WASHINGTON — President Bush faces a major test of his leadership when the annual seven-nation economic summit convenes in London on Monday, despite the commanding position that he achieved as head of the alliance during the Persian Gulf crisis.
Not only must Bush contend with lingering differences within the alliance over how to deal with the alarming deterioration of the Soviet economy, but the seven--the leaders of the United States, Germany, Japan, Britain, France, Italy and Canada--remain stubbornly divided over global trade-liberalization talks considered critical to the health of the world economy.
With Soviet leader Mikhail S. Gorbachev present to plead his case as the summit ends, the questions of Soviet aid and economic and political reforms in that country are likely to dominate the summit and divert its participants at a time when the traditional economic agenda is more critical than it has been in years.
Moreover, the Persian Gulf continues to dog the allies as a distracting--and potentially divisive--issue.
With Iraqi President Saddam Hussein thwarting efforts by the United Nations to examine suspected nuclear weapons material and facilities in Iraq, Bush has raised the possibility of again using force against the Baghdad regime.
The President contends that the U.N. Security Council has given him full authority to take such action, but more talk of renewed military action in the Gulf is likely to send shudders through some allied governments, and Bush will be under pressure to handle the issue gently.
At a press conference last Wednesday, Bush said he is already consulting with allied leaders on the problem, adding: "I am anticipating a unanimous view that we've got to keep our eyes wide open and not be lulled by some very belated offering from Saddam Hussein that he is now willing to do that which he . . . should have done a long time ago."
Potentially far more important than Iraq in the long run, one of the President's chief economic goals in London will be winning a commitment from the four European summit countries--Britain, France, Italy and Germany--to revive and conclude the crucial global trade talks, which aim to lower barriers to international commerce.
At last year's economic summit in Houston, the member nations declared the trade talks to be their No. 1 economic priority and vowed to conclude them by the end of 1990.
