85. Telegram From the Embassy in France to the Department of State1

26805. Kuwait pass Baghdad. Subject: Prepcon II—Third Day. Ref: Paris 26678.2

1. Summary: Prepcon II concluded successfully at 4:10 a.m. October 16.3 Last day spent in tedious negotiation of general guidelines for the commissions which the Prepcon would recommend to the Ministerial conference. On Wednesday morning,4 U.S. obtained EC and Japanese approval for packet of material containing revised non-paper (reftel) interpreting relevant paras of French consensus relating to work of four commissions (paras 4.3–4.6) and annexes containing lists of discussion topics proposed by seven, and U.S. subsequent negotiations with seven led to other changes but retained connection to relevant paras in consensus.5 It was subsequently agreed that the two lists of topics for discussion by commissions would be detached and filed as official Prepcon documents. In final plenary Japanese delegate stated that while Japan might wish later to submit its own list of topics for discussion, the US list generally covered the subjects his country wished to discuss. Final communiqué incorporated negotiated guidelines and Prepcon agreements on procedural issus.

2. Final conference communiqué follows: Begin text:

Final Declaration of the Preparatory Meeting for the Conference on International Economic Co-operation, Paris, 16 October 1975

1. The participants in the preparatory meeting for the international conference proposed by the President of the French Republic, which was held in Paris from 7 to 15 April 1975, met again at the International Conference Centre from 13 to 16 October 1975 under the technical [Page 289] chairmanship of Mr. de Guiringaud, Ambassador of France, with a view to pursuing preparation for the dialogue on energy, raw materials, problems of development, including all related financial questions.

2. The ten delegations confirmed the agreement of their authorities on the convening of an international conference on these questions. They decided that the conference will be called the “Conference on International Economic Co-operation”, that it will be held in Paris, that it will be composed of 27 members designated as indicated below, and that it will be convened at Ministerial level on 16 December 1975 for a session of two or possibly three days. The Secretary-General of the United Nations will be invited to the Ministerial conference.

3. The European Economic Community, the United States and Japan, on the one hand, and the seven developing countries participating in the preparatory meeting (Algeria, Brazil, India, Iran, Saudi Arabia, Venezuela, Zaire), on the other hand, will assume responsibility for the designation, from among their respective groups and according to the procedures which the industrialized countries and the developing countries, respectively, deem appropriate, of five industrialized countries and twelve developing countries, to be added to the present participants so as to bring to twenty-seven the number of participants in the conference. The French Government will be notified, within a period which should not exceed one month, of the list thus established of the delegations to be invited to the Ministerial conference.

4. The ten delegations also decided that the conference should have two co-chairmen chosen respectively by each of the two participating groups from among its members, and that they should preside alternately over the meetings in a manner to be agreed between them. The participants in the preparatory meeting recommend that the two co-chairmen should be designated as soon as possible after the lists of participants in the conference have been completed, and they suggest that the two co-chairmen should begin, immediately after being designated, to take together all necessary steps, in liaison with the host country, to ensure that the Ministerial conference proceeds satisfactorily.

5. The preparatory meeting proposes to the Ministerial conference that it set up a commission for energy, a commission for raw materials, a commission for development and a commission for financial affairs. Each of these commissions should consist of fifteen members, ten of them representing developing participants in the conference from among its members.

6. In determining the composition of its representation in each commission, each of the two groups at the conference should choose from among its members those who, because of their special interest [Page 290] and the overall significance of their participation, seem best suited to take part in order that the work may be carried out in an effective and responsible manner.

7. The chairmanship of each of the commissions should be assumed by two co-chairmen designated by each of the two groups respectively. Joint meetings of the co-chairmen of the commissions may be planned if the need arises.

8. The preparatory meeting recommends that the intergovernmental functional organizations which are directly concerned with the problems considered, and which the Ministerial conference deems to be able to make a useful contribution to their discussion, be represented on a permanent basis in the corresponding commissions by observers with the right to speak but without the right to vote, and hence not participating in the formation of a consensus. In addition to the United Nations Secretariat, the list of these organizations should include, in particular, OPEC, IEA, UNCTAD, OECD, FAO, GATT, UNIDO, UNDP, IMF, and IBRD. Furthermore, each commission may invite appropriate intergovernmental functional organizations to participate as observers ad hoc in the examination of specific questions.

9. Members of the conference wishing to follow the work of a commission to which they do not belong should be entitled to appoint a representative in the capacity of auditor without the right to speak.

10. The activities of the four commissions whose establishment is recommended by the preparatory meeting will proceed on the basis of the relevant paragraphs of the aide-mémoire annexed to the French invitation:6

(A) It is understood that the commission on energy will facilitate all arrangements which may seem advisable in the field of energy.

(B) It is understood that the commission on raw materials will take into account the progress made in other international forums and will be entrusted with facilitating the establishment or reinforcement, as the case may be, or arrangements which may seem advisable in the field of raw materials—including foodstuffs—which are of particular interest to developing countries.

(C) It is understood that the commission on development will take into account the progress in other international forums and the results achieved, and will be entrusted with facilitating the establishment or reinforcement, as the case may be, of arrangements for accelerating the development of developing countries, on the basis of close co-operation.

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(D) It is understood that the commission on financial affairs may discuss financial issues, including their monetary aspects, of importance to member countries, while respecting the jurisdiction of international institutions (IMF, IBRD).

(E) It is understood that the four commissions should function in parallel and that the results of their work are linked and should be submitted to the Ministerial conference.

11. It is agreed that any delegation may raise any subject relevant to the themes of the dialogue for discussion in the commissions.

12. It has been agreed in accordance with the relevant paragraphs of the above-mentioned aide-mémoire that the Ministerial conference will be called upon to set the general guidelines for the work of the commissions.

13. The preparatory meeting recommends to the Ministerial conference that the relevant paragraphs of the above-mentioned aide-mémoire, as interpreted and clarified above, as well as the above-mentioned guidelines for the commissions. [sic]

14. Some delegations have already tabled with this preparatory meeting documents proposing subjects to be discussed in the commissions. The preparatory meeting recommends that the Ministerial conference agree that these and any other proposals which may be tabled subsequently in accordance with the general guidelines be discussed in the commissions.

15. As regards the practical measures, the preparatory meeting recommends that the conference adopt English, Arabic, Spanish and French as official languages and working languages.

16. The preparatory meeting recommends that the conference adopt the rules of procedure which it itself had adopted, and which are based, in particular, on the principle of “consensus”, according to which decisions and recommendations are adopted when the chair has established that no member delegation has made any objection.

17. The preparatory meeting considers that the conference should have an international secretariat with an exclusively administrative and technical function, the Ministerial meeting being responsible on the basis of proposals by the two co-chairmen, for determining its organization, establishing its operational procedure and allocating the financial costs in respect of it. It is understood, however, that pending a decision on the provisions to be adopted for the continuation of the work, the French Government will assume responsibility and provide the secretariat for the Ministerial meeting scheduled for December 1975, under the conditions in which these services were provided for the preparatory meeting.

18. The preparatory meeting finally recommends that the Ministerial conference decide to meet again at Ministerial level in about twelve [Page 292] months’ time. One or several meetings of the conference at the level of government officials could possibly be held at least six months after the first meeting of the conference.

19. In conclusion, the participants paid tribute to President Giscard d’Estaing for the initiative taken by him, thanks to which a dialogue was successfully initiated, and to the French Government for all the efforts it has made towards that end. End text.

3. Conference concluded with constructive and conciliatory atmosphere similar to that existing at start of meeting. General sentiment was that, despite difficulties Tuesday night,7 first step in dialogue scenario had successfully set stage for December Ministerial and inauguration of substantive work in the four commissions.

4. In brief press conference at close of Prepcon, de Guiringaud applauded cooperative spirit which led to agreement on final declaration and lists of topics for discussion in commissions. He released to press final declaration of Prepcon, French aide-mémoire and lists submitted by group of seven and U.S. Recommend Department make these documents available to press, emphasizing that para 10 of final declaration incorporates relevant paras (4.3 to 4.6) of aide-mémoire.

5. Under Secretary Robinson followed with short press conference praising the cooperative attitude of the participants and stressing the importance of the dialogue to increased international understanding.

6. Septel contains lists of topics for commissions submitted by U.S. and seven.8

  1. Source: National Archives, RG 59, Central Foreign Policy Files, P760140–2253. Confidential; Immediate. Repeated to Bern, Stockholm, The Hague, Madrid, Copenhagen, Oslo, London, Dublin, Wellington, USUN, Tokyo, Ottawa, Caracas, Brasilia, Vienna, Luxembourg, Brussels for the Embassy and USEC, Bonn, Rome, Ankara, Tehran, Jidda, New Delhi, Kinshasa, Libreville, Lagos, Tripoli, Kuwait, Abu Dhabi, Doha, Quito, Jakarta, Baghdad, USOECD Paris, and Algiers.
  2. Telegram 26678 from Paris, October 15, transmitted the text of the U.S. “non-paper,” which revised the proposed “new language describing four commissions” introduced by the seven OPEC/LDC countries. (Ibid., D750356–0877) The new language introduced by “the seven,” as they were called, was transmitted in telegram 26677 from Paris, October 15. (Ibid., D750357–0032)
  3. Telegrams 26530, October 13, and 26676, October 15, from Paris, reported on the first and second days of Prepcon II. (Both ibid., D750355–0374 and D750356–0870)
  4. October 15.
  5. The consensus proposal in the French aide-mémoire; see Document 78.
  6. See footnote 4, Document 78.
  7. October 14. That evening Algeria submitted a paper, which the U.S. delegation called “unhelpful,” for tabling the next day. The paper contained suggested guidelines for the commissions as proposed by the group of seven OPEC/LDC countries. The text of the paper was transmitted in telegram 26677 from Paris, October 15. (National Archives, RG 59, Central Foreign Policy Files, D750357–0032)
  8. Telegram 26806 from Paris, October 16. (Ibid.)