Some Options for the U.S.

TOWARD THE SOVIET UNION

-- Propose deep mutual cuts in military forces and expenditures going well beyond those under consideration in START and conventional-arms talks.

-- Offer most-favored-nation status, allowing the U.S.S.R. the same trading arrangements provided to most industrial nations, including Hungary.

-- Reopen access to Export-Import Bank credits on terms available to other countries.

-- Waive the Johnson Debt Default Act, which prohibits private loans to Moscow.

-- Follow the West German example of encouraging joint ventures by establishing a fund that would insure companies against Soviet default or expropriation.

-- Support Soviet efforts to make the institutional changes necessary to join such international organizations as the World Bank, the International Monetary Fund and GATT.

TOWARD EASTERN EUROPE

-- Begin talks to determine Moscow's legitimate security concerns, which should be respected as Warsaw Pact nations exercise greater political independence.

-- Offer incentives for American businesses and universities to provide training, internships, exchanges and technical advice to private-sector managers and workers.

-- Relax technology-transfer regulations to allow sales of such items as personal computers and communications equipment that could spur autonomy.

-- Grant Poland most-favored-nation status, as well as encourage trade policies that would provide hard currency from increased exports rather than through excessive foreign borrowing.

-- Include Poland in the Brady Plan, which provides for the long-term restructuring of foreign loans.