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

44. Memorandum From the President’s Assistant for National Security Affairs (Allen) to President Reagan¹

Washington, September 14, 1981

SUBJECT

• Reports From Secretary of State

Secretary Haig has sent two reports: one from Spain, covering his meeting with Prince Fahd (Tab A)² who is vacationing there, and the second covering his meetings in Yugoslavia (Tab B).³

[Omitted here is a summary of the Haig-Fahd meeting.]

In Belgrade, Al met with Foreign Minister Vrhovec and “President of the Presidency” Kraigher. Topics discussed included bilateral relations (no important problems), the Yugoslav economy (in poor shape, 40 per cent inflation), East-West relations, the Middle East, Southern Africa, North-South relations and the “arms race.” There was discussion of Afghanistan (both the Foreign Minister and Kraigher condemned forced occupation), and Al reviewed with Kraigher the extent of the Soviet arms buildup.

Vrhovec seemed reasonable and accommodating, while Kraigher pitched a harder line. Others in the leadership seemed to feel Kraigher had gone too far, and tried to balance his performance by more reasonable-sounding discussions.

A former foreign minister made a hard sell for a “constructive” approach at Cancun, stressing that we should join the “global negotiations powers” to provide “a major victory for third world moderates,” and that to do less would “play into the hands of the radicals.”

Note for the President: we do not intend to recommend such a course of action; allowing the United States to “enter” the “global negotiations” via Cancun would put us where so-called “moderates” want us. This is a type of “Kabuki Play” in which the plot is transparent and the outcome never in doubt.

The desired outcome in Cancun is the beginning of a global transfer of wealth, beginning with ours. On this aspect, you will recall, even Trudeau, Schmidt and Mitterrand appear to agree with you and Margaret Thatcher.

1. Source: Reagan Library, Douglas McMinn Files, Subject Files, [Updated Components of Cancun Summit Briefing Book]; NLR–369–3–24–3–0. Secret. Copies were sent to Bush, Meese, Baker, and Deaver. Documentation on Haig’s trip to Marbella, Spain (September 11–12), West Berlin (September 13), and Bonn (September 13–14) is scheduled for publication in Foreign Relations, 1981–1988, vol. VII, Western Europe, 1981–1984. Documentation on his trip to Belgrade (September 12–13) is in Foreign Relations, 1981–1988, vol. X, Eastern Europe, Document 194.
2. Not attached.
3. Not attached.