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WITH HIS MORALLY BANKRUPT POLICY being spurned and the economic sanctions movement gaining momentum in the U.S. Senate, President Ronald Reagan delivered a vacuous speech on South Africa aimed at demonstrating his administration was committed to change there. Critics, however, charged that the real intention of the televised talk was to buy time for his friends in Pretoria who are stockpiling vital commodities likely to be banned once sanctions are imposed. Reagan's discredited policy reached an all-time low when the appointment of Black businessman, Robert Brown, as ambassador to South Africa, was promoted and then abandoned because of Brown's dubious dealings in Nigeria. Chief of Staff Donald Regan also hurt the administration when he said a boycott of South Africa should be ruled out because American women would suffer from the loss of their diamond ring supplier. The announcement that a Black foreign service official would assume the diplomatic post in Pretoria could not conceal a speech that reflected the President's continued loyalty to the Botha regime and his increasing isolation on this issue as a consequence . . . A CONSTITUTIONAL CRISIS is brewing in Britain with the Sunday London Times reporting that Queen Elizabeth is unhappy with Prime Minister Thatcher's handling of the sanctions issue with the Commonwealth nations. The absence of African, Asian and Caribbean countries at the Commonwealth Games -- they boycotted the sports activity because of Thatcher's "hands-off South Africa" policy -- brought home the message that the Commonwealth is disintergrating. While the Queen's role in Britain is primarily symbolic, she is responsible for the maintenance of the Commonwealth, which represents 45 nations. Commonwealth leaders have asked the Queen to intercede on their behalf to pressure Thatcher into cutting ties with the Afrikaners . . . AS PRESIDENT REAGAN and Prime Minister Thatcher defended their policies, security forces in South Africa teargassed an entire congregation while the church service was in progress. The South African Weekly Mail also reported that 5,000 persons are in detention, including 2,294 trade unionists, and nearly 400 Blacks were killed in the combined months of May and June . . . ZIMBABWE'S President Robert Mugabe said a statement made by his Minister of Youth, Sport, and Culture, which blasted the U.S. policy in southern Africa, and caused former President Jimmy Carter to walk out on the speech in Harare, "was inappropriate." Mugabe stated, "Therefore, an apology, if it is to be made, must be made to Mr. Carter, but certainly not to Mr. Reagan. We cannot apologize for criticizing Mr. Reagan for refusing to impose sanctions against South Africa" . . . NIGERIA AND ANGOLA signed a cultural, educational and technological agreement expanding the scope of their relationship . . . TENSIONS WERE REDUCED as Sierra Leone and Liberia began discussions on signing a mutual non-aggression pact as part of a "treaty of friendship" . . . PALESTINE LIBERATION ORGANIZATION Chairman Yasir Arafat accused Jordan and Syria of collaborating with the United States and Israel on a "secret, racist plan to implement a Bantustan-styled federal state comprising Jordan, the West Bank and the Gaza Strip" . . . THE ISRAELI GOVERNMENT made it clear it had no objection to Vice President George Bush combining his forthcoming visit to Israel with a visit to Syria. Israell officials also agreed to cooperate in the clarification of its alleged use of cluster bombs only after subpoenas summoning them to testify before juries in Iowa and Pennsylvania have been rescinded . . . ALGERIAN PRESIDENT CHADI BENDJEDID returned to Algiers after leaving Belgium, where he underwent surgerv . . . ANTI-JAPANESE SENTIMENT is growing in China with the announcement that a $6 billion trade imbalance in favor of Japan is forcing the Peking government to slow the economy . . . FORTY MORE ANTI-GOVERNMENT demonstrators were arrested in Seoul, South Korea. The demonstrators were protesting the use of torture by government police. Opposition forces said the military government was insincere about reforming the political process because it continues to jail critics of the regime . . . INDIA'S PRIME MINISTER Rajiv Gandhi said his government has evidence "about the training of terrorists in Punjab by Pakistan." Gandhi alluded to the confessions of several "extremists" who are being held . . . THE INDIAN AND CHINESE GOVERNMENTS began talks on a long-standing border dispute. Two weeks ago the Indian government accused Chinese troops of invading its territory . . . CHILEAN DICTATOR General Augusto Pinochet confirmed his decision to extend his regime for another 11 years, to halt "the totalitarian threat" of communism. In another development, 25 soldiers were implicated in the brutal torture and murder of District resident Rodrigo Rojas. The government, which initially said Rojas suffered from severe burns because he was carrying a bomb, retreated from its position after Washington officials threatened the regime with a cutoff in loans. The military government, however, is hardpressed to explain why Rojas was arrested and denied medical attention if the 25 soldiers were acting independently . . . THE NICARAGUAN GOVERNMENT celebrated its seventh anniversary . . . FINALLY, Jamaican President Edward Seaga and opposition leader Michael Manley pledged to improve communication between their parties to avoid violent clashes among their supporters . . .