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

96. Minutes of a Cabinet Council on Economic Affairs Meeting¹

Washington, June 29, 1982, 8:45 a.m.

• Attendees: The Vice President, Messrs. Regan, Baldrige, Block, Lewis, Pierce, Weidenbaum, Brock, Harper, Porter, Davis, Leland, Nau, Mehle, Hormats, Kudlow, Garrett, Gray, McPherson, Thompson, Bledsoe, Cicconi, and Denend, Ms. Dunlop and Ms. Dyke

1. Global Negotiations

The Council reviewed a paper, prepared by the National Security Council staff, on the status of global negotiations.²

Mr. Nau’s presentation focused on U.S. objectives in our economic relations with developing countries including promoting mutually beneficial growth without government directed resource transfers, and supporting LDC outward looking trade and finance policies in conjunction with sound domestic economic policies. He noted that while economic aid would continue to play a significant role in U.S. foreign policy, our assistance in the context of global negotiations would concentrate on: providing technical assistance; supporting trade liberalization; encouraging and protecting private investment; and stimulating cofinancing arrangements.

Mr. Nau outlined the major features of the agreement reached at the Versailles Summit and the progress that has been made since then to ensure common understanding. The U.S. agreed to drop the demand for a preliminary conference in exchange for agreement by our Summit partners that the G–77 text of the resolution establishing global negotiations, as amended by the U.S. to protect the role of existing international organizations, would be the only text under consideration. Any changes would require unanimous agreement or the issue would be elevated to the head of state level for resolution.

The Council’s discussion centered around the prospects for holding our allies to our interpretation of the agreement, the likelihood that the less developed countries will accept the resolution as amended, and the need to keep the Cabinet Council informed regularly as this issue moves forward at the United Nations.

Secretary Regan asked Mr. Porter to arrange for a Cabinet Council working group to regularly provide the Council with information on the progress of developments concerning global negotiations and to prepare appropriate materials on issues requiring the Cabinet Council’s consideration.

[Omitted here is discussion unrelated to Global Negotiations.]

1. Source: Reagan Library, Ralph Bledsoe Files, Office of Policy Development, Cabinet Councils, Other Cabinet Councils, Cabinet Council on Economic Affairs IV. No classification marking. The meeting took place in the Roosevelt Room at the White House. No drafting information appears on the minutes.
2. Possibly a reference to Document 94. Leland also prepared a memorandum for the CCEA updating the Council on the status of Global Negotiations since Clark’s June 21 memorandum. Leland’s June 28 memorandum is in the Reagan Library, Douglas McMinn Files, Subject Files, Global Negotiations.