Watt: Indian reservations show failure of socialism

Interior Secretary James Watt called Indian reservations ''an example of the failure of socialism,'' and implied Indians would be better off without them. In an interview taped for broadcast Wednesday on the Satellite Program Network, Mr. Watt said the 1.4 million Indians who live on government-maintained reservations experience overwhelming social problems, including drug abuse, alcoholism, unemployment, divorce, and venereal disease.

Indian leaders said Mr. Watt oversimplified and exaggerated Indian problems in his statement.