Dacca, March 8. The crisis in Pakistan moved into a new phase today as both sides faced the choice of political compromise or a head-on collision. That some room for compromise still existed was shown in yesterday’s long-awaited speech by Sheikh Mujibur Rahman, the East Pakistan leader. He set out four demands which must be met by the military regime before he will agree to enter the Constituent Assembly with other political leaders on March 25. Although much of the tension which has prevailed in Dacca and the rest of East Pakistan for the past week remains, there is no doubt that a breathing space has arrived. The danger is that the militants on both sides and particularly the radical students who stand with the Sheikh, may attempt to push the crisis to the brink again.

A measure of the uncertainty about the future in East Pakistan is the fact that plans are already under way to allow all foreign nationals who so desire to leave the country. The first batch of Germans - dependents of embassy staff and others working in East Pakistan - were flown to Bangkok today. A BO AC VC 10 airliner is expected in Dacca tomorrow to fly out all Britons who wish to leave. Neither plan has been called an evacuation, but it is clear that the respective governments have felt it prudent to take precautions. None of the massive demonstrations of the past week saw the foreign community or foreign interests as a target, but in the absence of law and order there can be no guarantee that this mood will not change.

For the Bengalis the issue is clear: either Sheikh Mujibur and his Awami League, who won a clear majority in the country’s general election, are afforded the power they are entitled to or the election becomes a farce. As it stands the Sheikh is the only effective power in East Pakistan. This, of course, could change should the Army decide to risk the outcome of an attempt to regain control by force. But for the present the Sheikh’s position is formidable. Dacca, which observed strictly the stike called by the Awami League in protest against the postponement of the Constituent Assembly meeting of March 3, has again answered the Sheikh’s call for a continued partial strike.

Although essential services have been restored throughout the province, all Government and private offices, schools and universities will remain closed. Tax payments will be suspended, banking transactions between the two wings of Pakistan are stopped and West Pakistan accounts in the east wing will be blocked until further notice. The Sheikh has embarked upon economic warfare with the west wing since these economic measures will cause a serious disruption of the east-west commerce. East Bengalis believe that, as most of their manufactured goods come from West Pakistan, the effects of such disruption will be felt there.

The Sheikh achieved another victory in his civil disobedience campaign today when the radio station in Dacca agreed to broadcast the speech he delivered to yesterday’s rally. The fact that the speech was not broadcast at the time led to a protest and an incident in which a home-made bomb was thrown at the station.