182. Telegram From the Department of State to the Embassy in Uruguay1
SUBJECT
- President Reagan’s Response to Cartagena Group. Ref: Montevideo 02390.2
1. Following is the text of President Reagan’s response to the Cartegena Group message. Please deliver as appropriate. Original to follow.
2. Dear Mr. President:
Thank you for your letter of April 26 in which you conveyed the concerns and suggestions of the Presidents of eleven Latin American and Caribbean countries on debt and other economic issues on the eve of the Bonn Summit. I can assure you that the views expressed in your letter were taken into account of our conversations and deliberations at the Summit itself.
I wish to congratulate you and those Presidents of other Latin American countries who are taking courageous steps in dealing with Latin America’s economic problems. These efforts bore fruit as the American and Caribbean region returned to positive, although modest, growth in 1984. In the United States, after our own efforts at adjustment, we experienced strong growth in 1983 and 1984. This growth and [Page 475] our open economy allowed for an exceptional increase in exports to the United States from Latin America and the Caribbean.
Because expanded trade within a framework of reduced barriers is the best hope we have for a sustained period of worldwide growth, I regret that the Bonn Summit did not yield unanimous agreement to set an early 1986 target date for beginning a new round of multilateral trade negotiations. Nonetheless, all agreed that a new trade round was needed soon and agreed as well to a high level meeting this summer in gatt to begin formal preparations. I hope that we can count on our friends and neighbors in Latin America and the Caribbean to support this call for negotiations to develop an improved environment for international trade.
The Bonn Declaration reflects the discussion of debt and other economic problems of developing countries.3 We saw many positive developments on these fronts, but no room for complacency. It rests with us, the leaders of the developed and developing countries alike, to follow sound principles in the management of our economies and to continue our dialogue on the major issues of mutual concern.
I hope that you will convey the essence of my comments to the other heads of government for whom you have acted as spokesman on these issues of common concern.
Sincerely, Ronald Reagan.
HIS Excellency
Julio Maria Sanguinetti
President of the Republic of Uruguay
Montevideo
End text.
- Source: Department of State, Bureau of Economic Affairs, Office of Economical and Agricultural Affairs Files, Official Economic Summit Files, 1975–1991, Lot 93D490: Bonn Economic Summit—1985 May. Limited Official Use; Immediate. Drafted from text by the White House; cleared by Joann Alba (S/SS) and Stephanie Kinney (ARA/SC); approved by Michael Durkee (ARA/SC). Sent for information Priority to Bonn, Brasilia, Buenos Aires, Bogota, Caracas, La Paz, Lima, London, Mexico City, Paris, Quito, Ottawa, Rome, Santiago, Santo Domingo, and Tokyo.↩
- Telegram 2390 from Montevideo, April 26, transmitted the text of an April 26 letter from Sanguinetti to Reagan and other leaders attending the Bonn Economic Summit, which took place May 2–4. The letter expressed the concerns of the Cartegena Group members regarding Latin American countries’ struggling economies and particularly concerns over debt. (Department of State, Central Foreign Policy File, Electronic Telegrams, D850293–0469) In June 1984, the leaders of eleven Latin American countries met in Cartagena to discuss the economic problems facing Latin American nations. According to a June 24, 1984, Treasury paper, “Outcome and Implications of Latin Debtors’ Conference in Cartagena on June 21–22,” the meeting resulted in the “Consensus of Cartagena” issued on June 22, 1984, which, among other results, “established a mechanism for continued intraregional consultation, expressed willingness to meet with creditor governments and institutions, and proposed creation of a ‘Working Group’ within the World Bank Development Committee.” (Reagan Library, Executive Secretariat, NSC Trip File, Bonn Summit 1985—Africa/Food; NLR–755–21–11–2–6) The Treasury paper included as an attachment 17 points in a “Summary of Proposals” of the Cartegena meeting.↩
- Telegram 138171 to Brasilia, May 7, repeated the text of telegram 13243 from Bonn, May 4, which transmitted the text of the Bonn Economic Summit Declaration on Sustained Growth and Higher Employment, issued May 4. (Department of State, Central Foreign Policy File, Electronic Telegrams, D850316–0529) Telegram 62887 to multiple diplomatic posts, March 2, communicated the official U.S. position on debt strategy for the Bonn Economic Summit, reflected in a paper prepared by Wallis and representing the recommendations of the U.S. Sherpa team, which included welcoming progress achieved and reaffirming the “continued validity” of the debt strategy as outlined at the Williamsburg and London Summits. (Department of State, Bureau of Economic Affairs, Office of Economical and Agricultural Affairs Files, Official Economic Summit Files, 1975–1991, Lot 93D490: Bonn Economic Summit—1985 May)↩