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281. Summary of Conclusions of a Policy Review Committee Meeting1

SUBJECT

  • Negotiations on a Common Fund

PARTICIPANTS

  • State
  • Secretary Cyrus Vance
  • Mr. Richard Cooper
  • Mr. Julius Katz
  • Mr. Jeff Garten
  • Defense
  • Mr. David McGiffert
  • Dr. Ellen Frost
  • JCS
  • Vice Admiral Patrick Hannifin
  • CIA
  • Dr. Robert Bowie
  • [name not declassified]
  • OMB
  • Mr. Randy Jayne
  • NSC
  • Guy Erb
  • Thomas Thornton
  • AID
  • Governor John J. Gilligan
  • Mr. Constantine Michalopoulos
  • Agriculture
  • Mr. Harry Wilhelm
  • Commerce
  • Mr. Frank Weil
  • Treasury
  • Secretary W. Michael Blumenthal
  • Mr. Anthony Solomon
  • USUN
  • Ambassador Melissa Wells
  • White House
  • Zbigniew Brzezinski
  • Charles Schultze
  • William Nordhaus

SUMMARY OF CONCLUSIONS

The PRC met on November 4, 1977 to consider the US approach to the negotiations on a common fund (Geneva, November 7–December 2).

The PRC reviewed the strengths and weaknesses of the US proposal which was the basis for the opening position of the OECD countries in the negotiations. The PRC also considered the various positions of different countries within the Group of 77 developing countries and within the OECD.

There was agreement on the necessity to consult regularly with the Congress on the evolution of the negotiations and of the US position.

The PRC agreed that the November meeting should remand further work on a common fund to technical inter-governmental groups [Page 866]which would prepare issues for consideration at another negotiating conference.

The PRC agreed that the US would adhere to the opening position which had been drawn up within the OECD. It was also agreed that the US negotiators could announce, at the moment they deemed appropriate, that the US was willing to accept financial commitments by consuming countries in regard to the financing of individual commodity agreements.

The PRC called for further analysis of the pros and cons of possible changes in the US opening position. The possible improvements in the US approach which are set out in the PRC discussion paper of November 4, 19772 (paragraphs 10 through 15) and other possible changes should be analyzed immediately.

Decisions in Washington on possible changes in the US position will be taken in the light of the analysis of the pros and cons of individual measures as well as information received from US negotiators in Geneva regarding statements and possible actions by the Group of 77 and the other OECD countries.

The PRC agreed to meet again on the common fund negotiations on Friday, November 11, 1977.

  1. Source: Carter Library, National Security Council, Institutional Files, Box 66, PRC 042 11/4/77 Common Fund Negotiations. Confidential. The meeting took place in the White House Situation Room.
  2. See Tab A to Document 280.