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  4. Document 301

301. Memorandum From Guy Erb of the National Security Council Staff to the President’s Assistant for National Security Affairs (Brzezinski)1

Washington, March 7, 1978

SUBJECT

  • North-South Policies

Dick Cooper sent you a memo to follow-up his conversation with you and Henry Owen concerning our North-South policies. (Tab A)2 After some discussion within the State Department, no reference was made in the memo to implementation of policies announced by the last Administration, e.g., the International Fund for Agricultural Development and the IMF Trust Fund. The note is optimistic, and on specific points is somewhat misleading. For example, its reference to a “generous offer” in the MTN refers to the average overall tariff cut that we offered, 43 percent. The U.S. offers to most developing countries are considerably lower, for example, Brazil—25 percent, India—33 percent, Malaysia—33 percent, Mexico—34 percent. The offer to Nigeria, 66 percent, is an exception.

The report, U.S. Relations with the Developing Countries—1978, prepared by the PRM 8 working group, gives a contrasting impression of the state of our North-South policies. (Tab B)3 That report states that the “honeymoon” is over between the United States and the developing countries. After reviewing trade, foreign assistance, investment, and arms sales, the PRM 8 report concludes that, “. . . we face a very difficult set of issues, with few bright spots for 1978.”

  1. Source: Carter Library, National Security Council, Institutional Files, Box 27, PRM 08, 3 of 3, [3]. Confidential. Sent for information. A stamped notation at the top of the page reads: “ZB has seen.” Copies were sent to Owen and the North/South Cluster of the NSC Staff. The latter copy included an unidentified regional bureau report, presumably at Tab A (see footnote 2 below).↩
  2. Tab A, attached but not printed, comprises a February 23 memorandum from Cooper to Brzezinski and an undated Department of State paper entitled “North-South Activities of the Carter Administration.” The latter asserts that “[s]ince taking office the Administration has pursued an active North-South policy.”↩
  3. Tab B is attached but not printed.↩