Office of the Historian

68. Memorandum of Conversation1

Williamsburg, Virginia, October 18, 1981, 4:30 p.m.

SUBJECT

  • Meeting between President Reagan and President Mitterrand

PARTICIPANTS

  • U.S.

    • The President
    • Vice President Bush
    • Secretary Haig
    • Richard Allen
    • Ambassador-designate Galbraith

  • France

    • President Francois Mitterrand
    • Foreign Minister Cheysson
    • Minister of Defense Hernu
    • Ambassador de Laboulaye
    • Jacques Attali, Economic Adviser to the President

[Omitted here is discussion of issues unrelated to the Cancun Summit.]

Mitterrand said he was convinced that several commodities markets are rigged by a few inside speculators who are making money at the expense of Third World commodity producers. He cited the case of coffee as told him by Houphouet-Boigny of the Ivory Coast. Mitterrand said he knew Houphouet-Boigny well, since 1944 or 1945.

Mitterrand thought this was an area where we and France might be of useful service to some Third World producers. It would be something concrete to come from Cancun, for example, if we agreed to look into a price support system for raw materials prices. Mitterrand said we cannot just hand over money and watch it dissipate.

Mitterrand said he had received a letter from Tom Clausen of the World Bank which set forth several possible solutions to the Third World energy problem. He urged the President to review this.

As for Global Negotiations, Mitterrand said the G and the N should both be lower case. We don’t want a new institution but we must be seen to be willing to help. Mitterrand said the President won at Ottawa by retreating as the French did in the Marne in 1914, but any retreat had to be carefully done. Schmidt would be helpful; nobody in [Page 189] the West wanted to create or adopt a mechanism or an institution to hand over money.

Mitterrand said Cancun would last for 2-1/2 days and there would be 22 speakers. There would be little time for discussion, and no time for decisions. A good positive tone setting out a willingness to do something was the best the West could do. We must not let the Soviets benefit from a split between the Third World and the West.

The President said he would listen at Cancun and set forth some views. He wanted to help the Third World to help themselves, citing the success stories of South Korea (versus North Korea), Singapore, etc. He also cited our Caribbean Plan. The President said he was pleased to hear Mitterrand’s views on Global Negotiations. They should not be a euphemism for handouts. The President referred to a few of the positive things he would say at Cancun.

Mitterrand said he and the President were not far apart on Cancun. They would help each other. The President welcomed French help.

Mitterrand noted that in November representatives of approximately 20 African states would be in France for a Francophone summit. Only five or six African leaders would not be able to attend this meeting.

Mitterrand said France was going to renew relations with Madagascar. Mitterrand had told their “progressive” leader that the Soviet base must first go and the leader agreed.

The President pointed out that the Marshall Plan had worked because the countries could help themselves. Many in the Third World cannot; they don’t have developed markets. We have a difficult problem and our record of success through economic assistance is spotty.

[Omitted here is discussion of issues unrelated to the Cancun Summit.]

  1. Source: Reagan Library, Executive Secretariat, NSC Subject File, Memorandums of Conversation—President Reagan (11/02/1981–11/15/1981); NLR–753–49–4–3–1. Secret; Nodis. No drafting information appears on the memorandum. The text of the speech is scheduled for publication in Foreign Relations, 1981–1988, vol. VII, Western Europe, 1981–1984.↩