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

69. Memorandum of Conversation¹

Cancun, undated

SUBJECT

• Summary of the President’s Bilateral with President Jose Lopez Portillo of Mexico

PARTICIPANTS

• President Ronald Reagan
• Secretary of State Alexander M. Haig, Jr.
• James A. Baker, III, Chief of Staff and Assistant to the President
• Richard V. Allen, Assistant to the President for National Security Affairs
• President Lopez Portillo
• Jorge Castaneda de la Rosa, Minister of Foreign Relations of Mexico

PRESIDENT LOPEZ PORTILLO greeted the President, and after an initial exchange of pleasantries, stated that he had high hopes that this conference will bear fruit, that it will be based on candor and frankness. He said success for the meeting would depend on the position of the United States, and that the meeting would be what President Reagan sought to make of it.

PRESIDENT REAGAN thanked President Lopez Portillo saying he looked forward to the conference and believed much could be accomplished. He said the United States is committed to provide effective aid for the less developed countries, and that it is essential the whole world begins to prosper.

PRESIDENT LOPEZ PORTILLO said that he has great optimism. He believes that if we identify the problem clearly stated in its proper terms, then there is a good chance of achievement in this meeting. A problem well stated is the beginning of a solution. After we agree on the problem, we can discuss the possibilities for solution. This is a complex world, and we need to find many solutions, all based on the spirit of tolerance to explore the many solutions.

PRESIDENT REAGAN said this is our position too. It is well that you said what you did, because some see a single problem in the world and therefore incur a single solution. We’re talking about many countries with different problems.

PRESIDENT LOPEZ PORTILLO said tomorrow he would underline North-South relations in a way of speaking.² He does not believe that there is a monolithic North, as countries of the North have their own characteristics, their own interests, their own conflicts. We know what brings them together is the need for development and for security. This unifies the North as a whole. We have to understand this. If there are differences in the North, there are many more in the South. To economic problems we have to add political problems and also security problems. Frequently we in the South find certain measures which limit our security, but we have to assure that these security measures still permit us to accomplish many things.

PRESIDENT REAGAN agreed, noting that we developed nations must look to ourselves to see how and where we make it difficult to permit the development of other countries.

PRESIDENT LOPEZ PORTILLO told the President that he believed the President was showing a wonderful spirit. He said that expansion of goods and services for the less developed countries is extremely important; and that frequently the rules that work in the North don’t work in the South. For him, Aristotle’s definition of justice is quite valid: it is that justice means that one treats those who are equal equally and those who are unequal unequally. At this time many developed nations are suffering because of their commercial problems. Raw materials earn foreign currency, and foreign currency can give them what they need for development, but frequently they are forced to sell under cost. This is the case of Mexico, but the Mexico situation is not so dramatic.

PRESIDENT REAGAN noted that Mexico can defend itself diplomatically and can adjust by degrees, but there are some less developed countries which are sinking and can do nothing. The most dramatic example in the region, he noted, is Costa Rica, and one could say the same situation prevails in Africa and Asia at even more dramatic levels, but that the general guidelines are these.

[Foreign Minister Castaneda arrived at 12:56]

PRESIDENT REAGAN said that he came to listen and do some learning, but also to be as helpful as possible.

PRESIDENT LOPEZ PORTILLO said while we have nothing to teach you, we do demonstrate good faith. We offer honesty. If this attitude serves a purpose, that would be perfectly fine. If not I’ll have to remain disappointed.

PRESIDENT REAGAN responded that he found it very important and interesting for the United States to be in Cancun.

PRESIDENT LOPEZ PORTILLO repeated that this meeting will be what the U.S. wants to make it. If you open a door, the rest of the industrial countries will follow. Many of the developed countries have good will toward the less developed countries, but no power. The United States has power, and that makes the difference. I just came from a state visit to France, he noted, and France is an extremely important country but without any meaningful chances for real influence in the world.³ Germany, Sweden and Canada are examples of countries which are particularly sympathetic to the problems of the less developed countries, but they cannot act effectively alone. If they come together, they can in fact achieve something. The main characteristic of the United States is its great size under one command, and in face of United States power, the rest of the world appears fractured and pulverized.

PRESIDENT REAGAN stated there are many things the developed nations can do by adjusting customs duties and taking other measures to make themselves better markets for the less developed countries. Forgive me for saying so, the President stated, but we buy more than half of the non-OPEC country exports, and we could use some partners in that effort.

PRESIDENT LOPEZ PORTILLO responded enthusiastically, saying that this is the spirit that should motivate our discussions. If we can travel along this road, I feel more optimistic than I did even a few minutes before your arrival.

PRESIDENT REAGAN said that if we’re going to assist the less developed countries in their development, we must definitely provide adequate markets for their products.

PRESIDENT LOPEZ PORTILLO responded that if all countries followed the idea you have in mind, Mr. President, we will open up a door to hope. To lose hope is to despair. A man in the state of despair is a man without goals, one who could sink, and that is the worst thing that can happen. I hope we can achieve a ray of hope.

PRESIDENT REAGAN indicated his full and enthusiastic agreement with that point of view.

PRESIDENT LOPEZ PORTILLO said perhaps the problem is one of tone of voice in discussions between the North and South, but I wish to signify my complete and absolute dedication to achieving meaningful progress. Am I utopian? No, I am an optimist.

PRESIDENT REAGAN said I am an optimist too.

PRESIDENT LOPEZ PORTILLO explained that this was a wonderful circumstance and noted that he is in very good company, indeed. He then asked President Reagan if he has any comment or special observations on the way in which the meeting at Cancun has been set up.

SECRETARY HAIG noted that President Kreisky of Austria, a co-sponsor of the Summit, would not be coming and that therefore we would expect Mexico to provide a summary of the results, or did President Lopez Portillo have another solution?

PRESIDENT LOPEZ PORTILLO said he was considering the idea of Trudeau becoming the co-chairman, and that he wished to talk about it with the other heads of state that evening. He said I am a representative of the South, and of course I have my preferences. Nonetheless, that four President’s became ill and are unable to attend is disappointing to me.

PRESIDENT LOPEZ PORTILLO continued that he would open the proceedings with a short speech. After that, anyone who wishes to talk can do so. Then in the afternoon and the next day it will be free discussions. The Chairman would try to find a basis of common agreement and bring together the views of participants. Then we can come to some conclusions to inform the press and the world. Friday night,⁴ he noted, it would be his intention to work on a systematic document. He asked whether it should be an internal working document or should be made public?

PRESIDENT REAGAN indicated that, in his view, it should be a working document.

FOREIGN MINISTER CASTANEDA indicated that he wished to clarify that the document would be the responsibility only of the two co-chairmen, and no other opinions would be reflected in it.

PRESIDENT LOPEZ PORTILLO said that he wished to talk to the President in this manner so as to ensure a proper basis for getting to work.

PRESIDENT REAGAN said that he had prepared a few remarks, assuming the meeting would develop along the lines as described by the President of Mexico.⁵

PRESIDENT LOPEZ PORTILLO said that the President’s intervention will be more than welcome, as it will make that part of the meeting all the more interesting. He said that he was determined that his attitude would be reasonable and not at all arrogant, that he was filled with hope. The President repeated that he is very optimistic about the results of this meeting.

The meeting concluded at 1:20 p.m.

1. Source: Reagan Library, Douglas McMinn Files, Economic Summit Files, Mexico—Proceedings; NLR–369–11–47–1–8. Secret. No drafting information appears on the memorandum. According to the President’s Daily Diary, Reagan met with López Portillo and others on October 21 at Cancun International Airport from approximately 10:45 to 11:15 a.m. (Reagan Library) According to the memorandum of conversation, the meeting concluded at 1:20 p.m. The discrepancy between the memorandum and the President’s Daily Diary could be due to the difference in time zone between the two locations. Brackets are in the original.
2. Thursday, October 22.
3. An unknown hand underlined “without any meaningful chances for real influence in the world.”
4. October 23.
5. See footnote 2, Document 49. A copy of Baker’s handwritten notes of the first plenary session on October 22, which was devoted to the participating nations’ opening statements, is in Princeton University, Mudd Manuscript Library, James A. Baker III Papers, Box 77, Folder 5, Cancun Summit, 1981.