Meeting With Chancellor Schmidt of the Federal Republic of Germany White House Statement.

President Jimmy Carter and Federal Chancellor Helmut Schmidt met today for an extensive exchange of views. With their advisers they discussed the forthcoming Tokyo summit, and in particular the critical energy situation. They agreed on the need to reduce energy demand now and to increase energy supply over the longer term, including the use of alternatives to oil.

Later, the President and the Chancellor discussed privately a wide range of issues, including the forthcoming summit meeting in Vienna between Presidents Carter and Brezhnev, efforts to pursue the policy of detente, Western defense policy, Middle East, and southern Africa.

President Carter and Chancellor Schmidt agreed on the importance—for both Europe and America—of the SALT II agreement, and the Chancellor expressed strong support for the agreement. On Western defense policy, the two leaders reviewed the implications of Soviet military efforts, especially developments in theater nuclear forces. They agreed that these Soviet military efforts pose a challenge to the Alliance that requires a response. They discussed theater nuclear force modernization in particular, and agreed on the need for the NATO Alliance to move forward expeditiously with its deliberations on both force modernization and arms control, with a view to collective Alliance decisions in both areas.

They also reaffirmed their commitment to strengthen NATO's defenses as part of the Alliance's Long-Term Defense Program.

On the Middle East, the two leaders discussed the importance of the Egypt-Israel treaty and the need to move forward with the peace process, leading to a comprehensive peace throughout the region. They emphasized the importance of speedy progress in the negotiations concerning the West Bank and Gaza with a view to facilitating the exercise by the Palestinian people of their legitimate rights.

The two leaders discussed the situation in southern Africa. They reiterated the commitment of their two Governments to work together with Canada, France, and the United Kingdom for the implementation of Security Council Resolution 435 on Namibia. They exchanged views on developments in Zimbabwe-Rhodesia and their international implications, taking fully into account the special position of the United Kingdom in this regard.

During their talks, the two leaders also repeated their concern about the economic situation in Turkey, to which both of their countries are making significant contributions.

The two leaders will next meet at the Tokyo summit on June 28-29.