Foreign Relations of the United States, 1981–1988, Volume XXXVIII, International Economic Development; International Debt; Foreign Assistance

162. Paper Prepared in the Department of State¹

Washington, undated

REPORT OF SECOND PREPARATORY SESSION FOR LONDON ECONOMIC SUMMIT

[Omitted here is discussion not focused on international debt issues.]

The discussion of the international debt situation was the other important theme and went well. The basic strategy on debt outlined at Williamsburg was confirmed.² In addition, there was general agreement to urge Finance Ministers, international institutions and the debtor countries themselves to seek and develop arrangements which could foster renewed economic progress by debtor countries. These included:

— encouragement of private direct investment;

— closer cooperation and compatibility between the IMF (focusing on shorter-term financial and economic adjustment) and the World Bank (focusing on structural and longer-term development needs); and

— the probability that the World Bank could be a catalyst for long-term capital investment. All delegations emphasized the importance of continued world economic recovery and further trade liberalization to the successful resolution of debt problems. The importance of reduced interest rates was also highlighted by most of the other Summit representatives.

[Omitted here is discussion not focused on international debt issues.]

1. Source: Department of State, Bureau of Economic Affairs, Office of Economical and Agricultural Affairs Files, Official Economic Summit Files, 1975–1991, Lot 93D490: London Summit—Deaver—Clark 1984. Confidential. Sent under an April 9 covering memorandum from Wallis to McFarlane and Deaver. Copies were sent to Sprinkel, McMinn, Smith, and McManus.
2. See footnote 4, Document 131 and footnote 3, Document 141.