Soviet Spying Casts ‘Heavy Shadow’ on Talks--Shultz

WASHINGTON — Secretary of State George P. Shultz, saying “we’re damned upset” about Soviet snooping at the U.S. Embassy in Moscow, said today the sex-for-secrets scandal will “cast a heavy shadow” over his meetings in Moscow next week.

Shultz told a news conference that as secretary of state he takes responsibility for security lapses that allowed Soviet KGB agents access to the most sensitive areas of the embassy by enticing Marine guards with sexual affairs.

“The person in charge is the ambassador. The ambassador reports to me. So I am responsible,” Shultz told reporters at the State Department.

Shultz said all steps are being taken to investigate just how serious the security lapses at the embassy were and to correct the problems.

He said that even though the U.S. government is fully aware of the fact that Soviet intelligence is constantly probing for access to official secrets, “the reality of it is a shock.”

He dismissed allegations by the Soviets that the scandal is being trumped up by the United States to sabotage the chances for success of his talks in Moscow next week.

“We didn’t break into their embassy. They broke into our embassy. They invaded our sovereign territory and we’re damned upset about it. We’re upset at them and we’re also upset at ourselves and we intend to do everything we can to correct our problems,” he said.

Shultz said the suggestion that he cancel his trip to Moscow next week because of the security situation has “come up from a number of quarters” but President Reagan decided he should go forward. “There are potentially important things to talk about,” Shultz said.