Foreign Relations of the United States, 1969–1976, Volume E–14, Part 1, Documents on the United Nations, 1973–1976

28. Telegram 207669/Tosec 100402 From the Department of State to All Diplomatic Posts, September 1, 1975, 0944Z.¹ ²

September 1, 1975, 0944Z

TELEGRAM
Department of State
207669

O 010944Z SEP 75 ZFF5

FM SECSTATE WASHDC
TO ALL DIPLOMATIC POSTS IMMEDIATE
INFO USMISSION USUN NEW YORK IMMEDIATE
USMISSION GENEVA
USMISSION EC BRUSSELS
USMISSION OECD PARIS
AMEMBASSY ROME
AMEMBASSY VIENNA
AMEMBASSY PARIS
USMISSION IAEA VIENNA
USDEL SECRETARY IMMEDIATE

STATE 207669 TOSEC 100402

ROME FOR FAO, VIENNA FOR UNIDO, PARIS FOR UNESCO

E.O. 11652: N/A
TAGS: EGEN, UNGA

SUBJECT: SECRETARY’S SPEECH AT UNGA SEVENTH SPECIAL SESSION

1. POSTS ARE RECEIVING BY USIS DAILY WIRELESS FILE THE FULL TEXT OF SECRETARY KISSINGER’S SPEECH TO THE SEVENTH SPECIAL SESSION OF THE UNGA, WHICH WILL BE READ AT THE SESSION ON SEPTEMBER 1 ABOUT 1600 EDT BY AMBASSADOR MOYNIHAN ON BEHALF OF THE SECRETARY. USIA IS ALSO TRANSMITTING FRENCH AND SPANISH TRANSLATIONS TO APPROPRIATE POSTS. THE DAILY WIRELESS FILE IS ALSO CARRYING QUESTIONS AND ANSWERS FOR USE IN ANSWERING THE PRESS.

2. CHIEFS OF MISSION ARE URGENTLY REQUESTED TO DELIVER COPIES OF THE SECRETARY’S SPEECH TO THE MOST APPROPRIATE OFFICIALS OF HOST GOVERNMENTS. IN DOING SO, UNLESS THEY SEE REASONS DICTATING OTHERWISE, IT IS SUGGESTED THEY HIGHLIGHT THE POINTS OUTLINED BELOW, WHILE BEING FREE TO DRAW UPON ANY OTHER ASPECTS OF THE SECRETARY’S SPEECH WHICH THEY FEEL WOULD BE PARTICULARLY USEFUL TO EMPHASIZE IN EACH CASE.

3. YOU SHOULD STRESS THAT THE SECRETARY’S SPEECH REPRESENTS AN EXTRAORDINARY INITIATIVE BY THE USG TO PUT FORWARD A COMPREHENSIVE, PRACTICABLE AND SYMPATHETIC RESPONSE TO LDC DEVELOPMENTAL AND EMERGENCY NEEDS. IT IS A SINCERE EFFORT TO BRING ABOUT A CONSTRUCTIVE DIALOGUE LEADING TO CONCRETE SOLUTIONS OF SPECIFIC PROBLEMS, WHILE TURNING AWAY FROM CONFRONTATION OVER BROAD, RHETORICAL AND IDEOLOGICAL ISSUES. WE HAVE HEARD LDC CONCERNS AND ASPIRATIONS. NOW WE MUST BEGIN CONSTRUCTIVE COOPERATION IN REACHING MUTUALLY ACCEPTABLE SOLUTIONS WHEREVER THESE ARE ATTAINABLE.

4. WE WANT HOST GOVERNMENTS TO APPRECIATE THAT THE USG LOOKS FORWARD TO SERIOUS AND CONTINUING EFFORT TO WORK OUT THE TYPE OF MEASURES WHICH WE BELIEVE, AS INDICATED IN SECRETARY’S SPEECH, WILL BRING SUBSTANTIAL BENEFITS. VIEWED IN THIS LIGHT, DEMARCHES ARE NOT REQUESTS FOR IMMEDIATE OR SPECIFIC SUPPORT OR ENDORSEMENT BY HOST GOVERNMENTS FOR PARTICULAR PROPOSALS. THESE WILL NATURALLY HAVE TO BE STUDIED CAREFULLY OVER TIME AND BE WORKED ON IN MANY FORUMS. DEMARCHES SHOULD INSTEAD BE VIEWED AS CALLS FOR BEGINNING A NEW PROCESS OF COOPERATION. ALTHOUGH WE ARE NOT NOW MAKING ANY SPECIFIC REQUESTS, WE WOULD OF COURSE WELCOME IT IF LDC HOST GOVERNMENTS BEGINNING THIS PROCESS OF SERIOUS STUDY AND DIALOGUE WITH US SAW FIT TO PROVIDE GENERAL GUIDANCE TO DELEGATIONS IN NEW YORK IN FAVOR OF SEARCHING FOR A MORE COOPERATIVE APPROACH THAN HAS EXISTED IN THE PAST AND IN FAVOR OF ENCOURAGEMENT OF SERIOUS WORK IN AREAS WHERE CONCRETE GAINS MAY BE POSSIBLE.

5. SUMMARY OF THE SECRETARY’S SPEECH FOLLOWS.

6. THE U.S. HAS MADE A MAJOR EFFORT, IN RESPONSE TO THE CONCERNS OF DEVELOPING COUNTRIES, TO FORMULATE A PROGRAM OF PRACTICAL STEPS FOR INTERNATIONAL ACTION; WE ARE PREPARED TO CONSIDER THE PROPOSALS OF OTHERS; AND WE ARE COMMITTED TO A CONSTRUCTIVE EFFORT. HOWEVER, WHILE THE WORLD HAS THE TECHNICAL CAPACITY TO PROVIDE A TOLERABLE STANDARD OF LIFE FOR ITS PEOPLE, ECONOMIC ISSUES BETWEEN DEVELOPING AND DEVELOPED COUNTRIES HAVE BECOME THE SUBJECT OF MOUNTING CONFRONTATIONS WHICH COULD RESULT IN HARDENING BLOCS AND DIVISIONS THAT WOULD UNDERMINE COOPERATION AND DEVELOPMENT--A SITUATION FOR WHICH THE LDC’S WOULD PAY THE GREATER COST. BUT THE REALITY IS THAT THE WORLD ECONOMY IS A SINGLE GLOBAL SYSTEM OF TRADE AND MONETARY RELATIONS ON WHICH THE DEVELOPMENT OF ALL ECONOMIES HINGES, SO THAT ECONOMIC CHALLENGES SHOULD UNITE RATHER THAN DIVIDE.

7. THE ASSEMBLED NATIONS HAVE THE CHOICE OF OFFERING THEIR PEOPLE SLOGANS OR SOLUTIONS, OF DEALING IN RHETORIC OR REALITY. WE MUST GET DOWN TO BUSINESS AND PUT ASIDE THE STERILE DEBATE OVER WHETHER A NEW ECONOMIC ORDER IS REQUIRED OR WHETHER THE OLD ECONOMIC ORDER IS ADEQUATE. THERE MUST BE CONSENSUS, WITHOUT WHICH WE WILL ACHIEVE NOTHING--A CONSENSUS ACKNOWLEDGING OUR RESPECTIVE CONCERNS AND MUTUAL OBLIGATIONS, AND THAT ALL OF US HAVE RIGHTS AND DUTIES; A CONSENSUS EMBRACING THE ROLE AND VOICE OF THE LDC’S IN DECISIONS AFFECTING THEM AND A COMMENSURATE VOICE FOR THOSE WHO ARE ASKED TO PROVIDE THE RESOURCES AND EFFORT.

8. THE U.S. OFFERS CONCRETE PROPOSALS FOR INTERNATIONAL ACTION TO PROMOTE LDC DEVELOPMENT, GROUPED IN FIVE FUNDAMENTAL AREAS OF DEVELOPMENT STRATEGY: BASIC ECONOMIC SECURITY, ACCELERATED GROWTH, TRADE, COMMODITIES, AND THE NEEDS OF THE POOREST COUNTRIES, ADDING AT THE END THE POLITICAL DIMENSION OF DECISION-MAKING AND STRUCTURAL REFORM. THE FOLLOWING SUMMARIZES THESE PROPOSALS (NUMBERING OVER THIRTY PROPOSALS AND STATEMENTS OF NEW POLICY):

A. ECONOMIC SECURITY

OUR FIRST TASK IS TO ENSURE BASIC ECONOMIC SECURITY IN THE FACE OF DAMAGING SHOCKS AND CYCLES. DEVELOPING ECONOMIES ARE THE MOST VULNERABLE TO NATURAL AND MAN-MADE DISASTERS, INCLUDING SHARP INCREASES IN THE PRICE OF OIL AND FOOD, AND RECESSION IN INDUSTRIAL COUNTRIES.

1) THE U.S. HAS SUPPORTED THE PROPOSAL FOR A MEETING OF INDUSTRIALIZED, OIL PRODUCING AND DEVELOPING COUNTRIES TO RE-LAUNCH A DIALOGUE ON PROBLEMS OF ENERGY, DEVELOPMENT, RAW MATERIALS AND RELATED FINANCIAL ISSUES. ARBITRARY INCREASES IN THE PRICE OF OIL HAVE SHATTERED THE ECONOMIC PLANNING AND PROGRESS OF MANY NATIONS AND ANOTHER INCREASE COULD SLOW DOWN OR REVERSE THE PROCESS OF RECOVERY AND DEVELOPMENT.

2) THE MAJOR U.S. PROPOSAL IN MEETING THE SERIOUS PROBLEM OF FLUCTUATIONS AND SHORTFALLS IN LDC EXPORT EARNINGS IS TO ESTABLISH A NEW DEVELOPMENT SECURITY FACILITY WITHIN THE IMF TO STABILIZE OVERALL EXPORT EARNINGS. ELIGIBLE COUNTRIES COULD DRAW MOST OR UNDER CERTAIN CIRCUMSTANCES ALL OF THEIR IMF QUOTAS, IN ADDITION TO THEIR NORMAL DRAWING RIGHTS. THE FACILITY WOULD NOT BE AVAILABLE TO DEVELOPED COUNTRIES. IT COULD LOAN UP TO $2.5 BILLION, OR MORE, IN A SINGLE YEAR AND A POTENTIAL TOTAL OF $10 BILLION IN LOANS OUTSTANDING. THE POOREST COUNTRIES COULD, UNDER PRESCRIBED CONDITIONS, CONVERT LOANS FROM THE FACILITY INTO GRANTS THROUGH THE NEW IMF TRUST FUND. THE DEVELOPMENT SECURITY FACILITY WOULD REPLACE THE IMF’S COMPENSATORY FINANCING FACILITY.

B. ACCELERATING ECONOMIC GROWTH

THIS IS A PROCESS REQUIRING THE INFUSION OF CAPITAL, TECHNOLOGY AND MANAGERIAL SKILLS ON A MASSIVE SCALE, BOTH FROM GOVERNMENTAL AND PRIVATE SOURCES.

1) TO IMPROVE LDC ACCESS TO CAPITAL MARKETS: (A) THE U.S. AND OTHER DC’S ARE JOINING IN A $6 BILLION EXPANSION OF THE INTER-AMERICAN DEVELOPMENT BANK; THE U.S. WILL PARTICIPATE IN NEGOTIATIONS FOR THE REPLENISHMENT OF THE ASIAN DEVELOPMENT BANK; AND WE ARE SEEKING CONGRESSIONAL AUTHORITY TO JOIN THE AFRICAN DEVELOPMENT FUND. (B) THE U.S. WILL SUPPORT A MAJOR EXPANSION OF THE WORLD BANK’S INTERNATIONAL FINANCE CORPORATION (IFC) FROM A PRESENT LEVEL OF $100 MILLION TO AT LEAST $400 MILLION. (C) THE U.S. PROPOSES THE CREATION OF AN INTERNATIONAL INVESTMENT TRUST MANAGED BY THE IFC TO CHANNEL PUBLIC AND PRIVATE CAPITAL FOR INVESTMENT INTO LDC PUBLIC, PRIVATE AND MIXED ENTERPRISES. (D) THE U.S. WILL CONTRIBUTE ACTIVELY TO THE WORK OF THE IMF/WORLD BANK DEVELOPMENT COMMITTEE TO DEVELOP OTHER MEASURES TO IMPROVE LDC ACCESS TO CAPITAL MARKETS.

2) PRIORITY AREAS FOR THE TRANSFER OF TECHNOLOGY FOR DEVELOPMENT ARE: ENERGY, FOOD, OTHER RESOURCES, AND INDUSTRIALIZATION. ENERGY REQUIREMENTS ARE CRITICAL. THE ENORMOUS RISE IN THE COST OF OIL IN THE LAST TWO YEARS HAS MORE THAN WIPED OUT THE TOTAL FOREIGN AID RECEIVED BY LDC’S. (A) THE U.S. INVITES OTHER NATIONS TO JOIN US IN INCREASED BILATERAL SUPPORT FOR TRAINING AND TECHNICAL ASSISTANCE TO HELP LDC’S DEVELOP NEW SOURCES OF FUEL AND ENERGY; WE WILL PROPOSE THE CREATION OF AN INTERNATIONAL ENERGY INSTITUTE TO BRING TOGETHER DC’S, LDC’S, CONSUMERS AND PRODUCERS ON THE PROBLEM OF ENERGY DEVELOPMENT. (B) THE U.S. IS PREPARED TO EXPAND THE CAPACITY OF THE VARIOUS INTERNATIONAL AGRICULTURAL RESEARCH CENTERS AND THE CONSULTATIVE GROUP FOR INTERNATIONAL AGRICULTURAL RESEARCH; AND WE ARE SUPPORTING LEGISLATION TO ENABLE OUR UNIVERSITIES TO EXPAND THEIR TECHNICAL ASSISTANCE AND RESEARCH IN AGRICULTURE. (C) THE U.S. PROPOSES THE CREATION OF A CONSORTIUM TO COORDINATE AND FINANCE ASSISTANCE IN IMPROVING THE PRODUCTIVITY AND COMPETITIVENESS OF NON-FOOD AGRICULTURAL AND FORESTRY PRODUCTS. (D) THE U.S. SUPPORTS THE CREATION OF AN INTERNATIONAL INDUSTRIALIZATION INSTITUTE FOR RESEARCH ON INDUSTRIAL TECHNOLOGY AND AN INTERNATIONAL CENTER FOR THE EXCHANGE OF TECHNOLOGICAL INFORMATION; WE WILL EXPAND OUR BILATERAL ASSISTANCE IN THE AREA OF INDUSTRIAL TECHNOLOGY ESPECIALLY SUITED TO LDC NEEDS; AND WE WILL WORK WITH OTHER UN MEMBERS IN PREPARING GUIDELINES FOR THE TRANSFER OF TECHNOLOGY.

3) TRANSNATIONAL ENTERPRISES HAVE BEEN POWERFUL INSTRUMENTS OF MODERNIZATION; THE WORLD COMMUNITY CANNOT AFFORD TO TREAT THEM AS OBJECTS OF ECONOMIC WARFARE; IF NATIONS CANNOT REACH A CONSENSUS ON THEIR ROLE, LDC’S WILL LOSE AN INVALUABLE ASSET. (A) THE U.S. BELIEVES THE INTERNATIONAL COMMUNITY SHOULD DEVELOP STANDARDS OF CONDUCT FOR BOTH TNE’S AND GOVERNMENTS, WHICH THE UN COMMISSION ON TRANSNATIONAL CORPORATIONS AND OTHER INTERNATIONAL BODIES HAVE BEGUN TO DO. TNE’S SHOULD OBEY LOCAL LAW; REFRAIN FROM UNLAWFUL INTERVENTION; TAKE ACCOUNT OF NATIONAL DEVELOPMENT PRIORITIES; RESPECT LOCAL CULTURE; AND EMPLOY AND TRAIN LOCAL PERSONNEL. HOST GOVERNMENTS SHOULD TREAT TNE’S EQUITABLY, WITHOUT DISCRIMINATION AMONG THEM AND IN ACCORDANCE WITH INTERNATIONAL LAW; AND SHOULD MAKE EXPLICIT THEIR DEVELOPMENT PRIORITIES AND STANDARDS FOR TNE’S AND MAINTAIN THEM WITH REASONABLE CONSISTENCY. BOTH TNE’S AND GOVERNMENTS SHOULD RESPECT THE CONTRACTUAL OBLIGATIONS THEY FREELY UNDERTAKE. PRINCIPLES SHOULD APPLY EQUALLY TO DOMESTIC ENTERPRISES--WITH SPECIFICALLY LIMITED EXCEPTIONS--AND TO PRIVATE, STATE AND MIXED ENTERPRISES. (B) ADDITIONALLY, WE SHOULD DEVELOP OTHER WAYS OF RESOLVING THE PROBLEMS AFFECTING TNE’S, SUCH AS HARMONIZING TAX TREATMENT, FACT-FINDING AND ARBITRAL PROCEDURES, LAWS AGAINST RESTRICTIVE BUSINESS PRACTICES, MULTILATERALIZED INSURANCE FOR FOREIGN INVESTMENT, AND MORE EFFECTIVE BILATERAL CONSULTATION.

C. TRADE

THE MULTILATERAL TRADE NEGOTIATIONS (MTN) IN GENEVA ARE CENTRAL TO MAKING THE TRADING SYSTEM BETTER SERVE DEVELOPMENT GOALS.

1) LDC’S IN EARLY STAGES OF DEVELOPMENT SHOULD RECEIVE SPECIAL TREATMENT, BUT AS THEY PROGRESS THEY SHOULD GRADUALLY ASSUME THE SAME OBLIGATIONS OF RECIPROCITY AS OTHER COUNTRIES AND AT SOME POINT BE PREPARED TO COMPETE ON MORE EQUAL TERMS.

2) WE MUST IMPROVE OPPORTUNITIES FOR THE MANUFACTURING SECTOR OF LDC’S. TO THIS END THE U.S. WILL PUT INTO EFFECT ITS GENERALIZED SYSTEM OF PREFERENCES ON JANUARY 1, 1976, AND BEFORE THEN WILL CONSULT WITH EXPORTING LDC’S ON HOW TO BENEFIT FROM THESE OPPORTUNITIES.

3) IN ORDER TO ADAPT RULES ON NON-TARIFF BARRIERS TO LDC NEEDS, THE U.S. WILL NEGOTIATE SPECIAL CONSIDERATION FOR LDC’S IN SETTING STANDARDS FOR GOVERNMENT PROCUREMENT; AND WILL ALSO NEGOTIATE ON THE BASIS THAT, UNDER PRESCRIBED CONDITIONS, CERTAIN SUBSIDIES WILL NOT TRIGGER COUNTERVAILING DUTIES FOR A PERIOD GEARED TO ACHIEVING PARTICULAR DEVELOPMENT OBJECTIVES.

4) WE WILL WORK TOWARD EARLY AGREEMENT IN THE MTN ON LOWERING TARIFFS ON TROPICAL PRODUCTS.

5) IN ORDER TO CHANGE THE SYSTEM IN INDUSTRIALIZED COUNTRIES THAT FAVORS THE IMPORT OF RAW MATERIALS OVER OTHER GOODS, THE U.S. WILL GIVE HIGH PRIORITY IN THE GENEVA MTN TO REDUCING TARIFFS ON MANUFACTURES AND PROCESSED GOODS SO AS TO ENCOURAGE THESE INDUSTRIES IN LDC’S.

6) ALL COUNTRIES, INCLUDING LDC’S HAVE AN OBLIGATION NOT TO ARBITRARILY WITHHOLD NORMAL EXPORTS, THUS DISRUPTING OTHER ECONOMIES. WE URGE NEGOTIATIONS TO LIMIT AND GOVERN THE USE OF EXPORT RESTRAINTS; AND THE U.S. WILL JOIN OTHERS IN NEGOTIATING SPECIFIC COMMITMENTS TO GUARANTEE THE AVAILABILITY OF COMMODITIES THAT WE EXPORT AS PART OF THE RECIPROCAL EXCHANGE OF CONCESSIONS.

D. COMMODITIES

BOTH LDC’S AND DC’S WOULD BENEFIT FROM MORE STABLE CONDITIONS OF TRADE AND EXPANDED PRODUCTIVE CAPACITY IN TRADE, DC’S BEING THE LARGEST EXPORTERS OF FOOD AND MOST MINERALS.

1) THERE SHOULD BE A GLOBAL APPROACH TO THE VITAL PROBLEM OF FOOD SECURITY. THE U.S. DECLARES THAT IT IS TIME TO CREATE THE INTERNATIONAL SYSTEM OF NATIONALLY HELD GRAIN RESERVES PROPOSED AT THE WORLD FOOD CONFERENCE. TO MEET POTENTIAL SHORTFALLS, TOTAL RESERVES MUST REACH 30 MILLION TONS OF WHEAT AND RICE, AND THE ADDITION OF COARSE GRAINS SHOULD BE CONSIDERED; RESPONSIBILITY FOR HOLDING RESERVES SHOULD BE ALLOCATED FAIRLY, AND THE U.S. IS PREPARED TO HOLD A MAJOR SHARE; ACQUISITION AND RELEASE SHOULD BE GOVERNED BY QUANTITATIVE STANDARDS; FULL PARTICIPANTS SHOULD RECEIVE ASSURED ACCESS; AND SPECIAL ASSISTANCE SHOULD BE EXTENDED TO PARTICIPATING LDC’S TO ENABLE THEM TO MEET THEIR OBLIGATIONS TO HOLD RESERVES.

2) THE SAME COOPERATIVE APPROACH SHOULD BE APPLIED TO OTHER PRIMARY COMMODITIES BESET BY FLUCTUATIONS BUT, SINCE NO SIMPLE FORMULA CAN APPLY EQUALLY TO ALL, THE U.S. PROPOSES TO DISCUSS NEW ARRANGEMENTS ON A CASE-BY-CASE BASIS. THE MOST EFFECTIVE TECHNIQUE IN MANY CASES WILL BE THROUGH BUFFER STOCKS. PRICE FIXING AND RESTRICTED PRODUCTION WOULD RESULT IN DISTORTIONS AND DISLOCATIONS. (A) THE U.S. RECOMMENDS THAT CONSUMER-PRODUCER FORUMS BE ESTABLISHED FOR EVERY KEY COMMODITY TO PROMOTE THE EFFICIENCY, GROWTH AND STABILITY OF ITS MARKET, WITH PARTICULAR IMPORTANCE FOR GRAINS AND COPPER. THE U.S. INTENDS TO SIGN THE TIN AGREEMENT SUBJECT TO CONGRESSIONAL CONSULTATIONS AND RATIFICATION; WE ARE PARTICIPATING ACTIVELY IN NEGOTIATIONS ON COFFEE IN HOPES OF A SATISFACTORY AGREEMENT; AND WE WILL ALSO JOIN IN THE FORTHCOMING COCOA AND SUGAR NEGOTIATIONS. (B) THE U.S. WILL SUPPORT LIBERALIZATION OF THE IMF’S FINANCING OF BUFFER STOCKS, TO ASSURE THAT THIS FACILITY IS AVAILABLE WITHOUT REDUCING OTHER DRAWING RIGHTS.

3) TO EXPAND WORLDWIDE CAPACITY IN MINERALS AND OTHER CRITICAL RAW MATERIALS, (A) THE U.S. PROPOSES A MAJOR ROLE FOR THE WORLD BANK GROUP, IN CONCERT WITH PRIVATE SOURCES, IN DEVELOPING RAW MATERIAL RESOURCES IN LDC’S, FOR WHICH $2 BILLION IN PUBLIC AND PRIVATE CAPITAL SHOULD BE THE TARGET; AND (B) THE U.S. WILL CONTRIBUTE TO AND ACTIVELY SUPPORT THE NEW UN REVOLVING FUND FOR NATURAL RESOURCES EXPLORATION AND EXPLOITATION.

E. POOREST NATIONS

THE CHALLENGE OF ONE BILLION PEOPLE ON THE MARGIN OF EXISTENCE MUST BE MET BY PROVIDING ELEMENTAL ECONOMIC SECURITY, IMMEDIATE RELIEF, AND PREFERENCE FOR THEIR NEEDS FOR FUTURE ECONOMIC GROWTH. POOREST COUNTRIES HAVE BEEN MOST CRUELLY AFFECTED BY THE RISE IN COST OF OIL, FOOD AND OTHER IMPORTS.

1) TO PROVIDE BALANCE OF PAYMENTS SUPPORT FOR THE POOREST COUNTRIES DURING PERIODS OF ADVERSITY, THE U.S. LAST NOVEMBER PROPOSED A TRUST FUND IN THE IMF OF UP TO $2 BILLION FOR EMERGENCY RELIEF, AND WILL PRESS THIS PROPOSAL IN THE IMF MEETINGS NOW UNDERWAY.

2) THE U.S. PROPOSAL FOR A NEW IMF DEVELOPMENT SECURITY FACILITY CAN PROVIDE MAJOR NEW ECONOMIC SECURITY FOR THE POOREST.

3) THE U.S. FOOD AID BUDGET PROVIDES ALMOST SIX MILLION TONS OF FOOD-GRAINS THIS FISCAL YEAR,--I.E., ROUGHLY 60 PER CENT OF THE WORLD FOOD CONFERENCE TARGET OF 10 MILLION TONS ANNUALLY AND A 20 PER CENT INCREASE OVER LAST YEAR.

4) WE URGE THAT THE FAO, IN CONJUNCTION WITH THE UNDP AND WORLD BANK, DEVELOP A COMPREHENSIVE PROGRAM TO CUT IN HALF BY 1985 POST-HARVEST LOSSES IN THE POOREST COUNTRIES, E.G., THROUGH BETTER STORAGE AND PESTICIDES.

5) THE U.S. WILL SUPPORT A MAJOR EXPANSION IN PRESENT EFFORTS, IN COOPERATION WITH WHO, TO DEVELOP COMMUNITY-LEVEL INTEGRATED HEALTH SERVICES, COMBINING HEALTH, FAMILY PLANNING AND NUTRITIONAL SERVICES AND INFORMATION.

6) POOREST COUNTRIES SHOULD HAVE PREFERENTIAL ACCESS TO OFFICIAL, CONCESSIONARY FINANCIAL AID. THERE SHOULD BE EXPANDED LOW-INTEREST LOANS BY THE INTERNATIONAL FINANCIAL INSTITUTIONS TO THE POOREST COUNTRIES. THE U.S. WILL JOIN OTHERS IN A SUBSTANTIAL FIFTH REPLENISHMENT OF THE IDA FOR THIS PURPOSE PROVIDED OIL EXPORTING COUNTRIES MAKE A SIGNIFICANT CONTRIBUTION.

7) TO CONTRIBUTE TO A MASSIVE INCREASE IN AGRICULTURAL PRODUCTION BY THE POOREST COUNTRIES, THE USG IS ASKING CONGRESS FOR AUTHORIZATION TO DOUBLE ITS BILATERAL AGRICULTURAL ASSISTANCE TO $582 MILLION, AND WE URGE OTHERS TO INCREASE THEIR CONTRIBUTIONS.

8) THE U.S. PROPOSES THE EARLY ESTABLISHMENT OF THE NEW INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD) AS A MAJOR SOURCE OF CAPITAL TO MEET THE CRITICAL PROBLEMS OF THE POOREST LDC’S. THE USG WILL SEEK AUTHORIZATION FOR A DIRECT CONTRIBUTION OF $200 MILLION, PROVIDED OTHERS WILL LEND THEIR SUPPORT FOR A COMBINED GOAL OF AT LEAST $1 BILLION.

F. POLITICAL DIMENSION

1) RESPONDING TO LDC DESIRES FOR A GREATER VOICE IN DECISIONS AFFECTING THEM, THE U.S. BELIEVES PARTICIPATION IN INTERNATIONAL DECISION-MAKING MUST BE WIDELY SHARED AND THAT THE PROCESS OF DECISION-MAKING SHOULD BE FAIR, REALISTIC, RESPONSIVE TO CHANGE, AND TAILORED TO THE ISSUES AT HAND.

2) WITH RESPECT TO IMPROVING THE UN MACHINERY IN THE ECONOMIC AND SOCIAL SECTORS, THE U.S. WELCOMES THE REPORT OF THE SECRETARY GENERAL’S GROUP OF 25 EXPERT ON STRUCTURAL REFORMS AND WILL CONSIDER VERY SERIOUSLY ITS RECOMMENDATIONS. OUR VIEW IS THAT IMPROVEMENTS SHOULD INCLUDE RATIONALIZATION OF THE UN’S FRAGMENTED ASSISTANCE PROGRAMS, STRENGTHENED LEADERSHIP, STREAMLINING ECOSOC, BETTER CONSULTATIVE PROCEDURES, AND A MECHANISM FOR INDEPENDENT PROGRAM EVALUATION. THE U.S. PROPOSES THAT THE SPECIAL SESSION FORM AN INTERGOVERNMENTAL COMMITTEE TO BEGIN WORK IMMEDIATELY ON RECOMMENDATIONS TO BE IMPLEMENTED BY THE GA IN ITS 1976 SESSION. INGERSOLL

1. Source: National Archives, RG 59, Central Foreign Policy Files. Limited Official Use; Immediate. Drafted by Poole; cleared by Morey, Neidle, Lewis, and in S/S; and approved by Enders. Repeated to USUN, the Mission to the U.N. in Geneva, the Mission to the EC in Brussels, the Mission to the IAEA in Vienna, the Mission to the OECD in Paris, Rome for the Representative to FAO, Vienna for the Representative to UNIDO, and Paris for the Representative to UNESCO. Sent as Tosec 100402 to Kissinger who was in Israel. A seven-page summary of Kissinger’s speech is not published. For Kissinger’s address, see Department of State Bulletin, September 22, 1975, pp. 425–441.
2. The Department outlined Kissinger’s upcoming address before the United Nations General Assembly Seventh Special Session and requested posts to indicate that the initiative represented a sincere effort to meet concerns about economic development.