and science and technology were not renewed in 1982.

By late 1983, the level of activity under the remaining seven agreements represented only about 20% of that maintained in 1979.

Nevertheless,

the continuation of some low-visibility activities allowed the framework for exchange to be maintained, from which exchanges could again be built if the political environment improved.

With the scheduling of a summit meeting between President

Reagan and General Secretary Gorbachev in November 1985, bilateral relations appeared to begin an upswing that could be accompanied by increased bilateral exchange activity.

On November 21, 1985, at Geneva, Secretary of State Shultz and Soviet Foreign Minister Shevardnadze signed a new general exchanges agreement marking the resumption of official academic, cultural, and performing artist exchanges between the two countries. The agreement is intended to facilitate activities across the whole spectrum of exchange-performing arts, exhibits, television and film, publications, and science and technology, among others. Also in the course of the Geneva Summit, President Reagan and General Secretary Gorbachev approved a new, broadbased people-to-people initiative to expand direct contact between citizens of the two countries, known in the United States as the President's U.S.-Soviet Exchange Initiative. A qualitatively new development in U.S.-Soviet exchange, the President's Initiative is designed to extend interaction between the citizens of our two countries beyond the narrowly defined projects of

the past and to place particular emphasis on exchanges of youth.
Six projects under the exchange initiative, highlighted in the joint

statement issued after Geneva, are to be among the first to be

implemented:

Cooperation in developing educational exchanges and software for
elementary and secondary school education;

· Annual exchanges of professors of history, culture, and economics to conduct special courses at the relevant departments of Soviet and American institutions of higher education;

Creation of a U.S.-Soviet scholarship program for the best students
from each country in the natural and social sciences, humanities,
and technology for an academic year;

Promotion of Russian language studies in the United States, and English language studies in the Soviet Union;

Expansion of contacts in sports, including regular meets and increased television coverage;

Resumption of cooperation in the field of cancer research.

A variety of agreements under the science and technology umbrella

agreement have been renewed in the last year as well.

In June 1985, the bilateral agreement on agricultural cooperation
and exchange was renewed.

• In July 1985, the world ocean agreement was renewed for an additional 5 years.

· In September 1985, the Secretary of Housing and Urban Development

and his Soviet counterpart signed a document authorizing new joint
projects under the housing agreement.

In November 1985, in Moscow, the two countries updated U.S.-Soviet cooperative programs in environmental protection and research, establishing projects for controlling air pollution, enhancing the urban environment, and protecting the marine environment.

• In December 1985, the atomic energy agreement was extended through June 1988.

Two privately administered cooperative programs that also rely on

government resources are continuing: the exchange programs of the National Academy of Sciences (NAS) and the International Research and Exchanges Board (IREX).

In April 1986, NAS signed a new agreement with the Soviet Academy of Sciences,

a key objective of which is to provide the U.S. scientific community broader access to Soviet scientists, facilities, data bases, and geographical areas. An important provision of the agreement allows NAS to invite by name individual Soviet scientists. The two-year agreement also calls for eight joint workshops on various scientific topics.

The IREX program receives private as well as government funding and supports the exchange of scholars in many fields, including social and natural sciences. In the 1985-1986 academic year, more than 100 graduate students, young faculty scholars, and language instructors will be exchanged in each direction.

This broad and diverse expansion of exchange activity over the past year suggests that a new period of renewal in bilateral contact is beginning. As activities under the new and revitalized agreements proceed and if further expansion takes place in the context of improved bilateral relations (should a second summit be scheduled), the perspectives of both the United States and Soviet Union toward exchange may be reviewed. Each side clearly has preferences in the type of activities it would like to encourage, based on the balance of benefits to be gained.

111. CURRENT U.S. PERSPECTIVE

A. Environment

If the summit process were to go forward from Geneva to meetings in Washington and Moscow, momentum might be generated for the facilitation of bilateral trade and exchange. In 1983, President Reagan articulated 3

major objectives for normalizing U.S.-Soviet relations which would serve as the necessary context for expanded exchange:

1) To reduce, and eventually eliminate, the threat and use of force in solving international disputes;

2) To reduce the arms stockpile; and

3) To establish a better working relationship between our
countries.

In order to attain those preconditions to full normalization of

relations, a process of improvement would involve:

A system of arms control agreements to stabilize the
bilateral relationships;

An acceptable code of conduct for the global superpowers
for dealing with affairs endangering our vital interests
in the various regions of the world; and

Acceptable conduct in the human rights area based on norms
laid down in the Helsinki and United Nations agreements.

Progress on the political-military agenda, so central to U.S.Soviet relations, would provide a foundation for expanded exchange. The interdependence found in increased commercial and exchange relations

would thus reinforce these broader, more central areas of contention in superpower relations.

B. Preferences

In general, the U.S. benefits most from formal exchanges insofar as it obtains access to Soviet scientists and technologists and closely monitored Soviet programs that would otherwise be unavailable. For example, it has been estimated that about 90% of the science and technology information the United States receives from the Soviets is obtained through activities sanctioned

by official exchange agreements. Exchanges activities gives Soviet scientists access to an "open S & T system," which results in political and public relations benefits.

Judging from previous experience, requirements for effective exchanges
include the conditions that they be properly arranged, well administered and
implemented, closely monitored, and periodically, professionally assessed.
The funding of exchange should be shared equally, with each side paying its
own way and with the assurance that no unusual or discriminatory fees will
will be imposed on participants to pursue their expected activities. If
these conditions of proper management are met, the United States may gain
specific net benefits. According to earlier participants involved in
supervising these programs, we would expect the United States to obtain
net benefit on the following conditions:

1) The United States draws on very advanced Soviet work in some S & T areas
which the United States has not itself achieved (e.g., theoretical physics
and mathematics, selective energy, medical and industrial processes);
2) The United States taps into work not undertaken here utilizing Soviet
facilities, thus saving time, resources and money;

3) The United States can get access to extensive research data and records
(medical, environmental, oceanic) that are otherwise unavailable in or
to the United States.