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-4- CHILE Q: Is U.S. tough line on loans driving Chile into arms of Russia? a) U.S. prepared to have kind of relationship with Chile that Chile wishes to have with U.S. b) RN understands that EX-IM Bank did not refuse to consider the loan -- but simply asked for information to permit it to assess future prospects in Chilean economy. c) This is usual and sound banking practice. CUBA Q: In view of China; initiatives, why not "normalize" with Cuba? a) We are prepared to modify our relations with Cuba when they modify their posture toward United States. b) However, no indication of this at present. Cuba is 1) antagonistic to United States 2) interferring in internal affairs of hemispheric states 3) militarily tied to the Soviet Union Thus, no basis exists for a changed relation INTERNATIONAL LABOR ORGANIZATION Q: Conference Committee has refused to appropriate this year's U.S. contribution to ILO. What is Administration going to do? a) Some trends in ILO we don't like b) Work within ILO to change it should be our policy c) Our contribution toILO is a valid obligation under international law we owe the money; should pay it d) Congress should appropriate the money in RN's view.

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