ACCESSION NUMBER:219239
FILE ID:PO-402
DATE:03/12/92
TITLE:WHITE HOUSE REPORT, THURSDAY,MARCH 12 (03/12/92)
TEXT:*92031202.POL
WHITE HOUSE REPORT, THURSDAY,MARCH 12

(Israel/Patriots, China, retail sales/the economy)  (410)
NEWS BRIEFING -- Press Secretary Marlin Fitzwater covered the following
topics:

COMMENT WITHHELD ON PATRIOTS
Asked repeatedly about news reports that U.S. intelligence sources fear
Israel has transferred Patriot missile technology to China, Fitzwater
declined comment, but he cited an Israeli denial stating that it "did not
transfer Patriot missiles or missile technology to China" and that "these
reports have no basis."  He said "that's the only statement we have."
According to wire service reports, a spokesman for the Israeli defense
ministry branded news reports to the contrary as "lies and totally
baseless."

Asked if Washington accepts the Israeli version, he said the administration
doesn't comment on what it knows about intelligence determinations.  Asked
if the administration does not believe the Israel version, he said the
administration has no conclusions it is willing to discuss in public.

Pressed by reporters, Fitzwater said there have been "contacts and
consultations between us and the Israelis," and he acknowledged there are
administration "intelligence...conclusions."  But he reiterated that the
administration is "not willing to comment at this point."

CHINESE REFORMS NOT EXAMINED
Fitzwater said the president has not "had a chance to examine" the
reported economic reforms announced in China "or to have discussions on
them at this point."

Asked about the defection of 110 House Republicans on the override of the
1resident's veto on Most-Favored-Nation tariff treatment of Chinese goods,
Fitzwater said it means that not all Republicans agree with Bush on all
matters and that the president is demonstrating leadership.  "He believes
it is right for the country," Fitzwater said of Bush's veto.  (The bill
would place conditions on continued MFN for China.  Observers expect the
Senate to sustain Bush's veto next week.)

RETAIL SALES HAILED
Fitzwater said the increase in retail sales in the first two months of
the year shows that consumer spending "is likely to make a positive
contribution to overall economic growth for the quarter.  Consumers have
started the year on a more positive note than previously expected."

He told questioners the president's economic package should nonetheless be
passed quickly because many economists say there is a need "to give
impetus" to a recovery that "may not be as strong as we would want."
Passage of the package, he argued, "would increase the likelihood of a good
recovery."

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