WILLIAMSBURG SUMMIT POSITIONS AND STATEMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R000501340001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 22, 2016
• Document Release Date: July 13, 2010
• Sequence Number: 1
• Publication Date: May 16, 1983
• Content Type: REPORT

W_.L_!tIIi IIII it I ii - 1. 1 11111111 .!L__-
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Memorandum for:
The attached is a summary of Summit
country public positions. It was requested
by Henry Nau of the NSC.
EUR M 83-10141
16 May 1983
EURA
Office of European Analysis
Distribution:
Orig - Henry Nau, NSC
1 - DDI
1 - ADDI
1 - OD/EURA
2 - EURA Production
4 - IMC/CB
1 - each branch
1 - Div File
DDI/EURA/WE (16May83)
STAT
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WILLIAMSBURG SUMMIT POSITIONS AND STATEMENTS
GROWTH/INFLATION
WEST GERMANY
Bundesbank President Poehl told the Frankfurt Chamber of Commerce on 5
May that the Summit should emphasize cohesion in economic policies. He said
he hoped the Summit would underscore that a policy of combating inflation
through monetary policy alone, ignoring the effects of high budget deficits,
must be corrected.
Comment: The West Germans believe that the Summit should focus on broad
issues such as the necessity of reducing unemployment and promoting recovery
without reviving inflation. They hope the Summit will convey to the world an
optimistic assessment of economic prospects and reinforce domestic confidence
in Bonn's ability to sustain the recovery at home.
FRANCE -
The following comments are from Mitterrand's 9 May speech to OECD
Ministers. "The recovery that is beginning, here and there, will run out of
steam very quickly, much more quickly than people think, if nothing is done to
sustain it. I believe we must find the road to growth together. But to
start, the first step on the road will only be possible through coordinated
growth, which will create the conditions for a healthy and sustained recovery',
that is to say without inflation. Knowing what I know of the problems which
remain to be solved in a country like mine, I say it with even more force and
conviction."
"Nobody contests the necessity for a massive reduction of excessive
budget deficits that cause exaggerated real interest rates and therefore
reduce capital available for investment. The more important a country is, the
more dangerous these deficits are for it and for other countries. At the same
time, those that have leeway to stimulate their own growth should do so. Good
results in the fight against inflation should lead to stimulus of economic
activity."
"We must also stabilize our economic relations. A return to sustained
growth will remain unrealistic without a patient reconstruction of a stable
system of international economic relations, in three critical areas:
currencies, trade, and raw materials. I will insist on this point, which
preoccupies our thinking: nothing is possible for the North if recovery is not
assured for the South."
EUR M 83-10141
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UNITED KINGDOM
In a 6 May Fortune interview, Thatcher stated, "It's a false idea that
inflation will lead to more jobs. High inflation leads to higher
unemployment. I will go the way that is sound in the long run. And getting
inflation down is, in the long run, one of the ways which helps to get
unemployment down. We have been firmly for a very disciplined control of
public spending and of the public deficit."
Concerning US interest rates, in an interview with a correspondent from
the Wall Street Journal on 31 March, Thatcher said, "It is very important for
all of us to try to get and keep interest rates down. I cannot overstress
that. It is so important. If you don't keep them (interest rates) falling
then you shall just strangle your recovery. In the end you can only cooperate
together most effectively when you are all running your economies in a sound
way. It's absolutely vital for us jointly to pursue policies which enable us
to get and keep interest rates down and to keep inflation rates down. The US
deficit causes problems (in this regard)." In a television interview on 2
May, Chancellor of the Exchequer Howe called for a major US leadership effort
to reduce the US budget deficit and thereby interest rates worldwide, likening
the plan to the S effort in developing the Marshall Plan in the wake of World
Howe added that "if they (the US) are able to see in their own eyes, and
those of their people, the role of their battle against a huge budget deficit
in getting interest rates down worldwide, for the developing countries as well
as the industrial countries, and in helping to reduce instability in exchange
rates, then that is the kind of advance that can come from Williamsburg. The
important thing is that high interest rates have created a high exchange rate
for the dollar. That has contributed to inflationary pressures in other
countries, and made it difficult for them to lower interest rates. And that
has meant that capital is being drawn into the US, which is not good for the
Howe stated that, in his own personal view, he would like to see the
Summit "arrive at some kind of international medium-term financial strategy
modeled after the approach on economic policy." Moreover, "countries which
have successfully reduced budget deficits and inflation should not risk
gambling away these achievements on fiscal policy. This is a matter for
governmental judgment and leading economists should aim for a self-starting
path to economic recovery. A strong stance on controlling medium-term budget
Comment: Howe has indicated that he fears the US will be unable to
effectively reduce its deficit and interest rates because the US Government is
"not sufficiently" committed to this course. The British will come to the
Summit seeking US movement on interest rates, but they will be sympathetic to
US determination to hold down inflation. Thatcher probably understands the
interplay between the President and Congress on economic measures better than
any of the other Summit participants. Having had difficulty in implementing
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her own policies through Parliament, she will recognize US limitations.
Nevertheless, Thatcher will need to come away with some assurances that the US
will, at least, not allow interest rates to rise or undertake other measures
which might otherwise slow the incipient recovery. Faced with 9 June
elections, Thatcher w' 1 want to be able to show some signs of a recovery to
ITALY
After this week's cabinet meeting, devoted primarily to Summit issues,
State Participations Minister De Michelis stated that "the Williamsburg Summit
should produce a joint policy to revitalize the world economy." He also
reported that the ministers agreed to support coordination of industrial
policies to promote technological innovation, exchange rate controls, and
lower real interest rates. Foreign Minister Colombo, however, claimed that no
decisions were reached at the meeting.
Comment: The Italians will be represented at the Summit by a Fanfani-led
government in a pre-electoral political atmosphere. Christian Democrats and
Socialists -- probable future coalition partners -- may be contrasting their
views more sharply on economic issues. The Italians will be even more alert
than usual to the constraints of domestic affairs on their foreign policy
considerations. With high inflation (about 16 percent), an expanding budget
deficit (15 percent of GDP in 1982), and balance of payments problems, Italy's
policy options for reflating the economy are limited. Rome will be dependent
on exports to buoy falling domestic demand and will likely be very supportive
of expansionist policies in countries where inflation has been tamed.
JAPAN
Foreign Minister Abe, in a press conference on 10 May, said Summit
countries were prepared to step up joint efforts for recovery and Japan would
make efforts to stimulate domestic demand. Japanese officials have not
publicly commented on US interest rates in connection with the Summit.
Comment: We do not think Abe's statements should be interpreted as an
endorsement of the locomotive theory-
CANADA
Prime Minister Trudeau, during a 25 April press conference, stated:
"What can and will be discussed at the Summit and pre-Summit meetings are the
pernicious effects of excessively high US real interest rates on other
countries' economies and on public confidence in the recovery's
substantiality." And in a 6 May speech to the Canadian Institute of
International Affairs, he added that it is vital that the Williamsburg Summit
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"rekindle a fundamental spirit of enlightened internationalism. We must
achieve a common resolve to meet all the conditions for global recovery, not
just recovery in industrial countries. This will require greater convergence
in policies and performance, and a climate of confidence which will bring
about a lowering of real interest rates, which in turn will inspire innovative
and productive investment." Finance Minister Marc Lalonde, in the Wall Street
Journal of 3 May, was quoted as saying, "We believe that the high (US real
interest rates that exist are significantly above what would be required in
terms of management of monetary policy, and we are encouraging US authorities
to try to bring down their real interest rates."
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TRADE AND FINANCE
WEST GERMANY
The West Germans do not want a detailed agreement on protectionism but
rather a general commitment from the seven to lower trade barriers. In his 4
May speech to the Bundestag, Helmut Kohl stated: "The FRG owes almost one-
third of its GNP to its export business. We must ensure its ability to
compete in the struggle over prices and in technological competition. We are
for free world trade. Free exchange, not protectionism, will ensure jobs and
prosperity. I will definitely promote this attitude and conviction at the
forthcoming Williamsburg meeting of Western industrial states. I expect and
hope that our partners will also support free world trade there and also in
practice afterwards."
In commenting on Summit topics in his 5 May speech to the Frankfurt
Chamber of Commerce, Poehl spoke out against initiatives for heavier central
bank intervention as a means of controlling currency markets. He said
currency convertibility is a prerequisite for free trade in goods and
services, and he criticized currency controls used by some countries to
support their exchange rates. Poehl praised the IMF and BIS for the roles
they played in quelling last year's debt crisis, but he warned that commercial
banks and indebted countries need to assume more responsibility in stabilizing
Finance Minister Stoltenberg stated in a speech on 28 April that the
Summit countries must give priority to strengthening the IMF, dismantling
trade barriers, and formulating common policies on areas ranging from interest
rates to development aid. In a 15 March article in the major West German
trade journal, he contended that proposals for restructuring the international
monetary system that involve a Bretton Woods-style monetary conference
contribute little toward improving the world economic situation and that such
a conference would duplicate functions performed by the IMF.
FRANCE
Mitterrand, in his 9 May speech, on Bretton Woods: "Remember that at the
beginning of the seventies, the weakening of monetary discipline, the
uncontrolled creation of international liquidity, brought on a first wave of
inflation. Then the generalized spread of floating exchange rates added to
the instability of parities and reinforced those inflationary tendencies, and
the second oil shock brought on a severe recession which has been aggravated
by erratic movements of certain currencies on the international markets."
"Admittedly, since August 1982, cooperation among international financial
institutions, monetary authorities, and the banking sector has allowed us to
avoid the worst.... But avoiding the worst is not a goal. It is an urgent
task to rediscover the conditions for a stable monetary system, with
currencies that are sufficiently fixed and of a reasonable economic value. In
the first place we have to rapidly continue the effort begun at Versailles
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last year and to put in place the measures which were taken. Effective
coordination between the economic policies of the industrialized countries
must be sought and reinforced."
We must try to find realistic parities and to limit erratic short-term
fluctuations around the reference rates. We will study, moreover, the means
to act in common to better adjust medium-term parities, when the economic
fundamentals of the principal countries ... differ in a lasting way...As the
conclusions of the working group on intervention ... show, monetary
coordination is clearly useful when there is market disorder and when the
short-term volatility of exchange rates accelerates. Are we not in such a
situation today? Haven't the Seven .. affirmed their will to put in place
coordination intervention in cases when their usefulness is recognized? If
not, why keep having international meetings?"
"Then, we will go further. The three principal monetary areas, the yen,
the dollar, and the European currencies, could agree to reinforce their links
and serve as poles of exchange rate stabilization for the principal currencies
of the world. The IMF's role would be reinforced to promote the use of SDRs
in official reserves, in the operations and accounts of international
institutions, and in private transactions.... The time has come to think about
a new Bretton Woods.... I hope that after a careful preparation, an
international monetary conference at the highest level can be organized in the
On protectionism: "Protectionism, which each of us deplores in others,
constitutes without doubt and by definition an obstacle to the growth of trade
and the development of the poor countries.... It is time to cure the principal
causes of trouble and to show that no one has anything to gain from this
protectionism, including its most hidden forms, those involving technical or
health standards. This will be done by assuring fair access to markets, a
condition of economic growth for the North as well as the South."
On technology: "The renewal of technological cooperation demands another
international division of labor. We all have an interest in avoiding
excessive competition, whether it be between sectors in decline or between new
industries. We must commit ourselves to work out progressively some rules of
conduct in the realm of industrial strategies and industrial policy."
On North-South: "Can we not conclude commodity agreements wherever
possible? 1' e~ se accords will seek to stabilize the markets within a realistic
range, since we know it is not possible to fight indefinitely against the
fundamental trends of the market. And, as financial resources are
indispensable, I will stress the need to start up without further delay the
Common Fund for Raw Materials.... Regularize the futures market.... Where
they are not regulated, instead of informing, these markets mislead.... More
strict discipline in play of competition will have these markets do what they
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"We all know that only recovery ... will solve our own problems by
opening up new markets and exploiting new resources.... We seem to be
ignoring the most obvious markets, those most ready for growth, those of the
Third World.... Politically, I am convinced of it. The survival of our
democracies and our ability to maintain a free world around us depends on
it. No recovery, no monetary system, no trading system will be stabilized if
the economic and financial situation of the countries of the South is not
improved. If these countries do not have serious and permanent means of
financing their debts and prompting growth, their political equilibrium will
be endangered from one day to the next."
"Our common interest is to reduce the debt burden of the South. It is
essential that all the countries lower the real interest rate, which is a
primary cause of the increase in the cost of indebtedness of the countries of
"Since the reform of 1975, the amounts available from the IMF's
'facility' have attained a respectable level, and that is very good. But the
volume of resources is still insufficient. In this regard, I note that the
recent increase of the IMF quotas constitutes an important step, but it should
not be accompanied by an increase in the severity of procedures limiting the
use of this new resource.... It is necessary to take concrete action for the
most needy countries. It should be possible to loosen the debt constraints of
these countries and permit them to borrow, under more flexible conditions,
amounts substantially above their quotas. Furthermore, a part of the new SDR
issues could be used to decrease the cost of this facility. A supplementary
assistance effort in favor of the 36 least developed countries is called
for.... Each of us must do what we can to reach, as soon as possible, the
level of assistance recommended by the UN."
"The role of the World Bank should be greatly increased and diversified
to correspond to the needs of the borrowers. It would be appropriate to
modify the ratios, I believe, and to increase significantly the bank's own
"In general, I emphasize the importance of stability over time of
financial commitments in aid and credits.... An essential element of the Lome
Convention ... was to guarantee financing for a five-year period." 0 25X1
"An 'Emergency Plan for Africa' must be launched. An exceptional effort
of solidarity on the part of the Western countries is urgently needed. M
country will soon put forth detailed propositions on this subject...." 25X1
UNITED KINGDOM
In the television interview on 2 May, Howe stated that his second major
objective at the Summit (the first being to obtain US agreement to reduce the
budget deficit and interest rates) would be to block further moves toward
protectionism. 25X1
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Prime Minister Thatcher, responding to a question on protectionism during
the Fortune interview, said, "Each of us in fact, because we have special
problems with certain industries, engages in some type of protectionism. The
important thing is to see that it does not enlarge. You must have temporary
measures to protect certain industries ... (but) we must have voluntary
restraint over a limited period.11
Comment: Thatcher has consistently opposed protectionism. She has been
especially vocal and outspoken in her attempts to get the EC to reduce
protectionist measures on services. In part this reflects the role of
services in the British current account balance. It also reflects, however,
ITALY
The mid-April position paper of the Italian Sherpa, Ambassador Paolini,
is the best summary of Rome's position on trade:
-- Opposes protectionism.
-- Supports more frequent GATT ministerials and meetings of Summit
country trade ministers and ad hoc meetings of trade and financial
officials at all levels to better coordinate trade and financial
policies.
-- Does not believe that LDC debt problems have reached a stage where
major financial reforms or master plans are needed, but there is a
necessity for minimum net credit flows.
-- Given its burgeoning budget deficit, will stress the availability of
financing from multilateral institutions (IDA, IMF) including the
possibility of subsidized interest rates on new loans.
-- Will support bridging loans.
-- Endorses indirect measures such as commodity revenue stabilization
programs to alleviate LDC interest payment burdens.
Comment: With exports accounting for about 25 percent of GNP, Rome has a
high interest in maintaining the free trade system. The Italians may,
however, endorse restrictive measures in exceptional circumstances. The call
for more interchanges between officials to improve coordination of trade and
financial policies also reflects Rome's emphasis on playing a larger role in
international economic affairs through greater participation in forums with
other major industrialized nations. Proposals on LDC debt reflect, in part,
the importance Italy places on the role of developing countries in developed
25X1
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JAPAN
In a speech at the recent OECD meetings, Minister of International Trade
and Industry Yamanaka contended that advanced nations should take concerted
action to stabilize exchange rates. Moreover, during testimony before a
parliamentary budget committee in March, Prime Minister Nakasone stressed that
stability in exchange rates is indispensable for revitalization of the world
economy.
During his 11-day trip to ASEAN countries in early May, Nakasone
repeatedly promised to carry the LDC message to the Summit. Speaking at the
OECD meeting, Yamanaka emphasized the need debt-ridden countries have for
access to export credits. In April there was a flurry of press reports,
quoting sources close to the Prime Minister, indicating Nakasone would propose
a $500 billion Global Investment Fund to aid financially troubled LDCs. 25X1
Comment: While Yamanaka did not specify what action to stabilize
exchange rates he had in mind, he personally favors a return to a fixed
exchange regime. However, the official Japanese position -- as stated by
Finance Minister Takeshita in late February -- is that it is not yet time to
abandon the floating system. We believe that Nakasone views coordinated
intervention among Big-Seven countries as necessary to achieve exchange rate
stability. On North-South issues, most officials in Tokyo concur with
Yamanaka's view that both freer trade and increased aid are key in resolving
LDC debt problems. Nakasone may float the Global Investment Fund idea, but we
doubt he will push it very hard. 25X1
CANADA
Trudeau, in his speech to the Canadian Institute of International Affairs
on 6 May, stated: "We must use the engine of recovery to remove trade
barriers which were introduced as temporary measures during the period of
recession. We must commit ourselves to resist more subtle but equally
destructive predatory trade practices." Lalonde, in the Wall Street Journal,
tempered this somewhat: "Still, in a country like Canada, it is essential
that the government be ready to take steps in the national interest that, in a
larger economy like the US, may not be required (because the) economy is so
much stronger than ours by its sheer size. And the fact that we are so close
to it will require that the state be ready to intervene in the national
interest at various times, depending on the situation. You just can't
transfer the American experience into Canada, and you just can't expect Canada
to behave just as if it were a smaller United States, or even worse, as if it
were just another state of the union." 25X1
In the same Wall Street Journal article: Question: "Do you think the
industrial nations need to rethink the international monetary system, as
Treasury Secretary Regan has suggested?" Lalonde's Answer: "We are very
concerned about suggestions that somehow what we need is a total overhaul of
our international monetary system. We are ready to talk about adjustments or
steps to be taken that might improve the system. But we have been struck by
the resilience and the flexibility of the international monetary system in the
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Lalonde responded in a similar vein to President Mitterrand's 9 May call
for a conference to consider restoring currency parities. Press reports quote
Lalonde as saying that Canada's floating exchange rate regime of the last
several years has served the country well and that in attempting to tackle the
issue of international exchange rate fluctuations, "there is a danger of
starting at the wrong end of the issue." Lalonde suggested that exchange
rates themselves are not the problem but rather a reflection of other, more
fundamental problems -- domestic economic policies, balance of trade and
payments, domestic inflation rates -- that cause them to diverge. Lalonde
added that Mitterrand's suggested conference "shouldn't take place without a
very long and careful preparation."
Trudeau again, in the Canadian Institute speech: "We must come to grips
with the continuing pressures on the international financial system, to ensure
that the instruments, the resources, and institutions are adequate to the
tasks of both long-run global recovery and short-term emergency. Emergencies
need to be met in a manner which is tailored to individual circumstances, and
which honors the fundamental principles of prudence which guide both domestic
economic management and the operations of the international banking system.
However, I will urge my Summit colleagues to address the need for fully
adequate financial flows to sustain Third World recovery, and to alleviate the
deep deflationary pressures which now play on those economies. As I said
elsewhere, I believe some of the proposals emerging from the non-aligned
movement merit careful study, and I look forward to the results of the IMF
examination of the call for a further allocation of special drawing rights.
We must, as well, support and invigorate the key institutional areas of
enlightened internationalism -- the Bank, the Fund and the GATT. We must
continuously find ways to strengthen the capacity and credibility of these
institutions. We must facilitate closer political management of these bodies
and create more effective links between them."
While admitting recently that he will argue his "North-South fad,"
Trudeau commented in the House of Commons on 15 December 1982: "Mr. Brandt
and his colleagues suggested the convening of a Cancun-type conference and
were very profuse in their congratulations to Canada for having played a
leading role in the Cancun Conference. If the Honorable Member is really
trying to find out whether Canada is on the same wavelength as the Brandt
Commission, the answer is that we have been saying for a long while that the
North-South problems are very grave and that they are linked not only to the
peace of the world but to economic recovery. We have been saying that. We
believe that, but it does not mean that we can give Mr. Brandt or any other
Comment: Trudeau has repeatedly voiced concern about the increasing
number of protectionist measures, particularly in the United States, but he
has shown considerable reluctance to limit Canadian protectionism. He will
consider measures for improving the international finance system but will
resist altering the basic framework of existing institutions. Trudeau has
criticized the United States for the stretch-out of IDA-VI commitments.
25X1
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EAST-WEST
WEST GERMANY
A senior Chancellery spokesman on 15 April described East-West trade as
"an important but not the outstanding topic" at the Summit and added that
Williamsburg must not become a "second Versailles." West German officials --
including Kohl -- appear well-satisfied with Summit preparations, particularly
since they now believe East-West trade issues will not play a major role in
However, in an interview in an economic weekly last week, Economics
Minister Lambsdorff stongly criticized the provisions of the US Export
Administration Act. Lambsdorff said application of these provisions to West
Germany and other European countries would be "entirely unacceptable,
something that will be made clear to the United States at the Williamsburg
c111 N i+ 11 1
FRANCE
The following quotations were taken from an interview given by Mitterrand
to three French journalists and published in Le Monde on 26 November 1982.
Although the interview covered domestic as well as (reign issues, Mitterrand
could be sure that publication in Le Monde would ensure him a wide foreign
audience.
"Whatever happens, Russia will want to preserve its sphere of influence,
guarantee its security, and continue its ideological and political advance on
all continents; those are the constant elements of the state of power; to
f
t th
"
orge
em would be fatal.
"I am hostile to any form of economic blockade on Russia, and France will
not break off its trade with that country. But I would add that a lasting and
excessive balance of trade deficit to our detriment would very quickly take on
a regrettable political significance. Nobody doubts that I will be faithful
to the pledges made together with our allies on so-called strategic
products. But I do not want us to reach insidiously the point of calling the
25X1
25X1
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"What you refer to as a failure was already a failure in Ottawa one year
previously and will be a failure in Williamsburg next year if the summits in
question continue to be, as I found them when I arrived at the Elysee,
propaganda platforms for internal political use. The Atlantic alliance has
been leaning toward misunderstanding for too long; if a decision was taken to
clarify matters, that would already be a favorable reform. That is what
France did with regard to the gas pipeline and the US embargo. That is also
what it did by refusing to describe what was not an agreement as an agreement
on East-West trade. France's sovereignty is not open to bargaining. I do not
like that to be forgotten. But nor am I resigned to the deterioration in an
alliance which would be more precise and effective if it moderated its
UNITED KINGDOM
In the Fortune interview, Thatcher stated: "We've always made it clear
that technology transfers which can be useful to the USSR militarily must not
take place. Then you come to a sort of grey area where they could be useful,
perhaps militarily, but their main use is civilian. It's this grey area which
is difficult, but I hope we can agree. I do not wish that debate to dominate
the headlines of the Summit. There are very big things to discuss." 25X1
Comment: London has repeatedly expressed its dissatisfaction with US
attempts to apply extraterritorial enforcement of its laws to US subsidiaries
in the United Kingdom. The United Kingdom has invoked its Protection of
Trading Act to order firms in the United Kingdom not to comply with the US
law. Senior UK policymakers and Thatcher vociferously attacked the United
States for its pipeline sanctions and refused to recognize the US arguments
for their application.
25X1
F
ITALY
In a late March conversation with Ambassador Rabb, Foreign Ministry
Director General for Economic Affairs Maurizio Bucci:
Expressed strong agreement with the general proposition that Soviet
access to high technology needed to be greatly restricted.
While endorsing the view that the Soviets should be subject to
tighter export controls and denied subsidized interest rates, thought
it important that stricter ground rules not be used as a form of
economic warfare.
-- Agreed that extreme care has to be taken to avoid the kinds of
misunderstandings which occurred after the Versailles Summit. 25X1
Comment: Rome sees East-West trade as providing lucrative trading
opportunities which are especially welcome at a time when domestic demand
remains weak. In addition, Rome does not believe that economic warfare
against the Soviets will succeed because of the strength of the Soviet economy
and the availability of alternative suppliers. 25X1
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JAPAN
Addressing the Diet Foreign Affairs Committee in April, Foreign Minister
Abe declared that in the future Japan, the United States, and Western Europe
should determine jointly any economic sanctions against the USSR. Addressing
the OECD Ministerial, Abe called for swift revision of the export credit
interest rate system. He added that he fully understands the US position on
the elimination of the subsidy element for Category I countries. He, along
with other officials in Tokyo, are unhappy with the 0.3-percentage-point
premium imposed on Japanese official export credits because of low domestic
CANADA
Comment: Trudeau generally has avoided commentary on East-West trade
issues and has urged avoiding the contention of the Versailles Summit on this
issue. While not completely in agreement with the United States -- of special
concern is extraterritoriality -- Trudeau appears to be satisfied with the
progress of the various studies commissioned last fall.
Sanitized Copy Approved for Release 2011/03/11: CIA-RDP85T00287R000501340001-0