Friday, Sep. 30, 1966

Seeking Solace in Washington

Seeking Ludwig Erhard has made five trips to the U.S. since he became Chancellor, but none was so important to him as the visit he is making this week. Its significance has less to do with inter national issues than with the impact ba'ck home. Erhard's problems began in July when his Christian Democrats lost ground to the opposition Social Democrats in a crucial state election. Since then, he has been beset by a quasi-uprising of German generals, and by political snipers, who even blame his government for the recent tragic loss of an elderly submarine and 19 sailors. With all this going against him, Erhard badly needs a success at the White House.

His main concerns are German prestige and pocketbooks. Tops on the agenda is the so-called "offset" agreement by which West Germany helps compensate the U.S. for the cost of maintaining its forces there by purchasing American military equipment. The Germans have fallen $600 million in arrears on their commitment to buy $1.3 billion in U.S. arms during a two-year period ending next June. Erhard's argument is that West Germany needs no more equipment at this time, and cannot really afford to keep to its contract.

Defense Secretary Robert McNamara so far has refused to allow the Germans to back down on their agreement. His unspoken threat: if Bonn does not ease the U.S. balance of payments burden by continuing the scheduled purchases, American forces might be substantially reduced in Germany. The prospect of U.S. troop reductions is a nightmare for any West German politician, and especially for Erhard. Nothing would bolster his standing in Germany quite so much as a resounding pledge from the President that U.S. troop strength will remain close to current levels. Presumably, Erhard also wants to try again for a commitment that the U.S. will help West Germany achieve some sort of eventual participation in a NATO or European nuclear force.

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