29 DECEMBER 1978 -7E/ 53
PRIME MINISTER'S COMM1ENTS AT JOINT PRESS CONFERENCE BY
HEADS OF GOVERNMENT FOLLOWING MEETING IN RUNAWAY BAY, JAM4AICA
believe it has been a constructive meeting with Heads of
State, and Heads of Government from a diverse group of countries.
Out of the discussion of two days has come, I think, a remarkable
degree of understanding, and at the same time a remarkable
degree of recognised common interests and a significant area of
agreement.
We have discussed extensively, as you have been told, the
North-South problems, but we also had an extensive discussion of
problems within the developed world, within the major industrial
world. Those discussions centred around the problem, the evil
of inflation and the damage that it does to developed and
developing alike, as Prime Minister Manley indicated in his
opening remarks on behalf of all of us,-remarks which I share
fully and support fully, not just on that subject, but on the
totality of what the Prime minister indicated as Chairman.
Inflation causes many social inequalities, it is devicive
in a country, between countries, whether they are in the developed
world or in the developing world. It leads to a lack of
confidence of consumers, a lack of confidence in investment, and
it leads to a serious and tragic loss of jobs an increase in
unemployment. I think there was agreement amongst us in the inflationary
situation in which we find ourselves, about the inappropriateness
of Keynesian policies he wrote for a different age and
different circumstances and most regretted that he still has
some advocates in the present environment.
But inflation, perhaps above all other things, leads to enormous
and growing pressures for protection. It means quite clearly
that developed countries can provide less assistance and less
help, less access to their own markets for the goods of the
developing world. In the inflationary circumstance, there is
a slower growth of trade, the general market growth is much
less than it needs to be. The problems of employiment in almost
all countries could be overcome and that the very serious
problems of poverty and the lack of adequate income from
resources in the developing world could be tackled with sufficient
vigour. I think to find again, a diverse group of countries,
such as we are, having a common view about this particular
problem is very useful and constructive. We expect certain views
out of OECD, or out of GATT, but to have a shared interest and
view on this subject from this meeting, I think, should reinforce
all of us against the common enemy.
I was pleased to see the advance that has been made in the
Common Fund discussions and that the recognition that a Fund
needs to be established. I am sure we will be bending our own
views and efforts to make the next negotiating round a success
and to resolve what difficulties remain. Its objective as
we know, is stability, the advantage tCo producers and consumers,
and second window operations I also regard as important in relation
to the Common Fund. / 2
Othere areas of assistance to the developing world were also
discussed at length: the Stabex arrangements operated largely
by Europe and the Lome Convention for many developing countries,
but not for all; the compensatory finance arrangements of the
International Monetary Fund both of which are directed towards
in a sense, overcoming a particular problem of lack of exchange
on the part of developing countries, and both directing themselves
to a solution to that particular problem how one or other
or both might be further or better developed.
The discussions overall with the Prime Minister and colleagues
I found very useful and constructive. As I indicated at the
outset I think there was a remarkable area of agreement between
us as the discussions unfolded. Quite certainly, from my part
the perception and understandings of many problems have been
greatly widened. I think this again is the value of an
unstructured meeting, of people coming together for a free and
plain exchange of views. Tolerance wasn't needed, but tolerance
was, at the same time, was shown and exhibited in the room, and
understanding was shown. I think that augurs well.
Again, Prime Minister Manley, I would like to thank you for
hosting the meeting, for chairing it, and for the very warm
hospitality we have received over the last two or three days.
Thank you very much indeed.
ENDS