REAGAN HOPES FOR A BREAK IN TWO FOREIGN PREDICAMENTS
WASHINGTON PRESIDENT REAGAN'S talents for making the best of adversity were being tested last week. Like a man pulling rabbits out of his hat, he was trying to show a skeptical public and Congress that Administration policies in the Middle East and Central America were better than they looked. In Lebanon, there were signs of diplomatic progress that Mr. Reagan could conceivably use as a reason for withdrawing American troops, or at least redeploying them more safely. In El Salvador, there was marked military deterioration. Yet Presidential aides hoped that a bipartisan commission on Central America, headed by former Secretary of State Henry A. Kissinger, could build support for increases in military and economic aid. The commission's seven-volume report, due this week, may seek more aid than Mr. Reagan is prepared to support. The commission was contemplating an extraordinary recommendation - $8 billion in aid to Central America over the next five years.