WILLIAMSBURG SUMMIT FOLLOW-UP: KEY THEMES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000701230029-1
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: January 7, 2011
• Sequence Number: 29
• Publication Date: June 14, 1983
• Content Type: MEMO

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STAT
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J V V
83- -3 0'74,
June 14, 1983
THE
SECRETARY
OF
STATE
THE
SECRETARY
OF
THE TREASURY
THE
SECRETARY
OF
DEFENSE
THE
SECRETARY
OF
AGRICULTURE
THE
SECRETARY
OF
COMMERCE
THE
DIRECTOR OF CENTRAL INTELLIGENCE
THE
UNITED STATES TRADE REPRESENTATIVE
THE. CHAIRMAN, JOINT CHIEFS OF STAFF
THE DIRECTOR, UNITED STATES
INFORMATION AGENCY
SUBJECT: Williamsburg Summit Follow-up: Key Themes
The Williamsburg Summit. has been a significant success. The
President, together with his Summit-nation colleagues, achieved
important progress-on economic, political and security issues.
Although the Summit is officially over, it is essential to
maintain momentum from that meeting. Thus, as officials from
U.S. agencies and departments address Summit results, they should
put special emphasis on the following key themes from the
Williamsburg Declaration:
The success of the. Summit reflected, and was a product
of, inspired collegial lealership (from a public.
diplomacy standpoint it will not be helpful to single
out any one Summit partner's performance as stronger
or weaker than any of the others).-
The Summit reaffirmed-our shared democratic values.
We made real progress in reinforcing our economic and
security ties.
The informal approach to the discussions enhanced both
the quality and spontaneity of the Summit leaders'
exchange.
We resisted Soviet efforts to drive a wedge between us
by committing ourselves to maintaining security, while
seeking real arms reductions.
FOR OFFICIAL USE ONLY
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?''FOR OFFICIAL USE ONLY
The work done at Williamsburg is directly relevant to
the'generations who will follow. The West is tackling
long-standing challenges head-on, not settling for
quick fixes.
Williamsburg. confirmed commitment to the convergence
of our economies toward low inflation and sustained
growth, thereby generating greater employment
opportunities.
For additional and more detailed guidance, it may be useful to
draw on the attached background, which carries inter-agency
clearance and has been made available to our overseas missions.
cc: The Counsellor to the President
---The Director, Office of Management and Budget
The Chief of Staff to the President
The Deputy Chief of Staff .to the.President
The Chairman, Council of Economic Advisers.
The Assistant to the Vice President for National
Security Affairs
FOR OFFICIAL USE ONLY
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R.ey.Results of I983 Williamsburg Economic Summit
The Williamsburg Summit was a clear success from U.S.
viewpoint and, we believe, for all the participants., Our
assessment is best expressed in the President's final state-
ent after he read the declaration: "Our meeting has shown a
spirit of confidence, optimism and certainty--confidence that
recovery is underway, optimism that it will be durable and
a,-
certainty that economic policy and security ties among us will
e strengthened in the future."
The President considers the Summit to have been a: signal
success for all the participants-
The atmosphere was.relaxed and informal. Each of the:
headers was able to address the, issues each-felt was most
~.m ortant,, and the degree of consensus. achieved was particu-
p
n y striking..
They quickly agreed, that a: successful. strategy depends, on
our ability to recognize-the linkages within the international
economy and to act across a broad range of policies. so that
:fie- prograam is. coherent,,, reinforcing the links rather than
tea.rinc, them: in different directions.
It is. also worth stressing that their point: of reference
nd departure was: much broader than their concerns about .
economic issues as; such,: important as they are-
The President. has emphasized that the- work of. the Summit..
did.. not begin or end at Williamsburg; it is a long-term
,process which addresses the most pressing- concerns of the
successor generation and. lays a solid foundation for the kind
o;f world. free-peoples cherish..
What really assures the cohesion of this group of coun-
ries is. their unity as free democracies, marked by the values
they share and their dedication to the promotion and defense
of their freedoms and values. Thus, all recognize the funda-
mental fact, brought out early in the joint statement, that
pth. e Prosperity they seek is.more .than material
gai.n, and that.
this prosperity itself contributes to the defense_of shared
clues and. their freedom.
In practical terms, this fundamental principle-.is what
underlies their recognition of the relationships between
ros exit and. securit
~p p y y, and between security and certain
aspects of our economic relations with the East- This
restatement of the security dimension in East-West economic
'`
relations is one of the more constant aspects, both of this
summit and our relationships.
On the action program itself, it may help to see the
strategy in three broad components reflecting our
"relationships among ourselves, the interrelationships within
the world economy, and our relationships with the rest of the
world.
=`= As regards the relationships among ourselves, the most
important actions from our viewpoint are those which the
leaders decided to take to strengthen the consultative
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process, begun last year at Versailles, to help each of us
bring about greater convergence in economic performance toward
sustained non-inflationary growth.
-- Movement toward such convergence is the key to achieving
more stability in exchange rates.
-_ - In the annex published with the declaration, we-have laid
out the procedures to be used in the consultative process.
After reaffirming the. direct linkage between exchange market
stability and-policies-designed to bring about greater conver-
gence, it describes the policy areas.which are to be examined
and makes it clear that the purpose.is to determine whether
the policies being pursued in the short term are-or are not
likely to-achieve the medium-term objective. If those pol-
icies are more likely to.produe divergence than convergence,
and in particular if one country is-pursuing more inflationary
policies than others, the. group can propose corrective actim
for consideration by the diverging country. The value of
this- process- is that. it. is multilateral but limited to-those
countries with greatest responsibility for the system it uses=
the IMF director as a catalyst for analysis: and debate-,, and it:
is comprehensive, considering all. significant aspects of
economic policy-,, thus permitting coherent policy suggestions..
In our.. view, this-process subsumes the separate in--
vitation.to finance ministers to "define the conditions for
improvingthe-monetary system-'". We regard. the. achievement of
greater convergence as perhaps-the- most important condition..
Once-those conditions have been. defined, we can consider the
part, if any, that a monetary conference might play..
The second set of interrelationships addressed in the --
action program are. those among the world trade and financial
systems.
-- Here,. too, a coherent set of policy guidelines, designed
to,follow-up and reinforce the commitments we have all recent-
ly made in the IMF, GATT and OECD, will help us to assure that
we will come to effective grips with the major trade and
financial problems we face in the months and years. ahead.
-- These actions implicitly recognize-certain key interrela-
tionships in the world economy:
the link.between-sustainable growth-and the-open
trading system.
the link between open:markets and the availability
of financing.
-- In effect, growth will be choked off if we do not act to
keep our markets open and look toward increased trade liber-
alization in the future; and trade cannot grow without ade-
quate financing available.
In this regard, our trade and financial relations with
the developing countries are absolutely fundamental to their
recovery and to the sustainability of ours.
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-- The declaration outlines both short and longer-term.
aspects of a strategy to deal with interrelated trade and.
financial problems of the developing countries.
In the short term, it reaffirms our common strategy
for assuring orderly economic adjustment in coun-
tries with debt management problems, through pro-
vision of private and official financing in support
of effective adjustment programs; our commitment to
early ratification of IMF and GAB increases, and
underscores the need to reverse protectionism and.
maintain open markets.
In the-longer term, the declaration-signals-the need
to:.work..for-'further trade liberalization, especially
with and among LDCs, to examine proposals fora new
negotiating round. in GATT for this purpose, and to
ensure that aid is targeted particularly toward the
poorer countries: and such priority sectors as-food
productions.
Finally,, as regards our relationships with the rest of
the world, two aspects can be. stressed-
- First,. those- with the' developingg countries. In addition.
to: our agreement on. assuring an adequate flow-of resources- to
the poorer- countries there is. agreement on the basic approach:
our countries will take to: the- UNCTAD: conference in_.Belgrade
this month,. with particular emphasis= on our desire: for con---
structive and practical cooperation and-.results--.
-- The second aspect of our relations with others is our
agreement to pursue the-work begun this winter in OECD, COCOM
and NATO to develop a broader consensus among ourselves, and
with other Western countries on our economic . relations= with.
the East.
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