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THE DEPARTMENT OF STATE BULLETIN Volume LXXI No. 1844 October 28, 1974

SECRETARY KISSINGER'S NEWS CONFERENCE OF OCTOBER 7 565

ANNUAL MEETINGS OF IMF AND IBRD BOARDS OF GOVERNORS HELD AT WASHINGTON Welcoming Remarks by President Ford and Statement by Secretary of the Treasury Simon 57U

COOPERATIVE ACTIONS TO SOLVE ECONOMIC AND SOCIAL PROBLEMS Statement by Senator Charles H. Percy U.S. Representative to the U.N. General Assembly 589

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» ih74

THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY

For index see inside back cover 1

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THE DEPARTMENT OF STATE B U L L E T 1

Vol. LXXI, No. 1844 October 28, 1974

The Department of State BULLETL

a weekly publication issued by tl Office of Media Services, Bureau Public Affairs, provides tlie public at interested agencies of tfie governmei witfi information on developments tfie field of U.S. foreign relations ah tfpi on tfie work of tfie Department an tfie Foreign Service. Tfie BULLETIN includes select* press releases on foreign policy, issiu by tfie Wfiite House and tfie Depart ment, and statements, address^ and news conferences of tfie Presidei

For sale by the Superintendent of Documents and tfie Secretary of State and otfit U.S. Government Printing Office officers of tlie Department, as well t Washington, D.C. 20402 special articles on various pfiases PRICE: international affairs and tfie function 52 issues plus semiannual indexes, of tlie Department. Information domestic $29.80, foreign $37.25 included concerning treaties intei Single copy 60 cents and national agreements to wliicli th Use of funds for printing this publication approved by the Director of the Office of United States is or may become Management and Budget (January 29, 1971). party and on treaties of general intei Note: Contents of this publication are not national interest. copyrighted and items contained herein may be Publications of tfie Department reprinted. Citation of the DEPARTMENT OF State, United Nations documents, an STATE BULLETIN as the source will be appreciated. The BULLETIN is indexed in legislative material in tfie field the Readers' Guide to Periodical Literature. international relations are also listet Secretary Kissinger's News Conference of October 7

Press release 395 of October 7 or dramatic announcements that can be ex- Secretary Kissinger: Before we go to ques- pected out of this trip. The primary purpose is to give concreteness to the negotiating tions, I would like to welcome 20 Polish journalists who are here to cover the visit process and perhaps to agree on some timing. talking the trip, I of Mr. Gierek [Edward Gierek, First Secre- As long as we are about tary of the Polish United Workers' Party]. would like to add that I will also visit Saudi Arabia in connection with the negotiations I would like to say that we attach great I will importance to this visit in further improving and on the way home stop in Algeria and Morocco. And I will be back on the our relationship with Poland. And I am sure what you will see here will remind you of 15th.' some of the deliberations in the Polish Diet of previous centuries. Peaceful and Military Nuclear Explosions

Q. A tivo-part question, Mr. Secretary, on Q. Mr. Secretary, there have been pub- your trip. Will you he emphasizing an Israeli- lished reports this morning, sir, that the Egyptian settlemeyit, an Isr'aeli-Jordan set- agreement reached last slimmer, I believe, by tlement, or both? And do you plan, or are President Nixon with the Soviets to limit there any possibilities to meet with [Yasir] underground testing may be broadened to Arafat or any other Palestinian leader while include peaceful nuclear tests. Are these you are in the Middle East? stories accurate?

Secretary Kissinger: With respect to the Secretary Kissinger: I am reaching the second question, there is no possibility that point now where before I read my cables I I will see Arafat or any other Palestinian read the newspapers, because they have a leader while I am in the Middle East. better selection. [Laughter.] As for the content of the negotiations, we This one is not correct in all respects. have attempted, in discussion with both There was an agreement at the time of the Israeli and Arab leaders, to determine what negotiation of the threshold test ban that the would be the most suitable next stage of threshold test ban would not be ratified un- the negotiations. less there was also an agreement for the It has always been understood that prog- handling of peaceful nuclear explosions. ress in one area would have to be linked with This had two aspects: peaceful nuclear progress in other areas. And therefore we explosions below the threshold and peaceful are talking about timing and the particular nuclear explosions above the threshold. "Be- stages that look most promising. low the threshold" presented no particular So I am not going with any fixed ideas, problem because explosions were permitted and I will discuss again with all of the anyway, and it was primarily an issue of the leaders involved. And then one can form a site at which the explosion would take place. common judgment. 'The Department had previously announced that I would like to point out that there will be Secretary Kissinger would visit Egypt, Syria, Jor- no concrete results in terms of agreements dan, and Israel Oct. 9-14.

October 28, 1974 565 —

"Above the threshold" required special nego- mittee on covert activities and clandestine tiations for the development of criteria to operations overseas? And isn't this compro- distinguish a peaceful explosion from a mili- mising to your role as Secretary of State and tary explosion and also to determine the the relatively open diplomacy of your other compatibility of the explosion with a limited hat? test ban. Secretary Kissinger: The 40 Committee, starting in These negotiations are now in one form or another, has existed since on Moscow, and the outcome will depend 1948. The Department of State has always how we can proceed with the ratification been represented on the 40 Committee. issue. But this has always been understood, The role of the 40 Committee is to review decision involved. What so there is no new covert operations in order to determine their the is involved is a clearer specification of compatibility with the national security and distinctions might be criteria by which these foreign policy objectives of the United established. States. It is not to operate the covert actions that It Q. Dr. Kissinger, if I may folloiv that tip. and not, for matter, to design them. When India exploded a peaceful nuclear de- is to give policy guidance and policy review. vice last May, I think the U.S. position was So, in one form or another, the Depart- that there was no distinction between a ment of State is a participant in the decision, peaceful device and a military one. The and the final approval is in every case given technology is the same. Is there now a dis- by the President in any event. tinction being drawn in this country?

Measures To Deal With Oil Prices Secretary Kissinger: I think one has to make a distinction between countries that Q. Mr. Secretary, you have repeatedly said have not previously had access to nuclear that yoii do not desire confrontation with explosive technology and those countries that the oil producers. I would like to ask two have elaborated nuclear explosive technology. questions about that. If you do not want In the case of a new nuclear country, the confrontation, tvhy did you and the President mere fact of an explosion is of significance use such harsh rhetoric in addressing your- because that is what enters it into the club self to the problem, rhetoric that apparently of those who have set off nuclear explosions. you can't back 2ip with action? And, two, And therefore in the early stages of nuclear tvhy a ftdl year after the energy crisis really development, the distinction between mili- hit have you not made any serious moves to tary uses and civilian uses may be in the get together ivith the producers? mind of those that set off the explosion, but Secretary Kissinger: Do you want me to it is very difficult—in fact it is impossible agree with your conclusions, or can I state to establish a distinction. some of my own? [Laughter.] In the case of elaborated nuclear tech- First of all, the definition of "harsh rhet- nology, there are at least some cases in which oric" is of course quite a subjective one. The criteria can be defined by which the explo- President and I stated that we are dealing sion is either of a more rudimentary tech- with a very serious problem. If you look at nology than has already been tested for my statements on the subject, you will find military purposes or is of a nature that can that I used substantially the same rhetoric be clearly demonstrated as not useful for in my Pilgrims speech last December in military purposes. London, in the opening speech to the Wash- So the distinction can be made only in ington Energy Conference in February, in cases of advanced nuclear countries. It can- the speech to the U.N. special session of the not be made with respect to countries enter- General Assembly in April, and now again ing the nuclear club. in September. Q. Mr. Secretary, what is your rationale We have stated, and I repeat, that present for continuing as chairman on the JfO Com- oil prices are putting a strain on the world

566 Department of State Bulletin economy that will, over a period of time, motest connection with the Arab-Israeli create an intolerable situation. It was the conflict. intention to emphasize these points. We believe that to some extent these nego- Now, whether or not it can be backed up, tiations should be conducted in separate again, is a question that requires some ex- forums, and we are conducting them in amination. Ever since the first speech last separate forums. December we have made a systematic effort to bring about greater cohesion among the Improvement of U.S.-Polish Relations consumers, to protect them against emer-

gencies, to bring about conservation, to bring Q. If I may ask you, on Mr. Gierek's visit, about cooperation on alternative sources of in the spirit of the Polish Diet, woidd you energy and in research and development, and care to elaborate on this visit in a more ultimately a greater degree of financial soli- general, wider context of the East-West darity, at least with respect to the recycling detente, if you may? problem. Secretary These measures are required whether or Kissinger: Well, as you know, the improvement of relations not oil prices come down, especially if oil between the East and prices do not come down. They also will West has been one of the cardinal goals provide a basis for further discussion with of our foreign policy. the producers. We have always held the view that this is not confined to relations between the Until there is a degree of a common view United States and among the consumers, discussions with the the Soviet Union but it must include some of our traditional producers are simply going to repeat all the friends in Eastern Europe. debates with which we are familiar. We And therefore we expect during the have been talking with the producers. The visit of the First Secretary to discuss Europeans have been talking with the pro- and to agree on a number of co- operative projects ducers. The only new element could be a in a variety of fields, eco- nomic and greater degree of cohesion among the con- technological. I'ealize of course sumers, and that, at this point, we are in We the facts of geography and the realities the process of forming. of existing political rela- tionships. But we believe that a considerable Q. Mr. Secretary, could I follow that up? improvement in relations between Poland and the United States is possible and that this Secretary Kissinger: Yes. will contribute to the general easing of ten- Q. There have been statements by Arab sions and improvement of relations on an spokesmen in the past couple of weeks draw- East-West basis. ing a clear link between the oil crisis and future Middle East negotiations. In your Grain Sales; Emigration From Soviet Union statement just a moment ago, when you talked about your upcoming trip to the Mid- Q. Mr. Secretary, on Soviet-American re- dle East, you didn't talk about the oil crisis, lations, over the weekend the Soviets have but just the negotiation. Is there any real- lost a major grain purchase. Can you say istic way of separating the two? how this in your mind affects Soviet-Amer- ican relations; and was the U.S. Government Secretary Kissinger: The major dynamics properly informed about the Soviet inten- of the oil crisis—well, first of all, I wouldn't tions? And, two, can you bring U3 up to date like the word "oil crisis"—of the impact of on the status of your discussions with the the high oil prices is not inevitably linked Senators on the Jackson amendment, which to the Arab-Israeli negotiations. And we are now seem to have run into some trouble? negotiating these two issues separately be- cause the high oil prices affect many nations Secretary Kissinger: With respect to the on a global basis that do not have the re- grain purchase, this grew out of an attempt

October 28, 1974 567 I by the United States to contact major im- not be sure about certain aspects, then some porters of grain and to discuss with them of the formulations that had been used a general level which we thought was con- might lend themselves to misinterpretation sistent with maintaining American grain later on. prices and also with our ability to fulfill it. We have every intention on our side of In the process, I believe that a strong pos- working this out with good will. We have no sibility exists that we may have misled the intention of having any debate with the Soviet Union as to what we thought we could Senators concerned. We share their objec- deliver over a period of time. And when a tives. And we believe that a reasonable solu- trading monopoly is given a certain level, it tion can be found among honorable men. S(frf(( then may assume that it has the right to I Q. Mr. Secretary, was the figure of 60,000 4 [L place orders for the whole amount imme- or any other figure understood in your dis- diately. This is where a disproportionate 5..V» cussions loith the Soviet Union? I impact occurred. And therefore we ascribed mi kI

the events of last weekend to a misunder- Secretary Kissinger: I have always made li!-wei

standing between bureaucracies. clear that I could not guarantee any figure. |H(,(ll( Secretary [of the Treasury William E.] How you interpret certain administrative Simon will be in the Soviet Union at the agreements into figures, I have always made end of the week and will discuss with respon- clear, could not be guaranteed by us. sible Soviet officials the grain exports which Mr. Secretary, ivould you recommend we believe we are able to make which are Q. Presidential intervention in the event that consistent with our attempt to fight inflation and with our other obligations on a global any of the oil-rich countries tried to make a\ ivheat deal or a grain deal similar to the one basis. So we are confident that this can be that was blocked over this past iveekend? worked out on a constructive and coopera- Seagrt tive basis. Secretary Kissinger: Well, there has been lat we to the second question, the With respect a meeting in the Department of Agriculturei negotiations between the Senators and my- this morning in order to work out a program difficulty, such as it is, arises from self, the of voluntary restraints and voluntary co- assurances that the fact that there are some operation between agricultural exporters and that I can defend and have been given to me the Department of Agriculture. That pro- transmit. There are some inter- which I can gram will be announced this afternoon. And pretations of these assurances which some I believe that it represents a satisfactory like to make. And that of the Senators would compromise between the operation of a free understand that is their privilege. And we economy and the overall global responsibili- Bter

apply their interpretations as a Stiiate, they would ties of the United States. test of Soviet good faith. What I cannot do is to guarantee things Q. Mr. Secretary, in reference to your that have not been told to me. And so the earlier comments about the negotiations on question is whether we can work out some- the underground nuclear test ban, would you thing which makes clear that we take the agree that the agreement has to be renego- which tiated fundamentally in order to get through Senators' views very seriously but Sterm position of having to the Senate, namely, that peaceful nuclear ex- does not put us into a tiattbe beyond what has been plosions also have to be limited to 150 kilo- guarantee something * sou discussed. tons? And secondly, also because it relates site, I difficulty arose at a meeting with to U.S. negotiations with the Soviet Union, Now, the fcays the congressional leadership in which we pre- would you agree that the dispute concerning sented what had been discussed and pointed negotiations over emigration with members out what we could guarantee in the area in of the Senate represents a diminution of which we were not sure of what in fact would their willingness to agree ivith you on many happen. And the unanimous opinion of the of tliese issues ivhich are in controversy re- congressional leadership was that if we could cently? Uii

568 Department of State Bulletin Secretary Kissinger: "They" meaning the with any recent debate that has gone on in Senators ? the Congress. But since you obviously also want an an- Q. Yes, sir. swer to the implication of your question, I Secretary Kissinger: Or the Soviets? believe it was inevitable that during the Watergate period, when much of the public Q. No, speaking of the mood—/ tvas par- attention and congressional attention was ticularly referring to the mood in Congress on domestic aff"airs, that there was a great as reflected recently. I am trying to get— reluctance to have a challenge to foreign policy. As we now have a more normal gov- Secretary Kissinger To confirm your ar- ernmental process, it is also inevitable that tide. [Laughter.] there will be a more normal debate on the Q. No—yoK are entitled to a rebuttal if subject of foreign policy. And I consider you wish. What I am trying to ascertain that inevitable and, in the long term, de- is—we have discussed here tivo neiv issues: sirable. one, the emigration concept—

Attitudes Secretary Kissinger: I understand the Toward Foreign Policy Issues

question. I think I get the drift of its import. Q. Mr. Secretary, is the Nixon doctrine But first let me deal with the first part of still an ongoing policy of the neiv adminis- the question. tration, and if so, do you have the support I not agree, nor is it the opinion of the do of the Congress in seeing that it is imple- President or of the government, that the mented? threshold test ban has to be renegotiated. We agreed with the Soviet Union in June Seo-etary Kissinger: First of all, the that we would make a good-faith effort to Nixon doctrine, defined as strengthening the develop criteria for nuclear explosions, for capability of countries to defend themselves, peaceful nuclear explosions, recognizing the is .still the policy of the administration. It difficulty of defining criteria for explosions is also true, as a result of the war in Viet- above 150 kilotons. We will nevertheless en- Nam and of a generation of involvement in gage in these negotiations in good faith. And international aff"airs, that the general atti- the judgment of whether it is possible to tude of much of the American public toward develop these criteria can be made only after foreign aid in general has become much more the negotiations have been completed. It has skeptical. And therefore the administration not been affected by any consultations in the has greater difficulties than used to be the Senate. It will be determined entirely on case a decade or two ago in its general ability the basis of the negotiations that are now to convince Congress to appropriate these opening in Moscow. sums, especially at a period when we have With respect to the second question, we severe domestic economic strains. are here in an area of ambiguity, in which We believe that it is our obligation to put before the Congress what we believe is in I have to say, in fairness to the Senators concerned, they have always held the view the national interest, just as it is the Con- its judgment. that there should be a fixed number. This is gress' right to make own not something new caused by recent discus- Q. Sir, to clarify your earlier remarks sions, but it is something that they have about the iO Committee, has the recent con- I held the always held. And have always troversy about Chile caused any change in view that I could not guarantee something policy with regard to covert political activi- that has not been told to me. The question ties? now is whether we can formulate a criterion that can be applied as a test without putting Secretary Kissinger: As I pointed out, the the administration into the position of hav- covert political activities have been carried ing misled them. This has nothing to do out since 1948 under the general supervision

October 28, 1974 569 of the 40 Committee under various names. in the past month on a jvhole variety of These operations are also briefed to the issues is fair, and do you believe that that Congress by whatever procedures are estab- criticism has to any degree affected your lished between the CIA and its oversight capacity to run foreign policy? committees, and these procedures are not de- Secretary Kissinger: Well, I think it is termined either by the 40 Committee or by fair to say that my own estimate of myself the White House. They are left entirely to may be at variance with that of some of the the arrangements between the CIA and the critics. [Laughter.] But then I can't expect oversight committees. my critics to be right a hundred percent of Recently there has been an expansion of the time. [Laughter.] briefing the Foreign Affairs Committee of I think the fact of criticism is certainly the House as to those activities that have fair and was certainly inevitable. I think foreign policy implications; that is, a small that there may have been a period, as I subcommittee of this [Foreign Affairs Com- pointed out, in which there may have been mittee]. excessive restraint, and this may be counter- I do not think it would be appropriate for balanced now by finding the more critical me, in the nature of what is a covert opera- aspects. I assume that it will even out over tion, to go into the scale, but I believe that a period of time. I don't think it has affected if one compares the scale now, or the scale my effectiveness. even from the late sixties onward, to the previous period, one would find that the polit- direction has been tightened up and the ical Cyprus Negotiations number has decreased. Q. Mr. Secretary, sir, you have in the past Q. Mr. Secretary, before you became Sec- week met ivith the Turkish and the Greek retary of State, you maintained that it ivas Foreign Ministers several times in New the job of the National Security Adviser to York. Could you now tell us as to what are assure that the President got as ivide as the prospects for resuming the negotiations possible a range of foreign policy options in Geneva; and, also, what are the prospects and thinking ivithin the government. Why for peace in Cypnis? do you believe now, as you apparently do, that your holding of both jobs, Secretary of Secretary Kissinger: The progress in the State and the National Security Adviser, is negotiations on Cyprus depends on many not inconsistent with that function? factors. It depends on the domestic situa- tion in both Greece and Turkey. Greece has Secretary Kissinger: Contrary to what I elections scheduled, and Turkey is attempt- have read in the press, I have not entered ing to form a new government and may have this debate. I did not request the President elections scheduled. It depends on the status to make the statement that he made in New of the communal talks in Cyprus. York, nor did this issue come up between The attempt in the talks in New York with the President and me until he had already the Greek and Turkish Foreign Ministers written that statement. The operation of the was to see whether some basis could be found national security machinery depends on the by which negotiations could ultimately start President, and it must be organized in such in a manner that was also compatible with a way that he feels comfortable in making the domestic necessities of each of the par- those decisions. It is not a subject that any ties. Cabinet officer can or should negotiate with I do not have the impression that the re- the President. And therefore this is a matter sumption of the Geneva forum is imminent, that should be more properly addressed in and I don't think it would serve a useful another forum than by me. purpose by making a prediction about when Q. Mr. Secretary, do you feel that the other talks will start. The United States criticiS7n that has been leveled against you strongly supports the communal talks which

570 Department of State Bulletin are now going on and will in every other way- reason ivhy yon did 7iot disclose that when do its utmost to enable the parties to reach you were confirmed as Secretary of State? a conclusion that is consistent with their Secretary Kissinger: dignity and self-respect. When Governor Rockefeller made this proposal to me, I asked Q. Mr. Secretary, you have been reported the counsel to the President-elect to give me widely as expressing concern that the eco- a legal opinion in terms of existing statutes nomic crisis or the oil crisis might cause and in terms of propriety. He gave me a political upheaval toward Western Europe. written letter, a written statement, in which Do you find that the Western allies with he pointed out that it was neither contrary ivhom you met last week agree with your to any law or statute nor involved any im- analysis, and do you think that you have now propriety. And only after I had that written made progress toward some conseyisus on statement did I proceed, and then I put the dealing with the oil crisis? money in trust for my children and did not benefit. Secretary Kissinger: I have been reported correctly as believing—indeed, I stated so Q. Who was that counsel, Mr. Secretary? publicly—that the continuation of these enormous balance of payments deficits will Secretary Kissinger: I think it was Mr. force governments, and especially those of [Edward L. ] Morgan. We will have this Western Europe, into decisions that will, letter available this afternoon. over a period of time, have significant do- Q. Mr. Secretary, on the Middle East, mestic or international consequences. some Israelis have been insisting that the I believe that this general analysis is next stage should be the final stage. Is that shared, to a greater or lesser extent, by most now just out of the question? of the countries with which we have talked.

I basically optimistic that we Therefore am Secretary Kissinger: That is not my im- are making progress in the objectives we pression of what other Israelis have told me, is to enable the have set ourselves—which and I don't want to speculate what the next consuming nations to withstand the impact stage will be ; but it is not the impression that in which they find of the economic situation I have gained from my talks with all the themselves. parties.

Q. Mr. Secretary, coidd I follow that up? Q. Coidd you tell us from your assessment it be useful then for the major con- Would of the visit to Cuba of Sermtors [Jacob K.^ rediice their suming nations to cooperatively Javits and [Claiborme] Pell ivhether you re- amount, re- consumption of oil by a specific gard the reception they got as a kind of what that amount is? gardless of signal to the U.S. Government; and if so, how you might respond to such a signal? Secretary Kissinger: As I pointed out in the opening of the Washington Energy Con- Secretary Kissinger: We have, I think, a ference in February, a restraint on demand rather clear understanding of the attitude is essential if progress is to be made in the of the Cuban Government to the problem solution of the oil problem. of normalization of relations between the Now, whether this restraint is achieved United States and Cuba. We are also discuss- by international agreement or whether in- ing this matter in inter-American forums; ternational discussions provide the impetus and there will be a meeting of Foreign Min- for essentially national decisions is not a isters in Quito early in November to discuss major point. But a restraint on demand, in the problem of OAS sanctions. We will pro- one form or another, is an essential compo- ceed, first, in the inter-American forums to nent of the policy that we have sketched. discuss the views of our colleagues, and then Q. Mr. Secretary, on the $50,000 gift to we will form a judgment as to how to pro- you from Nelson Rockefeller, is there any ceed thereafter.

October 28, 1974 571 Q. Mr. Secretary, why didn't the United strengthen the good will between our coun- States accept an aqrcement on the nuclear tries over the years to come. At this meet- cooperation ivith Israel and Egypt? And, ing, we will discuss, obviously, a wide range second, do you hope to sign this agreement of subjects of interest to both countries. during the visit of President Sadat next month in Washington? Q. I am sure you have other questions on Secretary Kissinger: We haven't reached economics, but let me ask just one on inter- an agi-eement because some of the parties national affairs. There are reports that you have not responded yet to our suggestions are planning some sort of a suminit confer- for additional safeguards. When the agree- ence ivith Chairman Brezhnev of the Soviet ment will be signed—we do not have a fixed Union. Cayi you give us some details on that? and we have not come to an un- timetable, President Ford: When I took the oath of derstanding with anybody as to a specific office, I indicated that I would continue our to sign the agreement. time country's efforts to broaden and to expand Q. Mr. Secretary, on that question, would the policies of detente with the Soviet Union. you be prepared to give the nuclear plants Since I have been in office, I have had a only to those countries that ivill agree to the number of discussions with responsible lead- additional safeguards, even if some other ers in the Soviet Union. About 10 days ago, countries did not agree to them? I met with their Foreign Minister, Mr. Gromyko. Secretary Kissinger: Well, we have not Dr. Kissinger is going to the Soviet Union faced that question yet, and we expect that the latter part of this month to continue the countries concerned will accept the addi- these discussions. tional safeguards. Now, as you well know, Mr. Brezhnev has been invited to come to the United States in 1975. If there is a reason for us to meet President Ford's News Conference before that meeting in the United States, I will certainly consider it. of October 9 Q. To folloiv up a little, do you expect the Follotving are excerpts relating to foreign United States to have any kind of a proposal policy from the transcript of a news con- on arms to present to the Soviet Union before ference held by President Ford in the Rose the end of the year? October 9.^ Garden at the White House on President Ford: We are resolving our position in this very important and very I I do have one business announcement. critical area. When Dr. Kissinger goes to am pleased to announce this afternoon that the Soviet Union the latter part of this President Echeverria of Mexico and I have month, we will have some guidelines, some agreed to hold a meeting on the U.S.-Mexican specific guidelines, for him to discuss in a border on Monday, October 21. preliminary way with the Soviet Union. to this I am very much looking forward President Eche- opportunity to meet with Q. Mr. President, in your recent U.N. plan to verria in the Nogales area, and we spec'ch, you added some last-minute remarks border. The United visit both sides of the praising Secretary of State Kissinger, and long tradition States and Mexico have a last night you made an extraordinary move relations. It of friendly and cooperative of going out to Andrews Air Force Base to meeting will contribute is my hope that our see him off on his trip abroad. Are you upset and to to maintaining that relationship by the criticism that Secretary Kissinger is receiving from the press, the public, and ^For the complete text, see Weekly Compilation of Presidential Documents dated Oct. 14. Congress?

572 Department of State Bulletin President Ford: I would put it this way, sented his credentials to President Ford on Mr. Jones [Phil Jones, CBS News]. I am Augu.st 19. For texts of the Ambassador's very fond of Dr. Kissinger on a personal remarks and the President's reply, see De- basis. I have tremendous respect and admira- partment of State press release dated Au- tion for the superb job that he has done since gust 19. he has been the director of the National Se- Ghana curity Agency (Council) and also as Secre- tary of State. The newly appointed Ambassador of the I think what he has done for peace in the Republic of Ghana, Samuel Ernest Quarm, world, what he is continuing to do for peace presented his credentials to President Ford throughout the world, deserves whatever on August 19. For texts of the Ambassador's appropriate things I can say good and about remarks and the President's reply, see De- him and whatever little extra effort I can partment of State press release dated August make to show my appreciation. And I intend 19. to continue to do it. Spain Q. Sir, do you feel that his effectiveness is being undermined by this criticism? The newly appointed Ambassador of Spain, Jaime Alba, presented his credentials to President Ford: I haven't seen any adverse President Ford on August 19. For texts of effects so far. We are making headway, and the Ambassador's remarks and the Presi- I think constructively, in all of the areas dent's reply, see Department of State press where I think and he thinks it is important release dated August 19. for us to do things to preserve peace and build a broader base for peace. Syria

The newly appointed Ambassador of the Syrian Arab Republic, Sabah Kabbani, pre- sented his credentials to President Ford on Letters of Credence August 19. For texts of the Ambassador's remarks and the President's reply, see De- Barbados partment of State press release dated Au- The newly appointed Ambassador of Bar- gust 19. bados, Cecil B. Williams, presented his cre- Venezuela dentials to President Ford on August 19. For texts of the Ambassador's remarks and The newly appointed Ambassador of the the President's reply, see Department of Republic of Venezuela, Miguel Angel Burelli- State press release dated August 19. Rivas, presented his credentials to President Ford on August 19. For texts of the Am- Costa Rica bassador's remarks and the President's reply, The newly appointed Ambassador of the see Department of State press release dated Republic of Costa Rica, Rodolfo Silva, pre- August 19.

October 28, 1974 573 —

Annual Meetings of IMF and IBRD Boards of Governors

Held at Washington

Tlie Boards of Governors of the Interna- We come here today at a time of unparal- tional Monetary Fund (IMF) and the In- leled disruptions in the supply of the world's ternational Bank for Reconstruction and major commodity. We are here today at a Development (IBRD) and its affiliates held time of severe hindrances to the real grovvi;h their regular anmial meetings at Washington and the real progress of many nations, in-

September 30-October It. Following are re- cluding in particular some of the poorest marks made by President Ford before the and most unfortunate among us. Boards of Governors on September 30 and a We in America view these problems very statement made on October 1 by Secretary of soberly and without any rose-tinted glasses. the Treasury William E. Simon, U.S. Gov- But we believe at the same time the spirit ernor of the Fund arid Bank. of international cooperation which brought about the Bretton Woods agreement a gen- eration ago can resolve the problems today REMARKS BY PRESIDENT FORD effectively and constructively. My very capable Secretary of the Treas- Weekly Compilation of Presidential Documents dated October 7 ury, Bill Simon, will speak in greater detail It is a very great privilege and a very high on how we, the United States, view these honor to have the opportunity of making problems and how we think they can be some preliminary remarks on this gathering solved. But I think I can sum up in general here in the Nation's Capital of our country. our thinking quite briefly. I extend to each and every one of you a We in this country want solutions which very, very warm welcome. I and all Amer- serve very broad interests rather than narrow icans want your continuing friendship, and self-serving ones. We in America want more we welcome your constructive and thought- cooperation, not more isolation. We in ful observations and recommendations. And America want more trade, not protectionism. I assure you at the outset that we will recip- We in America want price stability, not in- rocate in every way in order to make prog- flation. We in America want growth, not ress in this very vital area for each and every stagnation. We want for ourselves, as you one of us. want for yourselves, and we all want for the We come together at an unprecedented world a better life for ourselves and for those time of challenge in our world's economy. generations that follow. But that makes my welcome to all of you You will help, and I am sure you will come those of you who must solve these serious forth with the kind of recommendations that problems—an even warmer welcome. The will be beneficial. We want help to decide serious problems that confront us today are how this can best be done. The United States extremely complex and, I presume, in some is fully prepared to join with your govern- respects controversial. ments and play a constructive leadership We do this at a time of worldwide infla- role. tion at a rate far, far in excess of what any I say as I close, as I said at the outset, we one of us can tolerate. want your friendship, your cooperation, and

574 Department of State Bulletin :

we, as a country, will maximize to reciprocate prosperity of all nations and call into ques- in every way possible. tion our ability to maintain and strengthen Again, welcome to our Capital, Washing- an equitable and effective world trading ton, D.C., and the very, very best in this order. period of serious deliberation. With respect to the first of these issues, it is clear that most countries are no longer dealing with the familiar trade-off of the STATEMENT BY TREASURY SECRETARY SIMON past—balancing a little more or less inflation against little Department of the Treasury press release dated October 1 more or less growth and em- ployment. We are confronted with the threat Our recent annual meetings have reflected of inflationary forces so strong and so per- encouraging changes in the international eco- sistent that they could jeopardize not only nomic scene. Three years ago our attention the prosperity but even the stability of our was focused on the new economic policy in- societies. A protracted continuation of in- troduced by the United States to eliminate a flation at present rates would place destruc- longstanding imbalance in the world econ- tive strains on the framework of our present omy. Two years ago we launched a major institutions—financial, social, and political. reform of the international trade and pay- Our current inflation developed from a ments system. Last year we developed the combination of factors. In addition to pres- broad outlines of monetary reform. sures emanating from cartel pricing prac- This year circumstances are different. We tices in oil, we have suflfered from misfortune face a world economic situation that is the including bad weather affecting crops around most difficult since the years immediately the world; bad timing in the cyclical con- after World War II. vergence of a worldwide boom; and bad Our predecessors in those early postwar policies reflected in years of excessive gov- years responded well to the great challenges ernment spending and monetary expansion. of that period. I am confident we can also As financial officials, we cannot be held re- respond appropriately to the challenges of sponsible for the weather, but we must our day. But first we must identify the issues accept responsibility for government policies, correctly. and we must recommend policies that take Let me declare myself now on three of fully into account the circumstances of the these key issues world in which we find ourselves. —First, I do not believe the world is in In today's circumstances in most countries imminent danger of a drift into cumulative there is, in my view, no alternative to policies recession, though we must be alert and ready of balanced fiscal and monetary restraint. We to act quickly should the situation change must steer a course of firm, patient, persist- unexpectedly. I do believe the world must ent restraint of both public and private de- concentrate its attention and its efforts on mand, and we must maintain this course for the devastating inflation that confronts us. an extended period of time, until inflation —Second, I do not believe the international rates decrease. We must restore the confi- financial market is about to collapse. I do dence of our citizens in our economic future believe that situations can arise in which and our ability to maintain strong and stable individual countries may face serious prob- currencies. lems in borrowing to cover oil and other Some are concerned that a determined in- needs. For that reason we must all stand ternational attack on inflation by fiscal and prepared to take cooperative action should monetary restraint might push the world the need arise. into a deep recession, even depression. I —Third, I firmly believe that undue re- recognize this concern, but I do not believe strictions on the production of raw materials we should let it distort our judgment. and commodities in order to bring about tem- Of course we must watch for evidence of porary increases in their prices threaten the excessive slack. The day is long past when

October 28, 1974 575 the fight against inflation can be waged in In our experience over the period since any country by tolerating recession. We must the sharp increase in oil prices, three points remain vigilant to the danger of cumulative stand out: recession. But if there is some risk in moving —-First, the amount of new investments too slowly to relax restraints, there is also a abroad being accumulated by the oil-export- risk—and I believe a much greater risk—in ing countries is very large; we estimate ap- moving too rapidly toward expansive policies. proximately $30 billion thus far in 1974. If we fail to persevere in our anti-inflation —Second, the net capital flow into the policies now, with the result that inflation be- United States from all foreign sources, as comes more severe, then in time countermeas- measured by the U.S. current account deficit, ures will be required that would be so drastic has been small, about $2 billion so far this as to risk sharp downturns and disruptions year. During the same period our oil import in economic activity. bill has been about $12 billion larger than it There is a tendency to lay much of the was in the comparable period last year. blame on the international transmission of —Third, markets in the United States are inflation. Certainly with present high levels channeling very large sums of money from of world trade and investment, developments foreign lenders to foreign borrowers. Our in any economy, be they adverse or favor- banks have increased their loans to for- able, are quickly carried to other economies. eigners by approximately $15 billion since But that does not absolve any nation from the beginning of the year, while incurring responsibility to adapt its financial policies liabilities to foreigners of a slightly larger so as to limit inflation and to shield its amount. This is one kind of effective re- people from the ultimate damage which in- cycling. And while some have expressed con- flation inflicts on employment, productivity, cern that excessive oil funds would seek to and social justice in our societies. flow to the United States and would require special recycling eff"orts to move them out, Financial Mechanisms To Recycle Oil Funds the picture thus far has been quite different. In addition to inflation, public concern has centered on methods of recycling oil funds No one can predict for sure what inflows and on whether we need new institutions to of funds to the United States will be in the manage those flows. future. But it is our firm intention to main- So far, our existing complex of financial tain open capital markets, and foreign bor- mechanisms, private and intergovernmental, rowers will have free access to any funds has proved adequate to the task of recycling which come here. The U.S. Government the large volumes of oil monies already offers no special subsidies or inducements to moving in the system. Initially, the private attract capital here; neither do we place financial markets played the major role, obstacles to outflows. adapting in imaginative and constructive Nonetheless some have expressed concern ways. More recently, government-to-govern- that the banking structure may not be able ment channels have increasingly been opened, to cope with strains from the large financial and they will play a more important role as flows expected in the period ahead. A major time goes by. New financing organizations factor in these doubts has been the highly have also been established by OPEC coun- publicized difl^culties of a small number of tries [Organization of Petroleum Exporting European banks and one American bank, Countries]. Our international institutions, which have raised fears of widespread finan- and specifically the IMF and World Bank, cial collapse. have redirected their efi'orts to provide addi- The difficulties of these banks developed in tional ways of shifting funds from lenders an atmosphere of worldwide inflation and of to borrowers. The IMF responded rapidly in rapid increases in interest rates. In these Is setting up its special oil facility. circumstances, and in these relatively few i

576 Department of State Bulletin instances, serious management defects such that their requirements for foreign bor- emerged. These difficulties were in no way rowing are limited. the result of irresponsible or disruptive in- But we know that facilities for loans on vestment shifts by oil-exporting countries. commercial or near-commercial terms are not Nor were they the result of any failure in likely to be sufficient for some developing recycling or of any general financial crisis countries whose economic situation requires in any country. that they continue to find funds on conces-

The lesson to be learned is this : In a sional terms. Traditional donors have con- time of rapid change in interest rates and tinued to make their contributions of such in the amounts and directions of money flows, funds, and oil-exporting countries have made financial institutions must monitor their some commitments to provide such assist- practices carefully. Regulatory and super- ance. Although the remaining financing prob- visory authorities, too, must be particularly lem for these countries is small in compari- vigilant. We must watch carefully to guard son with many other international flows, it against mismanagement and speculative ex- is of immense importance for those countries cesses, for example, in the forward exchange aft'ected. The new Development Committee markets. And we must make certain that which we are now establishing must give procedures for assuring the liquidity of our priority attention to the problems confront- financial systems are maintained in good ing these most seriously afi^ected developing working order. Central banks have taken countries. major steps to assure this result. Although existing financial arrangements Trade in Primary Products have responded reasonably well to the strains of the present situation—and we believe they For the past two years, world trade in will continue to do so—we recognize that primary commodities has been subject to ab- this situation could change. We should remain normal uncertainties and strains. Poor crops, alert to the potential need for new depar- unusually high industrial demand for raw tures. We do not believe in an attitude of lais- materials, transport problems, and limited sez-faire, come what may. If there is a clear new investment in extractive industries have need for additional international lending all contributed to tremendous changes in mechanisms, the United States will support commodity prices. Unfortunately, new forms their establishment. of trade restraint have also begun to appear. We believe that various alternatives for In the past, efforts to build a world trad- providing such supplementary mechanisms ing system were concentrated in opening should be given careful study. Whatever national markets to imports. Clearly we decision is made will have profound conse- need now also to address the other side of quences for the future course of the world the equation, that of supply. economy. We must carefully assess what our The oil embargo, and the sudden and options are and carefully consider the full sharp increase in the price of oil, with their consequences of alternative courses of action. disruptive efi'ects throughout the world econ- The range of possible future problems is a omy, have of course brought these problems wide one, and many problems can be en- to the forefront of our attention. visaged that will never come to pass. What The world faces a critical decision on is urgently needed now is careful preparation access to many primary products. In the and probing analysis. United States we have sought in those areas We must recognize that no recycling mech- where we are exporters to show the way by anism will insure that every country can maximum efforts to increase production. borrow unlimited amounts. Of course, coun- Market forces today result in the export of tries continue to have the responsibility to many items, from wheat to coal, which some follow monetary, fiscal, and other policies believe we should keep at home. But we

October 28, 1974 577 —I believe an open market in commodities will and services—and on trade management provide the best route to the investment and measures—helping to solidify practices and increased production needed by all nations. procedures to deal with serious trade prob- We believe that cooperative, market- lems in a spirit of equity and joint endeavor. oriented solutions to materials problems will It is gratifying that more and more govern- be most equitable and beneficial to all na- ments have recognized the opportunities and tions. We intend to work for such coopera- the necessity for successful, creative negotia- tive solutions. tions on trade. We in the U.S. Government recognize our own responsibility to move these negotia- Prospects for the Future tions along. Early last year we proposed to In the face of our current difficulties our Congress the Trade Reform Act to per- inflation, recycling, commodity problems— mit full U.S. participation in the trade nego- remain firmly confident that with commit- tiations. It is clear that in the intervening ment, cooperation, and coordination, reason- months the need for such negotiations has able price stability and financial stability become all the more urgent. We have there- can be restored. fore been working closely with the Congress The experience of the past year has dem- on this crucial legislation, and we shall con- onstrated that although our economies have tinue to work to insure its enactment before been disturbed by serious troubles, the inter- the end of this year. national trade and payments system has In the whole field of international economic stood the test. relations, I believe we are beginning to Flexible exchange rates during this period achieve a common understanding of the na- have served us well. Despite enormous over- ture of the problems we face. There is all uncertainties and sudden change in the greater public recognition that there lies prospects for particular economies, exchange ahead a long, hard worldwide struggle to markets have escaped crises that beset them bring inflation under control. Inflation is an in past years. The exchange rate structure international problem in our interdepend- has no longer been an easy mark for the ent world, but the cure begins with the speculator, and governments have not been policies of national governments. limited to the dismal choice of either financ- Success will require on the part of gov- ing speculative flows or trying to hold them ernments uncommon determination and per- down by controls. sistence. There is today increasing aware- Another encouraging fact is that the ness that unreasonable short-term exploita- framework of international cooperation has tion of a strong bargaining position to raise remained strong. Faced with the prospect prices and costs, whether domestically or in- of severe balance of payments deterioration, ternationally, inevitably intensifies our prob- deficit countries have, on the whole, avoided lems. shortsighted eff"orts to strengthen their cur- Finally, I am encouraged that our several rent account positions by introducing restric- years of intensive work to agree on improve- tions and curtailing trade. ments in the international monetary system In the longer run, we look forward to re- have now begun to bear fruit. The discus- inforcing this framework of cooperation sions of the Committee of Twenty led to through a broad-gauged multilateral negotia- agreement on many important changes, some tion to strengthen the international trading of which are to be introduced in an evolu- system. In the Tokyo round, we hope to tionary manner and others of which we are reach widespread agreement both on trade beginning to implement at this meeting. liberalization measures—helping all coun- For the immediate future, the IMF's new tries to use resources more efficiently through Interim Committee will bring to the Fund greater opportunities for exchange of goods structure a needed involvement of world

578 Department of State Bulletin financial leaders on a regular basis, provid- and bilateralism. The United States has noti-

ing for them an important new forum for fied its adherence to the pledge, and I consideration of the financing of massive oil urge other nations to join promptly in sub- bills and the better coordination of national scribing.

policies. The Interim Committee should also The new Development Committee, still an- increasingly exercise surveillance over na- other outgrowth of the work of the Com- tions' policies aff'ecting international pay- mittee of Twenty, will give us an independ- ments, thereby gaining the experience from ent forum that will improve our ability to which additional agreed guidelines for re- examine comprehensively the broad spec- sponsible behavior may be derived. trum of development issues. We look forward Moreover, discussions in the Interim Com- to positive results from this new committee's mittee can speed the consideration of needed critical work on the problems of the coun- amendments to the Fund's Articles of Agree- tries most seriously aff'ected by the increase ment. These amendments, stemming from in commodity prices and on ways to insure the work of the Committee of Twenty, will that the private capital markets make a help to modernize the IMF and better equip maximum contribution to development. it to deal with today's problems. For example, the articles should be The World Bank and Its Affiliates amended so as to remove inhibitions on IMF sales of gold in the private markets, so that International cooperation for development the Fund, like other official financial institu- is also being strengthened in other ways, tions, can mobilize its resources when they notably through the replenishment of IDA are needed. In order to facilitate future quota [International Development Association]. A increases, the package of amendments should U.S. contribution of $1.5 billion to the fourth also include a provision to modify the present IDA replenishment has been authorized by requirement that 25 percent of a quota sub- Congress, and we are working with our con- scription be in gold. Such an amendment gressional leaders to find a way to complete will be a prerequisite for the quota increase our ratification at the earliest possible date. now under consideration. And the amend- A significant new group of countries has ment will be necessary in any event for us become financially able to join those extend- to achieve the objectives shared by all the ing development assistance on a major scale. participants in the Committee of Twenty of We would welcome an increase in their removing gold from a central role in the World Bank capital accompanied by a com- system and of assuring that the SDR [special mensurate participation in IDA. drawing right] becomes the basis of valua- The United States is proud of its role in tion for all obligations to and from the IMF. the development of the World Bank over the Preparation of an amendment to embody past quarter century. We are confident that the results of the current quinquennial re- the Bank will respond to the challenges of view of quotas off'ers us still another oppor- the future as it has so successfully responded tunity to reassess the Fund's role in helping in the past. to meet the payments problems of member One of these challenges is to concentrate nations in light of today's needs and under the Bank's resources to accelerate growth in present conditions of relative flexibility in those developing countries with the greatest exchange rates. need. The trade pledge agreed by the Committee A second challenge is to continue the of Twenty provides an additional frame- Bank's annual transfer of a portion of its work for cooperative action in today's trou- income to IDA. The recent increase in in- bled economic environment. It will mitigate terest rates charged by the Bank is not the potential danger in the present situation sufllicient to enable the Bank to continue of self-defeating competitive trade actions transfers to IDA in needed amounts. We

October 28, 1974 579 — urge that the Bank's Board promptly find a the growth and prosperity of others. Because way to increase significantly the average re- I believe that interdependence is a reality turn from new lending. one that all must sooner or later come to A third challenge is that the Bank find recognize—I remain confident that we will ways to strengthen its commitment to the work out our problems in a cooperative principle that project financing makes sense manner. only in a setting of appropriate national eco- The course which the United States will nomic policies, of effective mobilization and follow is clear. Domestically, we will manage use of domestic resources, and of effective our economy firmly and responsibly, resign- utilization of the private capital and the ing ourselves neither to the inequities of modern technology that is available inter- continued inflation nor to the wastefulness of nationally on a commercial basis. recession. We will strengthen our produc- I should mention also that we are con- tive base; we will develop our own energy cerned about the Bank's capital position. We resources; we will expand our agricultural should encourage the Bank to seek ways to output. We will give the American people assist in the mobilization of funds by tech- grounds for confidence in their future. niques which do not require the backing of Internationally, let there be no doubt as the Bank's callable capital. to our course. We will work with those Within the Bank Group, we are accus- who would work with us. We make no pre- tomed to thinking mainly of the IFC [Inter- tense that we can, or should, try to solve national Finance Corporation] in consider- these problems alone, but neither will we ing private capital financing. While now abdicate our responsibility to contribute to small, the IFC is, in my view, a key element their solution. Together, we can solve our in the total equation and should be even more problems. Let me reaffirm our desire and important in the future. But the Bank itself total commitment to work with all nations needs to renew its own commitment to stimu- to coordinate our policies to assure the last- lation of the private sectors of developing ing prosperity of all of our peoples. countries. Finally, let me emphasize that the capable and dedicated leadership and staff of the World Bank have the full confidence and sup- port of the United States as they face the U.S. and Jordan Sign Agreement difficult challenges of the current situation. on Nonscheduled Air Services Ladies and gentlemen, the most prosperous period in the history of mankind was made The Department of State announced on possible by an international framework September 27 (press release 382) the United which was a response to the vivid memories States and Jordan had signed on September of the period of a beggar-thy-neighbor world. 21 at Amman a nonscheduled air service Faced with staggering problems, the found- agreement between the two governments. ers of Bretton Woods were inspired to seek Ambassador Thomas R. Pickering signed for cooperative solutions in the framework of the United States and Nadim Zarou, Minister a liberal international economic order. Out of Transportation, for Jordan. The agree- of that experience evolved an awareness that ment will provide the framework for charter our economic and political destinies are in- operations between the two countries and extricably linked. will facilitate charter flights to the Holy Today, in the face of another set of prob- Land and to historic religious sites in the lems, we must again shape policies which Middle East. (For text of the agreement, see reflect the great stake each nation has in press release 382.)

580 Department of State Bulletin Secretary Kissinger Hosts Dinner Middle East. I think the peoples in the Mid- dle East have realized that they should make for Members of Arab League a very serious effort to move toward peace which is based on the recognition of the Following is an exchange of toasts be- rights of all peoples in the area. And the twee7i Secretary Kissinger and Lebanese For- United States has understood that a condi- eign Minister Fu'ad Naffa', Chairman of the tional stalemate in the Middle East creates Council of the League of Arab States, at a a constant source of tensions, and the eco- dinner at the U.S. Mission to the United Na- nomic consequences that flowed from this tions at New York on September 30. war have taught the whole world what was

probably not intended ; for instance, that our

Press release 388 dated October 1 global economy is interdependent in a way SECRETARY KISSINGER that few of us had realized and that pro- ducers and consumers—consumers among Mr. Secretary General, Excellencies, you gentlemen—depend on an understanding friends : I first of all want to make clear that of each other's necessities that has made this is not the beginning of a confrontation the world a global community. about oil prices [laughter and applause] — We have had the opportunity to meet especially as long as you all outnumber me many of you and to understand the aspira- here. [Laughter.] tions for peace that exist in the area, and a I tried—I've seen so many of you over the beginning has been made toward a just past year so many times; in fact, I've seen and lasting peace. We recognize that it is more Arab leaders than any other part of only beginning. And in my speech to the the world—that I tried to promote my par- General Assembly, I expressed the deter- ticipation at the Arab summit later this mination of the United States to use all its month. [Laughter.] I must say the Foreign influence to continue the process that was Minister of Morocco, who is very elegant started on a basis that takes care of the and very subtle, did not speak English when aspirations of all of the countries in the area the subject was raised. [Laughter and ap- and that encompasses the concerns of the plause.] So maybe next year. parties. But we met here—many of us—about this I will be going to the Middle East next time last year, and I had the impression that week to see whether this negotiating process one or two of you had some slight reserva- can be started, and we will spare no effort. tions about my appointment as Secretary of With your understanding, your support, I State. And it is true, leaving aside any par- am confident that we will make progress. ticular individuals, that for a period of many That, at any rate, is what we have dedicated years the situation in the Middle East had ourselves to. become frozen. We also have started, as you all know, a I spoke to my friend Umar [Umar al- discussion on the nature of the interdepend- Saqqaf, Saudi Arabian Minister of State for ence of the global economy. This is not the

Foreign Affairs] two weeks before the Oc- place to go into it. And my friend Umar has tober war began, and I told him that we already told me that he has prepared a would try to make a major diplomatic effort crushing reply to be made public very soon. in order to promote peace in the Middle [Laughter.] East. And then there was the war, and since I want to say that as far as the United then we have had an opportunity to talk to- States is concerned, we are not going to gether about many problems. enter these discussions in a spirit of con- I think great changes have occurred in the frontation. It is our profound conviction

October 28, 1974 581 that what we are trying to convey to all of apply [laughter and applause] and to see who our friends is that it is impossible to achieve will sponsor your application. [Laughter.] unilateral benefit and that it's peculiarly a Maybe I will. situation where what is in the common bene- Mr. Secretary of State, I would like to

fit is also for the individual gain of every- express to you on my behalf and on that of body. my colleagues, the Foreign Ministers of the How that will be worked out in time de- other Arab states, our thanks and apprecia- pends on many discussions, but on our side tion for your gesture of inviting us this eve- we approach these discussions in a spirit of ning. We find this gesture an expression of good will and with the certainty that a your desire to establish friendly relations reasonable solution that is just to all can be with us on a personal level, to continue the found. dialogue, and to strengthen the relations be-

I want to take this opportunity, on a tween the United States and our countries. personal basis, to express my gratitude, the I would like to assure you that we wel-

gratitude of the U.S. Government, to all of come this gesture very much ; for we all are you who have welcomed my colleagues and open to dialogue, desirous to strengthen the me over the past year, on our many travels, good relations between us and to exchange with the proverbial Arab hospitality. views in honesty and frankness. Our hope We are engaged in a very difficult process is to be able to develop friendly relations —all of us together—and I have appreciated with your country on the basis of under- your understanding of our friendship. And standing and cooperation in an atmosphere of I am confident that the problems before us mutual confidence and that these relations will be solved in a manner that all of us in would serve real peace which is founded on this room can be proud to have worked to- the respect of the principle of right and gether. justice. In this spirit I'd like to propose a toast I am confident that I am expressing the to the friendship between the Arab peoples opinion of all my colleagues when I praise and the people of the United States. the great efforts which you have made dur- ing the past few months and the positive results which you have been able to achieve. expressing their belief when I say AMBASSADOR NAFFA' I am also that the present circumstances require in- for the stage Mr. Secretary of State: I will thank you tensification of these efforts, in cooperation first because you didn't want to make con- which we have reached today frontation with Arabs here about the oil with you has been necessary and useful. achieve peace. problem, because—as you said—it's not here However, it is not sufficient to preliminary stage which has that we can discuss it, and on the other hand, It is only a door, provided that the intentions it would have been a little difficult for me, opened the with my weak English, to discuss this prob- are sincere, to implement the basic require- lem. [Laughter and applause.] ments of achieving peace. Anyway, we conceive interdependence of You know these requirements very well, un- the nations and the economies as a global Mr. Secretary of State, and you also community, but we conceive that in the doubtedly know that the real chance for peace position global community right and justice will have depehds to a great extent on the the next their word to say and to be applied. which the United States takes in About your participation at the confer- few months because of the great influence she ence—the summit conference—we cannot which she enjoys and the big potentials possession. decide it here too. [Laughter.] You have to has in her

582 Department of State Bulletin For this I reason, can say that our expec- to it, then how can we speak of a world tations from you are as great as the responsi- structure or expect to be creative in other bilities which you share. parts of the world? The Foreign Minister of I raise my glass to wish you health and Costa Rica replied, and so did the Foreign prosperity. Minister of Colombia; and out of this de- veloped a series of meetings that we have had since then. I believe that the new Secretary Kissinger Hosts Luncheon dialogue has already removed some misunderstandings; it has al- for Latin American Foreign Ministers ready identified some common problems ; and it has already created some working groups Following is an exchange of toasts be- on science and technology, on the multina- tween Secretary Kissinger and Adolfo Mo- tional corporations—that deal with some of lina, Foreign Minister of Guatemala, at a our specific aspirations and with our partic- luncheon for Latin Americayi Foreign Min- ular grievances. isters and Representatives Permanent to the But we are only at the very beginning of United Nations at the Center for Inter- this process. All of our countries face prob- American Relations at Netv York on October lems which have become global in nature. We 2. all face the problem of inflation. Some of us are commodity exporters, some of us are com-

Press release 390 dated October 3 modity importers, and some of us are both. But we all realize that we have become part of SECRETARY KISSINGER an interdependent world community and that none of us—not the United States nor any-

Excellencies and friends : I speak before body else—can solve these problems by purely this group always with considerable hesita- national policies. So the question isn't really tion, knowing the high quality of oratory whether they should be dealt with in a larger that is assembled in this room and the judg- forum—about that we have no choice—but ments that will be made on my effort—not to with what group we should discuss, in what speak of the replies that will be given either manner, and to what purpose. while I'm in the room or to the press after In this respect, as I have said to you in our we all leave. several meetings over the past year, the We met in this room just about a year ago United States attaches extraordinary impor- today, and it isn't often that one attends tance to its Western Hemisphere relation- lunch and one can say it makes a difference ships. In Mexico City I used the word which in the affairs of nations. But I like to think was criticized by one or two of you with that the new dialogue which we started in great eloquence when I spoke of "commu- this room last year has already made a dif- nity" in the Western Hemisphere. And in ference and, if we carry out the promise that fact I told my friend the Foreign Minister it contains, that it will make an even more of Jamaica if we could only have excluded important difference in the years ahead. the Caribbeans we would have a happy meet- I told you then, and still believe, that rela- ing. [Laughter.] And as our influence grows, tionships in the Western Hemisphere had I don't exclude the possibility. [Laughter and been too long neglected and that if the United applause.] States could not establish a constructive and But we do not insist on any particular creative relationship on the basis of equality phrase in the name of which we work to- and mutual respect with its friends to the gether. We recognize several countries here south, with so many historic ties connected have attended meetings of the nonaligned.

October 28, 1974 583 — and we realize that all countries here want with an attitude of friendship, with a feeling to pursue foreign policies that reflect their of humanity, and with a hope that what we own national interests and their own regional do here in the Western Hemisphere is of concerns. significance not just for us ourselves but for What we propose is that those problems a world that needs a demonstration of how which we identify as "common" we should free people working together can master deal with in a spirit of cooperation and on their own future. the basis of equality and thereby set an ex- It's in this spirit that I would like to pro- ample to many other parts of the world of pose a toast to progress in the Western Hemi- how problems must be dealt with. Nor is sphere and to our close and growing friend- this proposed in any spirit of exclusivity, ship. because eventually the problems I have enu- merated can be dealt with only on a global basis. FOREIGN MINISTER MOLINA The United States hopes that in the next year we can translate the dialogue into con- Mr. Secretary of State, Your Excellencies,

crete achievement. We believe that the work- and ladies and gentlemen : It is indeed a ing groups that already exist can lead to great pleasure—coincidentally, because of tangible results. We hope, and are quite con- the fact that Guatemala is at present presid- fident, that our own Trade Reform Act will ing at the Latin American group of na- pass so that the systems of preferences tions—that I have been singled out for the which we have talked about for too long specific honor of acting here as spokesman can finally be instituted. for the Latin American Foreign Ministers as And beyond this, we are prepared to dis- well as for the Latin American Ambassadors cuss the political relationships in the West- to the United Nations to respond to the invi- ern Hemisphere, the restructuring of the tation to this banquet. OAS, with an open mind and paying careful In the first place, I should state—and I heed to the predominant views of our friends must state—that I want to thank you for in the Western Hemisphere, both within the your invitation to share bread and wine here OAS and at the forthcoming Foreign Minis- with all of your colleagues in this spirit ters meeting in Argentina. of friendship with the countries of Latin We will work toward a concrete solution of America and in the spirit of a continuous our common problems. Within the United dialogue. States, we will make an effort to anchor the As was stated one year ago, when we held Western Hemisphere relationship not only this meeting that has been referred to here, in the consciousness of our government but the dialogue is based on the basis of equality, in the hearts of the people. And we believe as has been mentioned by Secretary Kissin- that all of us have an obligation to contribute ger, as well as the principles of dignity of to this in our countries as much as we can. the members of the various countries of I'm glad to say that our new Assistant our hemisphere. It is because of this dia- Secretary of State for Latin American Af- logue that started here—^that we continued fairs, Mr. William Rogers, who is here with in Bogota, Mexico City, Washington, D.C., us, has accepted this position, because he has and Atlanta—that we have been able to had a long history of dedication to Western broach sudden problems in a practical man- Hemisphere relationships. You have in him a ner with the practicalities that characterize guarantee that what we will do together will Secretary Kissinger's approach, which can be not be done by one country for others nor summarized in use of few words and decisive

will it be done in a spirit of bureaucracy, but action, in order to state that we here have a

584 Department of State Bulletin responsibility to deal with the problems of the world now aflfect everybody in the world the economic development of our countries, and therefore we need joint solutions. the problems that have been mentioned of For the Latin Americans and Latin Amer- transfer of technology, the problems of the ican countries, the question of economic transnational corporations, and also other security is of great importance, and that is points that are related. why we attach special significance to the We have a number of study groups that charter of duties and obligations of member have met both in conferences. We have had states in the realm of economic relationships working groups that have worked on all of —in order to guarantee our mutual economic the subjects that have been referred to as security. We find a twofold problem that we well as some of the others incorporated in are facing, and this is one that I was spe- the Declaration of Tlatelolco. It is in this cifically facing when I started to address this spirit of Tlatelolco that the new dynamics of group. In the first place, I was not in- the relationships in the hemisphere toward formed or aware of the points that Secretary greater economic development have been con- Kissinger might bring up in his speech. And, ducted. secondly, I am not aware of the points of This new year of the dialogue is one that view that my colleagues in this room share brings with it numerous problems, as Secre- with us. tary Kissinger has suggested, and reflects I believe therefore that in order to fulfill ominous clouds on the horizon in which the the mission that was specifically assigned to policies of the different countries will have to me I should express to the Secretary of State, be defined. We have noted problems, such as on behalf of all of you, our great interest in the unbalance in the balance of payments all of the issues that he has raised. The that exists between our respective countries matters that have been raised here will be and, as has sometimes been also stated by the studied by our respective governments. They Secretary at the United Nations, the prob- will be considered and reflected upon. And lems that come forth with diff'usion of knowl- in the future we will be able to come to other edge—specifically, with reference to nuclear meetings with specific proposals and recom- technology—as well as the problems relating mendations to deal with them. to the inflationary spirit which is aff'ecting I believe that I express the gratification most countries in the world. that we all share here at the appointment of The history of the world confirms the William Rogers, who has always been, and is fable of Nemesis—one that really rules the considered, a great friend of Latin America. destiny of man, one of providing man with It is in this context that we want to point the type of abundance that he desires—that to our hopes that we will be able to carry he might be led to the type of nuclear tech- forth in the extraordinary program and nology which could destroy humanity, one tasks that we have set for us and that Secre- in which an excess in the amount of money tary Kissinger so well understands in our or funds available could, in fact, engulf own hemisphere and also the extraordinary humanity in a situation as we conceived it. hope that we have because we know how well With respect to the concept of interdepend- Secretary Kissinger is familiar and aware ence, this is one that, I would like to point with the problems that confront all of the out, has both a positive and negative conno- countries of the world and the repercussions tation. It is positive in the sense that the that those world problems have on the West- peoples of the world can no longer live in ern Hemisphere. isolation. We all need from one another in Finally, I would like to express a great order to help ourselves. But it also has a appreciation to you, Mr. Secretary, for the negative side in the sense that problems of special hospitality, understanding, and soli-

October 28, 1974 585 all As the committee is aware, the efforts of darity that has been reflected here with the parties concerned have brought Portu- our friends of the Western Hemisphere, and that we guese-speaking Africa to the threshold of I would like to express our hope independence. On September 10 Portu- may be able to continue this spirit of friend- total gal recognized the independence of Guinea- ship and progress among our countries. Bissau, which is now a fully independent member of the family of nations. On Septem- ber 7 Portugal and the Liberation Front of Department Discusses Decolonization Mozambique (FRELIMO) agreed, in Lu- i anta saka, to the installation of a joint transi- Territories of Portuguese African tional government that would prepare the country for full independence scheduled for Donald B. Easum Statement by June 25, 1975. This government was in- African Affairs ^ Assistant Secretary for stalled in Lourengo Marques on September 20. The territories of Angola, Cape Verde, My appearance before you today is partic- Sao Tome, and Principe are still Portuguese of ularly significant and timely in the light dependencies, but Portugal has agreed that place the important changes that are taking each has the right to independence and has of recent in southern Africa as the result taken important steps toward that end. developments in Portugal and Portuguese- In Angola, however, the decolonization speaking Africa. process is seriously complicated by the fact In March of this year, when a representa- that the three principal liberation movements this tive of my Bureau last appeared before remain divided among themselves. They have subcommittee, we stated that the then re- been unable to agree on a common position cently published book by General [Antonio] concerning negotiations with the Portuguese, Spinola presaged possible changes in the who have offered them participation in a Portuguese territories. The book has now provisional government. become history, and General Spinola has re- The United States is pleased by the prog- signed from public office. But the Portuguese ress that has been made in the decolonization Government since the coup in April has re- of Portuguese Africa. As you know, the mained dedicated to decolonization in its United States has long espoused the prin- African territories. ciple of self-determination for the peoples We have been gratified to observe how of these territories. We are fully aware of Portuguese decolonization efforts have been, the difficulties still to be overcome before by in the spirit of the Lusaka Manifesto, met the achievement of complete independence in part a responsible and helpful attitude on the all of the territories. of African nations, a number of whom The United States was happy to be able that greatly assisted in the negotiating effort to recognize the new Republic of Guinea- enabled the Portuguese and Portuguese Afri- Bissau on September 10. Earlier, on August the can nationalist movements to reach 12, we had supported its application to the impetus agreements which have given such United Nations, in which it is now a full in to the program of self-determination and participating member. President Ford's Portuguese Africa. letter of recognition contained our offer to establish diplomatic relations with Guinea- ^Made before the Subcommittee on Africa of the Bissau. Based on recent conversations I have House Committee on Foreign Affairs on Oct. 8. be The complete transcript of the hearings will had with officials of the new Guinea-Bissau will be available published by the committee and Government, I believe that this offer will be Govern- from the Superintendent of Documents, U.S. 20402. accepted. ment Printing Office, Washington, D.C.

Department of State Bulletin 586 The United States is also looking forward Food for Peace Report for 1973 to establishing and strengthening mutual- Transmitted to ly beneficial relations with each of the Congress other emerging Portuguese-speaking African Message From President Ford ^ states. That includes not only contact with new governments but, we hope, meaningful To the Congress of the United States: dialogue with liberation movements and po- I litical groupings that continue to play such am pleased to transmit to the Congress the a vital role in the process of decolonization. 1973 annual report on agricultural export While we are giving our full moral support activities carried out under Public Law 480 to the decolonization process, we also are (Food for Peace) . This has been a successful looking into ways and means within con- program. It has provided a channel for hu- gressional mandates of assisting the emerg- manitarian assistance, promoted economic and, ing states, if they desire our assistance. In development in general, supported for- this connection, a State/AID [Agency for eign policy objectives of the United States. International Development] Working Group Throughout the year, the Food for Peace has been established in the Department to program demonstrated its flexibility in a study ways in which we might respond to changing agricultural situation. Because of requests for such assistance. the tight commodity supply situation in the United States, The Working Group is looking in partic- shipments during the year ular at educational needs and at possibilities were somewhat restricted. This was espe- for assisting those segments of the societies cially true of wheat and wheat product ship- that are under greatest hardship. They are ments. However, our food contributions to also investigating the possible extension of the drought-stricken African countries, in- existing regional programs into Portuguese- cluding Ethiopia, were substantial. In both speaking Africa. Finally, we have already East and West Africa, United States food provided modest emergency assistance to aid represented about 40 percent of the total help alleviate the dislocation resulting from supplied by the international community. The the recent disturbance in Lourengo Marques. level of U.S. contributions to the World Food I hope that I have made clear the hopeful Program and the U.S. voluntary agencies was and helpful attitude of the United States maintained and the Title I concessional sales toward these new and encouraging develop- programs continued in such high-priority ments in Africa. All of this must of course countries as Bangladesh, Bolivia, Cambodia, be looked at in the broader perspective of Israel, Pakistan, and Vietnam. to southern Africa and the basic right of all The Food for Peace program continues peoples to self-government. be the primary U.S. food aid activity. Con- continued to en- We believe that a great deal of credit cessional sales programs recipient countries to establish self- should go to the post-April government in courage help objectives also support economic Portugal and to those African states and and retains individuals who have played such a driving development projects. The program the nutrition of and dedicated role in bringing about these its emphasis on improving nursing mothers, babies, and significant developments. We can only urge pregnant and most nutritionally that the patience and good judgment that pre-school children, the periods of human life. Although have so far characterized the process of de- significant have aspects of agricultural colonization continue to prevail as the rest most programs of Portuguese-speaking Africa moves toward ' Transmitted on Sept. 25 (text from White House independence in what we hope will be a press release); also printed as H. Doc. 93-362, 93d peaceful and stable manner. Cong., 2d sess., which includes the text of the report.

October 28, 1974 587 market development, specific programs for We are very pleased with this decision. trade expansion have been limited because With eff'ective policing to make sure that the of strong commercial demand. Such programs opium gum is not illegally extracted by the could be resumed under changed supply con- farmers, the reflow of heroin that we fear ditions. can be avoided. As 1973 legislation authorized the exten- sion of the Public Lavi^ 480 program through 1977, it will go on playing its vital role in Congressional Documents terms of development assistance, trade ex- pansion, and promotion of our foreign policy Relating to Foreign Policy objectives.

Gerald R. Ford. 93d Congress, 2d Session

Department of State Appropriations Authorization The White House, September 25, 197 '4. Act of 1974. Report to accompany H.R. 16168. H. Rept. 93-1241. July 31, 1974. 8 pp. Temporary Suspension of Duty on Certain Forms of Zinc. Report to accompany H.R. 6191. S. Rept. Decision U.S. Welcomes Turkish 93-1058. August 1, 1974. 5 pp. Extending the Temporary Suspension of Duty on To Change Poppy-Harvesting Method Certain Classifications of Yarns of Silk. Report to accompany H.R. 7780. S. Rept. 93-1059. Au- Department Announcement ^ gust 1, 1974. 5 pp. Elimination of Duty on Methanol Imported for Cer- tain Uses. Report to accompany H.R. 11251. S. The Turkish Government announced its Rept. 9.3-1060. August 1, 1974. 5 pp. decision July 1 of this year to authorize the Temporary Suspension of Duty on Crude Feathers and Downs. Report to accompany H.R. 11452. resumption of the cultivation of opium pop- S. Rept. 93-1061. August 1, 1974. 5 pp. pies. Since that time there has been an on- Temporary Suspension of Duty on Synthetic Rutile. going high-level dialogue between our two Report to accompany H.R. 11830. S. Rept. 93- governments during which we have made 1062. August 1, 1974. 5 pp. Temporary Suspension of Duty on Certain Carboxy- possibility of a re- clear our concern at the methyl Cellulose Salts. Report to accompany H.R. newed flow of heroin made from Turkish 12035. S. Rept. 9.3-1063. August 1, 1974. 4 pp. Suspension of Duties on Certain Forms of Copper. opium to the United States. We stressed the Report to accompany H.R. 12281. S. Rept. 93-1064. eff'ective control. vital need for August 1, 1974. 5 pp. A special U.N. team has also recently held Temporary Suspension of Duty on Certain Horses. discussions on this subject in Turkey. The Report to accompany H.R. 13631. S. Rept. 93- 1065. August 1, 1974. 4 pp. repeatedly as- Turkish Prime Minister has Telegraph and Telephone Regulations, 1973. Message sured us of his government's strong deter- from the President of the United States transmit- ting the telegraph regulations and the telephone mination to prevent smuggling. The Turkish regulations along with the appendices thereto and us that it has de- Government has informed a final protocol to those regulations, done at Ge- cided in principle to adopt a method of har- neva, April 11, 1973. S. Ex. E. August 2, 1974. vesting the poppies called the "poppy straw .33 pp. Ratification of the Geneva Protocol of 1925. Report the process," which involves the collection by to accompany H. Res. 1258. H. Rept. 93-1257. Turkish Government of the whole poppy pod August 2, 1974. 10 pp. World Food Resolution. Report to accompany S. Res. rather than the opium gum. Traditionally 329. S. Rept. 93-1070. August 5, 1974. 3 pp. the opium gum was taken by the farmers Amending the Export-Import Bank Act of 1945, and through lancing the pod in the field. And it for Other Purposes. Report, together with supple- mental views, to accompany H.R. 15977. H. Rept. was a portion of this gum that was illegally 93-1261. August 6, 1974. 20 pp. diverted. Authorization of Icebreaking Operation in Foreign Waters. Report to accompany S. 3308. S. Rept. ' Read to news correspondents on Sept. 20 by Rob- 93-1084. August 12, 1974. 3 pp. ert Anderson, Special Assistant to the Secretary of Situation in Cyprus. Report to accompany S. Res. State for Press Relations. 381. S. Rept. 93-1092. August 15, 1974. 2 pp.

588 Department of State Bulletin THE UNITED NATIONS

Cooperative Actions To Solve Economic and Social Problems

Statement by Senator Charles H. Percy U.S. Representative to the U.N. General Assembly ^

On this speck of debris in the universe The price of international crude oil is the which we call earth, no individual, no nation, most destabilizing element in the world econ- no race can be an island unto itself. The omy today. Its price denies the developing economic and social issues that face one countries of the world adequate energy sup- face us all. plies to run their economies and fertilizer Philosophically, the United States is com- to grow their crops. The most seriously mitted to improving the economic and social affected nations must take the rise in price welfare of humanity. The great difficulty is directly out of the very low standard of to translate our philosophical commitments living of their populace. into political realities. It is easy to speak While the developed countries can borrow in platitudes, but much harder to talk in the funds among each other in the short run, political realities of what can be done. they will not be able to stand the drain of Certainly the major issues facing the 29th funds for a long period. No matter how Assembly will be economic. They will be effective the recycling of dollars is from oil interwoven in the fabric of virtually every exporters to oil importers, regional and na- topic discussed. Without economic resources, tional balance of payments disparities will we cannot realistically move to solve the vast grow so great that even many now-developed social problems that beset this planet. This countries will be faced with international does not mean that economic and social insolvency. problems are separate. They are not. In Such events could collapse the trade and fact, many of the solutions to the economic monetary systems that have been so painful- problem of increasing the wealth of the world ly constructed since the end of World War II. are closely tied to social conditions. This in turn could certainly mean economic The state of humanity necessitates that the catastrophe, first for the less developed na- agenda before us be broad. The issues we tions of the world, then for oil-dependent must deal with this year include inflation, countries, and last for such countries as the trade reform, monetary reform, economic U.S.S.R. and the United States who have oil assistance, population planning, food produc- resources of their own. And further, what tion, the status of women, and education. optimism can there be in the long run for But as essential to all these issues, we must nations, primarily oil producers, in such a resolve through open discussion and negotia- world ? tion the lowering of the price of interna- No one can benefit from a worldwide de- tional crude oil. pression. What will be lost is years of eco- nomic growth, resulting in despair for at 'Made in Committee II (Economic and Financial) least a generation of the world's people. of the U.N. General Assembly on Oct. 1 (text from USUN press release 123). What will be lost is a chance to work on our

October 28, 1974 589 —

If these practices are continued, those social and economic interests together. We the brunt of such practices, par- must work together. There is no reasonable, shouldering ticularly in developing countries, can take rational alternative. Economic nationalism much. Masses of unemployed and should not bring down the world economic only so starving will bring a powerful political and system, and thus social and political sys- causing the system be operated for economic reaction against those tems ; nor should that problem. the benefit of only a few. Therefore we must all consider in this An alternative solution, of course, to the forum and send home to our governments the problem of oil prices is the development of following message: alternative energy sources. All nations must work cooperatively on energy research to —Abandon monopolistic economic prac- breakthroughs to harness achieve technical tices, wherever they may exist, that are now better develop new sources of energy and the main cause of distortion in our world existing energy sources. economy. At best, however, this is a longer term —Return to and reaffirm the open trade solution, and for the time being most nations and free payments principles of these orga- will continue to be heavily reliant on oil. That nizations—the United Nations, GATT, IMF, is why the policy of certain oil-producing and IBRD. nations engaged in unilateral price fixing on —Understand that the long-term prosper- as a noneconomic basis, commonly known ity of each nation depends to a degree on cartels, poses such severe economic prob- the prosperity of all nations. lems to the world. —Understand that not to correct these Such practices, whether they be by sellers problems is to threaten grave economic dis- or buyers, by industrial nations or less de- ruption worldwide. veloped, can be ruinous. Like retaliatory My own country certainly has a strong tariff barriers and competitive devaluations, responsibility to help achieve these ends. economic nationalism can spread through the Less developed countries need more access to body of the world economy and essentially developed nations. While our to the markets of destroy it. The world has come too far trading system is built on the idea of com- return to barter. parative advantage, the realities of econom- This body should further note that such ics are such that it is difficult to penetrate are contrary to the principles and practices major markets and risky to move against objectives of the General Agreement on Tar- established competition. iffs and Trade (GATT) in that they are The trade reform bill now before the U.S. monopolistic, anticompetitive, and distort Senate establishes the principle of trade flows of resources. preferences for less developed countries. It specific, three key international To be more is not enough, I would be the first to admit, GATT, the IMF [Interna- organizations— but it is a start. As a realist, I can only re- Fund], and the IBRD tional Monetary port that it may be politically difficult to get Bank for Re- (World Bank) [International more. construction and Development] —are the ba- sis for today's world trade and payments sys- international payments system tem. Thus the Need for New Solutions itself is threatened by these practices. economic problems facing the world Unilateral price fixing on a noneconomic The today have been further aggravated by world basis is usually bad no matter who does it social problems and demonstrate the need not just in oil but in all commodities. Those to view economic and social questions as in- who decry the present oil crisis must also related. The solution of one with- look to themselves—are they in the process extricably other is impossible. of fixing other prices? out the

Department of Stote Bulletin 590 —

As stated by the U.N. Committee for De- all committed to education. The more educa- - velopment Planning in its 1970 report: tion people get, the more dissatisfied they become with their lives when the shackles of While it is evident that hig-h rates of growth of ignorance output and income have to be realized in these are thrown off, if their rising (developing) countries in order to eliminate mass expectations are not met. They will become poverty, to generate fuller opportunities all round a destabilizing force within each nation if and to finance some of the social measures, the they have no hope and are faced only with process of development has itself to be viewed in despair. terms of fundamental structural changes and as much with reference to concepts and methods appro- priate to planned social transformation as those customary to economic analysis and policy-making. Full Utilization of Talents of Women

. . . for this reason, the distinctioii often made be- The ultimate purpose of economic growth, tween economic and social objectives is «oi a very stability, and well-being is to meaningful one to draw. [Italic added.] provide the opportunities for a better life to all people. How true. In the search for solutions to Particularly important will be the elimina- social our traumatic economic and problems, tion of mass poverty and social injustice. we must find a rational balance between One of the greatest economic mistakes and people resources that quality of and so the social injustices that almost every nation in human life worldwide may be enhanced. the world has at one time or another been If the problems basic to human and na- guilty of is the assignment of women to a tional survival—the population explosion, second-class role in society. food and resource shortages, mass poverty Actually, the role women often do play are to be solved, new, nonstereotypic solu- in contributing to social and economic devel- tions are needed. opment has perhaps gone as unrecognized as Central to the creative and innovative the potential role they can play. But, with processes needed to produce these new solu- great justification, no longer are they going tions is education. Education is the fount of to tolerate it. Action must be taken to cor- knowledge and thus the basis from which rect both of these problems if women are to civilization, cultures, and humankind have be fully integrated into all aspects of na- grown and advanced. Education has been tional and international economic, political, the basis from which the world has made and social activity. its immense advances in science and tech- Both economic and social development re- nology. If the world's acute problems of quire the full utilization and recognition of poverty, disease, and hunger are to be re- all individuals in society—economic develop- solved, education must continue to produce ment because all potential resources must be the breakthroughs necessary to expand agri- utilized in this efi'ort, social development be- cultural, industrial, and technological pro- cause a fundamental precept of human rights ductivity. Increasing technological progress, is that all people must be allowed to partici- however, will require new skills and re- pate in the economic and political processes sources. Only through education will the need by which decisions are made about their for expanded skills and resources keep in lives. line with new demands. It was because of this that I sponsored

That education is integral to national de- legislation in the U.S. Senate requiring the velopment goes without saying. Education, United States to work so far as possible however, is also the basis for personal de- toward the integration of women into the velopment. It is through education that implementation of our foreign aid programs. people seek to improve themselves and reach This requirement is now law, but we must full potential. work to assure that its intent is carried out. We have to take into account that we are Similarly, we must all work to assure that the principle of equality for women estab- = U.N. doc. E/4776. lished in the original U.N. Charter is realized

October 28, 1974 591 —not only in the nations of the world but in participating nations to reach agreement on the functioning of the United Nations itself. approaches to population problems. The We must all work, individually and collec- World Plan of Action, the document result- tively, on the economic and social changes ing from the Conference, is an outline which necessary to bring this about. any nation may follow in its search for im- Education and the avenues for greater proved living conditions and opportunities participation in society give birth to rising for its people. expectations, expectations which cannot be The Plan of Action is an excellent base met without new economic development. upon which the United Nations and its mem- The United Nations has wisely designated ber nations can build. But the Plan of 1975 as International Women's Year. But Action must be recognized as only an out- let us not wait until next year to develop line and only a foundation for continuing programs to better utilize one-half of the efforts. The United Nations must not delay world's human resources. ECOSOC [Eco- in urging all nations to accept as their own nomic and Social Council] has called for a and to implement the far-reaching recom- World Conference on the Status of Women, mendations of the Plan of Action. At this which Colombia has offered to host, in June point, the Plan of Action is only a docu- 1975. We fully support the objective of the ment. Concerted efforts by us here in New Year and the conference and will do all we York and by the governments of all nations can to insure the success of both. can, however, transform that document into a reality that will mean a higher quality of life for all people. Global Approach to Population Problems In another area involving the linking of Short-Term and Long-Term Food Problems economic and social issues, the United Na- tions was living up to its potential as a Finally, no problem is more economically global problem-solving organization in nam- and socially intertwined or global in dimen- ing 1974 as World Population Year and in sion or in greater immediate need of U.N. sponsoring the World Population Conference attention and assistance than the world food in Bucharest. In sponsoring Population Year situation. During a recent visit to South and the conference, the United Nations has Asia, I saw firsthand the magnitude of un- successfully assumed a leadership role in met nutritional needs the world faces. urging upon the world community the need The problem is that if food production for a unified approach to development and only stays even with demand for the fore- the problems that accompany development. seeable future, then it will be impossible to At the Bucharest World Population Con- upgrade the diets of those who exist on sub- ference, I was particularly struck by the sistence or lesser diets at present. Hundreds complex interrelationships of the economic of millions of persons around the world are and social problems we face. The subject of undernourished or even malnourished. More- population was once the esoteric realm of over, if pi'oduction fails to live up to ex- demographers—scientists whose concern was pectations for any one of a number of rea- with numbers and distributions of people. sons, then the millions who are now mal- In 1974, however, the population issue can nourished because of subsistence diets will no longer be separated from the problems of fall below this dietary level. They will agriculture, resources, land use, health, edu- starve. cation, women's rights, as well as all other We face two different but related prob- aspects of economic and social development. lems. There is the short-term problem of In Bucharest, the global approach to prob- providing food aid to meet existing food lem solving worked well. Candid expressions emergencies and of organizing a system to of widely disparate views were heard, but deal with similar situations which may arise they did not obscure the real desire of in the next few years, and there is the longer

592 Department of State Bulletin range problem of increasing worldwide pro- 4. Educational opportunities for all peo- duction, particularly in developing countries. ples must continue to expand, but opportuni- This latter problem requires nothing short ties for economic fulfillment must expand of a revolution in the countryside of develop- commensurately. ing nations. Neither set of problems will be 5. Women mu.st be given a greater role in easily solved. For our part, the United economic development. States this year will increase the amount of 6. The United Nations must help en- money we spend on food aid for others. courage countries to deal with population Such aid, however, even from many na- problems by developing plans to eliminate tions, is not enough and can never be enough. unrestrained population growth. Long-term relief can only be accomplished 7. We must solve the world's food prob- through increased agricultural production in lems through an international system of na- developing countries. As a U.S. Senator from tionally held food reserves and increased a major agricultural state, I know that the investments in research, fertilizer produc- lives of millions in distant lands cannot be tion, and development assistance. allowed to depend on crop success or failure Only if we really work together on these in another country. problems and dedicate ourselves to their so- Developing countries must have fertilizer lutions will we have the chance to actually production capability and the technological benefit all of humankind. If we just let base from which to guide their own growth. empty rhetoric consume our days this fall, And the developed nations must assist them then we will have empty stomachs. Nations in achieving this independent base. This is will have to empty treasuries, and eventually the main avenue to economic social and we will all go down together. On the other growth with justice. hand, through cooperative action in the self- I find it encouraging that the concept of interest of all nations, we can find solutions a U.N.-sponsored World Food Conference to these problems which will be worthy of developed simultaneously in the U.S. Govern- the objectives of this organization. ment and at the last Nonaligned Conference. The fact that we worked together in the last Assembly and the Economic and Social Coun- cil to bring this idea to fruition bodes well. But as with the Population Conference, the United States Makes Contribution United Nations has responsibility to carry to U.N. Fund for Namibia through, and well beyond the World Food

Conference, with efforts to solve the problem USUN press release 124 dated October 2 of production, storage, and distribution we On October 2 the U.S. Mission to the all face. United Nations forwarded a check for In summation then, what the global com- $50,000 to the ofl!ice of Secretary General munity must do and what the United Nations Waldheim for the Fund for Namibia. The must actively encourage are the following: check honored the U.S. pledge of March 21.

1. The price of international crude oil The United States fully recognizes the U.N.'s must be lowered. responsibility for Namibia and considers the Fund a necessary and appropriate effort to 2. The development of alternative sources aid some of the territory's people. It is the of energy must be encouraged. belief of the U.S. Government that the U.N. 3. Economic nationalism should be dis- Fund for Namibia should be supported solely couraged, and we must return to the open by voluntary contributions. The U.S. contri- trade and free payments principles of the bution was made subject to the condition United Nations along with a monetary sys- that it did not exceed one-third of the total tem adapted to our changing world. contributions to the Fund.

October 28, 1974 593 ^

U.S. Explains Vote on Resolutions Africa or other members who do not elect governments by universal, free elections, our on South Africa vote against this report does not diminish our opposition to these unfortunate prac- Following is a statement made in the U.N. tices. General Assembly by U.S. Representative My delegation abstained on the resolution John Scali on 30, together with September sending this matter to the Security Council. the text a resolution adopted by the As- of The preambular paragraphs contained state- that sembly day. ments of undeniable and tragic accuracy. As I said, the policy of apartheid we believe is illegal, immoral, and fundamentally repug- STATEMENT BY AMBASSADOR SCALI nant. It is the obligation of the United Nations to be concerned and to seek to take USUN press release 121 dated September 30 steps to eliminate such outrages. My delegation finds the policy of apartheid We are not convinced, however, that the an illegal and obnoxious violation of funda- Security Council is the appropriate forum mental human rights. It is as contrary to for discussing such issues. For this reason as it that for which my government stands we did not believe it appropriate to cast a is to that for which the United Nations positive vote. Since others wished to discuss stands. this question in the Security Council—and We understand why many seek this oppor- we favor wherever legally possible the right this tunity to assert their moral outrage at of all members to state their views in the part, however, heinous policy. We for our forum of their choice—we did not believe it do not believe the question of credentials appropriate for us to cast a negative vote. was an appropriate one for this purpose. Since we were neither in a position to vote The purpose of evaluating the authenticity in favor nor of a mind to oppose, we have of the credentials submitted to the Secretary abstained. indi- General is clearly to insure that the Of course our abstention is without preju- viduals representing states in this body have dice to the position my government will take government been authorized to do so by the in the Security Council when this matter is of the country they are here to represent. discussed there. The policies of those governments are not a legitimate consideration in this context. ^ There are other times and other contexts TEXT OF RESOLUTION in which they may be. But what is unques- The General Assembly, tionably true is that here they are not. No Recalling its resolutions 2636 A (XXV) of 13 the facts that one can reasonably argue with November 1970, 2862 (XXVI) of 20 December 1971 South Africa is a member of the United and 2948 (XXVII) of 8 December 1972 and its deci- Nations, that the government which has sent sion of 5 October 1973, by which it decided to reject the credentials of South Africa, representatives to this Assembly is indeed Recalling that South Africa did not heed any of the government in power in that country, the aforementioned decisions and has continued to that an appropriate official of that country signed the necessary credential documents, ' The Assembly on Sept. 30 adopted by a recorded vote of 98 to 23 with 14 abstentions, Resolu- and that they were submitted in a proper, (U.S.), tion 3206 (XXIX) approving the first report of the timely way. Credentials Committee (U.N. doc. A/9779), which Since we do not regard this as the appro- included a recommendation not to accept the creden- tials the representatives of South Africa. priate item for expressing the Assembly's of = U.N. doc. A/RES/3207 (XXIX); adopted by the views on the policy of apartheid or the repre- Assembly on Sept. 30 by a recorded vote of 125 to 1, sentative nature of the Government of South with 9 abstentions (U.S.).

594 Department of State Bulletin

L practise its policy of apartheid and racial discrim- ination against the majority of the population in South Africa, TREATY INFORMATION Reaffirming, once again, that the policy of apart- heid and racial discrimination of the Government of South Africa is a flagrant violation of the prin- ciples of the Charter of the United Nations and the Universal Declaration of Human Rights, Current Actions Noting the persistent refusal of South Africa to abandon its policy of apartheid and racial discrim- ination in compliance with relevant resolutions and MULTILATERAL decisions of the General Assembly, Calls upon the Security Council to I'eview the relationship between the United Nations and South Aviation Africa in the light of the constant violation by South Protocol relating to an amendment to the convention Africa of the principles of the Charter and the on international civil aviation, as amended (TIAS Universal Declaration of Human Rights. 1591, 3756, 5170, 7616). Done at Vienna July 7, 1971.'

Ratifications deposited: Romania, September 6, 1974; Tunisia, July 10, 1974.

Patents United Nations Documents: Strasbourg agreement concerning the international patent classification. Done at Strasbourg March A Selected Bibliography 24,1971.' Ratification deposited: Netherlands (applicable to

Mimeographed or processed documents (such as Surinam and Netherlands Antilles) , September those listed below) may be consulted at depository 13,1974. libraries the United States. U.N. printed publica- in Phonograms tions may be purchased from the Sales Section of the United Nations, United Nations Plaza, N.Y. Convention for the protection of producers of pho- 10017. nograms against unauthorized duplication of their phonograms. Done at Geneva October 29, 1971. En- tered into force April 18, 1973; for the United World Population Conference States March 10, 1974. TIAS 7808. Notification from World Intellectual Property Or- World Population Conference documents: ganization that ratification deposited: Monaco, Recent population trends and future prospects. September 2, 1974. Report of the Secretary General. E/CONF.60/3. 97 pp. United Nations Charter Population change and economic and social de- Charter of the United Nations and Statute of the velopment. Report of the Secretary General. E/ International Court of Justice. Signed at San CONF.60/4. 65 pp. Francisco June 26, 1945. Entered into force Oc- Population, resources and the environment. Re- tober 24, 1945. 59 Stat. 1031. port of the Secretary General. E/CONF.60/5. Admission to membership: Bangladesh, Gi-enada, 92 pp. Guinea-Bissau, September 17, 1974. Population and the family. Report of the Secretary General. E/CONF.60/6. 78 pp. Wheat World Population Conference background papers: Protocol modifying and extending the wheat trade Report of the symposium on population and hu- convention (part of the international wheat agree- man rights, Amsterdam, January 21-29, 1974. ment) 1971. Done at Washington April 2, 1974. E/CONF.60/CBP/4. March 19, 1974. 45 pp. Entered into force June 19, 1974, with respect to World population and food supplies: looking ahead. certain provisions; July 1, 1974, with respect to Prepared by Lester R. Brown, senior fellow. other provisions. Overseas Development Council, Washington. E/ Accession deposited: Dominican Republic, Septem- CONF.60/CBP/19. March 22, 1974. 20 pp. ber 26, 1974. Research needed in the field of population. Pre- pared by the staff of the International Union Wills for the Scientific Study of Population, Liege. Convention providing a uniform law on the form of E/CONF.60/CBP/28. April 3, 1974. 14 pp. an international will, with annex. Done at Wash- Population and education. Prepared by the U.N. ington October 26, 1973.' Educational, Scientific and Cultural Organiza- Signature: United Kingdom, October 10, 1974. tion. E/CONF.60/CBP/20. April 12, 1974. 21 pp. ' Not in force.

October 28, 1974 595 3

BILATERAL Check List of Department of State

Austria Press Releases: October 7—1 Agreement amending and extending the agreement Press releases may be obtained from the Of- of July 11, 1909 (TIAS 6815), for cooperation fice of Press Relations, Department of State, concerning civil uses of atomic energy. Signed at Washington, D.C. 20520. Washington 14, 1974. June Releases'issued prior to October 7 which ap- Entered into force: October 8, 1974. pear in this issue of the Bulletin are Nos. 382 of September 27, 388 of October 1, and Guatemala 390 of October 3. Agreement relating to payment to the United States Xo. Date Subject of the net proceeds from the sale of defense arti- cles by Guatemala. Effected by exchange of notes 395 Kissinger: news conference. at Guatemala September 20 and 27, 1974. Entered *396 U.S. National Committee for into force September 27, 1974, effective July 1, the CCIR Study Group 1974. CMTT, Oct. 31. Rogers sworn in as Assistant Poland Secretary for Inter-American Affairs (biographic data). Convention for the avoidance of double taxation and U.S. -Polish agreement on joint the prevention of fiscal evasion with respect to funding of scientific and taxes on income, with related notes. Signed at technological cooperation. Washington October 8, 1974. Enters into force 30 U.S. -Polish joint statement on days after the exchange of instruments of ratifi- agricultural trade. cation. U.S. -Polish agreement on coal Agreement on cooperation in the field of health. research. Signed at Washington October 8, 1974. Entered U.S. -Polish income tax conven- into force October 8, 1974. tion. Agreement on funding of cooperation in science and U.S. -Polish agreement on health. technology. Signed at Washington October 8, 1974. U.S. -Polish agreement on envi- Entered into force October 8, 1974. ronmental protection. Joint statement on the development of agricultural Kissinger: arrival statement, trade. Signed at Washington October 8, 1974. En- Cairo. tered into force October 8, 1974. Claxton: conference on world population for nongovern- mental organizations. Shipping Coordinating Commit- tee, Subcommittee on Mari- time Law, Oct. 30. Shipping Coordinating Commit- tee, Nov. 12. Advisory Committee on the DEPARTMENT AND FOREIGN SERVICE Law of the Sea, Nov. 4-8. Lord: Commonwealth Club of San Francisco, Oct. 11. Kissinger: remarks in Cairo, Oct. 10. Little sworn in as Ambassador Confirmations to Chad (biographic data). Kissinger, Sadat: remarks af- ter meeting, Oct. 10. The Senate on September 30 confirmed the follow- Kissinger: departure state- ing nominations: ment, Cairo. U.S. and Australia delegations William D. Rogers to be an Assistant Secretary discuss air navigation facility of State [for Inter-American Affairs]. charges. St. Paul Chamber Orchestra Edward S. Little to be Ambassador to the Republic tours Eastern Europe. of Chad. Cancellation of meeting of Book and Library Advisory Committee. Kissinger: departure state- Appointments ment, Damascus, Oct. 11.

George Bush as Chief, U.S. Liaison Oflfice, the People's Republic of China, effective September 27. INDEX October 28,1 97i Vol. LXXI, No. 18ii

Africa. Department Discusses Decolonization Namibia. United States Makes Contribution to of Portuguese African Territories (Easum) 586 U.N. Fund for Namibia 593 Atomic Energy. Secretary Kissinger's News Narcotics Control. U.S. Welcomes Turkish De- Conference of October 7 565 cision To Change Poppy-Har\-esting Method (Department announcement) 588 Aviation. U.S. and Jordan Sign Agreement on Nonscheduled Air Services 580 Poland. Secretary Kissinger's News Confer- ence of October 7 565 Barbados. Letters of Credence (Williams) . . 573 Population. Cooperative Actions To Solve Eco- Chad. Little confirmed as .'Embassador . . . 596 nomic and Social Problems (Percy) . . . 589 Chile. Secretary Kissinger's News Conference Presidential Documents of October 7 565 -Annual Meetings of IMF and IBRD Boards China. Bush appointed Chief, U.S. Liaison Of- of Governors Held at Washington .... 574 fice, People's Republic of China 596 Food for Peace Report for 1973 Transmitted to Congress 587 Congress President Ford's News Conference of October Confirmations (Little, Rogers) 596 9 (excerpts) 572 Congressional Documents Relating to Foreign Policy 588 South Africa Department Discusses Decolonization of Por- U.S. Explains Vote on Resolutions on South

tuguese African Territories (Easum) . . . 586 Africa (Scali, text of U.N. General .Assem- Food for Peace Report for 1973 Transmitted bly resolution) 594 Congress (message from President Ford) 587 to Spain. Letters of Credence (Alba) 573

Costa Rica. Letters of Credence (Silva) . . . 573 Syria. Letters of Credence (Kabbani) . . . 573 Conference Cuba. Secretary Kissinger's News Treaty Information of October 7 565 Current -Actions 595 Cyprus. Secretary Kissinger's News Confer- U.S. and Jordan Sign Agreement on Nonsched- ence of October 7 565 uled Air Services 580 Department and Foreign Service Turkey. U.S. Welcomes Turkish Decision To Appointments (Bush) 596 Change Poppy-Har\'esting Method (Depart- Confirmations (Little, Rogers) 596 ment announcement) 588 Economic Affairs U.S.S.R. Annual Meetings of IMF and IBRD Boards President Ford's News Conference of October of Governors Held at Washington (Ford, 9 (excerpts) 572 Simon) 574 Secretary Kissinger's News Conference of Oc- Cooperative Actions To Solve Economic and tober 7 565 Social Problems (Percy) 589 United Nations Energy. Secretary Kissinger's News Confer- Cooperative Actions To Solve Economic and ence of October 7 565 Social Problems (Percy) 589 United Nations Documents 595 Foreign Aid U.S. Explains Vote on Resolutions on South Food for Peace Report for 1973 Transmitted .Africa (Scali, text of U.N. General Assem- to Congress (message from President Ford) 587 bly resolution) 594 Secretary Kissinger's News Conference of Oc- United States Makes Contribution to U.N. tober 7 565 Fund for Namibia 593 Ghana. Letters of Credence (Quarm) .... 573 Venezuela. Letters of Credence (Burelli-Rivas) 573 International Organizations and Conferences. I Annual Meetings of IMF and IBRD Boards of Governors Held at Washington (Ford, Name Index Simon) 574 Alba, Jaime 573 Jordan. U.S. and Jordan Sign Agreement on Burelli-Rivas, Miguel Angel 573 Nonscheduled Air Services 580 Bush, George 596 Latin America Easum, Donald B 586 Rogers confirmed as Assistant Secretary for Ford, President 572,574,587 Inter-American Afl'airs 596 Kabbani, Sabah 573 Secretary Kissinger Hosts Luncheon for Latin Kissinger, Secretary 565, 581, 583 American Foreign Ministers (Kissinger, Mo- Little, Edward S 596 lina) 583 Molina, Adolfo 583 Naff"a', Fu'ad 581 Mexico. President Ford's News Conference of Percy, Charles H 589 572 October 9 (excerpts) Quarm, Samuel Ernest 573 Middle East Rogers, William D 596 Secretary Kissinger Hosts Dinner for Mem- Scali, John 594

bers of Arab League (Kissinger, Naflfa') . 581 Silva, Rodolfo 573 Secretary Kissinger's News Conference of Oc- Simon, William E 574 tober 7 565 Williams, Cecil B 573