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

141. Minutes of a Meeting¹

Williamsburg, Virginia, undated

MONDAY MORNING PLENARY SESSION

[Omitted here is discussion not focused on debt.]

DEBT

Debt—Secretary Regan—Report on Finance Ministers’ discussions. System is handling. May be more problems, but those too manageable. 5-point strategy.

_____ (?)—Situation dangerous and difficult²

Secretary Regan—Agrees. Worried about banks withdrawing. Governments should urge the banks to put up more money.

Thorn—After communique, now that drafting over can consider this serious problem. It is very serious. Banking concerns. Depresses trade. Another trade round would not help the LDCs. It would help the DCs. IDA 7 important. Without it, recovery may flounder economically and politically. E.G. India 109 people (?). Africa—extremely bad. Catastrophe possible next decade.

Italy (Colombo)—Debt problem of primary importance. Large countries must be handled one-by-one. Fourth world countries—poorest. Third world countries—can’t go case by case, must find solutions.

Howe—Endorses Secretary Regan report. Favors case-by-case approach. IDA enlargement important—helps poorest countries by well-managed programs.³

Delors—Volcker did a good job on Mexico. Need better and prompter data. UNCTAD wants to extend its role and functions. Interest rates exceed real rates of growth.

[Omitted here is discussion of East-West 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: 1983 Williamsburg Summit—Notes for Meetings; drafts of declarations; memo on final session. No classification marking. No drafting information appears on the minutes. The meeting took place at the May 30 morning plenary session of the Williamsburg Economic Summit.
2. Omission is in the original.
3. In the “Williamsburg Economic Summit Conference Declaration on Economic Recovery,” issued May 30, the leaders agreed to a debt strategy “based on: effective adjustment and development policies by debtor nations; adequate private and official financing; more open markets; and world-wide economic recovery.” They also sought “early ratification of the increases in resources for the International Monetary Fund and the General Arrangements to Borrow.” For the text of the Declaration, see Public Papers: Reagan, 1983, Book 1, pp. 796–799.