Secretary of State George P. Shultz said yesterday that President Reagan will make a strong appeal to heads of government in Bonn this week to halt the advance of protectionism and stick with the open trading system that has led to global prosperity.
But Shultz said that, although the United States is anxious to get a firm date for a new round of trade negotiations, the president will not yield to French insistence on parallel reforms of the international monetary system.
In a separate interview with foreign journalists, Shultz said that, if the United States fails at Bonn to get a go-ahead on a multilateral trade round, the administration will seek the objective of more open trade "in bilateral negotiations as we recently concluded with Israel."
Other potential points of economic tension at Bonn include:
* The American budget deficit. Reagan will be confronted with demands for assurance that the U.S. budget deficit will be reduced sharply to lower global interest rates further. Shultz said that is precisely what Reagan will assure the summit participants that he is trying to do.
* West European and Japanese economic expansion. Reagan will press for stimulative measures to take up the slack caused by a slowdown in the American economy.
* The Japanese global trade surplus. European and U.S. participants will push Japan for specific commitments to expand its imports from the rest of the world. But Prime Minister Yasuhiro Nakasone, while pledging more openness, has warned that Japanese trade surpluses are likely to continue for years.
* "Structural rigidities." European leaders will be urged to deregulate financial and labor market rules that impede the formation of businesses and maintain excessively high wage rates. Europe also will be urged to embrace new technologies, even though they may displace old-line industries; European leaders agree in principle, but don't want to be pinned down on specifics. The dollar. The United States insists that the dollar may be high, but not overvalued, and that efforts to deflate it artificially won't work. But Reagan will be urged to make some kind of concession to foreigners' fear of a dollar collapse that they say could lead to a worldwide recession. Third World debt. France, as unofficial spokesman for the developing countries, will urge greater help through the International Monetary Fund and World Bank. But the United States and West Germany oppose making available greater international resources at this point.
Shultz and other administration sources indicate that the United States has only limited objectives for the monetary talks that had been suggested by Treasury Secretary James A. Baker III. The current system of floating exchange rates "has worked rather well," Shultz said at the briefing. "I don't see that a major shift back to a par value system would be desirable or even possible."
A par value system, which established rigid, rather than flexible, rates that respond to market conditions, prevailed until the old Bretton Woods structure broke up in the early 1970s. French President Francois Mitterrand, who has urged a return toward the more stable Bretton Woods system, said over the weekend that he wouldn't agree to setting a date for a new round of trade negotiations until monetary reform is discussed "in the same process."
Mitterrand complains that the dollar is overvalued at the present exchange rate of more than 9.5 francs to the dollar. He wants to see the dollar somehow tied to the Japanese yen and European currencies, and at a lower relative value than now.
Asked if he favored "substantive" changes in the international monetary system, and whether such changes would be proposed soon, Shultz said that deputy finance ministers of the 10 largest nations had been making such a review, which they had been commissioned to do by the Williamsburg summit in 1983.
"That review is the focal point for discussions on that subject, and I'm sure that it's an appropriate thing to do," Shultz said. "My personal judgment is that the system of broadly floating exchange rates has worked pretty well, and that doesn't mean that it can't be improved upon."
In arguing for a quick start on a new round of trade negotiations -- without a link to monetary talks -- Shultz stated with a show of emotion that protectionism triggered the Great Depression.
"People ought to remember what happened in the 1930s, when a wave of protectionism overtook the world and contributed very significantly to the Depression, and contrast that with the explosion in world trade as it became more and more open following World War II, and how much everybody has benefitted," he said.