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FM WASHINGTON
TO DESKBY 06080OZ FCO
TELNO 2440
OF 05233OZ OCTOBER 90
RECEIV
15 OCT 1990
W
INFO DESKBY 06080OZ UKREP BRUSSELS, 06080OZ ROME
INFO DESKBY 08090OZ LUXEMBOURG
AND TO IMMEDIATE ACTOR, ESC LONDON
TREASURY FOR WICKS AND PRIVATE SECRETARY TO CHANCELLOR
GULF CRISIS FINANCIAL COORDINATION SUMMARY
1. ITALIANS PROPOSE TO RAISE PARTICIPATION BY EC COUNTRIES IN THE GROUP DURING DISCUSSIONS AT ASOLO. DETAIL
2. MY ITALIAN COLLEAGUE AND THE LOCAL EC COMMISSION AMBASSADOR CALLED ON KIMMITT ON 4 OCTOBER TO FOLLOW UP DISCUSSIONS IN NEW YORK ON 28 SEPTEMBER ABOUT THE COORDINATION MECHANISM ARISING FROM THE IRAQ/KUWAIT CRISIS. THEY TOLD THE UNDER-SECRETARY THAT THE EUROPEANS HAD NOT APPRECIATED THE HASTE WITH WHICH THE AMERICANS HAD ACTED, ESPECIALLY AS THE COMMUNITY WERE WORKING ON SIMILAR IDEAS AT THE TIME. THEY THOUGHT, SECONDLY, THAT IT WAS COUNTER-PRODUCTIVE FOR THE UNITED STATES TO BE SEEN AS PRIME MOVER. THEY FELT THAT THE PRESENT SYSTEM DOWN PLAYED THE EUROPEAN ROLE. LASTLY, THE GROUP WAS DOMINATED BY TREASURY REPRESENTATIVES BUT SHOULD BE GIVEN GREATER POLITICAL SUBSTANCE BY BRINGING MFA'S MORE INTO ACCOUNT. THEY SUGGESTED THE AMERICANS LOOK AT THE IDEA OF A STEERING COMMITTEE AS A WAY OUT OF THE RESULTING DIFFICULTIES, GIVEN THAT THE AMERICANS WERE AGAINST CO-CHAIRMANSHIP OR ROTATION.
3. KIMMITT SAID THAT HE WOULD CONSULT HIS OPPOSITE NUMBER IN THE TREASURY. HE PUT A NUMBER OF QUESTIONS ABOUT THE PROPOSED STEERING COMMITTEE. THE TWO AMBASSADORS SAID THAT IN THEIR VIEW MEETINGS SHOULD NOT JUST TAKE PLACE IN WASHINGTON BUT
ALSO BRUSSELS AND OTHER CAPITALS PERHAPS INCLUDING TOKYO. THE CHAIRMANSHIP OF THE STEERING GROUP SHOULD ROTATE AND INCLUDE THE COMMISSION. DETAILS HAD HOWEVER YET TO BE WORKED OUT. THE ESSENCE OF THE PROPOSAL WAS THAT THE STEERING COMMITTEE SHOULD
BE SMALL AND DESIGNED TO GIVE GUIDANCE TO THE CHAIRMAN OF THE COORDINATING GROUP. THE ITALIAN AMBASSADOR, DE MICHELIS, WOULD RAISE THIS QUESTION AT ASOLO. EUROPE SHOULD BE SEEN TO BE A
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