TNAG-0843-FCO40-1053-Visit-of-Lord-Carrington--Secretary-of-State-for-Foreign-and-1979 — Page 12

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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