Office of the Historian

297. Action Memorandum From the Under Secretary of State for Economic Affairs (Wallis) to the Deputy Secretary of State (Dam)1

Washington, June 3, 1983

SUBJECT

  • “Willingness to Discuss” STABEX, CFF, etc.

Paul Boeker and Mike Boerner are still chafing at the agreed interagency position that the United States will refuse to discuss export earnings stabilization schemes, other than commodity agreements, at UNCTAD. They say we should be open to discussion and should not be in a purely negative, defensive position on this issue, that we should show a “hint of flexibility,” and so on. Treasury is rightly concerned that such hints will give false signals about what we are willing to do at the IMF, and will undercut its bargaining position at the IMF. There is also a risk of adding to our troubles on the Hill over getting approval of the IMF quota increase.

As a further background point, you should know that in 1980 at a meeting of the UNCTAD Committee on Commodities, the U.S. delegate took the same hardline position that is now set out in our instructions to our present delegation: “We will not participate in any discussion of the substance of this issue outside of the IMF or the Development Committee.” (See attachment.)2 It would give the wrong signal, and could only lead to recrimination later, if we softened this position now.

The question is, can we hold to this position in a way that helps keep a positive tone in the Belgrade Conference? Our delegation will need careful guidance on just what we can and cannot do in this respect. I propose a positive resolution that will show our concern and at the same time keep the discussion focussed on the expertise and jurisdiction of the IMF, and away from the substantive merits of the various proposals. Treasury says that it can accept this approach, though reluctantly.

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RECOMMENDATION:

That you approve the substance of the attached statement by our delegation tabling a resolution.3 (A full statement and resolution should be drawn up by IO in consultation with Treasury).4

  1. Source: Department of State, Bureau of Economic and Business Affairs, Investment Policy Files, 1981–1984, Lot 85D193: UNCTAD VI—Commodities. Limited Official Use. Drafted by Martin Bailey (E). A stamped notation at the top of the memorandum reads: “Mr. Dam Has Seen.” A handwritten note at the top of the memorandum reads: “JC 6/6.” Hill initialed the memorandum on June 15.↩
  2. The text of the U.S. delegate’s statement, transmitted in telegram 13162 from the Mission in Geneva, October 9, 1980, is attached but not printed.↩
  3. Attached but not printed.↩
  4. Dam approved the recommendation on June 15.↩