HEADS OF GOVERNMENT M4EETING
JAMAICA DECEMBER 28-29
STATEMENT BY THE PRIME MINISTER OF AUSTRALIA
THE RT. HON. MALCOLM FRASER, M. P.
This meeting, bringing together delegates from the
continents of North and South America, Europe, Africa and
Australia was convened at the initiative of Mr Michael Manley,
' Prime minister of Jamaica.
As well as Mr Manley and myself, it was attended by the
Chancellor of the Federal Republic of Germany, Helmut Schmidt,
President Perez of Venezuela, President Obasanjo of Nigeria,
' and Prime Ministers Pierre Trudeau of Canada and
Odvar Nordli of Norway.
The Conference arose from a commitment to focussing on
North-South problems and exploring how international
cooperation to resolve them might be furthered.
It set aside the formalities of structured agenda, and
prepared speeches. The emphasis was on informality and
frankness which generated a friendly and forthright atmosphere
for wide-ranging discussion on the world economic environment.
The initial session was devoted to an exmination of the
underlying causes of the malaise preventing the improvement
of world economic conditions and more productive economic
relations between developing and developed countries.
The discussions revealed several important and useful
areas of agreement on the nature of world economic problems
and the objectives that had to be reached in relation to them.
All participants agreed on the central importance of overcoming
inflation and concurred that a successful attack on this
fundamental enemy would stimulate economic growth. ./ 2
There was also a significant degree of agreement on
objectives, an agreement which left behind the traditional
differences between developed and developing countries.
The Conference agreed that there was a need to provide
more open markets and fair and equitable opportunities
for trade. There was also a widespread recognition of
the problems of developing economies, particularly those
dependent for income on one or two commodities and
receiving inadequate export income.
The discussion produced agreement on the need to have it
generally accepted that effective remedial measures required
a step by step approach which would bring about the
interdependent market growth in developed and developing
countries.
A significant outcome of the Conference was the general
agreement on establishing a Common Fund to finance international
commodity stabilisation, and the emergence of a broad
agreement on a Fund's possible structure and financing.
It was also recognised that the Fund's effectiveness
will be very significantly affected by the international
economic environment in which it is introduced. The benefit the
Fund can bring could well depend on national economic
policies being directed towards the expansion of trade
and markets, which was essential to world economic growth.
Ultimately the key element in achieving this objective was
a sustained and successful attack on world inflation.