CONFIDENTIAL
ESSENTIAL FACTS (may be used freely except where indicated)
UNCTAD V
1. UNCTAD V met in Manila from 3 May to 3 June. Consensus results were
adopted on a number of matters including protectionism, commodities,
resource transfers, the least developed, the UN Liner Code, technology
transfer and economic co-operation between developed countries (ECDC).
The G77 forced through some other resolutions on, eg civil aviation, a
study of a new Complementary Financing Facility, for which the Germans
voted (see paragraph 7 below), international monetary reform and bulk
shipping. Various other questions on which no agreement was reached were
remitted for further consideration in UNCTAD or other international bodies,
eg the outcome of the MTNS, GSP, debt etc. But there was no breakdown
and little rancour. Group B displayed a useful degree of unity: G77 were
divided between the various regional groups and, above all, over the oil
issue which the OPEC countries refused to have discussed. Senior officials
of the Seven met in Paris on 12 June under the chairmanship of Mr Nishiyama
and reached an agreed assessment of the outcome of UNCTAD very much on the
above Lines.
ENERGY
2. See Brief No 2.
DEFICITS
3. The deficits for non-oil developing countries will rise from $25.6
billion in 1978 to $32.5 billion in 1979 (WEP) (OECD figures show a rise
from 831 billion to $40 billion). The international financial institutions
and the commercial banks will have their resources tested if they are to
handle the worsened current account situations of oil importing countries.
Countries with structural surpluses are better placed to increase their
ODA than others.
TRADE
4. We welcome the UNCTAD V agreement that the world's economic problems
cannot be solved by protectionist measures and that there should be a
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