TNAG-0926-FCO40-1144-Future-of-the-Dependent-Territories-1980 — Page 14

1. Sir Ian Gilmour spoke briefly on three subjects:

(a) North/South

The British Government would continue to work to resolve the problems affecting developed and developing countries. Joint action was necessary, as the Brandt Report had argued. The world's economic outlook was very serious; it had been compounded by increased oil prices which had reduced aid from the developed world at the same time as it had increased the deficits of oil- importing developing countries. The Iran/Iraq war had further high- lighted the crucial position of oil. The work in the economic field of the Commonwealth Group of Experts had been most useful. There was no simple division between North and South but gradations of prosperity and poverty across the board. All were bound to gether by economic links and this interdependence required a joint approach to tackling problems. It was important that the existing international economic system should be preserved, and adapted rather than totally reformed. Pressure for protectionist measures should be resisted and markets kept open. Greater private investment was also important for development and should be encouraged; private British investment in LOCS had been increasing. The British Government continued to provide a substantial aid programme. The current cuts were regretted but it was hoped that the recovery of Britain's economy would allow future increases. It was hoped that the present difficulties over the Global Negotiations would be resolved soon. A coherent approach was needed, but it was difficult to take final decisions during the present interregnum in Washington. There had recently been a preparatory meeting for the North/South Summit planned for

Participants would include seven Commonwealth

Mexi co in June. countries.

(b) Namibia

It was important to support the UN Secretary General's initiative and not to subject his report to too careful an examination. The important thing was the Pre-Implementation Meeting (PIM) which should clear away remaining difficulties.

(c) Belize

The future of Belize had been the subject of a written statement in Parliament that day. It remained the British Government's objective to secure a negotiated settlement. Commonwealth support on this issue had been very welcome.

2. In response to a question from the High Commissioner for Bangladesh the LPS confirmed that the British Government would participate in the North/South Summit in Mexico. The High Commissioner for Mauritius said that the North/South Dialogue had been going on for a long time and that the British Government's response to the Brandt Report had so far been depressing; the LPS pointed to the considerable interest that the Brandt Report had aroused in the UK and said that he hoped further action would be possible as the extent of the economic problems facing the world became more apparent.

The High Commissioner for Malawi asked the LPS to comment on recent reports to the effect that the British government was attempting to

/organise