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

75. Telegram From the Department of State to the AlCancun Collective and All OECD Capitals¹

Washington, November 5, 1981, 1918Z

295207. SEC/USOECD Also for Embassy. ALOECD Take Immediate Action. Subject: Global Negotiations: Post-Cancun Action. Ref: USUN 3660² and 3826 Notal.³

1. (C) Entire text.

BACKGROUND

2. As you know, Global Negotiations (GNs) were major issue at the Cancun Summit, October 22–23. In his opening statement Thursday October 22 (full text by State 286552),⁴ President Reagan outlined four “essential understandings,” said that “if these understandings are accepted, then the U.S. would be willing to engage in a new preparatory process to see what may be achieved,” and suggested “that officials of our governments informally confer in the months ahead as to appropriate procedures.”

3. Passage on GNs in the co-chairmen’s summary at the end of the Summit received intensive discussion among all participants on Friday, October 23. Although it was the only section of the summary subject to prior consultation before release, the message, like all of the summary, was issued only on the responsibility of the co-chairmen (Trudeau of Canada and Lopez Portillo of Mexico) and does not commit the other participants.

4. On Friday afternoon, the Canadians presented a proposal which would have the two co-chairmen and the UN Secretary General “in their personal capacities to convene, after appropriate consultations and by the end of the year, an informal group to discuss preparations for . . . GNs.” According to the Canadians, India, Yugoslavia, Nigeria, Mexico, Brazil, and most of the OECD countries accepted the Canadian proposal. Momentum behind the Canadian proposal was broken when Venezuela (apparently fearing the dilution of the UN role) introduced the first of the two sentences actually used. The final co-chairmen’s summary (full text in State 286553)⁵ says merely that “the Heads of State or Government confirmed the desirability of supporting at the United Nations, with a sense of urgency, a consensus to launch Global Negotiations on a basis to be mutually agreed and in circumstances offering the prospect of meaningful progress. Some countries insisted that the competence of the specialized agencies should not be affected.”

5. President Reagan accepted the final language which is preferable to the Canadian draft because it contains no fixed time frame for follow-up. It also has the virtue of leaving open precise meeting mechanism and under-scoring the competence of the IMF, World Bank Group and GATT. (Reporting cable on this part of the Cancun Summit is being prepared, but you should not wait for it before taking action requested below.)

6. Secretaries Haig and Regan commented on GNs at the Summit in response to repeated questions on this subject at their joint press conference in Cancun on October 24.⁶ Excerpts of all relevant portions by L.

7. GNs are formally on the agenda of the current regular session of the UNGA in New York and were taken up November 4. We understand that G–77 has already met at least three times since Cancun to review GNs and that UNGA President Kittani has instituted bilaterals with both developed and G–77 countries on next steps. (See reftels which have been repeated to all addressees.)

STRATEGY

8. It is essential that we have an opportunity to hold informal bilateral and small group consultations in capitals, New York, and elsewhere for the purpose of ascertaining other countries’ reactions to the four understandings presented by the President at Cancun.

9. The purpose of this cable is to initiate such consultations with Cancun participants and other interested governments. This carries out the President’s suggestion in his statement of October 22 “that officials of our governments informally confer in the months ahead as to appropriate procedures” and the view which Secretary Haig expressed in the October 24 press conference that the next step will be “a process (of informal discussions) that I anticipate will begin very quickly” and will be “among the participants here at Cancun and broadened to other interested parties . . . in a number of different venues . . . with a view towards trying to develop a consensus on how (the four U.S.) understandings will become the framework for formal negotiations at the appropriate time.”

ACTION REQUESTED

10. All posts in OECD and Cancun participating countries should approach appropriate officials to ascertain host government reactions to the four understandings and to initiate informal discussions with them on Cancun’s effects on GNs and how to proceed with GNs. This should be done as soon as possible. Addressees may also do so if appropriate. USUN should make the same approach with appropriate delegations and should confer with Waldheim and/or Kittani. (FYI: We will also ensure that this subject is discussed during the November 12–13 meeting of the OECD North-South group.)

11. Your objectives are:

— to ensure that the President’s statement of October 22 (State 286552) has been received and is understood by other governments.

— to restate the willingness of the U.S., as expressed by the President, to conduct a more formal dialogue and, based on the four U.S. understandings, to engage in a new preparatory process to see what may be achieved.

— to note, if the issue arises, that we would not resume the preparatory process under UNGA Resolution 34/138.

— to consolidate the positive reaction which the President’s statement received in Cancun and to perpetuate the “spirit of Cancun” (whereby developing and industrial countries examined global problems with a minimum of rhetoric and no country was politically isolated) and the widespread perception that Cancun was successful.

— to ascertain host government thinking on the lessons of Cancun and on the next steps to be taken in re-establishing a meaningful dialogue

— to discuss steps which could be taken during the current session of the General Assembly consistent with the four understandings expressed by the President.

— to prevent any precipitate action at this session of UNGA or elsewhere which would prejudice the outcome of consultations now being undertaken in New York and initiated in capitals as a result of this cable.

12. In making your approaches, draw on (1) the President’s statement of October 22, (State 286552) (2) the Haig/Regan press briefing of October–24, (septel), and (3) the set of four U.S. policy speeches which preceded Cancun (Haig to UNGA, the President and Regan at the Bank/Fund meetings, and the President’s Philadelphia speech on October 15).

[Omitted here are talking points provided by the Department of State on how to handle Global Negotiations.]

16. In addition to the foregoing, you may discuss the following positive aspects of the Cancun chairmen’s summary.

— First, the summary expresses the determination to attack certain problems on an urgent basis in the institutions existing for this purpose. We anticipate that topics of particular interest to certain Cancun participants and others will be followed-up in the specialized agencies. The U.S. wishes to ensure that major substantive work is done in these institutions.

— Second, although the co-chairmen’s summary was on their own responsibility and does not necessarily reflect all Cancun participants’ views, we believe that discussions at Cancun described in the summary suggested many topics for further discussions. In the area of food security, the emphasis was placed on the eradication of hunger. It was pointed out that substantive and long-term internal effort on the part of developing countries to increase food production is the basic element in obtaining the real answer to the problem of hunger, although timely and sufficient international technical and financial support is needed in coordination with internal policy strategies.

— The co-chairmen recognized that there needs to be a review of international agricultural and food organizations within the framework of the UN in order to avoid duplication of work and to use available resources more effectively.

— The Summit recognized trade barriers against agricultural products hinder the growth of agricultural activities and the achievement of food security objectives. In the area of trade, it recognized the need on the parts of all governments to resist protectionist pressures. There was a stress on the importance of proposed GATT Ministerial meeting. In discussing energy, there was recognition of the need for increased energy investment from private as well as official sources.

— In discussing monetary and financial issues, the Summit stressed the role of the relevant multilateral institutions, in particular the IMF and the World Bank, in light of the current economic and financial problems facing the governments of developing countries.

Haig

1. Source: Department of State, Central Foreign Policy File, Electronic Telegrams, D810527–0618. Confidential; Immediate. Sent for information to all Diplomatic Posts. Drafted by Lollis and Hormats; cleared by Doral Cooper (USTR), Leland (Treasury), Fox, Rutherford Poats (NSC), Adams, Constantine Michalopoulos (AID), and Ted Strickler (S/S–O); approved by Abrams (IO).
2. In telegram 3660 from USUN, October 27, the Mission reported on consultations within the UN on how to approach Global Negotiations in the General Assembly. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810508–0629)
3. In telegram 3826 from USUN, November 3, the Mission reported on the plenary debate on Global Negotiations, scheduled to begin on the morning of November 4. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810521–0811)
4. Telegram 286552 to the AlCancun Collective, October 27, transmitted the text of Reagan’s October 22 statement to the opening session of the Cancun Summit. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810508–0593)
5. Telegram 286553 to the AlCancun Collective, October 27, transmitted the text of the Summary by the Co-Chairmen of the International Meeting on Cooperation and Development. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810508–0929)
6. Telegram 294813 to the AlCancun Collective, November 5, forwarded excerpts of the White House transcript of the October 24 press briefing given by Haig and Regan at the conclusion of the Cancun Summit. The cable reported that the excerpts mainly covered remarks on the issue of Global Negotiations. (Department of State, Central Foreign Policy File, Electronic Telegrams, D810524–0592)