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

27. Telegram From the Department of State to the Embassy in India¹

186567.

Washington, July 16, 1981, 0221Z

SUBJECT

• L.K. Jha’s Call on the Secretary.

1. Confidential—Entire text.

2. L.K. Jha, Chairman of the Indian Economic Administration Reform Commission, made separate calls at his request July 2 on the Secretary and Under Secretary Rashish as well as Treasury Under Secretary Sprinkel. Jha’s expressed purpose was to exchange views with us on North/South relations in preparation for the Cancun Summit. A former Brandt Commission member,² he had earlier visited Tokyo and Ottawa for the same purpose. Jha also wished to renew his old friendship with the Secretary, which dates from the early 70’s when Jha was India’s influential and effective Ambassador to the U.S.

3. This message reports the half hour session Jha had with the Secretary. Also participating in it were: (India) Ambassador K.R. Narayanan and Minister A.N.D. Haksar; (U.S.) NEA Deputy Assistant Secretary Jane Coon, Ambassador Charles Meissner, Ambassador Harry Barnes, and NEA/INS Director Howard Schaffer. Jha’s meeting later in the day with Under Secretary Rashish is reported in State 179142.³

4. The Secretary told Jha that the President felt strongly that U.S. relations with India should be strengthened. We saw no contradiction between this objective and our evolving policies towards Pakistan and China. The Secretary said that the Cancun Summit would provide an opportunity for the President and Prime Minister Gandhi to meet. He thought it very important that they have a bilateral session. He would be attending the prepcon at Cancun August 1–2 and wanted to meet at that time with Foreign Minister Rao.⁴ The Secretary hoped that by then arrangements for a Reagan/Gandhi bilateral could be worked out. He asked Jha to express to Mrs. Gandhi the President’s warmest regards.

5. Discussing the U.S. global approach, the Secretary stressed the importance of the Soviets reassessing their international behavior. What was needed was some kind of international understanding on accepted norms of conduct. As a primary force in the Third World, India could play a leading role in bringing about such an understanding.

6. The Secretary said there were four pillars in the President’s policies:

— economic recovery at home.

— restraining the Soviets.

— enhancing our traditional alliances (but not reviving old and outmoded ones) and strengthening bilateral relations with our friends.

— establishing a just and responsible relationship with the developing world.

7. The Secretary said that he and the President believed that the fourth pillar was as important as the others. He noted that we are spending more this year than last on economic development and are not reneging on our commitments. He welcomed Mrs. Gandhi’s recent letter to the President on the Summit.⁵ He told Jha that we are focussing on the same issues as those Mrs. Gandhi raised in her message, though there may be differences in the nuances of our approach.

8. The Secretary said we shared Mrs. Gandhi’s hope that there will not be North/South confrontation. He said he had been instrumental in urging the President to attend the Cancun Summit. Our objective would be to keep the discussions open and general, to open up a dialogue among the participating heads of government. He noted that there were those who believed, incorrectly, that when you seek a robust East/West posture that meant that you were giving the developing world the back of your hand. That was not the President’s view. The President gives high priority to the developing world and believes that we simply can not turn our backs on it.

9. The Secretary noted that non-aligned nations wished to keep economic development politically neutral in order to meet better their social, humanitarian, and economic needs. They must have the resources of those who can help them. He said he had been happy to note during his recent participation in the ASEAN meeting⁶ that the organization’s aligned and non-aligned states were working together to promote regional development and trade in an atmosphere essentially devoid of East/West political issues.

10. Jha replied that he was most encouraged by what the Secretary had said. It parallels Mrs. Gandhi’s own thinking. Jha said that Mrs. Gandhi does not want East/West problems to interfere with the development efforts. She wants to avoid North/South confrontation and believes that Cancun should be a site for agreeing that certain things should be done. She saw Cancun as an opportunity for a serious discussion in a friendly atmosphere.

11. Jha said that some countries in the developing world think that the South should take a tough stand over North/South issues. He said the U.S. could help overcome this attitude by projecting a better image of itself in the developing world. He thought that the U.S. public image was totally different from its actual performance. He said that the U.S.’ style of presentation had been a problem. Cancun offered the opportunity for developing world leaders to see the real U.S. position.

12. The Secretary agreed with this. He said we are conscious of our image problem and intend to work on it. He said that no decision had been reached by the administration on the U.S. approach to Global Negotiations. The Ottawa and Cancun Summits would give us a better idea about how to proceed.

[Omitted here is discussion of bilateral issues.]

Haig

1. Source: Department of State, Central Foreign Policy File, Electronic Telegrams, D810331–1057. Confidential; Priority. Drafted by Howard Schaffer (NEA/INS); cleared by Harry Barnes (NEA/INS), Meissner, Lollis, J. Bizacki (EA/C), John Kelly (S/S), and Jane Coon (NEA), and for information by Bizic; approved by Sherwood Goldberg. Sent for information to Algiers, Beijing, Dacca, Islamabad, Jidda, Mexico City, Vienna, and USUN.
2. The Brandt Commission, chaired by Willy Brandt, was officially titled the Independent Commission on International Development Issues. The Commission issued its final report on North-South relations and development issues in February 1980. Among its many recommendations was a call for an international summit on North-South relations, development, and the global economy. For documentation on the Brandt Commission, see Foreign Relations, 1977–1980, vol. III, Foreign Economic Policy, Documents 345 and 351.
3. See Document 24.
4. In telegram 219977 to New Delhi, August 18, the Department reported on Haig’s August 2 meeting with Rao, which focused primarily on the U.S. security relationship with Pakistan. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810387–0076)
5. A copy of the letter, dated June 14, is in Department of State, Bureau of Economic and Business Affairs, Investment Policy Files, 1981–1984, Lot 85D193: Cancun Summit—Gandhi Letter. A copy of Reagan’s reply, dated July 30, is ibid. Haig hand-delivered Reagan’s letter to Rao at their August 2 meeting.
6. Haig attended the ASEAN Foreign Ministers meeting in Manila June 17–20.