311. Memorandum From the Special Representative for Economic Summits (Owen) to President Carter 1
- North-South Issues at the Summit
1. In the attached memo (Tab A) Dick Cooper reports to you about his talks in Jamaica with Prime Minister Manley and other Jamaican officials.[Page 986]
2. I agree with Dick that the two key LDC issues for the Summit are MTN and aid.
a. On MTN I concur with Dick’s recommendation that the Summit should direct the US, EC, Japanese, and Canadian negotiators to bring the developing countries into the negotiations.
b. On aid, I also agree with what Dick says about Summit pledges to provide more resources for IDA and other multilateral institutions.
3. We have late information about four likely North-South issues that other heads of government may raise at the Summit:
a. Trudeau may want to strengthen that section in the draft Declaration which calls for more aid to help LDCs increase energy production, and requests the World Bank to examine how this can be done most effectively. This is one of the more promising Summit initiatives, and we should support Trudeau.
b. Callaghan may announce forgiveness of some past LDC debts to the UK. It is not clear whether this would represent an increase in aid to LDCs; it might be offset by reductions in new aid. This idea came up at the Summit Preparatory Group; the British wanted all countries to join a multilateral statement to this effect, but others did not agree. If Callaghan announces this British decision and say that legislation now before the Congress would permit the US also to ease the terms of some past LDC debts. I attach a briefing memo on this point at Tab B.2
c. Fukuda will announce a doubling of Japanese aid from 1977 to 1980, with the comparison being made in dollars. This is a disappointing outcome to the argument between the Finance Ministry and the Foreign Ministry, which favored a doubling from 1978 to 1981 in terms of yen. The Foreign Ministry position would have meant $4 billion in aid in 1981; the Japanese decision means $2.8 billion in 1980 (or about $3 billion in 1981). Bob McNamara urges you to press Fukuda at Bonn to change his position. I agree. Aid proponents in Japan, we are told, believe that external pressure on Fukuda might cause him to alter his view. This could mean $1 billion more per year for LDCs.
d. Giscard may raise his idea of an African fund. If so, you might say that the US agrees fully with the need for more effective coordination among aid donors and between donors and recipients in Africa. We cannot, however, support certain aspects of the French proposal as it now stands: We cannot commit ourselves to multi-year financing or a high US share of financing; nor can we commit ourselves to participation in every project donors desire. But we have no objection to mentioning aid for Africa in the Summit Declaration, and will continue dis[Page 987]cussions with others to assure the most efficient and visible use of our resources.
4. You should know that Prime Minister Manley is again considering a North-South Summit. He has invited Schmidt, Callaghan, and Nordli to Kingston in late August or early September and has discussed the proposed meeting with Trudeau and Fraser. Over the long run, the idea of a North-South Summit may well warrant exploration, but it would have to be well prepared, which means that it could not happen in the near future. In the meantime, informal North-South consultations of the sort that you directed Dick to hold with Jamaican leaders will continue to be useful.
5. There is a US initiative in the aid field that you may want to mention: your intention to create a Foundation for International Technological Foundation [Cooperation], to relate US private and public science and technology more effectively to LDC needs. This is the one new idea to emerge from our aid review: you have mentioned it in several of your speeches; and planning is now going forward. I believe other countries would be interested and impressed. Talking points are at Tab C.3
- Source: Carter Library, National Security Affairs, Brzezinski Material, Trip File, Box 14, President, Germany, 7/13–17/78: Cables and Memos, 7/7–24/78. Confidential. Sent for information. A handwritten notation indicates that Hunter and Erb had copies.↩
- Tab B, attached but not printed, is a July 10 paper prepared in EB/IFD/OMA entitled “Retroactive Terms Adjustment.”↩
- Tab C, not attached, is a July 12 memorandum from Press to Carter on “Talking Points for Economic Summit on Foundation for International Technological Cooperation.” Tab C is attached to a copy of this memorandum in the Carter Library, National Security Affairs, Staff Material, International Economics, Subject File, Box 5, Summit: 7–11/78.↩
- A memorandum of conversation of a July 7 meeting among Cooper, Manley, and U.S. and Jamaican officials is in the Carter Library, National Security Affairs, Staff Material, International Economics, Guy Erb File, Box 37, Manley (Prime Minister Michael) Summit: 7/78–1/79. A draft memorandum of conversation of a July 7 discussion among Cooper, Manley, Hormats, and Erb is in the National Archives, RG 59, Office of the Secretariat Staff, Records of the Under Secretary of State for Economic Affairs, Richard N. Cooper, 1977–1980, Lot 81D134, Box 3, Memorandum of Conversation, Jul–Dec, 1978.↩
- See Document 310.↩
- See Document 306.↩
- See footnote 13, Document 299.↩