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A Democratic Governor became a chief spokesman for the new antigovernment conservatism in the U.S. California's Jerry Brown, 37, surprised everyone by outdoing even his predecessor, Ronald Reagan, in cutting spending and avoiding new taxes. Brown won an approval rating among state voters of better than 7 to 1 by preaching—and practicing—the life of frugality ("We'll take whatever the revenue is, spend it—and that's it, folks"). Intellectually agile, he insisted that he had no ready answer for complicated problems, but was trying to get the questions straight. Brown was also staying aloof from the usual political rituals, such as Governors' conferences. He was widely regarded as the most interesting new politician on the scene.
Leaders abroad demonstrated a similar trend to moderation and practicality v. Egypt's President Anwar Sadat continued to convert a country that had once been a prime troublemaker into a force for peace and stability. When Kissinger's diplomacy broke down in March, Sadat kept hope alive by shrewdly announcing that he would reopen the Suez Canal. Finally, he proved strong enough to agree to a second-stage disengagement with Israel. He pledged to refrain from military action. In exchange, the Israelis made a partial withdrawal from the Sinai, giving up key military passes and returning oilfields to Egypt. Sadat also won a promise of $700 million in U.S. aid. But he lost ground with more radical Arab leaders, who accused him of selling out to the enemy.
By leading a conservative coalition to the biggest parliamentary majority in Australian history last month, new Prime Minister Malcolm Fraser was given a clear mandate to undo the costly excesses of the Labor government's welfare state. Runaway taxes, inflation and unemployment had soured the electorate on big spending. Fraser's stunning upset of former Prime Minister Gough Whitlam signaled a return to free-market policies and a retreat from the courting of Communist and Third World countries.
In China, Teng Hsiao-ping made a near miraculous recovery from the political dead. A chief target of the left-wing Red Guard during the Cultural Revolution, he was marched through the streets in 1966 with a dunce cap pulled over his ears. Now the cap has shifted heads. A skilled administrator whose only immoderation is an implacable hatred of the Soviet Union, Teng was returned as party vice chairman. With Chairman Mao Tse-tung and Premier Chou En-lai both ill and enfeebled, Teng in most respects was China's de facto ruler.
In chaotic Portugal, Communists, along with other ultra-leftists, came close to seizing power. Eventually, they were defeated by the moderates, including Socialist Leader Mário Soares. Though the Communists remain the nation's best-organized political force, they were at least temporarily sidelined because of their militant, Moscow-lining tactics. In sharp contrast, the Communists made dramatic advances in Italy. Their flexible chief, Enrico Berlinguer, preached independence from Moscow and showed a willingness to compromise with other parties. The Communists are given a chance of coming to power democratically, a development that would have dangerous implications for the Western Alliance. In the June regional elections in Italy, Communists won a third of the vote.