it was vitally necessary for our own security as well as that of Iran, that we should help that country, and Iran has been a good ally. In 1973 when there was an oil embargo, Iran did not participate. Iran continued to sell oil to the United States. I believe that it's in our interest and in the interest of Israel and Iran, and Saudi Arabia, for the United States to sell arms to those countries. It's for their security as well as ours.

MS. FREDERICK: Mr. Valeriani, a question for President Ford.

MR. VALERIANI: Mr. President, the policy of your administration is to normalize relations with mainland China. And that means establishing at some point full diplomatic relations and obviously doing something about the mutual defense treaty with Taiwan. If you are elected, will you move to establish full diplomatic relations with Peking, and will you abrogate the mutual defense treaty with Taiwan? And, as a corollary, would you provide mainland China with military equipment if the Chinese were to ask for it?

MR. FORD: Our relationship with the People's Republic of China is based upon the Shanghai Communique, of 1972, and that communique, calls for the normalization of relations between the United States and the People's Republic. It doesn't set a times schedule. It doesn't - make a determination as to how - that relationship should be achieved in relationship to our current uhh - diplomatic recognition and obligations to the Taiwanese Government. The Shanghai Communique, does say that the differences between the People's Republic on the one hand and Taiwan on the other shall be settled by peaceful means. The net result is this administration, and during my time as the president for the next four years, we will continue to move for normalization of relations in the traditional sense, and we will insist that the disputes between Taiwan and the People's Republic be settled peacefully, as was agreed in the Shanghai Communique, of 1972. The Ford administration will not let down, will not eliminate or forget our obligation to the people of Taiwan. We feel that there must be a continued obligation to the people, the some nineteen or twenty million people in Taiwan. And as we move during the next four years, those will be the policies of this administration.

MR. VALERIANI: And sir, the military equipment for the mainland Chinese?

MR. FORD: There is no policy of this government to give to the People's Republic, or to sell to the People's Republic of China, military equipment. I do not believe that we, the United States, should sell, give or otherwise transfer military hardware to the People's Republic of China, or any other Communist nation, such as the Soviet Union and the like.

MS. FREDERICK: Governor Carter.

MR. CARTER: Well, I'd like to go back just one moment to the previous question, where - Mr. Ford, I think, confused the issue by trying to say that we are shipping Israel 40 percent of our aid. As a matter of fact, during this current year we are shipping Iran, or have contracted to ship to Iran, about seven and a half billion dollars worth of arms and also to Saudi Arabia, about seven and a half billion dollars worth of arms. Also in 1975, we almost brought Israel to their knees after the - Yom Kippur War by the so-called reassessment of our relationship to Israel. We in effect tried to make Israel the scapegoat for the problems in the Middle East. And this weakened our relationships with Israel a great deal and put a cloud on the total commitment that our people feel toward the Israelis. There ought to be a clear, unequivocal commitment without change to Israel. In the Far East I think we need to continue to be strong and I would certainly pursue the normalization of relationships with the People's Republic of China. We opened a great opportunity in l972, which has pretty well been frittered away under Mr. Ford, that ought to be a constant - inclination toward friendship. But I would never let that friendship with the People's Republic of China stand in the way of the preservation of the independence and freedom of the people on Taiwan.