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1 THE DOWNING MAY 7th C T'he following briefing 1 notes Street 1976) were Carter's as Downing 2 In addition France, summits, issues Japan, also attend Mr Jenkins sphere mainly restricted clearly cause affect refore Rico President include discussions be referred cot" Kingdom, USA to and Commission participate issues directly in in only Although se those European aee4ce to second real practical day, this arrangement for summit, on question North-South dialogue although stock-taking on first day concentrate items are difficulties is to have a general problems nations 1975 and Puerto European,t is no fixed agenda intention at last summit (Canada, United President Corn Summit Germany) which 4th May developed but in keeping and oral summit meeting in London discussions 3 (Rambouillet to participants Italy, on Wednesday leading summits Street on a non-attributable is third meeting range 1977 Office Summit wish on a wide 8th SUMMIT are based Government The two previous - at Foreign The Downing Heads STREET and energy world (Saturday) multilateral policies and to trade, on second day
2 -2- (Sunday) general The talks headings, not to reach exposition better firm decisions, national understanding, seem that keen that re developed hope but that re policies Giscard is that summit be an also be a It would and Schmidt be a concerted to world's is aim achieving basic problems Carter, from The intention and that re Callaghan, nations and, apart unst ru ctured largely co mmon identification be informal a roach by provide are all problems an impetus Their for Ott to take fresh action coming months-in (eg IMF, Cooperation, se large number Conference UNCTAD, negotiations, inter-related problems relevant institutions on International GAT-T, over Economic multilateral trade etc) 4 The summit's main concern clearly feel that stuttering and continuing unemployment approach necessitate high (USA, ir major gloomy predictions trade recovery inflation economy in and effort A joint has long been an objective Japan) responsibility and world levels who is keen Germany, growth an international to se problems Prime Minister, be world that "motor be made for sustaining Basically by OECD economies" fully aware world accepts and recent refore be /
3 -3urging that motor growth targets While undertake accepts that Germans reflation, it would emphasise hold to ir declared 5-6/7 per cent, rar furr reasons, economies than falling back are reluctant to for historical and political seem that Prime Minister scope non-inflationary for Germans to undertake reflation 5 It is expected meeting that progress IMFts Interim and that participants and tangible seriousness problems countries deficits less developed this imbalance lending on overcoming Germany countries and is keen IMF's placed and also solid next meeting opinion payments be endorsed to more in on inte rn ational OPEC OECD look forward is a difference by large balance members Committee at Committee's September caused progress made at last week's financing surpluses and Japan, and and weaker is extremely worried by for re to be an expansion facilities, problems special emphasis less developed countries 6 The discussions high growing on trade level unemployment protectionist pressures conce rn ed that any contraction world naturally trade have a very be much in and is particularly in rate serious concerned effect growth in on North-South
4 -4- relations Japan can reach its high growth an export boom, which pressures in North understood growth, y greater HMLG adopted but European at summit be deployed Communityts and a much to import on question Third not be at appropriate move time is hoping towards on questions ficial and stabilisation ea rn ings on energy recent in iative, while re furr difficulties policy give a broad welcome example As regards for on co mmodities, year position to press resources, Administration In discussions For It is for an appreciation aid, a co mmon fund for co mmodities export Europe continue particularly remainder that Carter protectionist on part Japanese debts and transfer throughout is on back increase and e rn also press relations, made public target "crypto-protectionism", Any new position World America propensity North-SSA that only way that in tu rn would that while Yen, removal 7 is also concern expressing are fears that it is expected to President certain that Carterts reservations Presidentts proposals slow down reflation and re could also for our car exports to America US proposals on nuclear be in future reprocessing,
5 -5- Britain, France, opportunity 9 Germany to voice ir objections serious disagreement meeting 15-nation Special lunches be for Economics and Japan all take this - re was very Americans nuclear at last week's suppliers' club held on second Ministers and also for respective expected that se day talks seven participant Foreign Ministers be occasions talks and not necessarily to be discussed by Heads It is for very wide be restricted nations, ranging to topics Government 0 Conservative Research Department Old Queen Street, London S Wl RJS/SJE 5 April 1977
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