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

25. Memorandum of Conversation¹

Washington, July 13, 1981, 2:36–2:56 p.m.

SUBJECT

• Summary of the President’s Meeting with Gaston Thorn, President of the Commission of the European Communities

PARTICIPANTS

• President Ronald Reagan
• Edwin Meese, III, Counsellor to the President
• Richard V. Allen, Assistant to the President for National Security Affairs
• Lawrence Eagleburger, Assistant Secretary For European Affairs, Dept of State
• George Vest, Ambassador (Designate) to the European Communities
• Charles Tyson, Staff Member, NSC
• Rutherford Poats, Staff Member, NSC
• Gaston Thorn, President, European Communities Commission
• Roland de Kergolay, Head of the EC Commission Delegation in Washington
• Fernand Spaak, Head of Cabinet
• Sir Roy Denman, Director-General for External Relations
• Tomasso Pado-Schioppa, Director-General for Financial Affairs
• Manuel Santarelli, Press Spokesman

[Omitted here is discussion unrelated to global negotiations.]

Mr. Allen turned the discussion to “global negotiations,” noting that President Reagan had discussed this matter on Friday in preparation for the Ottawa Summit.² He said the United States has difficulty in defining “global negotiations.”

President Thorn replied that the industrial nations should try at Ottawa to define their own approach to global negotiations. He said Europe was more sympathetic to the developing nations’ call for global negotiations because historically Europeans have been closer to the people who now compose the developing nations’ leadership, even though their past relationship was colonial. Europe understands the developing nations’ political drive to join governments together in dealing with the West and their sense of weakness in dealing with big multinational corporations. They want a deal between governments of the South and governments of the North, as a framework for relations. Europe knows that this will not solve the economic problems of the South, but Europe hopes that it will facilitate solutions. “We hope you will give it a chance so that we industrial nations can show good will.”

At the global negotiations, Mr. Thorn continued, “we would say, ‘now, let’s identify the problems and try to find the right way of dealing with them, in the right places.’” The developing nations’ demand is a political test, and if we say no we will undermine confidence between us and them. This is an opportune time because these countries have lost faith in the Soviet Union.

He added that Europe believes global negotiations will assist in improving the climate of trade and investment relations and thus help the industrial nations’ economies. A common approach must be found, he said. Europe does not intend to “go a separate way.”

President Reagan said he was taking a positive approach toward cooperation with the developing nations, citing his initiative in the Caribbean Basin development program.³ Our objective is to relieve some of the sense of hopelessness in the Caribbean Basin which leads, among other things, to the flight of economic refugees to the United States. Similar actions could be taken in other regions. It is difficult to understand, he added, how all the nations of the world can sit across the table from each other and really solve practical problems.

President Thorn urged that the industrial nations not dismiss the global negotiations idea as “nonsense.” Mr. Allen responded that no one in the US Administration had said that.

Mr. Meese pointed out the usual meaning of “negotiations”—in which specific agreements binding on the parties are reached.

Mr. Allen said President Reagan had pointed out to Prime Minister Trudeau that the United States had taken a big step in reversing the Carter Administration’s position and agreeing to participate in the North-South Summit at Cancun.

President Thorn applauded this decision. He closed with a renewed expression of appreciation for the close consultations he had been able to have here.

1. Source: Reagan Library, Douglas McMinn Files, Economic Summit Files, Ottawa—Meetings with High Officials; NLR–369–9–44–1–4. Confidential. The meeting took place in the Cabinet Room. No drafting information appears on the memorandum. The text of the omitted portion of the memorandum of conversation is scheduled for publication in Foreign Relations, 1981–1988, vol. VII, Western Europe, 1981–1984.
2. July 10; see Document 23.
3. See footnote 2, Document 23.