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

President Carter and the Chancellor of the Federal Republic of Germany, Helmut Schmidt, held a thorough conversation in Washington, November 20, during the Chancellor's visit to the United States, November 18 through 21. The President hosted a White House luncheon for the Chancellor and Foreign Minister Hans-Dietrich Genscher on November 20 in which Secretary of State Muskie, National Security Adviser Brzezinski, and senior officials also participated.

The conversation between the President and the Chancellor covered a wide range of political, security, and economic issues of mutual interest to the two countries. The President and the Chancellor agreed on the necessity of continuing these close consultations, including during the transition period, in order to assure continuing full coordination of the policies followed by the two countries on major international issues.

In their conversation the President and the Chancellor agreed on the continued importance of improving NATO's defense posture and of efforts aimed at reaching arms control agreements with the Soviet Union and its Warsaw Pact allies in order to ensure a stable military balance.

In their discussion of East-West relations, both sides welcomed the continuation of the CSCE process at the Madrid review conference, to which both Governments remain committed. In this context they stressed the right of each country, irrespective of its political or social system, to resolve its problems in free exercise of its sovereignty and without intervention from any quarter. Moreover, they reiterated, with reference to the resolution of the General Assembly of the United Nations, their regret that there is no evidence of Soviet readiness to withdraw its forces from Afghanistan and to seek a political solution of the Afghanistan crisis.

The President and the Chancellor discussed the latest developments in the Middle East. They reviewed the ongoing negotiations in the Camp David framework and stressed the urgent need for progress toward a comprehensive peace settlement.

Secretary Muskie and Foreign Minister Genscher also held a separate meeting earlier in the day.