TNAG-1026-FCO40-1276-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 23

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CONFIDENTIAL

of countries which did not have the same involvement and

financial risk. Last year some of the group of 77 asked

for a change of control in multi-national institutions, which would have had a wrong effect from the point of view of making them more useful to under-developed countries. A system was needed whereby surpluses would be more easily available for developing countries and more aid should be directed to poorer countries.

·

11. Lord Carrington said that the single factor which would

give the most help to under-developed countries was stability in oil prices. Steep increases had made the industrial

countries less able to help, and had altered the economic

position of poor countries in a way disastrous for some.

Huang Hua said that OPEC had different views on the stability

of oil prices and oil supplies. OPEC felt that measures to stab-

ilise oil prices should be related to the price of manufactured goods in the West. Lord Carrington agreed that there should

be some relationship between the two.

12. In reply to Huang Hua's question Lord Carrington said that

he hoped that a document would not result from the Mexico

summit. He doubted that such a document would have any

significance. He added that he would prefer to see at the

summit a mood of determination to promote a better North/South

dialogue. He said that this term was misleading as some in

the south were very rich while some in the north were not.

Huang lua commented that the under-developed South had raw

materials and an expanding market. The North needed these

raw materials and it was essential that the North took a

more far-sighted approach and more positive attitude. In the

international economic situation the under-developed countries

of the South were meeting greater difficulties than at any

time since the 1950s; this coupled with political instability, provided good opportunities for infiltration and expansion for

the Soviet Union and Cuba.

CONFIDENTIAL

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