4 Page 10-Wednesday, June 17, 1981-The Michigan Daily U.S. will sell arms to China, Haig says (Continued from Page 1) ship" with Taiwan and told the Chinese it "will be continued, and this was un- derstood by them." HE SAID THE possibility of the U.S. sale of sophisticated jet aircraft to Taiwan, which China opposes, also was discussed. He declined to go into details on "this very sensitive issue." The United States and China agree on the importance of their strategic relationship and the need to confront Soviet global expansion, he said, adding that both nations concur that the Soviet Union must withdraw its troops from Afghanistan and that Vietnam must withdraw its 200,000 troops from Cam- bodia. However, Haig acknowledged that some differences exist between the U.S. and Chinese approaches to Cambodia. China favors working through former Premier Po1 Pot, whom the United States considers unacceptable because of his previous suppression of the people. THE CHINESE appeared subdued in their assessment of Haig's visit. In a toast in a closing banquet last night, Foreign Minister Huang Hua said the talks with Haig were-"very useful." He added "our two sides do not entirely share the same views..." Huang also said China wants to see the Reagan administration's support for the terms of the Sino-U.S. com- munique on establishing diplomatic relations backed up with action. "Not only must we protect this cor- nerstone with great care; but also must prove with our own actions that it can stand tests," Huang said. "This point can never be overstressed." U.S. AND Chinese officials also signed an agreement expanding their consular representation. China may establish a consulate in New York, Chicago and Honolulu, and the United States may open consulates in Shenyang, Chengdu and Wuhan. Haig also announced that Premier Zhao has accepted President Reagan's invitation to visit the United States next year. Zhao has invited Reagan to visit China, Haig said, and that the invitation will be discussed further. President rails Dems for budget proposals AP Photo PRESIDENT RONALD REAGAN fields questions from the press in his first nationally televised news conference since the March 30 attempt on his life. Reagan fieldsp From APand UPI WASHINGTON-President Reagan spoke to reporters yesterday at his first nationally televised press conference since the March 30 attempt on his life, He had not held a news conference since March 6th. Although his voice was raspy, Reagan appeared to be in good health and showed no sign of weariness during the 35- minute appearance. The president opened the news conference with a strong defense of his budget cuts and charged Democrats with trying to undercut his economic programs by making budget changes they know are unwarranted. His remarks amounted to the most direct criticism of Congress since he took office. There is, he said, "a clear danger of congressional backsliding and a return to spen- ding as usual" in defiance of his budget-cutting program. The following are highlights of the remainder of the press conference: COMMUNISM-Reagan reiterated the "beginning of the end" is in sight for world communism. "I think it is im- possible... for any form of government to completely deny freedom to the people ... I think the things we are seeing in Poland and the word coming out of Russia itself show that communism is an aberration. I think we're seeing the first cracks, the beginning of the end." THE SHOOTING-Reagan said he has recovered from the March 30 assassination attempt and feels fine. "If I'm a medical miracle, I'm a happy one." He said there have been changes in security since the shooting but he still wan- " oli"cy questions is to meet with people and "you can't spend your life worrying." SECOND TERM-The 70-year-old president declined to discuss a second term, noting "having only been here five months no one should be making a decision about what they're going to do three- years and seven months from now." TAIWAN-Reagan said increased dealings with China won't affect relations with Taiwan. "I have not changed my feelings about Taiwan ... I intend to live up to the Taiwan Relations Act," Reagan said. ISRAELI RAID-Reagan noted his previous condem- nation of the Israeli attack on a nuclear reactor in Iraq, but said the Israelis "might have sincerely believed" it was a defensive action. He said the raid shows that "a real peace, a settlement to all of the Mideast problems, is long over- due." FOREIGN POLICY-The administration has been active in foreign affairs, Reagan said. "I have met with eight heads of state, nine officials of other nations . . . the secretary of state is on his second trip abroad, the deputy secretary of state has been in Africa and is coming back through Europe." POLITICS-Asked if he approved of conservative fund- raising groups that are spending large amounts of money to defeat some liberal Democrats, Reagan said: "I don't really know how to answer thatibecause the game of politics is trying to win an election ... I've never seen a time both parties are not trying to win an election." I WASHINGTON (AP)-President Reagan, fresh from a budget-cutting victory in the Senate, sharply criticized House Democrats yesterday for proposing "unconscionable" spending reductions "they know cannot be made." Shortly after the Senate Budget Committee voted approval of $39.6 billion in cuts he favors, the president said he will have "no other choice" but to fight Democrats on the floor of the House if they don't remake their own proposals to his liking. ON A VOTE of 19-0, the Senate panel sent the bill to the floor, where passage seems assured next week. Reagan insisted the relief from his tax-cut plan would fall principally to the middle class-not just wealthy Americans. He also declared that time for act6n on the three- year, 25 percent across-the-board tax package was slipping away, demanding that the lawmakers "deliver to my desk before the August recess not one but two bills-a spending bill and a tax bill." REAGAN ACCUSED House Speaker Thomas O'Neill Jr. of "sheer demogoguery" for saying the tax and spending programs would do nothing for average Americans. O'Neill had said the president doesn't understand the conmon man because he associates only with the rich. O'Neill later responded with just this statement: "The president's program speaks for itself." The speaker and other Democratic leaders are in- sisting on a two-year tax cut with more of the relief targeted toward those witl incomes under $50,000 a year. HOUSE COMMITTEES have recommended budget cuts of $37.4 billion for next year-more than $2 billion above the amount called for in the budget outline approved earlier. But in many cases, the details of the cuts differ from the president's recom- mendations. Reagan said the Democratic-controlled commit- tees in the House should revise their proposals to "honestly and responsibly" achieve the spending goals in the budget outline. Meanwhile, the House Ways and Means Committee continued its discussion of the president's plan for cutting business taxes. The panel could take its first vote on the tax-cut package today. The committee plans to complete work on the business tax reduction before it starts work i perr sonal tax cuts.