Schmidt: Seeing Eye to Eye

Dressed in a blue blazer, gray slacks and a stiffly starched white shirt accented by a vibrant red and blue tie, West German Chancellor Helmut Schmidt looked the very model of brisk efficiency as he spoke last week with Editor in Chief Donovan, Correspondent Rademaekers, and Bonn Bureau Chief Bruce Nelan in his streamlined L-shaped office in Bonn. During the hour-long interview, Schmidt lived up to his reputation as an intellectually vigorous and self-confident politician. Excerpts:

Q. How has Germany been able to maintain its favorable economic position, considering the troubles that affect neighboring nations?

A. Our economic stability this year stems from some restrictive measures we took in May last year after we were able to decouple ourselves from the fixed exchange rates with the U.S. dollar. Of course, these measures were eased shortly before Christmas. And early in 1974 we switched, very, very carefully, toward the expansive side in public budgets.

Q. How would West Germany respond to further deterioration of the European monetary situation?

A. We are prepared to participate in an operation of the EEC that will try to channel part of the oil-surplus money into the Common Market and transform it into loans to those EEC countries that need financing of their deficits. I think that the German signature to such an operation will mean something for those who are the lenders. It will solve only a small part of the global recycling necessity. Close cooperation between the U.S. and the leading European industrial countries as well as Japan is of the utmost importance if we want to control the economic development of the world in 1975.

Q. Would this include some concerted effort on the part of oil-consuming nations?

A. I think it is of the utmost necessity that in the first place, the oil-consuming countries come to joint positions that they will follow up afterward individually and in common, and second, that they find ways and means to get together with the oil-producing countries. I think it would be difficult and possibly even dangerous if we would allow a sort of economic war to occur between oil consumers and oil producers.

Q. Do you think the effects of the oil crisis are more than economic?

A. I think it will mean social unrest in many countries. The people will not understand that the oil question is the real reason for the drop in their income. They have never experienced such a postwar situation in which, despite progress in productivity, the real income will remain steady or even drop. Their trade-union leaders will be asked to strike. It might lead to political instability.

Q-- Would you comment on your relation with President Giscard d'Estaing?

A. I have never added and will not today add to the exaggerated expectations that have been connected to a very good and friendly relationship between two persons. On the other hand, I think anybody can see that good cooperation between the French and German governments is a necessary precondition for the progress of European integration. But even if people are friends, this does not mean that they can compromise the national interest of their people. Monsieur Giscard d'Estaing is a very sober man, not given to great speechmaking, more given to practical and concrete results. And in some ways I may match this attitude.

Q. Some influential Frenchmen seem to feel that Europe is dead. What is your opinion?

A. I don't think that is right. The difficulty does not stem from nationalism in Europe or from any lack of vigor in the field of European integration. It stems from the enormous worldwide economic difficulties that have hit countries in different ways. Of course, there is the question of the future attitude of Britain toward the Community and vice versa. It would be imprudent and wrong not to mention this.

Q. How would you characterize the present state of West German-American relations?

A. I think there are almost no bilateral problems whatsoever. There are problems in the multilateral field that we more or less see eye to eye on: for instance, detente and normalization of our relationship with the Soviet Union, the American efforts to maintain peace in the Middle East, common energy political positions. It is inevitable that we cooperate in good spirit and faith with the U.S. This will never mean that we could obey orders. The difficulty for the Americans is that, on the one hand, they have to act as the most important leaders of opinion and on the other, they have to avoid appearing as leaders. There are many people in the world who do not like to be led, at least who do not like this to be shown. I think that this is at the core of many resentments involving Frenchmen and Americans over the past two decades.

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