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

174. Telegram From the Department of State to the Mission to the United Nations¹

207658.

Washington, July 14, 1984, 2119Z

SUBJECT

• President’s Letter to UN Secretary General.

1. Entire text Confidential

2. Mission is requested to deliver following letter dated July 13 from President Reagan to Secretary General Perez de Cuellar soonest. Signed original will follow. White House does not plan to release text of letter but has no objection if SYG wishes to do so.

3. Begin text:

Dear Mr. Secretary General:

I appreciate your thoughtful letter on the economic problems which concern all the nations of the world.² Those of us who participated in the London Summit are conscious of the importance of our deliberations both for ourselves and for the world economy.

Foremost in our minds is the need to maintain prudent fiscal and monetary policies. We believe such policies have been crucial to sparking our own economic recovery as well as a broad-based economic expansion with stable prices. Appropriate domestic policies are essential in all countries if we are to establish the conditions for lasting growth in the world economy for the benefit of developing and industrial nations alike.

My Summit colleagues and I also recognize the importance of assuring that developing countries can share in the benefits of world growth. To this end, we have committed ourselves to resist protectionist pressures and to renew efforts to liberalize and expand world trade. We have also endorsed the special action program for Africa by the World Bank and pledged to maintain and wherever possible increase flows of resources to developing countries, particularly the poorer ones.

International financial issues are of special concern to us. We have reconfirmed the strategy we adopted last year on management of the debt issue and agreed that it should continue to be implemented on a case-by-case basis. Taking into consideration the courageous measures adopted by many debtor countries, and in the spirit of cooperation with the developing world, we have also reached agreement on various measures to strengthen that strategy.³

Accordingly, we are reiterating our support for the IMF in its important work of helping debtor countries in their adjustment efforts. We are calling for closer cooperation between the IMF and the World Bank and for strengthening the role of the World Bank in fostering development over the longer term. Finally, for those countries which are making successful efforts to improve their positions, we are encouraging more extended multi-year rescheduling of commercial debt and are ready where appropriate to negotiate similarly in respect of debts to governments and government agencies.

On a broader scale, my Summit colleagues and I have asked our Finance Ministers to consider the scope for intensified discussion of international financial issues of particular concern to developing countries in the IBRD Development Committee. We have also called upon our Finance Ministers to continue their work on ways to improve the operation of the international monetary system.

I am confident that we are on the right course in reaching our common goal of a sustainable economic recovery which extends to all the nations of the world. We will continue to cooperate with the existing international institutions which have been most effective instruments for the achievement of that objective.

Sincerely,

Ronald Reagan /s/

His Excellency

Dr. Javier Perez de Cuellar

Secretary General of the United Nations

New York

End text.

Dam

1. Source: Reagan Library, Executive Secretariat, NSC Trip File, [London] Summit—May–June 1984; NLR–755–19–11–3–8. Confidential; Immediate. Drafted in the White House; cleared by Charles Hall (S/S) and James Covey (S/S); approved by Edward Dillery (IO/UNP).
2. Not found.
3. Telegram 175066 to all diplomatic posts, June 14, transmitted an assessment of the economic aspects of the London Summit, which included the reconfirmation of the debt strategy agreed to in 1983. (Department of State, Bureau of Economic Affairs, Office of Economical and Agricultural Affairs Files, Official Economic Summit Files, 1975–1991, Lot 93D490: London Summit—May–June 1984) The confirmation of the debt strategy and its case-by-case implementation was also explicated in the Declaration of the London Economic Summit, issued June 9, and transmitted in telegram 171463 to all diplomatic and consular posts, June 11. (Ibid.)