President Reagan will receive next week a "global agenda" of foreign policy options for a second term, including a major expansion of U.S. aid to Third World nations, according to a senior administration official.
The paper, prepared over the last five months by Secretary of State George P. Shultz and national security adviser Robert C. McFarlane, also includes options on helping revive European economies, limiting nuclear proliferation and combating terrorism, said the official, who spoke on condition that he not be identified.
While the top item on Reagan's second-term program is likely to be arms control, the official said the president is also expected to choose several other areas on which to put new emphasis.
The foreign policy options, assembled with help from former government officials and academics, are divided into two "baskets," he said.
The first is what he called "continuity policies," such as "sustaining the defense buildup," keeping the U.S. economy strong and, as part of that, promoting freer trade.
The second "basket," he said, includes "possibilities for innovation."
He described these as about 12 options that could warrant a "major investment of time" by Reagan, who is expected to select two or three.
One is a new effort to slow the spread of nuclear weapons and materials.
The official was not specific but said the paper suggests ways to "establish a better regime" than now exists for controlling nuclear proliferation.
Another option, he said, is "the economic renewal of Europe." He said European economies have "lost dynamism" because of "welfare-state policies" that have consumed large shares of their national output and "choked off incentives for private investment."
Yet another option, he said, is "building the economies of the Third World" through expanded aid, trade and private investment. "Clearly more aid is needed," he said, but he did not offer any specific amounts.
The official expressed satisfaction with the approach taken in Central America by the Kissinger Commission, which recommended more economic and military aid. He said this approach could be undertaken on a much wider scale around the globe.
On terrorism, the official said "more resources" are still needed for intelligence-gathering, law enforcement and bolstering physical security at U.S. installations abroad.
He also predicted, as Shultz did in a recent speech, a continued effort by the administration to build public support for the use of military force against terrorists, even at the risk of harming civilians.
"We're going to have to talk a lot more about this," he said.
The official also predicted renewed efforts by Reagan in the Middle East in a second term. Although he said it is "unrealistic to launch a major initiative" in the immediate future, the administration is looking at "short-term" goals that will pave the way for more ambitious efforts later.
Specifically, he said, Reagan would like to help improve Israel's relations with its neighbors. He talked about seeking to improve West Bank of the Jordan River conditions for the Palestinians, "greater control" by Arab mayors there and efforts to iron out Israeli-Egyptian disagreements.
In Central America, the official said the administration is pleased with the general course of policy, including congressional approval of the Kissinger Commission recommendations and the actions of Salvadoran President Jose Napoleon Duarte, whom he called "a major windfall" to the administration. He indicated that Reagan will renew efforts in the next Congress to win financial backing for the rebels fighting the Sandinista government of Nicaragua.
The official said that McFarlane was "puzzled" by recent speculation that Reagan may name him ambassador to Israel. While serving at the pleasure of the president, the official said, McFarlane had indicated "no interest" in the post and is looking forward to the "opportunities" in foreign policy in Reagan's second term.