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and nuclear-free zones), the establishment of a new regional, intergovernmental body, and the pursuit of "international economic security". Even the Mongolians fell into line with the charm offensive this year, and their Deputy Foreign Minister chaired the Session in an impeccably neutral (if humourless) fashion.
Economic Issues
4. The technical content of discussions on economic topics was limited, and significant divergences of opinion (as opposed to emphasis, which varied somewhat) very few. Delegates generally endorsed the need for restructuring to enable economies to adapt to a changing world environ- ment; they acknowledged the importance of market forces in this process;
they stressed the importance of the social and environmental aspects of development; they accepted the potentially positive role which transnational corporations and foreign direct investment could play by encouraging technology transfer; and they emphasised the need for, and benefits of, free trade (although generally with respect to others' trade policies).
5.
Most
There was some disagreement on the subject of trade not on the underlying principle that free trade is generally beneficial, but on the likely implications of the single European market and the US/Canada Customs Union. critical were the Australians, with support from some develop- ing member countries (DMCs). The Australians' main contention was that the single European market would result in a closing of the European market to exports. This assertion was contested by the Europeans (UK, France and the Netherlands as members and FRG and the EC Commission as observers), who emphasised the communities' intended outward orientation after 1992 and the improved export prospects stemming from a more efficient, dynamic and faster-growing European market.
6. The Australians also chose to use this forum to make pointed criticisms of the Common Agricultural Policy (CAP) and of European subsidies, and sought to create embarrassment by contrasting CAP practice with French and UK country statements on the desirability of free trade. DMC delegates seemed mildly perplexed by the vehemence of the Australian attacks. We coordinated with our European colleagues and replied in a low-key, emollient fashion. We also took action in the margins of the meeting, suggesting informally to the Australians that there was little to be gained in discussing such matters outside the correct fora (GATT and UNCTAD).
7.
The discussions on this year's theme topic, "Restructur- ing the Developing Economies of ESCAP in the 1990s", saw welcome, general recognition of the need to improve the flexibility of individual economies to adapt to changes in their circumstances, and the importance of market forces and economic liberalisation in this process. There was also, however, a less welcome emphasis, both in Secretariat documentation and in the statements of delegations, on
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