TNAG-1001-FCO40-1237-Future-of-the-Dependent-Territories-including--Report-of-the-1981 — Page 28

7. However a lot of misunderstanding had arisen becausc of the UK's vote (with the Germans and the Americans) at the UN vote on the Global Negotiations. The UK had at the time considered it wrong for the world's economic problems to be placed under United Nations auspices in the way proposed. The leading donor countries would be reluctant to lend through these organisations if the latter were subject to UNGA's authority. The High Commissioner for Jamaica questioned the IMF's philosophy and the adequacy of resources at its disposal. The High Commissioner for Grenada said that a loan of £19 million to his government by the IMF had recently been vetoed by the American on the latter's executive board. Mr Bayne explained that the US had no veto in the IMF; the board's decisions were reached by consensus; the board itself contained a balance of developing and developed countries; there had recently been some concern that IMF criteria were

But the to severe and this could perhaps lead to change. IMF was like the dentist: countries tended to put off going as late as possible and, when they did go, the treatment required was sometimes rather painful.

8. The High Commissioner for Tanzania said that he was pleased that Britain was going to the Mexico Summit but said that the UK's policy of retrenchment first was a little worrying. Countries tended to get into trouble when they looked inwards. He strongly hoped that, recession notwithstanding, the UK could be more magnaminous, particularly in the field of regional co-operation. This was one area in which there

Mr Blaker was a great deal of agreement but very little action. said that there had never been a question of the UK not going to the Summit. On the more general questions, he hoped that when inflation came down, the economy would expand and so allow the UK to do more. He would ensure that Mr Nsekela's remarks on regional co-operation were passed to Mr Marten. The UK's priority in Southern Africa had of course been Zimbabwe. The High Commissioner for Mauritius (and senior High Commissioner) thanked I'r Blaker for his address, saying that these occasions were much appreciated by the High Commissioners. Commenting on the discussion, he added that not only aid but also trade was important; an here the Lomé Agreement had a significant role to play.

Commonwealth Co-ordination Department 21 April 1981

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