CONFIDENTIAL
regular review in UNCTAD of the continuing adjustment of world industrial
st tures to changing patterns of trade. This complements the decisions
taken at the OECD Ministerial meeting to review the Trade Pledge which
reaffirms our commitment to maintain an open world trading system - and
Launch a programme of work on adjustment and on the role of "positive"
adjustment policies (eg policies to encourage labour mobility) in facili-
tating the adjustment process.
AID
to
5. The UK Aid Programme in 1979/80 will be higher in both cash and real
terms than the Programme for 1978/79, even after the £50 million reduction.
A s
a percentage of GNP we will be well above FRG, Japan and USA. We
continue to support a substantial replenishment of the International
Development Association (IDA 6) and a general capital increase of the
(Background. Planned public expenditure cuts dictate caution
over communiqué language on increases in ODA: we cannot accept wording
which commits individual donors to increases),
World Bank.
FOOD
6. The Japanese and Americans are keen to mention the importance of
increased food production in the communiqué. We can go along with this,
preferably linked with a reference to agricultural (as well as food)
production.
GLOBAL STABEX
7.
(Background.
Chancellor Schmidt is personally responsible for German
advocacy of a new $5 billion scheme for stabilising commodity earnings
based on the Lome Stabex scheme, extended to cover minerals, not just some
agricultural commomdities, and all developing countries, not just the ACP).
Such a scheme would be very expensive to operate, and would in any case
duplicate the IMF's already existing Compensatory Financing Facility (CFF).
This has already been liberalised once and further possible liberalisation
will be discussed later this year. We will press for the inclusion of a
specific commodity element designed to help in particular LDC commodity
exporters. Important for OECD countries to take a positive line at these
W
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