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

88. Memorandum From Henry Nau of the National Security Council Staff to the President’s Assistant for National Security Affairs (Clark)¹

Washington, April 27, 1982

SUBJECT

• Versailles Summit Preparatory Meeting April 24–25

This meeting, which began with the usual difficulties and complaints about U.S. economic policies, ended on a note of excitement and potential historic significance. Versailles could become the most important Summit since Ramboulliet (which was the first one in 1975).² The French would dearly love such an outcome, and it could also be in our interests. But the risks, in terms of both policy and public relations issues, especially the President’s leadership image, are substantial.

[Omitted here is discussion unrelated to North-South issues.]

The North-South issue experienced a revival at this meeting. As I informed you earlier, the G–77 recently tabled a new text on Global Negotiations (GNs) in New York,³ just in time (coincidentally, I am sure) to allow America’s allies to press us in the context of another Summit to cave on the President’s Cancun conditions for launching GNs. We made a spirited defense of the President’s policies and urged that the Summit countries stick with us in the consensus approach we developed at Ottawa and Cancun. Japan supported us, but Canada and the EC warned that they were bending over backwards to avoid isolating the U.S. and could not continue to do so much longer. This may be a bluff. The issue is not so important to heads of states and to the context of this Summit (in contrast to Ottawa) to risk isolating the U.S. President, especially when there are potentially bigger agreements in economic and monetary policy to be achieved. We should use this leverage to encourage the Summit allies to go to bat for us in New York (that has always been the answer to this GNs dilemma) and to offer a new text that is fully consistent with the President’s position. This puts them on the spot since they may now have to choose between displeasing us and displeasing a few radicals in the G–77, who are manipulating the process in New York.

[Omitted here is discussion unrelated to North-South issues.]

1. Source: Reagan Library, Executive Secretariat, NSC Trip File, President’s Trip to Versailles Economic Summit June 4–6, 1982; NLR–755–14–11–5–1. Confidential. Sent for information. Copies were sent to Bailey, Blair, Gregg, Rentschler, and Tyson. Wheeler initialed the top right-hand corner of the memorandum.
2. The Rambouillet Economic Summit took place November 15–17, 1975, in Rambouillet, France. For documentation on this Summit, see Foreign Relations, 1969–1976, vol. XXXI, Foreign Economic Policy, 1973–1976, Documents 91–129.
3. In an April 19 memorandum to Clark, Nau informed Clark of the G–77’s tabling of a new draft resolution on Global Negotiations and explained that he, Hormats, and Sprinkel would be discussing the issue with the Summit allies at the April meeting in France. (Reagan Library, Douglas McMinn Files, Subject Files, Global Negotiations; NLR–369–3–27–27–2) Hormats provided a report, dated April 29, on the April preparatory meeting to the CCEA. A copy of Hormats’ report is in the Reagan Library, James Jenkins Files, Versailles Summit Issues (CM234) 05/03/1982, CCEA).