European Stars And Stripes (Newspaper) - February 4, 1981, Darmstadt, Hesse                                Page 12 the stars and stripes James Reston february 1981 reagans Early performance a Little rough the Reagan show has been in dress rehearsal these last few and not the performance has been a Little the presidents first press conference lacked the sure touch of the ceremonial in deprived of a written he was obliged to and while he had the Good judgment to evade quite a few he seemed vaguely ill at he refused to say what he proposed to do about the soviet Grain the decontrol of Dairy Price the military the Carter Deal on the release of the or How he proposed to Cut the in though he has been trying to concentrate the attention of the country on the he was very specific in condemning the soviet leaders As liars and cheats who would commit any crime to pro Mote their goal of world and said quite clearly that future arms control talks would be linked to their conduct in other this naturally took the head lines away from the one of the problems of any new administration is that the president and his Princi pal aides feel obliged to speak before they have had time to Cabinet appointees cannot avoid in order to be confirmed by the they must respond to searching specific questions before they have had the Opportunity to study documents or get their staffs in the result is that they often make Glenn Ritt fed May soon clash the administration of president Reagan May wind up on a collision course with the Federal Reserve by pushing for big tax cuts before Congress slashes Federal if such a collision it could have severe threatening Many of reagans goals to revitalize a sluggish econ Many economists Are differences Between Reagan and the fed emerged at Senate Treasury Secretary Donald Regan said plans to Cut taxes cant wait until budget outlays arc tax Relief is needed to stimulate economic which will increase government revenues and eventually shrink the Federal def he the at a nationally broadcast news conference said he remains committed to his proposed 30 percent tax rate Cut for individuals Over three in addition to business tax Paul chairman of the Federal Reserve told the Senate appropriations committee if you Cut spend ing by 10 then wed have room for tax moving too soon on tax reductions would Worsen fears of inflation and Force interest rates even he not Only Volcker reiterated the Federal reserves determination to keep a tight lid on the Money 1 see no alternative to continued restraint of excessive Money and credit growth if we Are to break the inflationary he told the Senate appropriations that the reagans efforts to expand the Economy through tax cuts could be neutralized by the Federal reserves quest to restrain growth in the Money the scenario could go something like this reagans tax if enacted by con would Spur demand by this would Lead companies to increase production and seek Loans to build new plants and buy new this expansionary drive would be further fed by separate Busi Ness tax but the businesses would find themselves bidding for a dwindling Supply of credit because of the Federal reserves tight monetary interest rates would Rise a and this would not Only Aggra vate inflation but Cut off the economic growth Reagan the end result is says Barry a director of the Council on wage and Price stability during the Carter administration and presently an economist with the Brookings c associated press to ifs card from the strip notes the Vav one ground  statements and even propose policies with out having had a Chance to consult with their colleagues or the for exam David the new budget has proposed that Carters Bil lion foreign Aid budget for fiscal 1982 be reduced to billion the largest Cut since the Start of the program at the end of world War Secretary of state Haig was not stockmans proposal would make sub Stantial reductions in nonmilitary Aid to Many of the poorest and reduce contributions to the world Bank and other International Haig is naturally disturbed because he is concerned about policy in such places As the persian the Indian Ocean and the Horn of where several strategically placed governments rely heavily on foreign Aid and substantial Loans from the world too much should not be of these dress rehearsal the leading Man can rattle off All his set speeches from the Campaign and can condemn the soviet leaders As liars and cheats in the most amiable but the other characters in this play Are making up a lot of their lines As they go the press though improved since Reagan grounded the journalistic is not a precise instrument for the definition of a new administrations even with All his cautious and astonishing Pentagon confused pal Estine with Jerusalem in his first press con and Reagan mixed up the Caribbean and the despite All the controversy Over the new presidents appointments and policies from those who want More conservative appointments and those who argue for cutting the budget before cutting taxes the new Reagan team has managed to emphasize its main Point that changes will be made that its not going to indulge in eloquent soliloquies about How bad things but intends to try something different and fundamental to put things As yet it has no coherent policy at Home or abroad but its tendencies Are Clear and it has already changed the tone of the debate in it is clearly More conserva More More concerned about our neighbors in Mexico and the More More out More social and More relaxed than its immediate Jess less less and less interested in the poor at Home and the test will come when they get their act together and try it out on the Federal Reserve Board and on Capitol Hill and Haig says he will not reemphasize human rights but just change which is an interesting Way to put the greatest problem to me in the human rights he is the area of International terror Haig accused the soviet Union of a conscious policy of supporting and expanding terrorism in the and coming on top of the presidents characterization of the soviet leaders As liars and while no popular at is bound to create tension not Only in the Rea Gan administrations relations with Moscow but with the on that anticommunist there is clearly no difference within this just in Case he missed the the administration refused to put the soviet Anatoly at the head of the list of diplomats to see Rea though he is Dean of the diplomatic and when exercising a longheld drove into the garage of the state department this past he was told to Back out and go to the front door like All the other Dobry Nin c new York times the opinions expressed in the columns and cartoons on this Page represent those of the authors and Are in no Way to be considered As representing the views of the stars and stripes or the United states