Office of the Historian

286. Summary of Conclusions of a Policy Review Committee Meeting1

Washington, November 11, 1977, 2–3:30 p.m.

SUBJECT

  • Negotiations on a Common Fund

PARTICIPANTS

  • State
  • Secretary Cyrus Vance
  • Mr. Richard Cooper
  • Mr. Julius Katz
  • Defense
  • Dr. Ellen Frost
  • CIA
  • Dr. Robert Bowie
  • [name not declassified]
  • OMB
  • Mr. Randy Jayne
  • USUN
  • Amb. Melissa Wells
  • Agriculture
  • Mr. Harry Wilhelm
  • Commerce
  • Mr. Frank Weil
  • AID
  • Governor John Gilligan
  • Mr. Constantine Michalopoulos
  • Treasury
  • Mr. Anthony Solomon
  • Mr. C. Fred Bergsten
  • White House
  • Zbigniew Brzezinski
  • Charles Schultze
  • Henry Owen
  • NSC
  • Guy Erb
  • Thomas Thornton

SUMMARY OF CONCLUSIONS

The PRC reviewed the status of the negotiations on a common fund and noted the emphasis which was being given by developing countries to measures other than commodity price stabilization.

With regard to the possibility of direct contributions to a common fund by the US, it was agreed the US delegation would not be authorized to make any statements on this issue until further work had been completed in Washington.

The PRC noted the importance of consultations with the Congress on (1) the rationale for US participation in international commodity arrangements (ICAs) and in a common fund, and (2) on the possibility of US contributions to a common fund. The PRC requested the Commodities Task Force to draw up talking points for consultations with the Congress. Initial consultations should be completed by Friday, November 18.

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The PRC agreed that the material in the Discussion Paper of November 112 on other measures could be transmitted to the US negotiators in Geneva. The PRC revised the issues paper by granting to a common fund, rather than UNCTAD, a coordinating role regarding ICAs.

The PRC agreed that the US approach to deposit credit ratio should be kept under review.

The PRC also agreed that the Commodities Task Force should further consider the pros and cons of an overdraft mechanism.

  1. Source: Carter Library, National Security Council, Institutional Files, Box 66, PRC 043 11/11/77 Common Fund Negotiations. Confidential. The meeting took place in the White House Situation Room.↩
  2. See Tab I to Document 284.↩