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COM (83) 238 
 
 
 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
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file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
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COMMISSION 
OF THE 
EUROPEAN  COMMUNITIES 
General  Secretariat COM(83)  238 final 
Brussels,  10 May  1983 
FOR OFFICIAL USE  ONLY 
PREPARATIONS  FOR UNCTAD  VI - PROSPECTS AND ISSUES 
INVOLVED ONE  MONTH FROM THE OPENING  OF THE CONFERENCE 
(Belgrade,  6 June to 1 July) 
- FINAL GUIDELINES  -
(Communication from  the Commission to the  Council) 
COM(83)  238 final 

Contents 
page 
I. Introduction (§ 1 to 3) 1 
II. Context and environment of the Conference (§ 4 to 16) 3 
(a) Developments since December 1982 3 
(b) International  deadlines between now and June 1983 4 
(c) Attitude of the main participants in the Conference 5 
III. Issues at stake in the Conference: approach and role of 
the Community and its Member States (§ 17 to 28) 8 
(a) Issues at stake and risks involved 8 
(b) Approach of the Community and its Member States 10 
(c) Community's role;  work  still to be done 15 
IV. Conclusion 16 
Annexes 
I. Elements for a position of the Community and its Member States 
(non-exhaustive List): 
- Memo 1: Commodities  (item  9 of agenda) 
- Memo 2: Trade  (item  10 of agenda) 
- Memo 3: Money and finance  (item  11 of agenda) 
II. Agenda of the Conference 
III. Message for dialogue and  consensus  (Buenos Aires) 

- 1 -
I. Introduction 
1. At the beginning of December the Commission presented the Member 
States  with  a communication 1 settmq out the mitial auidelmes in 
preparation for UNCTAD VI (Belgrade - 6 June to 1 July). 
This  preliminary communication, which was drafted  within  a few weeks 
of the end of the  GATT  Ministerial Conference,  without  any precise 
indications>as to the guidelines which the UNCTAD Secretariat, the 
Group  of 77 and our Group B partners wished to imprint upon the 
Belgrade  Conference, deliberately confined itself to: 
(a) stressing the importance whibh the Community was duty bound to 
attach to this meeting; 
(b) . highlighting the main  issues  at stake at the meeting (maintenance 
of an atmosphere of cooperation between the North and the South; 
search  for a concerted way out of the  crisis;  taking into account 
the phenomenon of marginalization of a large number of developing 
countries,  particularly the poorest, and looking for ways of 
arresting this phenomenon; taking into account the immediate 
consequences  of the crisis and looking for measures designed to 
alleviate its effects; focusing  UNCTAD's  activities on a practical 
short-  and medium-term programme of work, etc); 
(c) setting out the broad lines of the approach which the Commission 
was suggesting should be adopted, in preparation for the Conference, 
for dealing  with  the three major subjects of the meeting 'A 
(commodities, international trade, financial and monetary aspects) 
from the angle of: 
- both analysing the overall situation and the problems existing 
in each of these specific fields; 
il 
C0M(82)803  final of 3 December 1982. 
2 See agenda in Annex II. 

- 2 -
- and Looking for those aspects which might be used by the 
Community and its Member States in working out a constructive 
position. 
2. The December communication - together  with  the publication at the 
beginning of January of the documents drawn up by the UNCTAD Secretariat 
on the same subjects - made it possible to commence, relatively early 
and in detail, the preparatory work  within  the Community and in 
Group  B. 
Thus  to date, more than 10 meetings have been held by the Working Party 
on UNCTAD,  in addition to the meetings organized  within  the Article 113 
Committee's Working Party on Commodities and  within  the Monetary 
Committee  (from  which an opinion dated 13 April 1983 was communicated 
to the ECOFIN Council of 18 April. 
The work has concentrated on: 
- assessing the analysis made by the UNCTAD Secretariat and its 
specific  proposals for action; 
- drawing up a preliminary  draft  of  what  could,  when the  time  comes, 
be proposed by the Community and its Member States in Belgrade as the 
outline of a Community position on all the principal items under 
discussion. 
3. This work enabled the Community to: 
- provide our Group B and Group of 77 partners - prior to Buenos Aires -
with  a preliminary oral outline of the Community .approach on all 
three principal items; 
- give public expression to its preliminary guidelines on commodities 
and monetary and financial matters at the meetings of the relevant 
two UNCTAD committees. 

- 3 -
II. Context and environment of the Conference 
(a) Developments since December 1982 
4. Since the first Commission communication to the Council five months 
ago there have been a number of economie, financial and monetary develop­
ments which should be taken into account  with  regard to the final phase 
of the preparatory work: 
- there is an increased awareness of the danger to the international 
financial and monetary system posed by exchange  rate  instability and 
the indebtedness situation but also many debt rescheduling operations 
have.been carried out which have been a  success  thanks to close . 
cooperation'between international financial institutions, commercial 
banks and borrowers; 
- there are  signs,  although as yet relatively feint,  that  economie 
recovery may be on the way in a number of industrialized countries 
(but  also,  in contrast to this, high real rates of interest are 
persisting  and there are doubts as to how widespread any recovery 
will  be and whether it  will  last); 
- there has been a big drop in the price of crude oil although it is 
uncertain  that  this fall  will  last or  that  prices  will  follow a more 
orderly trend in the future; 
- a compromise was reached in February 1983  within  the IMF's  Interim 
Committee on raising quotas and increasing resources under the 
General Agreements to Borrow. 
5. At the same  time  the framework and context of the  discussions  to be 
held in Belgrade have been defined more clearly - at the political level -
since: 
- the preparatory work conducted both  within  Community forums and  within 
the OECD  has given a clearer idea of the approach taken by the various 
members of the industrialized countries group (Member States, United 
States, Canada, Japan, Nordic countries, etc); 
- a fortnight  after  the Non-Aligned Summit in New Delhi 1 the Ministerial 
Conference  of the Group of 77 in Buenos Aires has now provided a 
clearer indication of the  attitude  of our interlocutors, both at the 
general level and from the point of view of each of the specific subjects 
to be dealt  with  (see below § 12 to 16); 
1 A summit, which, unlike previous meetings, devoted at least as much 
attention to economie matters as to purely political matters, if not 
more. 

- 4 -
(b) International  meetings taking place between now and June 1983 
6. The 12th special  session  of the UNCTAD Trade arid Development  Board, 
due to be held in Geneva from 25 to 29  April,  will  mark the last stage 
of the preparations by UNCTAD itself. 
The Argentine Foreign Minister and the Chairman of the meeting of the 
Group  of 77 held in Buenos Aires  will  attend to give an account of the 
work done and position adopted by their group. 
This  will  be a good opportunity for Group B and the Community to give 
their initial, preliminary reaction to these statements (see § 12 to 15 
below) and for all the participants to agree on the spirit and the manner 
in which the principal topics of  discussion  might be tackled, and linked 
to one another, in the Belgrade discussions/negotiations proper. It 
will  also make it possible to obtain - though informal  discussion  - an 
idea  of the state of mind of the principal participants in the 
Conference. 
7. Prior to Belgrade, the North-South relation  will  also be on the 
agenda  of a number of other ministerial meetings. 
Thus  at the end of April the  IMF/IBRD  Development Committee  will  be 
discussing  not only financial and monetary problems but also - and this 
is something new - trade and the relationships between trade and finance. 
At the beginning of May, at the  OECD  ministerial meeting, all the Western 
countries  will  be dealing  with  the subject of interdependence. It  will 
be noted  that  the problems involved here have since become almost as 
important to the US economy as they already  were  and still are to 
Europe. 

- 5 -
8. Finally, this  discussion  within  the  OECD  will  also make an important 
contribution to the Williamsburg Summit at the end of May. North-South 
relations as  such  are not on the agenda of  that  meeting. Owing to the 
interdependence between problems and regions they could not, however, 
be ignored in the  discussions  on the world economic and financial 
situation nor, even less so, in the debates on the possibilities, but 
also  the uncertainties, of a concerted policy to get the international 
economy  moving again. 
As the Summ.it is to be held only for a few days prior to the opening of 
UNCTAD  VI it is important for an explicit reference to be made to 
North-South relations and, in addition to  that,  to the Belgrade Conference 
itself and the tangible progress which could be sought there on matters 
such  as aid, indebtedness, trade and commodities. 
(c) Attitude and limits of the main participants in the Conference  
Industrialized countries 
9. , The Community and the United States  will  play a key role  within 
Group  B. 
The role and  attitude  which the Community could adopt  will  be examined 
in greater detail in § 19 to 24 of this communication. 
10. The position of the Nordic countries group should be relatively 
close  to  that  of the Community; unlike in the past, this at present 
seems  to be unlikely  with  regard to Canada. 
Japan,  whilst showing a certain amount of caution, which is only natural 
at this stage of the preliminary work, has so far exhibited a relatively 
open  attitude  which could bring it to 

- 6 -
support  the Community position on many points, provided  that  it is 
carefully prepared and expressed in a united and resolute manner. 
The state-trading industrialized countries deserve only a token mention. 
Their  involvement in the preparatory  work  has so far been minimal; the 
positions  adopted so are are barely distinguishable from the to say the 
least ambiguous positions adopted in the-past, despite the stronger and 
more specific pressure exerted by the Group of 77 in the fields of 
trade, commodities and financial and technical assistance. 
...  i i 
1. At this stage it is more difficult to form an opinion of the 
attitude  which the United States  will  adopt at the Conference itself. 
The official or unofficial indications so far are  that  a relatively 
restrictive  attitude  will  be taken. 
Nevertheless,  there  are certain signs  that  this position may to some 
extent  be relaxed. This has already happened in the case of the 
attitude  adopted by the United States delegation when the report 
already referred to on interdependence was drawn up  within  the  OECD 
High-Level  Group. 
Developing  countries 
12. The developing countries' delegations have been carefully pre­
paring UNCTAD VI since February, firstly in the subregional groups, 
then at the Non-Aligned Summit, and finally at the -

- 7 -
Buenos  Aires ministerial meeting at the beginning of April. 
The Group of 77 has defined its positions in detail on all the items 
and sub-items on the Belgrade agenda including items 12 (LLDCs) and 
13 ("basket  items" : transfer of technology, shipping, island and 
land-locked  countries, institutional matters, etc). 
On the vast majority of items these positions have been embodied in 
draft  resolutions  that  are ready to be tabled once the Conference 
opens. 
As after  Arusha, when UNCTAD V was being prepared, the Group of 77 
wants to throw the ball into Group B's court and, secondarily, Group 
D*s,  and is awaiting their reactions. 
13. Does this mean  that  the situation, the attitudes are as 
dogmatic, as fixed  after  Buenos Aires as they  were  after  Arusha? 
Fortunately for the outcome of the Conference there is nothing to 
suggest  that  this is definitely the case. 
The texts  and resolutions resulting from the ministerial meeting  will 
be examined in detail in the working papers to be transmitted to the 
Council  along  with  this communication to provide it  with  support on 
each  specific subject (see § 27 below). Nevertheless, a quick 
initial read-through leaves one  with  two complementary impressions. 
14. The care and degree of detail  with  which the documents in question 
have been thought out and drawn up, particularly the  draft  resolutions, 
undoubtedly make for considerable rigidity in so far as the conduct of 
the discussions  and negotiations is concerned. 
The general tone of most of them is, moreover, difficult for the 
industrialized countries to accept, either because of the asymmetrical 
and one-sided analysis of the problems and of the actual aim of the 
discussions  (it is claimed  that  the crisis has affected 

- 8 -
only  the developing countries;  that  external factors alone are 
responsible  for the problems and the  crisis;  that  most of the  effort 
should  be made by the industrialized countries in favour of the 
developing  countries, etc) or the excessive, global nature of the 
proposals  and demands made. 
15. The fact remains  that  - unlike in the case of Arusha - a  sub­
stantial  effort  in terms of policy presentation seems to have been 
made.to show and emphasize the Group of 77's willingness to submit to 
more balanced analyses and assessments and seek more concerted solutions 
both from the angle of the general subject of looking for a way out of 
the crisis and from  that  of the more specific problems which the 
developing  countries have to overcome in specific fields. 
This  is how in particular the "message for dialogue and  consensus", 
which serves as a solemn introduction to all the  texts  (see Annex III), 
can be interpreted. This is also how the  draft  statements which 
precede  most of the  draft  resolutions mays be read. 
16. ^ On the whole, the two types of message sent out since Buenos Aires 
are admittedly not unambivalent and it is very difficult to predict 
today which of the two  will  prevail in Belgrade. 
The fact remains  that  at the end of the Group of 77's ministerial 
meeting the road of dialogue and concerted action still seemed to be ' 
to a very large  extent  open. 
It will  be up to the participants, particularly the Community,to make 
the best use of this opportunity. 
III. Issues at stake at the Conference; the approach and role of the  
Community  and its Member States 
Ca) Issues at stake and risks involved-
17. The  issues  at stake are: 
i> 2i_§_E2ii£i£§!_Qature : getting international cooperation moving 
again,  which today is more necessary than ever; ensuring  that  the 

- 9 -
global negotiations can be lauched effectively; mitigating 
possible  sources of internation tension; 
i i ) of_an_oyera I l_economi_c_nature: making a common and concerted 
search  for multiple internal and external adjustments so  that 
the way out of the crisis and the revival of the world economy 
can be founded on a sufficiently stable and durable  basis; 
relaunching North-South economic cooperation to prevent the 
South's  difficulties from impeding  attainment  of this objective; 
iii) of a more specific nature: relating to the principal areas of 
discussion  (commodities; trade; financial and monetary aspects) 
where  it is necessary both to mitigate, in so far as possible, the 
effects which the worsening crisis over the past few years has had 
even on the developing countries' economies and to overcome the 
real obstacles of a more structural nature experienced by these 
countries in terms of development and balancing their external 
accounts;  but  where  - in so far as most of the poorest developing 
countries are concerned - the means must also be found of arresting 
the twin  process of underdevelopment and marginalization which is 
affecting them. 
The main  issues  at stake have hardly changed in relation to those 
highlighted in the December communication. 
18. Far from having diminished, the risks overhanging the outcome of 
Belgrade (dashed expectations, increased frustrations) still represent 
a potential danger of failure, despite (or, paradoxically, because of) 
the fact  that  certain possible ways out of the crisis are  tentatively 
beginning to  take  shape. 
And yet these risks are not insuperable, particularly if the industrial­
ized countries manage - at the opening of the Conference and during the 
discussions  - to make the best posisble use of  what,  in the ambivalent 
message  that  has been coming from the Group of 77 since Buenos Aires, 
may be regarded as a sign of moderation, of realism and of a call for 
concerted  action from their Southern partners. 
This  is the role which the Commission proposes  that  the Community and 
its Member States assume both  within  Group B and more generally- should 
that  prove necessary, speaking on its own behalf - at the Conference proper. 

- 10 -
(b) Approach  of the Community and its Member States 
19. Clearly, whatever fields are dealt  with  (situation of the world 
economy,  commodities, trade, currencies and finance,  LLDCs),  certain 
points must be made: 
- Although during a period of growth interdependence encouraged the 
spread  of economic prosperity, it made economies more vulnerable 
and accelerated the spread of the  recession.  The  latter  affected 
the industrialized countries very seriously but had even greater 
repercussions  for a large number of developing countries, particularly 
the poorest developing countries. 
- In addition to the internal efforts which the developing countries 
themselves must make, the developed world has a crucial role to 
play in restoring the conditions of the development. 
- Helping these countries, pending a recovery which has yet to be 
confirmed,  should not be merely a  matter  of showing solidarity; it 
should  also fit in above all  with  what  is obviously in the interests 
of the industrialized countries, as nearly one-third of the  latter's 
exports now go to developing country markets; 
- In3ependently  of the recession (although it has unquestionably been 
an additional aggravating factor), a large number of the difficulties 
highlighted by the UNCTAD Secretariat and by the Group of 77 also 
correspond  to genuine specific problems  (erratic  commodity price and 
exchange  rate  fluctuations, etc). Practical solutions therefore can 
and must be sought in these  cases  too: at the level of the means and 
resources  available; at  that  of the procedures governing the operation 
and management of existing instruments; lastly, at-  that  - at least in 
the Commission's view - of increasing the  extent  of participation by 
developing country representatives in the consultation and  decision­
making  process. 
20. With  regard to trade,  market  organization and operation, circulation] 
of money, financial and technology transfers, etc, arrangements regarding 
rules and instruments  were  set up just  after  the War and have been 
progressively  reinforced  since,  both at public and private Level. 
This  is the case - in terms of global regulation - of the role  that  has 
been played by institutions  such  as the IMF and  GATT  but also by the 
private banking system. This is the case  with  more specific rules 

- 11 -
or institutions set up in more specialized areas (e.g. Common  Fund, 
commodity  agreements; Paris Club for the rescheduling of public or 
quasi-public  debt; multilateral development financing institutions 
such  as the IBRD/IDA  with  regard to financial and technical assistance, 
etc). 
21. Despite the present profligacy (which is both one of the many 
causes  of the recession but also one of its most visible manifestations) 
and the deficiencies observed in terms of compliance  with  these rules 
and the functioning of existing institutions, it must not be forgotten 
that: 
- the rules and institutions in question have - on the whole, over a 
long  period of  time  - shown great flexibility in adapting to new 
circumstances  and have been relatively effective; 
- in the face of the imbalances and tensions recently caused by the 
recession  they have also had an, if not irreplaceable, at least 
significant  cushioning effect; 
- they are an important achievement: 
. of which serious account should be taken from the angle of improving 
apd strengthening them, since they provide a solid basis and found­
ation on which it is quite possible  that  future progress can be 
built; 
. which it would be dangerous and illusory to  want  to reject 
wholesale in favour of setting up entirely new systems designed 
from scratch, which would therefore find it difficult and  take  a 
long  time  to mature and be accepted by the whole of the inter­
national community. 

- 12 -
22. However, one must not underestimate the fact  that,  even though they have 
been gradually adapted, these various arrangements  were  conceived in a very 
different  world,  where  interdependence did not exist and the position of the 
newly independent countries was still ill-defined. 
23. From these few points emerges the approach which the Community and its 
Member States could adopt in Belgrade. It should be based on the fol lowing thn 
major guidelines: 
explicit recognition of the objective difficulties,  where  they exist, 
whether they are of a general or more specific nature, whether fhey are 
due to the recession or to causes of a more structural nature; 
emphasis  on the desirability of seeking formulas for overcoming these 
difficulties, wherever possible, on the basis of existing arrangements 
by seeking to improve them, to strengthen the means available to them 
and to supplement them by adding new aspects  that  are consistent  with 
such-  arrangements; 
a willingness to play an active  part  in drawing up specific formulas 
defined in this way and to outline the form of some of them during 
the Conference  discussions. 
24. Annex*  I gives a relatively detailed indication of the possible constituent! 
of such  an approach in terms of the specific guidelines for each of the main 
subjects  submitted for  discussion  by the Conference  (items  9, 10 and 11 of the 
agenda). A number of significant examples of this approach may be set out belo. 
in order to illustrate in more specific terms the implications of the proposed 
approach.  | 
Thus  the Community could  state  that  it is prepared: 
with  regard to commodities: 
. to examine and  discuss  the arrangements for establishing measures for 
extending Stabex initially to the  LLDCs  and  with  a view to participation 
by other importing countries; 
. to seek specific ways of improving the operation of the  IMF's  compensa­
tory financing facility in favour of this same category of countries. 

- 13 -
- with  regard to international trade: 
. to confirm its willingness to  take  an active  part  in the work of imple­
menting the  GATT  Ministerial Decision of November 1982, particularly 
insofar  as Part IV of the Treaty and the enabling clause are concerned; 
. to undertake to continue application of the GSP up until 1990, while 
adjusting and improving its arrangements (particularly  with  regard to 
the rules of origin for the  LLDCs  for countries participating for 
regional integration purposes) and while extending, in so far as possible, 
the range of processed agricultural products. 
- with  regard to indebtedness: 
. to seek improvements in the field of multilateral debt renegotiations 
organized  within  the Paris Club (extension of the rescheduling periods etc.) 
. to study measures for relieving public debt which could be taken to help 
LLDCs.  ' 
- with  regard to increasing IMF liquidity and operating procedures 
. to consider increasing the quotas again before the statutory deadline, 
should  the need arise; 
. to study the merits of reallocating the SDR and of possibly linking it 
to the developing countries' requirements. 
- with  regard to official development assistance: 
. to confirm the undertaking given concerning the 0.7%  target; 
. to examine the desirability of a special  effort  in favour of the  LLDCs 
with  a view to attaining the 0.15%  target  by 1985. 
- with  regard to strengthening the activities of the multilateral financing  
institutions 
. to  take  the necessary measures to increase IDA resources in real terms 
on the  occasion  of the seventh replenishment; 
. to propose  that  the IBRD commitments/capital ratio be doubled. 
(C) Role of the Community and its Member States: work still to be done 
25. The trend of the context and environement as outlined in Chapter II suggests 
that  the role and responsibility which the Community and its Member States  will 
have to assume in Belgrade  will  be even greater than indicated in the December 
communication. 

- 14 -
In the  discussions  and negotiations it is probable  that  the Community 
will  have to  state  its position more often than in the past. 
A cohesive Community position is therefore more necessary than ever. 
26. This also explains the importance of and particular  attention  to be giver 
to the  work  still to be done in the relevant Community forums between now and 
the end of May so  that  the Community and its Member States are able to come 
to Belgrade  with  a well-defined position on all the items which is sufficientl 
imaginitive and constructive but also adequately supported to be both credibls 
and acceptable to their Group B partners and.to the Group of 77. 
As stated in Chapter I, intensive preparatory  work  has already been cart 
out since. December. % 
There are two stages still to be dealt  with  before the opening of the 
Conference. 
27. The first is for the Council to give its opinion, at its meeting of 24 
May, on: 
- the general policy guidelines:  that  is the purpose of this communication, 
particularly of § 8 and § 19 to 24; 
- the specific guidelines for each of the particular topics of  discussion. 
To that  end, the council bodies  will  receive, at the same  time  as the 
communication, five detailed Commission staff papers dealing respectively 
with  items 9, 10, 11, 12 and 13 of the agenda (1). 
28. The second stage consists of drawing up  draft  statements which the Comnui 
spokesmen  could make - at the opening of the Conference  (item  8) and as soon 
as the various  session  committees  (items  9, 10, 11 and 13) are set up - and 
the corresponding  draft  resolutions which it might be considered appropriate 
to table. 
The Commission departments  will  present the  initial  drafts as soon as 
possible  so  that  they can be agreed upon by the Community either at the UNCTH 
Working Party meeting of 26 May and/or at the on-the-spont coordination meet' 
ings  in Belgrade. 
IV. Conelusion 
29. In conclusion it is suggested  that  the  Council: 
(1) See Annex I for specific guidelines concerning items 9, 10 and 11 of the agenda. 

- 15 -
- approve the policy guidelines for the Community approach in Belgrade, as 
set out in § 8, 23 and 24 of this communication; 
- agree to the Community delegation at the Williambsburg Summit making every 
effort  to have an explicit reference made to the importance attached by the 
Summit: 
. to North-South relations and the forthcoming Belgrade meeting; and 
. to the open-minded and constructive spirit  with  which they intend to make 
their active contribution; 
- give its opinion on the specific guidelines for the various items of the 
agenda,  which  will  result from examining the proposals contained in the 
Commission  staff papers referred to in § 27 of this communication. 

Annex  I 
Outline  of the position of the Community and its Member States for UNCTAD VI 
Outline of position (summary, non-exhaustive  list)  which would be suggested 
within  the framework of the Commission staff papers (see  §27  of the communica­
tion). 
- Commodities: memo  1 
- Trade: memo  2 
Financial  and monetary aspects: memo  3. 

Annex  I - Memo 1:  Commodities 
I General remarks 
- Recognize the specific nature of the problem of commodities and of its 
importance to the developing countries, particularly those which are both 
the poorest and most dependent on exports of a small number of products. 
- Highlight the diversity, of the situations covered by the problems (accord­
ing to country, commodity, type of difficulty). 
Complementary nature of the conceivable approaches and instruments coping 
with  the difficulties encountered. 
- The difficulties encountered by commodities and consequently the remedies 
to.be applied cannot be reduced to a simple problem of liquidity. The 
problem of mining investment in particular is only marginally a  matter  of 
shortage of liquid assets (importance of the developing countries' sectoral 
and fiscal policies notably; question of the investment climate etc.). 
- Importance  of the role of  what  has already been achieved. 
- Beware of short-term illusions (notably  "interim  agreements and measures"): 
independently of the world  recession,  commodities are undergoing diffi­
culties which are peculiar to them. Admittedly, the recession has aggra­
vated those difficulties but the  basic  problems remain. 
- Beware of hasty and premature  attempts  to extend, or even  alter,  ithe 
activities of the Common  Fund,  which have been so laboriusly negotiated 
and agreed. 
II. Receptiveness and constructive  attitude  for Belgrade  
Common  Fund 
- Undertaking by us to  ratify  within  the set time-limits. 
- Call to the Group of 77 to give a similar undertaking. 
- Meeting the financial contributions of  LLDCs  not covered by the  OPEC 
, offer. 

- 2 -
- Speeding up the work of the preparatory committees and of the Launching 
and preparation of studies/operations and projects which come under the 
second  Window. 
Commodity agreements and arrangements 
- Readiness to review the rules governing the operation of existing agree­
ments  with  a view to improving them. 
- Readiness to extend the exercise beyond short-term measures concerned 
solely  with  stabilizing excessive price .fluctuations by including an 
examination of the longer-term prospects and policies. 
- Readiness to accept the principle of a "progress review"  within  UNCTAD, 
with  the participation of the representatives of the commodity management 
bodies  but  without  accepting  that  an  attempt  should be made to draw up 
binding "general directives". 
- Readiness to participate actively in the work and/or negotiations on 
agreements and arrangements for other IPC products not covered by agree­
ments and/or arrangements. 
Processing  and marketing 
- Readiness to continue the exercise started in permanent subcommittee, the 
Committee on Commodities, as  part  of the product-by-product examination 
but without  necessarily accepting the establishment of "new frameworks 
for cooperation". 
- Readiness to provide technical assistance. 
- Readiness to participate in the examination (under  GATT)  of the impact of 
tariff  esclation on imports of processed products from the developing 
countries and undertaking in the context of negotiations to reduce customs 
duties on products where the duties have been proven to discourage pro­
cessing  in the developing countries. 

- 3 -
Compensation  shortfalls in commodity export earnings 
- Readiness to examine and  discuss  in practical terms ways of establishing 
measures to extend Stabex initially to all  LLDCs  and  with  a view to parti­
cipation by other importing countries. 
- Seeking to improve the present operation of the CFF and the conditions 
governing eligibility  access  thereto for the poorest countries which are 
dependent on raw materials (study inter alia  of  à "commodity window"). 
Reference to Chapter  11  of the Convention on the Law of the Sea (exploitation 
of seabed deposits). 

- 4 -
Annex  I - Memo 2: Trade 
I General remarks 
- Reaffirmation of our attachment to the maintenance of an open multilateral 
trading system. 
- Despite the recession the EEC has managed to maintain a high level of 
openness  in its trade; the developing countries' exports to the Community 
and other industrialized countries have continued to grow. 
- Importance of  what  has already been achieved  (role  of the GATT) and of the 
discussions  in Belgrade for identifying the priority areas for improving 
and.strengthening the international trading system. 
- Greater integration of the NICs, in terms of obligations, in the inter­
national trading system would be one of the most useful contributions to 
increasing  world trade. This process  should,  of course, be conducted in 
a gradual and concerted manner. 
- Structural adjustments have taken place and have been considerable. Under 
our mixed-economy systems provisions may be made for  such  structural 
adjustments - backed up by the public authorities - to varying degrees • 
according  to the country concerned. Under no circumstances may they be 
planned  or imposed on firms in a binding manner. 
II. Receptiveness and constructive  attitude  for Belgrade 
Maintenance of principles and undertakings 
- Undertaking to continue to apply the GSP autonomously up to 1990, while 
adapting and improving the details thereof (notably the rules of origin 
for the  LLDCs  and in the context of regional integration efforts); 
extension of cover insofar as possible to processed agricultural products. 
- Active participation in the work on implementing the  GATT  ministerial 
decision  adopted in November 1982, particularly  with  regard to Part IV 
and enabling clause. 
- Confirmation of desire not to extend trade measures taken to  limit  injury 
caused  by certain imports beyond  what  is strictly necessary to facilitate 
structural adjustments in progress. 

- 5 -
- Confirmation  that  national laws and measures taken  will  continue to 
comply  with  international undertakings (existing  GATT  codes), including 
provisions  for  special,  differential  treatment  for developing countries. 
- Readiness to continue to participate in search for a solution under the 
GATT  regarding the criteria governing safeguard measures. 
- Undertaking to maintain and extend free  access  in Lome III. 
Expansion  of developing countries' trade 
- Readiness to exchange information on measures affecting trade but 
wijthin  the  GATT  framework. 
- Support for establishment of generalized preferences system between 
developing countries, subject to certain conditions. 
- Examination of measures to make developing countries less dependent in 
terms of their energy and foodstuffs supplies and to make  such  supplies 
less  subject to disturbances in international trade. 
- Call to the Eastern-bloc countries to liberalize and increase their 
imports from the developing countries. 
Structural adjustments 
- iJhdertaking to participate actively in consultations under the auspices 
of UNIDO, not only for crisis sectors but also for sectors which  will 
be undergoing profound transformation in the longer term. 

Annex  I - Memo  5: Money and finance 
I. General remarks 
- Acknowledgement, to a large  extent,  of the points .highlighted by the 
Group  of 77,  in particular high interest rates, exchange  rate  instability, 
fall  in export earnings, stagnation of official assistance, etc.; hence 
contraction-of  scope  forMmports and development, hence also alarming in­
debtedness  of a number of countries. 
- However, it is not only external factors which are responsible for these 
imbalances (inadequate domestic policies; countries getting into debt in 
the pre-recession years in order to finance non-productive needs; etc.). 
- The developing countries undeniably need adequate additional financing 
(both  to adjust their balances of payments and to sustain development 
process).  This,  however, is only the bare minimum and is not  enough  in 
itself: hence need for domestic adjustment by developing countries them­
selves. 
- Balance to be found between public and private flows. 
- Importance  and role of  what  has been achieved (IMF, banking system, Paris 
Club,  their flexibility in adapting). 
II. Receptiveness and constructive  attitude  for Belgrade  
Monetary and financial system 
- Readiness to seize opportunity offered by Belgrade to reach  consensus  on 
conditions  under which the international monetary and financial system 
could  help towards a lasting recovery both in the developed and developing 
countries,  while  bearing in mind  that  negotiations  will  take  place and 
decisions  be adopted  within  the relevant bodies. 
- Recognition of desirability of aiming for greater exchange  rate  stability, 
while  bewaring of solutions providing for coordination formulas  that  are 
excessively  binding. 

- 2 -
- Acknowledgement of existence of need for additional liquidity; the 
extent  and procedures for creating and using it remain to be defined. 
Indebteness 
- Examination of measures to relieve  LLDCs'  public debt 
- Continuation of cooperation between public authorities and private 
institutions, notably to prevent and deal  with  debt crises affecting 
developing  countries which have borrowed from the banking system. 
- Readiness to seek improvements in field of  multilateral  debt renegotia­
tion  within  Paris Club (e.g. extension of rescheduling periods). 
PDA -
- Recognition of crucial importance of ODA, particularly for the poorest 
countries. 
- Readiness to examine the desirability of special action to assist the 
LLDCs  with  a view to attaining the 0.15%  target  in 1985. 
-Confirmation of the undertaking regarding the 0.7%  target  and the pro­
gramme of action of the Paris Conference of  LLDCs. 
- Readiness to grant a larger proportion to programme and maintenance aid. 
Private flows 
- Readiness to seek conditions for increasing private flows (e.g. direct 
investment and bonds). 
IMF 
- Confirmation of desire to make Vlllth quota review operational for end 
of 1983 and readiness to consider a further increase in quotas before 
the statutory deadline if the need arises. 
- Readiness to seek improvement in operation of the compensatory financing 
facility. 
- Readiness to study merits of new SDR allocation and possible link  with 
developing  countries' needs. 
- Readiness to continue to adapt conditionality to the nature of the 
developing  countries' problems. 

- 3 -
Multilateral  financing  institutions 
- Reaffirmation  of central role  played  by multilateral institutions  and 
desirability  of increasing  their resources. 
- Increase  in IDA VII  resources  in real terms. 
- Doubling  the IBRD's  commitments/capital  ratios 
- Substantial  raising  of the 10%  ceiling  on the  proportion  of IBRD 
loans devoted  to programmes  within  limits  still be tobe defined. 
- Readiness  to pursue  efforts  to increase  volume of  cofinancings with 
banking sector. 
- Reconfirmation  of Community's  attachment  to subject  of setting  up an 
energy agency. 

ANNEXE II 
AGENDA ITEM 
PLENARY 
7. General  debate 
8. The world economic  situation  with special  emphasis  on development  : approaches 
to the current world  economic  crisis  and perspectives  for the 1980s,  including 
issues,  policies  and measures  relevant  to the  attainment  of a new  international 
economic  order.. 
12. Progress in-  the implementation  of the  Substantial  New Programme  of Action for 
the Least  Developed  Countries 
SESSIONAL  COMMITTEE 
9. Commodity  issues.  Review  of the  situation  in the  area of commodity  trade.  The 
implementation  of the  Integrated  Programme  for Commodities  in the  area of : 
a) stabilizing  and strengthening  commodity markets; 
b) marketing, processing  and distribution  including  transportation;  and, 
c) compensatory  financing  of shortfalls  in export earnings; 
with a view to  the adoption  of policies  to promote commodity  trade and 
development;  ^ 
10. Issues  in the  area of international  trade in goods and services;  protectionism 
and structural  adjustment; examination  of the  impact of the  principles,  plicies 
and practices  in international  trade  relations  taking  into account recent 
developments  including  those in other international  fora;  policies  to .expand 
trade and'promote development  particularly  that"of  the developing countries 
11. Financial  and monetary  issues:  developments  in monerary  and financial  questions 
in relation  to trade and development,  in particular  of the  developing countries; 
policies  to promote  the expansion  of all flows of public  and private resources 
and in particular  to increase  the net  flow and improve  the conditions  of the 

ANNEXE II/2 
transfer of resources  to developing countries  »nd to facilitate  balance  of payments 
adjustements 
13. UNCTAD  activites  in the  fields of : 
a) Technology; 
b) shipping; 
c) Land-locked  and island developing  countries; 
d) Trade  relations  among  countries having  different  economic  and social 
systems  and all trade flows  resulting  therefrom; 
e) Economic  co-operation  among  developing countries; 
f) Assistance  to National  Liberation  Movements  recognized  by regional 
intergovernmental organizations; 
g) Institutional  matters 

ANNEXE ill 
Vth MINISTERIAL MEETING  OF THE  GROUP  OF 77 
Ve REUNION MINISTERIELLE  DU  GROUPE  DES  77 
V.a REUNION MINISTERIAL  DEL  GRUPO  DE  LOS  77 
BUENOS  AIRES.  REPUBUCA  ARGENTINA 
Del 28  de Mtrzo il 9  de Abtil  de 1933 Distr. 
LIMITED 
77/MM(V)/L.39 
8 April,  1983 
ENGLISH 
Original:"  SPANISH 
BUENOS AIRES MESSAGE FOR DIALOGUE AND CONSENSUS 
Proposal  from the President  of the  Conference 

The Ministers responsible for foreign  affairs  and international 
economic  relations of the  member  countries of the  Croup  of 77, 
meeting  in Buenos  Aires  .from  5 toj9'April  .1983,  to .arrive •at*  .'a'., 
common,  diagnosis of*.the- current  situation'  and the -prospects for'the 
world economy,  to define*'-their'negotiating strategy -for•the'VI United 
Nations  ..Cqnference-'.on  rTrade*^ahd'-Development  i and to" formulate  their 
position  .-through  . concrete  " proposals , on  ttie agenda'..bf.  the Belgrade 
Confer en qe , 
, partlcular'.ly  stxessing -"the  urgency  of launching, at Belgrade, 
a concerted and sustained  programme  aimed  at the reactivation 
of the. vorld  economy  and the"ac'c'elerated  development  of the 
developi-ng countries; 
reaffirming*  the necessity-- of "an"'integrated set of  policies, 
in the inter-related  fields  of commodities,  trade,  money,  and 
finance, and  development, encompassing  both an immediate 
measures  programme  in areas  of critical  importance  to deyelop_ 
."Lug countries and the restructuring of the world  economic 
system  and relations  needed  for the establishment-of the New 
International  Economic  Order,  and 
underlining the  menacing  implications of the current  economic 
crisis for international  peace and security, 
I. Agreed  to go to  Belgrade  in a  spirit  of understanding  and 
cooperation and to  urge their  colleagues-responsible for foreign , 
affairs  and international  economic  relations -  from advanced 
countries, to bring the  same attitude to  bear cn their  participation 
in the Conference. 
II. In pursuance  of this ell for dialogue and  consensu s, the 
Ministers  decided,  between  the Buenos  Aires  meeting  and the  Belgrade 
Conference,  to hold intensive consultations on the issues before 
the Conference.  In this connection,  they agreed  to utilize  to the 
fullest  extent possible all opportunities for consultation, 
particularly  the forthcoming Special Session of the  Trade  and 
Development-  Board at Geneva,  in the  last Veek of April,  when the 
President of the V  Ministerial  Meeting  of the  Group  of 77  will 
present  to the  Board  the outcome  of the  Buenos  Aires  meeting. 

•2 
Ill They felt that it was important- for all member countri  es to insure 
effective representation in tb-e Special Session. 
The Ministers expect tbe • developed countries to  cone forward-' 
vith their reactions to the proposal  emanating  from the ' Buenos 
Aires meeting  and to take'  initiatives and make, proposals of their 
ovn , in order to insure, at Belgrade, an. effective  dialogue, 
con du  zxre to agreement. 
With this conviction, the Minister's of the Croup  of'T7  issue 
this Message in 
BE City of'Buenos  "Aires, Capital  of Argentina, 
on the ninth day of the  month  of April of* ninet'eenf^hundred  and 
eighty three.