CONFIDENTIAL
essions with Indian officials and the Indian and UK Delegations kept
in close touch at Manila. The Indians expressed disappointment with the
outcome on restructuring, trade in manufactures and aid, but they
recognise that some progress was made on the Liner Code, the Least
Developed and Economic Co-operation among Developing Countries (ECDC).
7.
Discussions (under UNCTAD auspices) on
the proposed international
jute agreement have made progress. Agreement will be based on research
and development, market promotion and cost reduction. The Indians (and
other producers) would like to have buffer stocking facilities included,
but this seems unfeasible. Indians are prepared to accept the limited
agreement as
first step. We are content with this. Draft Articles
will be discussed in September.
Baghdad
8.
The Iraqis' main interest in the North/South Dialogue is to keep
energy out of it for fear of being attacked by their fellow members of
the G77. They made an attempt to square this circle at UNCTAD by
proposing an international fund to compensate non-oil LDCs for the extra
financial burden attributable to inflation and oil price rises.
producers and the industrialised countries would be expected to
Oil
contri-
bute jointly.
FINANCIAL RELATIONS DEPARTMENT
FOREIGN AND COMMONWEALTH OFFICE
20 JUNE 1979
CONFIDENTIAL