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

137. Memorandum From the President’s Assistant for National Security Affairs (Clark) to President Reagan¹

Washington, April 21, 1983

SUBJECT

• Give-and-Take Session of Summit Issues—April 22, 1983—2:00 P.M., Cabinet Room²

Issue

This is the fourth of your in-depth discussion of Summit issues. This one concerns the debt and financial aspects of the world economy.

Discussion

Treasury has prepared the background paper at Tab A.³ It describes our broad-based program for dealing with immediate debt servicing problems through interrelated and balanced efforts by borrowing governments, lending governments, international institutions, and commercial banks. In many respects, this program illustrates one of the central points you will be trying to make at the Williamsburg Summit—that world economic recovery and improvements in international economic procedures and institutions must be pursued, not by a search for quick fixes or single-policy initiatives, but by acting steadily in several areas that reinforce one another, such as sound growth policies which strengthen the ability of Summit countries to reverse protectionist restrictions, thus permitting indebted LDCs to export more and thereby to maintain their imports which, in turn, are our exports and hence help to reinforce our recovery.

At the same time, as you know, we have called an initial joint meeting of the Trade and Finance Ministers of the Summit countries for May 10–11. This is an ad hoc, informal effort to address the relationship of trade and financial issues. If it succeeds, further meetings may be called to include other key industrial countries and also developing countries. This process could begin to focus on some longer-term improvements in the international trade and financial system, particularly means for dealing with the long-term aspects of the debt problem. It will also help to reinforce confidence in the short-term that our strategy is taking longer-term issues into account and not merely anticipating that renewed growth will solve all problems.

Recommendation

That you read the background paper at Tab A before our meeting on April 22 at 2:00 p.m.⁴

1. Source: Reagan Library, Executive Secretariat, NSC Trip File, Williamsburg Summit 1983 [Too Late to File]; NLR–755–17–6–1–8. Confidential. Sent for action. Drafted by Henry Nau. A stamped notation at the top of the memorandum reads: “The President has seen.”
2. According to the President’s Daily Diary, Reagan participated in a meeting to discuss the Williamsburg Economic Summit from 2:02 to 2:35 p.m. on April 22. (Reagan Library)
3. Tab A is not attached. A copy of the background paper is in the Reagan Library, Executive Secretariat, NSC Trip File, Letters [Williamsburg Summit] 1983; NLR–755–15–33–7–4.
4. Reagan did not indicate his approval or disapproval of the recommendation.