European Stars And Stripes (Newspaper) - February 18, 1986, Darmstadt, Hesse                                Page 2 Muf stars and stripes tuesday february 18, 1986 allies Back planned reply to Gorbachev Washington not president Reagan s pro posed  s. Gorbachev s plan to eliminate nuclear a can Jav inc year 2000 has been Given a positive reaction from us mrs according to administration officials. _ rut they said that reservations particularly by Japan and that suggestions t response arc under consideration. The allies reaction was presented by two envoys sat urday at a White House meeting. The envoys arc Paul h. Nitze. Who had been consulting with the Western euro Pean allies and Hdward l. Rowny who had been briefing Japan. China South Korea and Australia. Reagan s response to Gorbachev focuses on the first of the wide ranging nuclear disarmament plan pc wifi Gorbachev s proposal for eliminating medium Roadt files in Europe. Reagan endorses the idea of  mis Siles from Europe but also proposcjymminesovietss-20 missile Force in Asia by 50 fast flt but inc president  suggestions that British and French nut hours Ennis be fro in and that inc United slates  Transfer missiles to other nations. Tier Clement of Reagan s proposal would give the United states the right to store medium Range missiles carrying the same number of warheads As the soviet Union has deployed in Asia. Other medium Range weapons would be destroyed. American officials said Japan and to a lesser extent China Are concerned that inc Reagan response. _ insisting on the elimination of All ss-20ivict Asia portrays asian occur it to tons As scion i purity concerns in of Ute gtd Aimua Idjo pain has expressed concern Over the Ido by eying All medium Range missiles from   a Low level As a symbolic demo Luhm ill inc . Com Flint to inc defense of Western Eun officials said the Netherlands has cd pics that the Reagan response might undercut support for in dutch government s decision to go ahead with the deploy ment of . Cruise missiles. West Germany is comfortable with inc suggestion to eliminate All missiles in Europe the american officials said. Despite the reservations the allies arc generally pleased that inc United states intends to respond to the Gorba Chev plan in a positive Saum said. They said they arc  but do not expect that  will be changed in a major pfc " a general feeling among administration offi Cas that the Issue of medium Range missiles holds the most Promise for an agreement. Officials Point out that this is primarily a political rather than a military Issue even if All medium Range weapons were eliminated from Europe the two sides would still have intercontinental weapon s that could be directed at targets in Europe they say. Officials said the soviet arms negotiators in Geneva seemed to be waiting for the United states to respond to Gorbachev s offer. They said there were no major devel to at a special session of the full delegations held a Nova at soviet request. An  the soviet negotiators some times proposed  of separate sessions on medium Range weapons a in to weapons and space and defensive systems to undcrscorctlwi0jetview that there is a linkage among them especially 6swi Gic weapons and the Issue of a space based missile defense. Iraq attacks to retake persian Gulf port Iran ret aued ibis photograph of iranian troops celebrating their capture of port fro from Iraq last week. App two Nicosia Cyprus a ground air and sea Battles raged near the persian gulfs Northern tip sunday As Iraq tried to recapture a port that controls its Access to the Gulf according to communiques from Iraq and Iran. The combatants claims could not be verified because neither Side allows foreign journalists into the War fronts. Iraq said its forces launched a three pronged attack overnight to flush the iranians from the strategic port Fao Triangle that juts into the Gulf Between the kuwaiti Island of Babiyan and the Shalt ill Arab Estuary. But Iran said its forces liberated More land in the area tightening the noose and immobilizing the iraqi Navy at the umm Qasir naval base. Iran s official islamic Republic news Agency monitored in Nicosia said 2,500 iraqi soldiers died in Battles that raged during the night and sunday. This brought 10 13,200 the total Iran says it killed since launching its offensive across Shalt Al Arab on feb. 9. Iraq said it killed 457 iranian soldiers in sunday s fight ing recaptured stretches of land and forced the enemy into hourly narrowing  earlier communiques broadcast by Baghdad radio claimed Marc than 25,000 iranian soldiers had been killed in counterattacks against positions captured along the iraqi Side of the waterway from Fao in Iraq s South to the How cinch marshes North of inc cily of Basra. Irna said heavy ground and air Bailies persisted Northwest of Fao and cast of Khor Abdullah Inlet which leads to umm Qasir. Iran brought in helicopters to provide support to its advancing forces in said. Irna said inc overnight Advance towards umm Qasir liberated another 20 Square Miles bringing 320 Square Miles in All under iranian control. Baghdad radio said iraqi planes and Navy vessels destroyed and Sank a total of 53 iranian vessels since sat urday when it Star cd attacking iranian naval targets bringing supplies and reinforcements to Fao. Iraq said its jets also bombed Harg Island Oil terminal and the onshore Central Oil pumping station at Gavanes 25 Miles to the Northeast lunging Oil prices spell trouble for Banks Neva 8iyc up american Banks with Loans torm a Venezuela and Domestic companies Taniji dated businesses arc highly vulnerable to loss Uil prices Plum Mcl said a study released Summa chemical Bank Bank of America i Ufari Urcis Hanover Trust and Chase Man Hattan Bank would be Hurt most by a debt payment crisis with Mexico and Venezuela both of which depend on Oil for their Export earnings a data resources inc. Study that ranks exposure relative to equity and assets shows. The economics of these Oil exporters already plagued by austere fiscal policies and diminished exports will be crippled said Paul Ross an cd Ondomisi for data re sources a division of Mcgraw Hill Cial and economic informally but Banks with  Aren t inc Only ones thai . A Bank Vita High concentration of Loans mine Oil Well equipment crude producers and Coal industries will undoubtedly suffer greater loan losses than a Bank with out those Industry concentrations Ross said. Banks lopping that list Are Central Bank of Denver with More than one third of ils ins to Oil related industries and first Lional Houston. Colorado National Bank ask cd Bank of Denver All with roughly on  their assets in inc Oil Patch. Many Large american settled by the prospects of no in Mexico and  said. If inc Lod wont inc debt re payments Umof already tenuous at Best i Larni i in study was released As Mexico Cut ils Oil prices by almost $5 to $15 a barrel and Venezuela abandoned its pricing mechanism. Data resources estimate that each is decline results in an income loss of $500 million a year but other observers said this depends on How much the lower Price in creases sales. Mexico which signed a multiyear refinancing package in 1985 that did not in clude any new Loans was having problems meeting ils economic targets even before the recent Oil Price crisis. Mexican offic reportedly arc working non Ston their economic program a zip Ponc new Challenge  income. Pc neg Jap of Las asked its creditor  payments on debt Princi. Agreed to in a rescheduling Agre Mentlo be signed next week. As they have in the past . Banks be Federal Reserve and the International Mew by fund probably will cooperate to try toll some Short lorm solution Nario Mexico or Loans Ross in inc worst Venezuela will default i said. In the most opt Banks will Only stand  although Citibank with s2.9 billion in Loans to Mexico stands first in Dollar amount chemical with $1.4 fact users Hanover Sll Mil Paul of America  with to i mltpiitrtrftirtiii.1 i exposure Rel Teir equity and assets data re sources said. Citibank s exposure to Venezuela is less than the percentage that requires disclosure but chemical has $720 million. Manufacturers Hanover has $1.015 billion. Bank of America $1.46 billion and Chase si.2 billion to that country. Marine Midland $301 million. Wells Fargo s268 million and Continental Illi Nois $320 million were the Only other Large Banks with sizable exposure in Venezuela. Other Banks vulnerable to mexican prob lems again ranked by asset and equity Cap ital Are Marine Midland s362 million Bankers Trust $1.3 billion Wells Fargo $518 million Continental Illinois $561 Mil first Chicago $568 million first in sect Oncore $741 million and Morgan guaraitvpifcsi.16 billion