DRAFT OF JULY 12

GLOBAL CHALLENGE AND INTERNATIONAL COOPERATION

Ten days ago our nation entered its 200th year. We
begin our Bicentennial with justifiable pride in our
past, great hope for the future, and a recognition of the
enormity of the challenges of our present. The world in
which we live stands uneasily between an era of great
enterprise and creativity and an age of chaos and despair.

We have, on the one hand, developed weapons that could
destroy us and our civilization; we have, on the other,
created a world economy that could --for the first time
in history -- do away with poverty, hunger and human
suffering. This situation of unprecedented opportunity
and unparalleled danger is at the heart of the great dilemma
in the United States, if we are to have a future.

that has faced mankind with increasing sharpness since the
close of World War II. And it is our generation that
must bear the burden of resolving that dilemma, for its
resolution cannot be much longer delayed. It is a burden

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[Y]

that we can shoulder with fortitude or ignore with peril --
but it is a burden we cannot shed.

We are a nation that has overcome countless challenges in two hundred years -- and indeed has come to symbolize man's harsh dilemma and an historic challenge. Had the Americans capacity to overcome nature master hisdestiny. This legacy of 1775 refused to face and settle the dilemma -- to should be a source of pride, not without such dedication, carry their burden -- this nation would never have spanned the breadth of the continent nor given hope and inspiration to the millions who have looked to us over the past two centuries as the last best hope of mankind.

Today we must show that this generation of Americans is true to its duty as earlier generations were to theirs. We must do so because we have no alternative; to fail now would be to assure for ourselves and people around the world a future without hope, freedom or human dignity.

The peace of the world and our own security, the world's progress and our own prosperity are indivisible.

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It is for these reasons that I want to speak to you
tonight on our country's foreign policy design to meet
and master these challenges.

The Structure of Peace

When weapons span continents in minutes, our security
is bound up with world peace. When our factories, farms
and financial strength are deeply affected by decisions taken
in foreign lands our prosperity is linked to world prosperity.

We have a proud foundation on which to build. We
have maintained a balance of stability in the world,
ensuring the security and independence of scores of
nations. We have expended a great deal of blood and
treasure in the defense of freedom. With our vital
contributions our major allies regained their strength; a
global trading and monetary system was built which sustained
and spread prosperity world-wide. With our encouragement,

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nations took their place in the new and poorer members of the international community. The new and poorer nations won independence and set out on the road to progress, though economic development.

Many long-standing disputes were settled by peaceful means, at our initiative. Conflicts were contained and global war was avoided.

We have provided more economic assistance than any other country. We have contributed more food, educated more people from other lands, and welcomed more immigrants and refugees. We have done so because we are a generous nation -- for which we need not apologize -- but also because we understood that our self-interest was bound up with the fate of the rest of mankind.

These successes have brought great change. The old Cold War constellation has fragmented. Power and wealth, ideology and purpose have been diffused, transforming the international scene. The reemergence of Europe and Japan,

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[Y]

rivalry among the Communist powers, the growth of military
technologies, the rise and increasing diversity of the
developing nations have ~~produced~~ a new global environment --
a world of ~~many~~ persistent differences both old and new, clouded by nuclear peril
~~struggling for economic equity and advance~~ and marked by new economic and social imperatives.

The new world has great potential for chaos or for creativity. The central focus of United States foreign policy is to help shape a new international structure, ~~from this environment~~ based on equilibrium rather than confrontation, uniting ~~to end other~~ nations by practices of cooperation reflecting our ~~global interdependence~~ + effective

Our task begins at home. To be strong abroad, we
must be strong and purposeful at home

To preserve peace, our military strength must be
beyond challenge. Our adversaries will not curtail

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their ambitions or moderate their actions unless it is
clear that any other course is too perilous.

To promote global prosperity our domestic economy
must be vital. Unless Americans can look forward with
optimism to their own future, confidence in government
at home will erode and resentment will foster isolationism.

To carry forward our international efforts we
must be a united people, sure in our purposes and determined
to build on the great achievements of our national
heritage. Therefore, in our national dialogue let us
put an end to divisiveness. It is time to remember that
however we may disagree, each of us wants the best for
his country and that our country is the hope of the world.

Our first responsibility abroad is to the great
industrial democracies with whom we share ties of history,
our property, ideals, commerce and political values. Our alliances are the
coll

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cornerstone of our foreign policy. We have strengthened
~~Our alliance with~~ our bonds with our Atlantic partners and Japan and have
~~ cornerstone of our foreign policy. Telephone today~~
begun a new dialogue in the Western Hemisphere. Our
they are ~~which are more than responses to military~~
alliances were formed as a response to a military threat, had
expanded ~~which are more than responses to military~~
to this threat are instrumentalities of
Today additional communities/interests engage our joint
social and economic cooperation,
action -- in energy, economic growth, scientific and
technological cooperation, protection of the environment,
and the social problems of modern industrialized societies.

The ultimate objective of our alliances has always
been to ease, not to freeze, the divisions of the world.
There is no more urgent task than to build more peaceful
relationships with our adversaries.

In the past few years the United States, along with
its allies, has taken a number of steps to resolve
concrete problems with the Soviet Union and lay the
basis for more positive endeavors. We have as well

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forged a new relationship with the People's Republic

There can be no lasting international stability unless
of China. A lasting peace is possible only if the

learn habits of
major permanent powers conduct themselves with restraint, and
feel a stake in international peace; all
to our hopes for a better world require that they use

their enormous power for the benefit of mankind.

and the new nations
We, our allies and adversaries, are all part of a world

Finally, there is the new agenda of international
community. Our interdependence on this planet is becoming the central
fact of our diplomacy.
interdependence -- energy, resources, environment,

population, the uses of space and the seas. These are

whose benefits and burdens
problems that transcend national boundaries, and cannot
be solved without international cooperation. They carry

the seeds of political conflict over the coming genera-
tion; they also present the international community with

will require a challenge to its capacities for vision and statesmanship.

In view of the current agenda, it is therefore
Many of these problems are global in nature and
must be dealt with on a global basis. Within a few weeks
there will be two major meetings of the United Nations --

Need a new World Order,
if you want to outline the
basic elements of our
policy.

Give this last
time a
punctual
start since it's
the major topic
of the speech.

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from world war to something which may appropriately
be described as world community. Yet the cohesion of
this global community is being severely tested by a clash
of ideologies and interests, and the tactics of confrontation.
insisting

Such tendencies diminish the prospect for further
achievement and threaten the very institution itself.

Let us place these trends in historical perspective.

The end of the Second World War brought on a period
of idealism and hope. A victorious war against tyrannical
regimes -- by nations united for that purpose -- seemed
as much a triumph for liberty as for independence.

The end of the colonial era was shortly to begin, and
was clearly in prospect. The nuclear era was already
measured historically against
with us. For that reason alone, it seemed that the
imperatives of collective security and the peaceful
settlement of disputes would at last impress themselves

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on mankind. ~~In~~ the League had failed, the cost of
~~not~~ failure seemed so overwhelming, that it was possible
~~that the nations of the world would be impelled to make~~
to hope, the United Nations ~~would~~ succeed. No nation
embraced this hope more genuinely than the United
States. No country more seriously looked for the United

force and
Nations to replace/domination with ~~accommodation and~~
~~No government more eerily songsters~~ create
cooperation. It is worth recalling that a year after
the San Francisco Conference, when the United States
was the sole possessor of nuclear weapons in the world,
we offered to turn this entire technology over to the

Even then American spokesmen were careful to
~~had there were~~ insist on the limits of the new organization. Of this
~~at least~~ the most important, even if at first ~~seemingly~~ the
easiest to overlook, is that the UN is not a world
government, ~~It is an organization of sovereign and equal~~

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states. It is not an entity apart from its membership.

It is, rather, an institution in which the membership pursues national interests which range from the inspiring to the dispiriting, with all that compound of nobility and baseness which is the mark of human endeavor.

It reflects the world context in which it operates:

its diversity, its imperfections, its multipolarity.
initiative, its competing values, its worldly compound of nobility and tragedy.

There was but one feature of the new organization: 'The founders' hope for peace rested not only on a hope that the members, and that was the assumption, embodied in the major powers, given a dominant role in the Security Council, would be able to concert together to keep the peace.' Security Council, that the major powers would concert together to keep the peace. This was, of course, the became an arena for the confutations of the old order, the principle object of the United Nations.

A generation later the record of how it has performed the peace shows both success and failure. this function is creditable. There have been wars, and yet there has been no Great War. More than once, the

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small conflicts which had led in the past to great
ones have been contained through the efforts of the United
Nations.

Time and again in the Eastern Mediterranean, in
the Middle East, in the Congo, in Kashmir the peacekeeping
role of the UN has provided an indispensable third party
for settlement,
guarantees + prevention of
role and helped avert major power interventions.

While the peacekeeping operations are perhaps a far
cry from the concept of collective security orginally
envisioned by its founders; they have proven themselves
valuable and increasingly indispensable, instruments
of cooperation in the field of security. They represent
the most advanced manifestatons of international cooperation
in the field of security mankind has yet achieved.
for

The UN has provided a framework for multilateral
efforts for arms control and disarmament.
UNITED NATION

The UN has also served the principle that peace is
not the same as the status quo but must include
embrace

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procedures for peaceful change. Whether by special commissions or mediators or through the expanded role of the Secretary General within his broad responsibilities under Article 99 of the Charter, the UN has offered a flexible instrument of pacific settlement on a score of occasions since its founding.

We learned early on that there were limits to United Nations action on behalf of peace and security. Its writ can run no further than the agreement of its members. And on the sweeping issues of war and peace, it is the great powers, by virtue of their size, military strength, economic power and political influence, who bear the principal responsibility for world stability and security. Of late, as the great powers are learning the practices of coexistence and accommodation, the UN has found

What concerns Americans today is that, precisely

At the moment when great power confrontations in the UN are waning, a new phenomenon has appeared in the General Assembly and some of the specialized agencies are involved in an ideological confrontation, or bloc voting, and new attempts to manipulate the Charter of the United Nations to achieve unilateral political ends are being made in short, to use the UN as an instrument of political warfare rather than as a means of agreement and a setting for collective action.

The reality of the UN naturally reflects the evolution of its composition. In its first phase it reflected the ideological struggle between the West and the Soviet Union; then the UN often followed the American lead. Generally, Time and again in those days there were 50 votes in support of our position and 5 communist bloc members against.

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the contrary, they are given all too many incentives simply
to depart the scene, to have done with the pretense. This
incentive is ominously enhanced when the General Assembly and
~~begin to~~ for one
Specialized Agencies/expel member nations of which they do
~~reason and another do not meet with our approval,~~
not approve. History haunts us here as well. The League
of Nations did not collapse in one cataclysmic failed endeavor.
As a matter of fact, it did not collapse at all. It merely
became less and less consequential, and in the end wholly
irrelevant, as one member nation after another/withdrew. Some
for large reasons of state; some for petty ones. The net
result, by 1940, was that only two major powers in the
world were left.

Let me be clear on this. Our concern has nothing to do
with our attitude towards the practices or policies of the
particular governments in question. Our attitude is
constitutional, ~~it is procedural.~~ If the UN begins to depart
from the basic principles of its Charter, where suspension and
expulsion are clearly specified prerogatives of the Security

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such as the United States
which can prosper within or outside the institution.

Ways must be found for power and responsibility in the
and in the Specialized Agencies
Assembly to be more accurately reflective of the realities
The United States has been
of the world. We have been by far the largest financial
supporter of the United Nations; but the support of the
American people, which has been the lifeblood of the organization
will be profoundly alienated unless fair play predominates
and the views of the numerical majority respect those of the
minority.

The UN can not become a forum for the permanent vilification of the United States, its friends or the principles Permanent
they stand for. Confrontation is self-defeating; it
deprives the UN of its moral authority in American public
opinion. Resolutions adopted by bloc voting, against the
countries who are in the best position to give them meaning in time
and substance, are exercises in futility and will debase the

We believe that the UN is fortunate to have at its helm an outstanding leader in the person of Secretary General Waldheim. He is tireless and totally dedicated to peace, fairness and the future of the United Nations. The rapidity and efficiency with which he organized and despatched peacekeeping forces to the Middle East in late 1973 was just one example of the many services he has rendered the organization and the international community.

## The United Nations System

Let me briefly review with you the main tasks before the United Nations system, and the contribution that

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The Agenda Before Us,
The United Nations System

This then is the premise and the problem of
the United Nations. What, more precisely, is its
the agenda we face makes it more necessary than before.
current agenda?

The Traditional Agenda: The Problem of Peace --

The United Nations, first, faces continuing + increasing
responsibilities in its mission, in the famous words of
has been defined in the UN Charter, "to save succeeding
generations from the scourge of war."

Over the years the United Nations Security Council
has made many crucial contributions that helped to
prevent regional conflicts from escalating into general
war. In 1950, it rallied to the cause of resisting
aggression in Korea. It performed effective roles in
the Congo crisis in the early 1960's, in Cyprus from

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1964 to the present, and several times in separating
warring parties in the Middle East and on the
Indian Sub-continent.

One of the central issues of our time is the Middle East.
The Security Council has provided a forum for
conflict, and the UN Security Council continues to play a vital
international efforts to promote a peaceful settle-
role in the quest for a Solution.
Resolu-
ment between the parties in the Middle East. Resolu-

tion 338 of 1973 launched a negotiating process which
Secretary-General Woldheim ~~presented~~ convened + addressed the first session of
the Achieve Conference.
has borne fruit and proved durable. Resolution 242
of 1967 stated general principles which remain an
~~part of~~

a comprehensive
important framework for permanent peace.

United Nations truce supervision personnel and
peace-keeping forces have played an important role
in the area since the creation of the State of Israel.

The stationing of neutral UN forces was an indispensable
of
element in working out the recent disengagement
agreements between Israel and Egypt and Israel and Syria,
in 1974.

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But despite these real achievements, the perils of local conflict continue to loom large. The world has dealt with them as if it were possible to contain conflict perpetually. Because each crisis so far has remained essentially local, the world has grown complacent. But such tolerance tempts world conflagration.

This demands and persuading effort. It will require our utmost vigilance to see that some regional conflict does not explode beyond control. That is how the first two world wars began. We must not have a third; with modern weapons there would not be a fourth. It is not enough to contain the conflicts we must eradicate their causes.

The United States will spare no effort in pursuit of this goal. Where conflict between nations once devastated continents, today it could destroy humanity. Peacekeeping and peacemaking--must therefore be a top priority of the United Nations agenda.

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Another problem of peace 
~~which the world~~
*ungently adds*
community must ~~turn~~ is the spread of nuclear weapons.

Their very awesomeness has chained these
weapons for almost three decades; their sophistication
and expense have long helped limit the number of
nations which could possess them. But now political
inhibitions are crumbling. Nuclear catastrophe --
whether by plan or mistake, accident, theft or
blackmail -- is no longer implausible.

It is imperative to contain -- and reverse -- the
nuclear arms race among the major powers. We are now
engaged in translating the principles agreed to in
Vladivostok between President Ford and General Secretary
Brezhnev into a new accord between the United States and
the Soviet Union that will for the first time place a
long-term ceiling on the strategic weapons of both sides.

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In recent talks with Foreign Minister Gromyko, some progress has been made.

As we strive to slow the spiral of nuclear arms, we must work as well to halt their spread. This requires both political and technical measures. In these areas the work of the United Nations has been important and could be crucial.

The Non-Proliferation Treaty of 1970 was an important beginning. The recent Treaty Review Conference held under UN auspices, and the adherence of additional countries, have been valuable further steps.

Henceforth a comprehensive non-proliferation effort must pay particular attention to strengthened safeguards on the export of nuclear materials for peaceful uses. The oil crisis adds fresh urgency to this task, because it has made the development of nuclear

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energy essential for an increasing number of nations.

This means wider availability of materials, especially such as plutonium - Plutonium 239 and of equipment which might be used to develop nuclear explosives.

Future generations have a right to expect of us that commercial competition among the industrial exporting countries, not only accelerates the spread of nuclear weapons, but also raises the risks of thermonuclear reactions creating conditions for a nuclear holocaust.

Therefore, the United States has begun a series of confidential discussions with a number of other nuclear exporting countries, looking towards improved generally accepted safeguards. In this task, the role and work of the UN's International Atomic Energy Agency is vital. As peaceful nuclear programs grow in size and complexity it is crucial that supplier and user nations cooperate to standardize and strengthen common

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export requirements and to support IAEA safeguards.

The IAEA can be the foundation for an effective
world safeguards system to minimize nuclear risks
while fostering the applications of peaceful nuclear
energy.

The control of nuclear weapons is one of the most
critical tests of this generation. The United Nations
can be a focus for this effort. This was our position
in 1946 when we had a nuclear monopoly. It remains
our position today.

The New Agenda: The Problem of Interdependence

In the last few years the world economy has
undergone a series of shocks and strains.

-- Nations have suffered both severe inflation
and deep recession on a worldwide scale.

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-- The price of the world's most essential commodity, petroleum, has been precipitously and arbitrarily increased, burdening the economies of all consuming nations and imposing the most serious hardships on the poorest countries.

-- The world's food reserves have dwindled alarmingly in only a few short years. Unless massive efforts are mounted, the gap between population growth and food production could reach disastrous proportions.

-- The pursuit of economic growth is complicated by the fact of interdependence; it can no longer be pursued by national efforts and requires coordinated, global action.

To meet these challenges, the United Nations, originally concerned primarily with issues of peace and

UN Photo

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the forms of integration attention security, has been evolving toward a growing concern to economic and social issues. The UN Charter was containing a commitment "to employ international machinery for the promotion of the economic and social advancement of all peoples." Today, roughly nine-tenths of expenditures within the UN system relate to economic and social cooperation. We welcome this evolution and have contributed generously to it.

This September's special session of the General Assembly will focus on the new global economic concerns. It will be an early and important test: Will the United Nations year developing and developed worlds identify common goals (exacerbate) and solve problems together, or will they concentrate (exacerbate) on elaborating their differences? Can we turn our energies from rhetorical battles to practical cooperation?

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Will we strive for empty parliamentary victories or
concrete progress?

The United States has made its choice. We believe
strongly in a cooperative approach. We believe that the
time has come to put the technological and economic
genius of mankind into the service of progress for all.
We will approach the Special Session with the deter-
mination to make progress on the agenda of interdepen-
dence and with concrete proposals for action across a
broad range of international economic activities -- in
trade and commodities, world food production, inter-
national financial measures.

The session will also consider structural changes
to improve the UN's capabilities in the field of
economic development. A group of experts appointed by
Secretary General Waldheim has just completed a study

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confident that they will succeed in that effort. By
the same token those countries which are eager to
industrialize must also be ready to create the conditions
that will be necessary to attract large scale investment.

We know that the voting records of the blocs in
the General Assembly do not reflect conformity in
economic conditions. The family of less developed
countries includes both producers and consumers of energy,
importers and exporters of raw materials, and nations
which can either feed their populations as well as close
or solid face the specters of famine and overcrowding. These
divergent interests must be accommodated and reflected in
practical measures. They cannot be resolved from the
uncertainty of bloc positions, the rigidities of bloc positions.

At the same time we are convinced that the industrial
world must adapt its own attitudes to the new reality of

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a hundred new nations. At bottom the challenge is political, 138 and more independent nations in the world; we must not economic -- whether their interests + weight can be accommodated recognize that each has political as well as economic in the international order. Their goals. Economic decisions can no longer be treated as having only economic consequences. Political objectives often represent legitimate claims. The reverse of this is that the new nations must not expect us to make only political decisions, with no thought for economic consequences. If they want truly to serve their peoples, then must be practical concern for effective results.

If in the industrial world we want to overcome the attitude of confrontation between nations, we must first overcome the attitude of understand that we cannot expect to gain benefits from others only for our concerns, and that we must offer to provide must offer them equity + participation. equitable solutions to the problems of less fortunate parts of the world. As we are rightly concerned about offer equitable solutions for the problems of the less fortunate parts of the world.

the economic impact of exorbitant oil prices, we should show understanding for the concerns of producers of

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whose incomes fluctuate radically,
other raw materials. With respect to the operation
of our companies abroad we consider it in our interest,
as well as on
and the common interest, to promote an environment of
mutual benefit, in which our international businesses
can continue to be both profitable and beneficial
to the countries in which they operate. We will deal
with this issue more fully at the Special Session.

Above all the industrialized countries must recognize
that not all nations are prospering in existing
circumstances. Some developing countries have had
frustratingly slow rates of growth. Rather than a com-
fortable margin of progress, they face an abundance of
obstacles and a surplus of despair.
The future of international
politics over the next quarter of the century -- the kind of
sibility -- and indeed the general interest -- to
world our children will inherit -- will be determined by
contribute to conditions in which economic benefits are
what actions governments take now on this spectrum
more widely shared.

of economic issues.

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## Conclusion

Dag Hammerskjold once predicted that the day would come when people would see the United Nations for what it really is -- not the abstract painting of some artist, but a drawing done by the peoples of the world. And so it is -- not the perfect institution of the dreamers who saw it as the only true road to world harmony; and not the evil instrument of inter-nationalism and world domination that the isolationists once made it out to be.

Rather it is, like so many human institutions before it, an imperfect instrument -- but one of great hope nonetheless. The United States remains dedicated to the principles upon which the United Nations was founded.

We continue to believe it can be a mighty and effective vehicle for preserving the peace and bridging the gap

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between the world's rich and poor. We will do all
we can to make it so.

The past decade -- and particularly the past
several years -- have been a difficult time for
America. We have known the agony of internal dissension
and political turmoil, and the bitter costs of a
lengthy war. But our nation has come through all
this, and its most difficult constitutional crisis
since the Civil War, with our institutions intact and
our people resilient. And we have seen that the world
still looks to us for leadership in preserving the peace
and promoting prosperity for all mankind.

economic advance

But the past decade has also surely shown that --
strong and prosperous as we are, others must be
prepared to do their part in building the better world
we all seek for the generations that will come after us.
we cannot make the world alone.
and bear their responsibility for

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endeavor,

In this effort the United Nations can plays a
central
crucial role. It is there that each nation, large
or small, rich or poor, can -- if it will -- make
its own contribution to the betterment of all. It is
there that nations must realize that self-restraint
is the only principle to save the world from chaos, and
our destinies are truly intertwined on this small planet,
that the global interest is in the national interest.

It is there that we will see whether men and nations have the
wisdom + courage to make a reality of the ideals of
world peace and prosperity a reality, and perhaps, in
the Charter, and in
the end, to turn the parliament of man into a true
expression of the conscience of humanity.

Milwaukee I
6/27/75

MINNEAPOLIS

THE UNITED STATES AND THE UNITED NATIONS:
---
THE IMPERATIVE OF COOPERATION

Today, when powers of destruction are almost unlimited,
when change is constant and accelerating, and when the destinies
of all societies are inevitably interwoven, new conditions for
international cooperation need to be constructed.

Tonight I want to talk about the most prominent structure
for international cooperation, the United Nations. I do so
because of the urgent need for multilateral action on the great
new economic problems of interdependence -- energy, raw
materials, food, trade, investment. These will be the
issues considered by the Special Session of the United Nations
General Assembly which meets in September. Tonight I want
to discuss the place of the U.N. in a global effort to build

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a new era of economic cooperation. And I want to set forth
the attitudes and expectations which the United States will
take to the coming Special Session.

The United States was an architect of the United Nations
and, since its inception in 1945, we have been among its most
staunch supporters.

We have done so because the fundamental premises of the
United Nations accord with long and deeply held ideals of our
country, -- that the way of force and domination should be
supplanted by accommodation and cooperation.

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And we have recognized that only a body that is virtually
universal can cope with problems of truly global dimension.

If the United Nations system did not now exist, the crises the
world now faces would surely bring a clamor for its creation.

Yet at the same time we must recognize that American
attitudes towards participation in worldwide international
forums has been far from uniformly approving.

-- Between the two great wars the prevailing attitude
was that of nonparticipation, aloofness, isolationism.

-- As the Second World War ended, there was a brief but
strong impulse toward high idealism; the hope was
cherished by many that the collective security system of
the United Nations could fulfill mankind's aspiration for
peace.

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-- But with the rapid intensification of the Cold War, the United Nations came to be seen as a battleground between East and West.

-- And today many Americans have begun to feel that the United Nations has become an arena for winning or losing a seemingly endless series of parliamentary conflicts between the Industrial democracies and blocs of nations whose values and ambitions are hostile to those we cherish; that the forum is becoming uncongenial if not impossible for America's purposes and hopes.

Against this historical background, any assessment of the United Nations and our policy toward it is obviously a complex matter.

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The Nature of the United Nations System

We must avoid the temptation to regard the United Nations

as a single entity which can easily be characterized as good

or bad, getting better or worse, as serving America's

interests or not.

The United Nations is a system, involving an array of
institutions or agencies devoted to many and differing con-
cerns. It includes bodies of nearly universal membership,
as well as relatively small sub-groups. Its elements are
involved in a wide range of activities, from the daily regula-
tion of highly technical activities such as aviation, to issues
involving international peace. Given such a range of endeavor,
no single judgement of success or failure is possible.

But it is undeniable that the UN Security Council has done
particularly valuable work in recent years in maintaining

international peace and security.

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The United Nations' vital role as an independent and
impartial force for maintaining the Middle East disengage-
ment agreements of 1973 between Israel and Egypt and Syria
has been of incalculable and fundamental importance to world
peace and to our own country's interests. In maintaining a
barrier against renewed hostilities, the UN forces there
are helping to keep open basic negotiating options. Unless
these options are maintained, there will be little or no
chance of achieving a just and lasting peace.

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The Security Council has been of substantial importance
in other critical areas. The United Nations force in Cyprus,
working under extremely difficult circumstances, contributes
considerably to stability, to law and order, and to the
satisfaction of humanitarian needs on the island.

Apart from peacekeeping, the work of various U.N. special
agencies is crucial in controlling contagious disease,
facilitating world trade, maintaining nuclear safeguards and
air travel safety; in disaster relief, and in the use and
preservation of the oceans. The U.N.'s involvement in these
activities is central to the conduct of the world's essential
business.

-7a-

Americans have been deeply concerned recently by the misuse of United Nations forums engaged in social and technical cooperation as arenas for fighting contentious political battles. Whether a particular point is won or lost, such a practice can only result in a deterioration of the ability of these bodies to carry out worthwhile work serving the broad, common interest. I can say tonight that the United States will not permit the specialized agencies of the UN to be used as weapons for political or ideological gain.

The United Nations cannot function effectively between hostile blocs; it must be a place for reconciling divergent interests through discussion and compromise. The developed countries in the numerical minority, including our own, simply cannot be forced to accept solutions with which they do not agree.

-7b-

We would like to see concrete progress made in solving the truly complex and compelling economic issues of our time.

Hostility, confrontation, harsh rhetoric, will not be conducive to any solutions, either in or outside of the United Nations.

-8-

The New Problems of Interdependence

This is a time for cooperative solutions, for there is
an urgent new agenda before us. The world's
attention has been shifting rapidly and dramatically to the
problems of economic and social interdependence which have
come to the fore as the major political problems of the post-
war decade have receded or been resolved.

-- Never before in history have nations of the world experienced severe inflation while suffering the effects of deep recession.

-- To an unprecedented extent, economic phenomena have been felt simultaneously in many countries of the world, reinforcing and extending previously local problems, such as cycles of boom and bust.

-9-

-- The world's most essential commodity, petroleum, has been subjected to a precipitous and arbitrary rise in prices, burdening the economies of all consuming nations and imposing severe hardships on the poorest.

-- The pursuit of economic growth for the first time in history must be conducted in less than absolute terms, under constraints such as the requirement to preserve the environment for future generations.

-- And the world's food reserves have dwindled precipitously in only a few short years. Unless massive efforts are mounted, the gap between population growth and growth in food production will reach disastrous proportions.

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Many bodies within the United Nations system have begun to tackle the problems of interdependence. A United Nations environmental program was launched with strong U.S. support several years ago. A World Food Conference was held last year at American initiative, and we are pleased that many of our specific proposals were adopted and are beginning to be carried out. Following the World Population Conference last year, the United Nations is continuing to support and encourage population control programs in many countries of the world.

Good as these beginnings are, however, a great deal more must be undertaken. Our own economic well-being is and growth linked to the economic well-being and growth of the world economy. And the poorest countries are now

-11-

threatened by virtually unmanageable economic forces. A substantial portion of the world's population, roughly one-third of mankind, lives on the margins of existence. These countries look to the United Nations system for essential assistance, -- even, in some cases, to survive.

## The Structure of U.S. Policy

The policy of the United States in meeting the new economic challenges of our times rests on three pillars:

**First, the imperative of growth.** The advanced countries must work together to renew the general trend of their growth and prosperity. An expanding world economy will stimulate trade, investment and technology; it will support necessary bilateral and multilateral assistance; it will assure growing

-12-

markets for the raw materials, manufactures, and agricultural

products of developing countries; it will provide the best
framework for accommodation in the face of competing and

divisive demands for food, energy, raw materials, capital.

Growth in the industrial world is an essential condition for
economic cooperation between the developed and developing
worlds. Without it, we face an era of economic warfare and
chronic political instability which threatens the survival
of democratic institutions and values.

**Second, the acceptance of interdependence.** Interdependence is a fact, not a theory. Decisions regarding the price and supply of petroleum can affect other activities, such as production and supply of fertilizer. This can

-14-

-- For the industrial world cooperation with the less developed countries will have substantial effect on both our own prosperity and also on whether an overall world environment will exist in the future which is congenial to the pursuit of basic American interests. It is obvious that we could not long remain a wealthy island isolated from the rest of the world.

-- For the countries of the developing world, the alternative to cooperation is struggle and conflict. Although everyone would lose something in a contest of strength, there can be no question that the industrial nations will fare best and suffer least from the pursuit of narrow nationalistic policies.

-15-

But ultimately, no nation whether rich or poor, developed or developing, can benefit if all do not work cooperatively to meet our common problems. But cooperation cannot merely be an attitude. A conscious and concerted effort at greater objectivity is needed on all sides.

The industrial nations cannot expect to gain benefits from others unless we offer them gains in return. For example, we cannot insist on guarantees against the imposition of exorbitantly high prices unless we are willing to accept arrangements which provide protection for producers who may have to suffer severe hardships when prices plummet.

-16-

We cannot expect others to refrain from pursuing every
possible advantage, including those to our detriment --
such as efforts to establish producer cartels -- unless we
promote alternative approaches which offer the prospect of
fair profits and continuing growth for all.

We cannot extend our economic operations abroad without
expecting the countervailing power of host governments to be
brought to bear to regulate such operations in behalf of their
public interest. In our own country we have long accepted
that there are necessary and appropriate protections which
the government must provide the citizen and the community.
It is surely in our interest, and the common interest, to take

-17-

the lead in creating enlightened international standards, so
that these will reflect practical wisdom, so that there may
be some degree of uniformity, and so that our international
businesses can continue to be both profitable and beneficial
to the countries where they operate.

The world economic system has served us well. It
has also served many developing countries, some of whom
have experienced dramatic economic growth in recent
decades. But some developing countries have had frustratingly
slow, almost nonexistent rates of growth. For them, there is
no comfortable margin of progress, but often an abundance of
obstacles and a surplus of despair. We cannot escape the need

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to improve an economic system which many of its members
feel deeply has not fully served their needs for progress.

For its part, the developing world must recognize that
the progress of a society is based upon the efforts and
creativity of its people. True development is not achieved
by massive transfers of wealth from one group of nations
to another, but rather through the creation within societies
of the necessary conditions for development. The realiza-
tion of economic and social gains by any country depends as
much on the domestic policies of that country -- including
policies of social justice -- as upon steps of international
cooperation.

The less developed must also recognize that economic
progress cannot take place without the investment of large

-19-

capital sums. Mineral resources, for example, remain no
more than rocks in the ground unless investors are ready to
devote money to extraction, refining, and transportation.

It is the developing countries which have the most acute need
for new capital. It is contrary to common sense for them
to adopt positions which, if taken at face value, would create
disincentives for investment. This is particularly so when
it is recognized that there is likely to be acute competition
in the future for capital to finance increasingly complex and
costly ventures.

And the group of less developed countries includes both
producers and consumers, some who are growing rapidly as
manufacturers and some who are strong as agricultural producers,

-20-

some who depend heavily on energy imports and some who
do not. If a measure is designed solely to benefit producers
of raw materials at the expense of consumers, it will work
adversely against the interests of many developing, as well
as developed, countries. Objectively, it cannot be denied
that the most productive approach comes not by economic
conflict but through cooperative adjustment of each of the
major sectors of international economic activity so that all
participants stand better chance of benefitting.

But cooperation requires not merely new efforts
toward objectivity, but also specific acts of cooperation.

The United States represents the greatest concentration
of economic power in the world. We have vast experience
in every industrial and financial type of enterprise. We
have an accumulation of technological know-how surpassing
that which exists anywhere else.

- 21 -

Our country therefore has indisputably the strongest background from which to fashion proposals that are practical and realistic. We cannot complain that others have offered simplistic, unsound or one-sided proposals if we have not put forth our own initiatives. Our preeminence creates an obligation as well as an opportunity.

The United States Government has already begun a systematic and thorough review of our policy regarding the new problems of interdependence. To indicate to developing countries our seriousness, I recently outlined a number of specific proposals covering a broad range of international economic activity, -- trade and commodities, world food production, international financial measures. While we

-22-

cannot expect to satisfy all the legitimate concerns of

developing countries, our initiatives represent a good

faith attempt to make significant and concrete progress.

We hope that the developing countries will begin with

us a process of give and take; of genuine dialogue. We do

not offer our proposals on a take-it-or-leave-it basis, nor

as gifts, but rather as possible arrangements of mutual

benefit. If this opportunity is taken up together, our

dialogue can create its own reality, and new possibilities

for agreement, for concrete gain, will appear that may not

have seemed present in the opening stages.

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The Seventh Special Session of the General Assembly
---

The September Special Session of the General Assembly will be
held to consider the problems of development and inter-
national economic cooperation. This will be a major
gathering of high level representatives from virtually all
countries of the world.

Given this important opportunity we intend to pursue
two broad lines of effort:

First, we will try to place our dialogue with the
developing countries on a new footing. We intend to listen
with understanding to the concerns of the developing world.
This does not mean, of course, that we will agree with all
that is put forth; on the contrary there will surely be much

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[Y]

disagreement. However, it is only by listening intently, keeping an open mind, maintaining serious dialogue, that we and other countries can come to understand each other's views.

Second, we intend to put forth concrete suggestions for international cooperation, not with the expectation that they will be immediately accepted or rejected, but to stimulate reasoned responses leading to a process of future negotiation. The General Assembly itself will not, of course, be an appropriate forum for detailed negotiations. But it can, and we hope it will, be a forum for marshalling general support and consensus behind goals, priorities, and principles which will assist specialized or technical bodies in the long and difficult subsequent work of building a detailed structure of cooperation.

-25-

The coming Special Session constitutes an important challenge. Can countries of both the developing and developed worlds begin to concentrate on the effort to identify common goals, to work for mutual benefit rather than to exacerbate differences? Can we begin to make a turning from past patterns of confrontation to meaningful practice of cooperation? For our part, the United States will approach the Special Session with determination and optimism.

## Conclusion

We face a fundamental, indeed historic, challenge, -- to shape a world economic order which is prosperous, humane and just.

-26-

This comes at a time of rapid and even baffling change
when basic values and priorities are questioned as never
before. It will require a degree of patience and perseverance
which we have seldom been required to sustain over long
periods of time. I believe that our country has the strengths
which are essential for meeting the challenge:

-- We are a nation that has always been guided by high
ideals. From our inception as a nation to the present, our
country has been fundamentally concerned with justice and
humane principle. These qualities have been central
factors in contributing to some of the great achievements of
our century, not least of all the establishment of the United
Nations.

[Y]

-27-

-- Our country has been responsible for truly remarkable practical achievements. When Americans tackle a job with determination it gets done. No business or technical or scientific enterprise has ever seemed to be too vast or too complex for us to master.

I am particularly pleased to discuss these issues of economic interdependence and the new global challenge they impose with American businessmen. For over the decades, American business and industry have shown the way throughout the world for substantial achievement.

Your active participation in our economic foreign policy is now essential if America and the world are to master the challenges now before us. That this is a challenge of gigantic scope should not for us be a detraction but a positive stimulus to our national genius.

Ambassador Moynihan prepared the following outline

of some ideas after reading the draft speech.

Points

1. This speech should be directed to the United Nations as an aspect of the international system, rather than to issues such as economic development that arise within the system.

2. The Secretary should say that we appreciate that the UN, while founded as an organization primarily concerned with world peace, it has evolved into one that is even more concerned with world economic development, especially that of the poorer members.

-2-

3. This is nothing unusual in the evolution of political institutions. The United States accepts it and welcomes it. We have understood the concerns of the new nations. We are more than prepared to join in this new relationship.

4. We will welcome proposals concerning the reorganization of the United Nations to deal more effectively with these issues.

5. We will come forward with large and specific proposals of our own.

-- concerning the world food supply

-- concerning the regulation of the conduct of international business enterprise

-- concerning stability of world commodity prices.

6. We are listening. We ask that we be listened to in return. We are not without experience in governance. We are one of the oldest constitutional governments in the world. We know enough of the imperfections of our own national experience to speak modestly of it; but we also know enough of the experience of other peoples to feel we may have something to offer on the subject. In particular, we feel we ought to make clear our own experience, which is that in collective enterprises it is not what you do that matters, but the way that you do it. Just as ALSO restraint, civility -- these may not appear heroic

-3-

virtues. But with nearly two centuries of experience of
government behind us, we say to the new nations of the
world that they are nonetheless qualities that
make the difference between life and death for representative
institutions.

7. The General Assembly of the United Nations is such an institution. Its powers are limited; its uses potentially unlimited. It is a forum in which general recommendations to member governments can be shaped. To the degree such recommendations constitute an achieved consensus on matters of shared concern they carry great weight; assume w the character of collective undertakings. But only when they do in fact reflect agreement. When nothing has been agreed, when the actions of the General Assembly merely record disagreement, then nothing is achieved. When this disagreement is recorded to the accompaniement of denunciation and abuse the results inevitably diminish the reputation of the institution. When the General Assembly goes even further and in clear violation of the Charter commences to expel members whose views are not approved, then the very survival of the institution becomes a question.

8. Not every nation in the world has representative institutions, as Americans would understand the term. Indeed, most do not. This is a fact that makes a claim on <u>our</u> understanding, and increasingly, hopefully, we

see this. But other nations must try to understand
from our perspective, which is essentially that of the
Charter. To the one-party states of the world, we
offer the simple reality that if they wish to benefit
from the United Nations system they must accept that
it will be one of diverse opinions which can be vilified
but cannot be coerced.

9. Nor can the benefits of the UN system be materialized through the metaphysics of words. The League of Nations came to grief when governments began to behave as if words in aid of peace adopted in Geneva were the equivalent of deeds to prevent war. The United Nations could come to the same futile condition if governments persist in pretending that words adopted in the cause of economic development do in fact summon the means of economic growth. Words rarely heal where reality wounds. Thus, the oil price increases have very simply devastated the economic prospects of three-quarters of the nations in the "Group of 77". The increase in the cost of oil to these poor countries comes to almost four times the total disbursements of the World Bank. No matter what is said, this reality will be dominant for what is likely to be a full generation at very least. All the more then, is the need for a United Nations system that works, and all the more is the interest of these nations in a United Nations that works. The United States shares that interest and will work to advance it.

## Query

Should there be a section on the specialized agencies? Perhaps on the IAEA, noting that when oil passed the $6 per barrel point nuclear energy production became not only feasible but necessary in most countries of the world. This will lead to a vast production -- and proliferation -- of plutonium in the world. Only in the United Nations system is there any hope for effective safeguards against a danger that will shortly be every bit as threatening as has been that of a nuclear clash of the great powers.

## Query

Is there not a case for playing down the theme of "interdependence"? (A term, incidentally, from the Communist Manifesto.) I wonder if it does not too much suggest that we need the cooperation of a good many nations a good deal more than is in fact the case. The hard reality is otherwise. Similarly, I would be disposed against any proclamation that we think economic development will bring social and international peace. Who, at this point in the Twentieth Century, could believe such a thing? Could not the Secretary say some candid and interesting things along this line? We do not support economic development in the new world because it will buy us peace. To the contrary, if peace were all we wanted, the poorer

[y]

-6-

the poor nations are, the less they will be able to
trouble nations that are not poor. What we do, we do
because we think it is right. Not because we are
apprehensive, not because we are fearful and not because
we are guiltridden. (The hell you say!)

/

8

Fervor alone is not an answer. Nor is this an issue --
like Vietnam -- on which the American people are divided in their
basic convictions and objectives. The choices we face, we all
face, and every President will face.

Relations with Undemocratic Governments.-- This is a
question that we must ask more generally: Can we by our own
actions significantly affect the internal policies of other govern-
ments? It is not simply a question of East-West relations; it
arises in our domestic debate in many other areas of our foreign
policy.

There are some 150 nations in the world, and barely a
score of them subscribe to democratic forms. The rest -- by
definition -- are systems whose ideology or political practices
are inconsistent with our own. Yet we have political relations
and often alliances with many of these countries in Asia, Latin
America, Africa, and indeed in Europe as well.

Can we be more subtle here, and more accurate. Most countries
Subscribe to democratic forms. Moreover, in my argument at least,
the socialist regimes of the new nations are mostly --
by definition -- quite consistent with our own. It is
or should be our policy to seek to bring their practices into
line with their professions -- for just that reason.