CONFIDENTIAL
the decisions taken at the Dublin European Council and explain our thinking on the way forward
the way forward (above all the need to bring in non-EC countries with the aim of setting up an exercise similar to the G24 for Eastern Europe). She could draw on the following:
-
Money is not the Soviet Union's problem.
Essentially a rich, not a poor country. Needs
expertise and must learn how to mobilise its own
resources. We are therefore expanding our know-how effort. Without necessary skills, other help will
inevitably be wasted.
Question of wider help discussed by Dublin
European Council. Commissioned preliminary analysis of the problems faced by the Soviet economy. We can
only decide possible remedy when we know precisely
what the patient is suffering from.
- If any large scale help is to make sense it must
be preceded by Soviet commitment to major structural
reform. As aid begins to flow, reforms must be
implemented, and if reforms stop, so must aid.
-
Reform must also include lasting switch of Soviet
expenditure from military programmes.
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Important that this should not be treated simply
an EC exercise. Essential both that it is
coordinated more widely, above all with Japan and
North America, and that Commission work hand-in-hand
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