PUBLIC INFORMATION STRATEGY FOR HIGHLIGHTING RESULTS OF EAST-WEST ECONOMIC WORK PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000400560019-0
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 20
• Document Creation Date: December 22, 2016
• Document Release Date: November 19, 2010
• Sequence Number: 19
• Publication Date: July 19, 1983
• Content Type: REPORT

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UUTUNk-
July lg, 1983
Public Information Strategy for Highlighting
Results of East-West Economic Work Program
Introduction
With the completion of the first phase of the East-West
economics work program initiated last Fall, it is useful to
pull together and document the results accomplished by this
process. This paper is designed to serve as a resource
document, with agreed-upon substantive themes, for public
presentation of the results and contributions of the study and
work programs, including speeches, articles, interviews, etc.
The attached tabs present the unclassified source documents
from which the themes below were taken.
Objectives
- Provide background on the overall reorientation (late
1970s - present) of Western policies toward East-West
economic relations
- Describe the circumstances surrounding the imposition
of expanded sanctions relating to the Soviet natural gas
pipeline as well as the lifting of those sanctions.
- Highlight outcome and contribution of study and work
program thus far and show wisdom of action to lift pipeline
sanctions
- Emphasize the collective nature of the effort toy"'
analyze the security implications of East-West economic
relations
- Describe the means through which the work program will
influence each nation's policy process
- Describe plans for further work
1. Overall reorientation of Western attitudes toward East-
West economic relations
In the early 1970s, economics was a key part of the overall
thaw in East-West relations. Lenient Western credit terms and
a large increase in the level of trade resulted in benefits for
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both sides--but with particular value for the East. Toward the
end of the 1970s, and particularly after 1979, the massive
Soviet military buildup as well as their adventurism and
military aggression demonstrated that detente -- with its
incontestible economic benefits for the Soviets -- was no
barrier at all when they saw opportunities to advance their
strategic position.
As the Soviets demonstrated that their fundamental values
and policies had not changed, Western governments -- with the
U.S. acting most quickly -- began to discuss and reevaluate
their economic, political and security relationships with the
East. (A chronology of recent events in the area of East-West
economics is contained at Tab 1) Following the Soviet invasion
of Afghanistan, the Carter Administration held discussions in
--early 1980 at the Ministerial level with our NATO allies on the
most appropriate economic responses to this blatant act of
military aggression. At the Ottawa Economic Summit meeting the
following year, President Reagan proposed a fundamental re-
evaluation of East-West economic relations to the assembled
heads of state and government. The discussions at Ottawa
culminated in a communique statement on East-West economic
relations linking this area to Western political and security
objectives -- the first such reference to result from an
economic summit since the first meeting in 1975 (Ottawa
statement contained at Tab 2).
Following the Ottawa meeting, Under Secretary Rashish
undertook a mission to Europe in the Fall of 1981 to reem-
phasize President Reagan's concerns over the wisdom of as-
sisting the Soviets with construction of the Siberian natural
gas pipeline and to cast further light on alternative sources
of energy. It was President Reagan's strong preference to
avoid unilateral U.S. actions in this area if at all possible.
The Soviet-inspired imposition of martial law in Poland in
December, 1981, gave further impetus to the ongoing reorien-
tation of Western policies. The U.S. and its allies imposed
economic sanctions on Poland, while the U.S., acting on its
own, imposed restrictions on shipments of oil and gas ex-
traction and transmission equipment by American firms.
Under Secretary Buckley's mission to Europe in April, 1982,
underscored U.S. concern over Western supplies of oil and gas
equipment to the Soviets. In addition, the Buckley mission
began a series of discussions on the interest rates and credit
terms applicable to trade with the Soviets. Subsequently, a
decision was taken in the context of the Export Credit Arrange-
ment to reclassify the Soviets and other countries with com-
parable levels of GDP into the "relatively rich" category that
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requires stiffer terms. (Details are provided below in Section
7.) At Versailles in June, 1982, allied leaders again discus-
sed East-West economic relations and included a statement on
this subject in their communique (included as Tab 2). This
issue proved to be a contentious one, however, and following
the meeting it became clear that there were significant
differences in interpretation among allied leaders.
2. Imposition of Extended Sanctions on Oil and Gas Equipment
(June 1982)
Following Versailles President Reagan, observing that there
had been no movement on fundamental, issues by the Poles or the
Soviets, extended the sanctions on oil and gas equipment to
subsidiaries of U.S. firms and to licensees of U.S. technol-
ogy. Although the President would have preferred not to impose
unilateral sanctions, his overriding priority was to demon-
strate U.S. resolve in the face of the continued brutality and
suppression of human rights in Poland.
The extension of the oil and gas sanctions provoked severe
protests from our allies. At an informal meeting of NATO
Foreign Ministers at La Sapiniere in Quebec, Canada, in the
Fall of 1982 an intensified series of discussions on East--West
economic relations was initiated. By November, a broad con-
sensus within this group had emerged on the nature of the
economic relationship with the East. To assist Western
governments in defining the specific implications of that
consensus, and as a further basis for cooperation in this area,
the U.S. and its partners agreed to undertake a work program
consisting of a series of studies of this subject, coupled with
renewed impetus to various negotiations already underway. The
tangible results of that program are now becoming available.
To underscore his belief in the effectiveness of a collective
approach and show his confidence that a further convergence of
views would occur as a result of the studies and discussions
that were starting, the President in November lifted the oil
and gas sanctions.
3. Outcomes and Accomplishments of the 1982-83 work program
The details of the intensified program of analyses and
discussions of East-West economics was agreed by all concerned
governments in December, 1982, and was conducted in the
following institutions:
- NATO: Overall security implications of East-West
economic relations
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- CoCom: Improved surveillance and control over
Western exports with strategic or military impli-
cations
- OECD: East-West Financial relations and credit
terms; problems stemming from Eastern nations' cen-
tralized control of trade
OECD/IEA: Vulnerabilities from undue energy
dependence; encouragement of alternative energy
sources
3. Work_ Program Results: Overall Security Implications of
East-West Economic Relations
In NATO, the-Economic Committee undertook an extensive
study of the security-implications of East-West economic
relations. The Committee's work was used by the NATO-country
Foreign Ministers as the basis for their discussion of the
topic during their meeting. June 9-10.
The U.S. and its partners recognize that their trade and
financial relationships with the Soviet Union must be con-
sistent with our shared security interests. These interests
include the transfer of strategic technology, dependency
relationships, and other dealings that contribute to the
military capabilities of the Soviet Union. While mutually
beneficial trade based on commercially sound terms contributes
to constructive relations, we must remain vigilant to avoid
further use by the USSR of some trade relations to enhance its
military strength. We realize that, in our economic relations
with the Soviets, we must avoid undue dependence or preferen-
tial treatment. (June 1983 NATO Communique; Comparison with
earlier communiques at Tab 3)
5. Work Program Results:. Coordinating controls over the
Export of Strategic Technology
CoCom, the Coordinating Committee for Multilateral Export
Controls, coordinates the Western effort to prevent the trans-
fer of strategic technology to the East. While CoCom has been
reasonably effective overall, we recognize that the Warsaw Pact
has obtained valuable equipment and technology by circumventing
controls in various ways.
To strengthen the multilateral CoCom system and make it as
effective as possible, the U.S. and its partners have recently
takep a number of significant actions:
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- In January, 1982, at President Reagan's initiative,
we held a CoCom High Level Meeting -- the first such
meeting in many years. Since then, the organization
has been carrying out the recommendations of that
meeting to strengthen the effectiveness of the
organization and the national control systems.
- In April, 1983, a second High Level Meeting was
held, at which progress toward the conclusions reached
at the earlier meeting was assessed.. Special emphasis
was also placed on improvements in the coordination
between member governments in strengthening national
licensing and enforcement methods. This particu-
larly important since CoCom itself has-noindependent
control system and must depend on the national en-
forcement efforts of the fifteen-member-states.
At both meetings, member governments acknowledged the need
to adapt CoCom controls to keep pace with technological
developments. Accordingly, CoCom has. been meeting on a con-
tinuous basis to upgrade and strengthen the embargo lists.
Member governments have also agreed to study whether their
security interests require controls on certain categories of
high technology that are not now controlled.
Details of both High Level Meetings and of ongoing CoCom
activities are confidential. However, the U.S.
pleased with the outcome of the most recent meetiis trme
ngeandethey
progress to date. , The decisions taken at the meeting as well
as subsequent actions confirm that the allies are prepared to
work with us toward assuring that high technology trade with
the East does not undermine Western security.
6. Work Program Results: Energy Dependence
The U.S. and its partners have agreed that they should
avoid undue dependence on anyone.source-for- energy.suppliee.
Such dependence on one source could potentially enable it to
exercise monopoly power and exert political pressures. Conse-
quently, the U.S. and its partners have agreed-to move ahead
expeditiously with the development of alternative Norwegian and
North American energy resources and strengthen the ability of
the West to manage any disruption of energy supply.
In undertaking the recent study of energy requirements and
security, the U.S. and its partners examined the present and
projected energy supply and demand situations, assessed the
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energy vulnerability of individual nations by each type of
fuel, and identified those policies that could enhance energy
security. One of the key findings of this analysis was that,
although an interruption in the supply of oil remains the major
risk, rapidly growing imports of natural gas from non-OECD
sources pose a significant challenge -- one that is most
acutely felt in Europe.
The study of energy requirements shows that there will.
probably be:-a_-gap between contracted supply and anticipated
demand for gas-in the 1990s. If this gap is filled by the
Soviet Union, already a large and low-cost supplier, dependence
on this source--would reach potentially very serious levels. In
this event, Europe would not be able to cope with an extended
interruption of natural gas without widespread and disruptive
cuts in supplies to consumers.
Recognizing the risks associated with high levels of
dependence on a single supplier, the U.S. and its partners com-
mitted themselves to avoid undue dependence and to emphasize
the development of secure alternatives indigenous to the OECD
area. In particular,.-the U.S. and its partners committed
themselves to: -
- Encourage their companies to begin negotiations as
soon as possible on deliveries from the Norwegian
Troll field or from North American gas resources. The
goal is to make supplies available at prices compe-
titive with other fuels-in the mid-1990s.
- Take those actions necessary to strengthen their
ability to deal with a supply interruption. Such
actions vary depending on a nation's situation, but
include increased gas-storage facilities, contingency
programs to restrain demand, improved fuel-switching
capabilities, a flexible grid structure, more flexible
supply contracts, and greater surge capability.
Review on an annual basis their progress.in
implementing these measures.- The U.S. and.-its
partners will also assess periodically whether gas
supplies from any one source are large enough to cause
new concerns over vulnerability.
The agreements that have been reached enhance the energy
security of the U.S. and its partners. We now have for the
first time a coherent framework for examining energy security
issues on a continuing basis. We are pleased with the progress
that we have made and we believe that we have come a long way
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since the 1981 Ottawa Summit when President Reagan first sug-
gested the need to examine energy security issues. (Extracts
from IEA conclusions at Tab 5)
7. Work Program Results: East-West Trade and Financial
Relations
In the OECD, the U.S. and its partners recently completed
the first phase of a thorough economic analysis of trade and
financial relations with the Soviet Union and its East European
allies. The analysis concluded that East-West trade had not
developed as rapidly as once expected, and that in relative
terms it is of marginal importance to the-West. Western gains
from this trade have been disappointing. Eastern nations,
after financing more than half of their increased level of
imports in the late 1970s by borrowing, have in some cases been
unable to meet their debt obligations despite a sharp cut in
their imports.
The main reason for the above trends seems to lie in the
nature of the economic system in the East, which makes it
difficult for these countries to make effective use of im-
ported capital equipment and technology, and to produce goods
which are competitive on Western markets. The U.S. and its
partners concluded that in East-West economic relations,
governments should exercise financial prudence without granting
preferential treatment. In general, these relations should be
guided by the indications of the market.
In the area of credits for export financing, the U.S and
its partners agreed that it was not sensible to give the
Soviets the same concessionary interest rates that are, given to
developing countries. Since July, 1982, the minimum interest
rate applicable to direct government provided credit to the
Soviets and other rich countries is 12.4%, nearly two per-
centage points above the current U.S. prime rate. The U.S. and
its partners are continuing work to extend and strengthen this
export credit arrangement.
Finally, the U.S. and its partners.are workingto,improve
our statistics on trade flows and foreign indebtedness, so that
the data with which we work with will be more current and will
be based on common definitions and understandings. (Relevant
sections of OECD Ministerial Declarations included at Tab 4)
8. Implementation of the Findings
The commitments made in CoCom and in the OECD's export
credit consensus arrangement are recognized by all as governing
specific actions of participating countries. However,-none
of the organizations within which these analyses were performed
is a supra-national body whose recommendations are legally
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binding on member states. Indeed, such a rigid arrangement
would be antithetical to the spirit of our alliances and
friendships with other democratic countries. Rather, in
performing these studies and carrying out the results of nego-
tiations, members have concurred in the validity, relevance,
and importance of the findings that were reached and will take
the conclusions of the analyses strongly into account when
formulating their national policies in these areas. In
addition, IEA members have specifically-directed that regular
reviews of- country- energy -policies give special- attention- to
gas dependence-and alternative-issues in light of the
principles- adopted in the policy conclusions.
9. Ongoing-Efforts-
- Work, with. our allies and partners in-analyzing our economic
relations-with the East is an ongoing process in which we are
seeking to heighten awareness of the security and economic
policy dimensions of East-West economic relations. Beyond the
development of a specific set of conclusions, we wanted to
start--a-process that would provide informed analyses for the
use of policy-makers. Happily, this expectation has been borne
out, and work will be continuing in the organizations involved
in the initial series of analyses:
- CoCom will be analyzing whether members' security
interests require controls on additional high tech-
nology items and reviewing means by which it can -
strengthen national licensing and enforcement
activities. -
NATO will be performing additional anayses of the
security-implications of-East-West economic relations
from which its members can draw-in-formulating na-
tional policies. As stated in its recent commu-
nique, the Allies - will remain vigilant to avoid
further use by the USSR of some trade relations to
enhance its military strength.
- OECD will be examining the special problems-that
occur in dealing with the state trading-countries of
the East, and will also put into place an ongoing
review process for the careful examination of other
probems in East-West economic relations. OECD will
also continue its work-on monitoring trade and in-
debtedness data.
OECD and IEA will also give special attention to -
energy dependence in their country-by-country re-
views, and they will also continue to promote in-
terest in Norwegian and North American energy sources.
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We believe that this effort has been helpful in enhancing
Western security, and that the results of the work program
justify the President's confidence in lifting the sanctions and
pursuing a collective approach. In this regard, at Williams-
burg, the Summit leaders noted with approval the progress made
in these discussions and urged that work go forward in the
appropriate locations.
Drafted:E:EHurwitz
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Appendix
Tab 1 Chronology of Recent Events in the Area of
East-West Economics
Tab 2 - Economic Summit Statements on East-West
Economics
Tab 3 - NATO Communique Statements on East-West
Economics
Tab 4 - Relevant Sections of OECD Ministerial Declarations
Tab 5 - lEA Statement
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~nronoiogy of Recent Events in the Area
of East-West Economic Relations
January -- Ministerial level discussions with NATO allies
on appropriate economic responses to Soviet invasion
of Afghanistan
July =?- Ottawa Summit Meeting; First mention of East-West
economic relations in a Summit Communique
October -- Rashish mission undertaken to reemphasize
President Reagan's concern over European assist*nr_e
construction of Siberian natural gas pipeline
December Declaration of Martial Law in Poland
Janw.iary -- U.S. and allies impose limited economic
sanctions on Poles; U.S. unilaterally restricts
shipments of oil and gas extraction and transmission
equipment
April -- Buckley mission conducted to begin discusions
of interest rates and credit terms, as well as to
underscore U.S. concerns on pipeline
June -- Versailles Summit meeting; communique statement
on East-West economic relations acompanied by discord
over interpretation
June -- U.S. extends sanctions on energy equipment'to
U.S. subsidaries and licensees
September -- Meeting at La Sapiniere, Quebec, to develop
consensus approach to East-West economic relations
November -- Key Western nations reach broad consensus
on East-West economic relations; agreement to start or
accelerate analyses and discussions on aspects of this
subject; President lifts pipeline sanctions
December -- Agreement among all NATO and OECD countries on
elements of work program
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April-June -- Major elements of East-West economic work
program completed: CoCom High-level meeting, IEA,
OECD, and NATO ministerial endorsement of communique
statements; decisions made to continue work
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Economic Summit Statements on East-West
Economic Relations
Rambouillet, 1975
10. We look to an orderly and fruitful increase in our
economic relations with socialist countries as an important
element in progrea., in detente, and in world economic growth..
Puerto Rico, 1976
We discussed East/West economic relations. We welcomed in
this context the steady growth of East/West trade and expressed
the hope that economic relations between East and West would
develop their full potential on a sound financial and reci-
procal commercial basis. We agreed that this process warrants
our careful examination as well as efforts on our part to
ensure that these economic ties enhance overall East/West
relationships.
Ottawa, 1981
36. We also reviewed the significance of East-West
economic relations for our political and security interests.
We recognized that there is a complex balance of political and
economic interests and risks in these relations. We concluded
that consultations and, where appropriate, coordination are
necessary to ensure that, in the field of East-West relations,
our economic policies continue to be compatible with our
political and security objectives.
Versailles, 1982
We agree to pursue a prudent and diversified economic
approach to the U.S.S.R. and Eastern Europe, consistent with
our political and security interests. This includes actions in
three key areas. First, following international discussions in
January, our representatives will work together to improve the
international system for controlling exports of strategic goods
to these countries and national arrangements for the enforce-
ment of security controls. Second, we will exchange informa-
tion in the OECD on all aspects of our economic, commercial and
financial relations with the Soviet Union and Eastern Europe.
Third, taking into account existing economic and financial con-
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siderations, we have agreed to handle cautiously financial
relations with the U.S.S.R. and other Eastern European coun-
tries, in such a way as to ensure that they are conducted on a
sound economic basis, including also the need for commercial
prudence.in limiting export credits. The development of
economic and financial relations will be subject to periodic
ex-post review.
Williamsburg, 1983
(9) East-West economic relations should be compatible with
our security interests. We take note with approval of the work
of the multilateral organizations which have in recent months
analyzed and drawn conclusions regarding the key aspects of
East-West economic relations. We encourage continuing work by
these organizations, as appropriate.
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NATO Communique Statements on East-West
Economic Relations
January, 1982
14. In the current situation in Poland, economic relations
with Poland and the Soviet Union are bound to be affected.
Soviet actions towards Poland make it necessary for the Allies
to examine the course of future economic and commercial rela-
tions with the Soviet Union. Recognizing that each of the
Allies will act in accordance with its own situation and laws,
they will examine measures which could involve arrangements
regarding imports from the Soviet Union, maritime agreements,
air services agreements, the size of Soviet commercial repre-
sentation and the conditions surrounding export credits(*).
16. In addition to agreeing to consult on steps to be
taken in the near future, the Allies will also reflect on
longer-term East-West economic relations, particularly energy,
agricultural commodities and other goods, and the export of
technology, in light of the changed situation and of the need
to protect their competitive position in the field of military
and technological capabilities (*).
May, 1982
12. Economic exchanges have an important role in the
development of a stable East-West relationship. The Allies
reaffirm their intention which they expressed in their
declaration of 11th January 1982 to review East-West economic
relations, bearing in mind the need for such relations'to be
mutually advantageous and to tahce full account of security
considerations, particularly in the technological, economic and
financial areas, including export credits. In particular, they
acknowledged the dangers involved in transfer of militarily
relevant technology to the Warsaw Pact countries.
June, 1982 ("Bonn Declaration")
F. Our purpose is to ensure economic and social stability
for our countries, which will strengthen our joint capacity to
safeguard our security. Sensitive to the effects of each
country's policies on others, we attach the greatest importance
to the curbing of inflation and a return to sustained growth
* The Greek delegation has reserved its position on these
paragraphs
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and to high levels of employment. While noting the important
part which our economic relations with the Warsaw Pact coun-
tries play in the development of a stable East-West relation-
ship, we will approach those relations in a prudent and
diversified manner consistent with our political and security
interests. Economic relations should be conducted on the basis
of a balanced advantage for both sides. We undertake to manage
financial relations with the Warsaw Pact countries on a sound
economic basis, including commercial prudence also in the
granting of export credits. We agree to exchange information
in the appropriate fora on all aspects of our economic, com-
mercial and financial relations with Warsaw Pact. countries.
December 1982
15. The Allies recognize that mutually advantageous trade
with the East on commercially sound terms contributes to con-
structive East-West relations. At the same time they agree
that bilateral economic and trade relations with the Soviet
Union and Eastern Europe must also be consistent with their
broad security concerns which include the avoidance of con-
tributing to Soviet military strength. Studies are underway or
will soon be undertaken on several aspects of East-West eco-
nomic relations and Ministers will consider these issues again,
on the basis of these studies, at their next meeting (1).
June, 1983
15. The Ministers note that since their last meeting
several aspects of East-West economic relations have.been
studied including the security implications of these 're-
lations. Trade conducted on th(: basis of commercially sound
terms and mutual advantage, that avoids preferential treat-
ment of the Soviet Union, contributes to constructive East-West
relations. At the same time, bilateral economic relations with
the Soviet Union and the countries of Eastern Europe must re-
main consistent with broad Allied security concerns. These
include avoiding dependence on the Soviet Union, or contribu-
ting to Soviet military capabilities. Thus, development of
Western energy resources should be encouraged. In order to
avoid further use by the Soviet Union of some forms of trade to
enhance its military strength, the Allies will remain vigilant
in their continuing review of the security aspects of East-West
econmic relations. This work will assist Allied governments in
the conduct of their policies in this field. (1)
(1) Greece recalled its position on various aspects of this.
paragraph.
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Tab 4
Relevant Sections of OECD Ministerial Declarations
May, 1982
44. Ministers recognized the value of different aspects of
the work of the Organization on East-West economic relations,
and agreed that their interrelations should be considered
further within the Organization.
Maw, 1983
-~ East-West Economic Relations
22. Following a decision taken by Ministers last year, the
Organization has carried out a thorough economic analysis of
the evolution of trade and financial relations with the USSR
and other Eastern European countries. Minister& noted that
these relations have, with some exceptions, evolved in a less-
dynamic way than those with more market-oriented economies and
not met earlier expectations.
23. This purely economic analysis demonstrates that
East-West trade and credit flows should be-guided by the
indications of the market. In the light of these indications,
Governments should exercise financial prudence without grant-
ing preferential treatment. Ministers recognized, moreover,
that practices connected with the state-trading system of
centrally planned economies can create problems which need to
be kept under close examination within the Organization. More
generally,they agreed that, in the light of changing circum-
stances, the Organization should continue to review East-West
economic relations.
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Tab 5
IEA Statement on Gas Security
9. Ministers agreed that gas has an important role to play
in reducing dependence on imported oil. They also agreed, how-
ever, on the importance of avoiding the development of situ-
ations in which imports of gas could weaken rather than
strengthen the energy supply security and thus the overall
economic stability of Member countries. They noted the poten-
tial risks associated with high levels of dependence on single
supplier countries. Ministers stressed the importance of ex-
peditious development of indigenous OECD energy resources.
They noted that existing contracts are currently insufficient
to cover expected gas demand by the mid-1990s, and agreed that
in filling this gap steps should be taken to ensure that no one
producer is in a position to exercise monopoly power over OECD
and IEA countries.. TO obtain the advantages of increased use
of gas on an acceptably secure basis, they agreed.-that:
-- their countries would seek to avoid undue dependence on
any one source of-gas imports and to obtain future gas
supplies from secure sources, with emphasis-on indigenous
OECD sources. Additional supplies from other sources would
be obtained from as diverse sources as possible, taking
into account supply structures, the share of gas in energy
balances, and the geographical situation of individual
countries. In assessing the full costs of gas supply
sources, gas companies and, as appropriate, governments
will consider security factors;-
- their Governments would either encourage gas companies
and other undertakings concerned to take or take themselves
.the necessary and appropriate cost-effective measures
suited to each country's situation to strengthen their
ability to deal with supply disruptions; these measures
could include increased gas storage facilities, contingency
demand restraint programs, improved fuel-switching capabil-
ities accompanied by adequate stocks of oil or other alter-
native fuels, a more flexible grid structure, greater
flexibility of contracts, more surge capacity, measures to
accelerate intra-OECD trade on short notice through standby
contracts for supplies in a disruption, and interruptible
contracts with consumers;
- action should be taken to develop at economic cost indi-
genous gas resources, particularly in North America and the
North Sea, which show promise of alleviating overall or
particular pressures on energy imports;
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- concerned member governments noting the potential for
further development of North American gas resources and
noting that part of the Norwegian Troll field may be de-
clared commercial by 1984, would encourage their companies
to begin negotiations on deliveries from these sources as
soon as possible, with a view to making supplies available
at prices competitive with other fuels in the mid-1990s;
- trade-barriers and other-barriers which could=delay-
development of indigenous gas resources should be avoided
or redueed;
a. their governments would encourage the companies concerned
to undertake feasibility studies, if appropriate in cooper-
ation with member governments, to determinethe economic,
engineering, technical and-financial-factors, relevant to
possible imports from a .variety of non-OECD sources;
- governments within one region where there is scope for
effective cooperation should invite gas companies operating
in their jurisdictions to address-and--negotiate on-a com-
mercial basis cooperative-arrangements to meet-a disruption
of supplies to any one country or to the region as a whole;
- special attention should be given in the annual country
review process in various international organizations to
the future pattern of gas supplies, to the progress on the
development and implementation of security measures, and to
whether gas imports into the OECD from any single source
constitute such a proportion of total supplies as to give
rise to concern about the timely development of indigenous
resources and the vulnerability of supplies, either-for an
individual Member country or collectively;
- in considering the degree of vulnerability, relevant
factors include the share of imports-in total gas
consumption and in total primary energy requirements, the
reliability of particular sources,--"the -flexibility, of other:
supplies, sectoral distribution, stocks and-fuel'-switching
possibilities;
- an in-depth exchange of views about this question would
take place within the normal review process whenever con-
sidered necessary. To allow a full assessment of its
energy situation, the country concerned shall inform the
other member states if it plans major changes in its energy
policy or gas supply pattern which are significant in the
context of development of indigenous OECD resources and
vulnerability of gas supplies;
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Ministers expressed the view that special attention should
be given in relevant international organizations to the gas im-
port situation of individual countries and regions. IEA
Ministers instructed the Governing Board to keep this issue
under continuing reivew.
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