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

333. Minutes of an Economic Policy Council Meeting¹

Washington, July 2, 1985, 9 a.m.

ATTENDEES

• Messers. Baker, Shultz, Block, Baldrige, Brock, Yeutter, Sprinkel, Wright, Kingon, Porter, Smith, Cornell, Gray, Robinson, Knapp, Scocozza, Low [Laux?], Bledsoe and Stuckey and Ms. Risque

[Omitted here is discussion of Japanese trade issues.]

2. Common Fund Agreement

Mr. Cornell indicated that we needed a decision promptly with respect to what the United States should communicate regarding the Common Fund Agreement. For the last four years the United States has not definitively closed the door on the Common Fund Agreement but also has not ratified it. Since there are no departments who favor the U.S. ratifying the Common Fund Agreement, the central issue is whether to publicly announce our intention not to ratify or to continue our present behavior.

The Council’s discussion focused on the U.S. interest in the Agreement and its economic implications, the likelihood that the Soviet Union might ratify the Agreement and whether that action would be sufficient to ensure its overall ratification, and the economic effects of additional U.S. stockpile sales at this time.

The Council also discussed the voting arrangements under the Common Fund Agreement were it to be ratified and the need for further intelligence on the possible actions of other countries before reaching a definitive decision on our actions.

The Council will reconsider this agenda item after we have developed further information on the possible actions of other countries.

1. Source: Reagan Library, Eugene McAllister Files, EPC Papers July to August 1985. No classification marking. The meeting took place in the Roosevelt Room at the White House. No drafting information appears on the minutes.