Luxembourg has pursued a pro-U.S., pro-NATO foreign policy, and the President expressed to the Grand Duke his appreciation for Luxembourg's support in this effort. Luxembourg is an active member of the Atlantic alliance. It plays a pivotal role in our common security policies, particularly for logistics, reenforcement, and communications.

Luxembourgers, and the Grand Duke in particular, have a strong attachment to this country. The Grand Duke reiterated his family's great appreciation for our wartime assistance, beginning with the evacuation of the Royal Family in 1940. As you know, the Grand Duke lived in Washington during World War II.

The Grand Duke and the President had met previously at Normandy in June, and this was of special significance to the Grand Duke, who was then a lieutenant in the Irish Guards and participated in the Normandy invasion.

The Grand Duke recalled his experiences with the American Army that liberated Luxembourg 40 years ago. And he noted that he is especially pleased to be able to spend time this week with the U.S. Army's Fourth Infantry Division at Fort Carson, Colorado, and this is the unit that he accompanied on the liberation of Luxembourg.

The President, on his part, reviewed our efforts to reestablish a productive dialog with the Soviets on all issues, and in arms control, in particular. The President provided the Grand Duke an idea of where we hope to go in the second Reagan term. And in addition, the Grand Duke indicated that the strong vote of confidence the President received from the American electorate will enable this administration to deal with the Soviets from a position of great confidence.

The Grand Duke noted that Luxembourg will assume the Presidency of the European Community in the latter half of 1985. And he noted that he would want his government to work closely with the U.S. in managing the U.S. economic community relations.

President Reagan reviewed the latest developments in Central America, and of particular interest to the Grand Duke was the positive turn toward democracy in El Salvador under President Duarte.

Note: Larry M. Speakes read the statement to reporters assembled in the Briefing Room at the White House during his daily press briefing, which began at 12:34 p.m.