A/31/PV.108 General Assembly

Before addressing myself to the agenda item before usat this resumed session, namely, item 66, I should like to invite the attention of the General Assembly to document A/31/481, which contains a letter addressed to me by the Secretary-General informing the Assembly that four Member States are in arrears in the payment of their financial contributions to the United Nations within the termsof Article 19of the Charter. 2. In respect of the Central African Empire and the Congo, I have been informed that the Permanent Representatives concerned have assured the Secretary-General that a remittance in the necessary amount is forthcoming. I should also like to inform the Assembly that an understanding resolving this matterin compliance with Article 19 of the Charter has been reached with the delegations of those Member States. The General Assembly will, of course, be kept Informed of any new developments in this connexion. 3. In respect of Democratic Kampuchea, the General Assembly will note from paragraph 88 of the report of the Committee on Conttibutions to the General Assembly at its thirty-second session /AI32111J that the Government has indicated that it should not be required to pay certain of the assessed contributions in question. May I suggest that, without creating a precedent or detracting from the legal • Resumed from the 98th meeting. NEW YOlK force of Article 19 of the Charter, the General Assembly should decide that the application of that Article to that Member should be held in abeyance until the Assembly has had an opportunity to consider the matter at its thirtysecond session. I take it that the General Assembly agrees to this proposal.

With respect to South Africa, I am informed by the Secretary-General that no delegation has been accredited by that Member to this session of the General Assembly. Consequently, no decision need be taken at the present time regarding the application of Article 19of the Charter in respect of that State.

The resumption of the thirty-first session of the General Assembly reaffirms a sense of continuing commitment to the establishment of a new internationaleconomic order. 24. There is no doubt about the enlightened spirit of international solidarity that has prevailed since the sixth and seventh special sessions of the General Assembly. The 18 months of active negotiations held in Paris attest to this. It is also true that it has not been possible to achieve the degree of progress that Governments had set themselves to attain and that a feeling of growing disappointment may becloud the endeavours of this Assembly. It is in this context that the present session acquires special significance. The negotiations that resume today will test the ability of the United Nations to define the concrete measures required to secure the objectives of a more equitable andjust economic system. 25. It might be useful briefly to take stock of the circumstances in which these negotiations will be pursued. The work carried out in Paris, in Nairobi, in Geneva and elsewhere has played a very valuable clarifying role. The Assembly's deliberations will therefore take place in the context of a better understanding of development perceptions and needs. 26. Efforts to overcome the recession that has afflicted the economies of many developed countries must be pursued with vigour. Inflation and unemployment continue to pose nagging problems-a disturbing departure from traditional patterns of economic behaviour. A resumption of economic growth wouldopen up new opportunities that should be quickly harnessed in the cause of development. 27. International trade offers probably the most promising means of co-operation among nations. The post-war years witnessed in general a remarkable expansion of multilateral transactions, but lately the resurgence of protectionist forces has cast a shadow on the economic horizon. As the world economy moves towards its normal rhythm of growth, the time would be ripe to inject momentum into the negotiations designed to expand world trade. For the developing countries, the expansion of their export earnings 28. I have mentioned on other occasions that the mounting burden of the external debt incurred by the developing countries has raised a haunting spectre. Unless effective action is taken, the development prospects of many debtor countries will be seriously jeopardized. It is encouraging that IMF has adopted decisions establishing a supplementary financing facility in the Fund. This financing facility would no doubt be of material assistance to countries facing balance-of-payments difficulties, but surely the debt problem is too large to be solved by sucha facility alone. Other proposals that have been under consideration forsome time also meritrenewed andurgent attention. 29. Much has been said about the vital importance of economic assistance' to developing countries. Some welcome actions have been takenin thisregard by a number of aid-giving countries. Yet, much remains to be done. It is paradoxical that, seven years after the International Development Strategy for the Second United Nations Development Decade was adopted by the General Assembly {resolution 2626 (XXV)}, a critical targetof the Strategythat relating to the flow of official development assistancestill continues to elude us. The promise held forth seven years ago should be translated into reality with determination and without anyfurther delay. 30. In this same context I firmly believe that it would help the cause of development immensely if a significant part of the development assistance were directed towards expansion of food production in developing countries. Experience has shown that in the developing world a serious obstacle to agricultural development has been the lack of assured water supply for the farmers. Cannot human ingenuity and international co-operation devise ways and means to resolve this problem? 31. I very much hope that the establishment of the International Fund for Agricultural Development will constitute an important step towards a wider and coherent strategy of agricultural expansion and diversification. 32. I have also expressed my belief that international co-operation in the field of energy should be widened in the context of development co-operation. There is an institutional gap at the international level that appears to hinder the enlargement of the technological possibilities and options available to a large number of countries. The Assembly itself expressed its concern Ir. this regard at its seventh special session. 33. It cannot of course be forgotten that international co-operation, however urgent and vital, can only be a partial spur to action. Much of the thrust for accelerated progress has to be made by the developing countries individually and jointly, as indeed these count-ies themselves have emphasized time and again. I feel con ient that 34. The continuing widening of international development co-operation is in the interest of all members of the world community. While principally concerned withenlarging the opportunities for developing countries, its essential aim is to make the world a better andsafer place for humanity as a whole. It is this concept of global interdependence and human solidarity that must remain in the forefront of all ourendeavours. 35. One of the most remarkable achievements of the United Nations is that it has made development a central issue in world affairs. Lofty ideals inscribed in the Charter more than 30 years ago are now seen in terms of practical realities. This involves a recognition of the complexity and the dimensions of economic and social problems, as well as the determination to tackle them resolutely. It is, in essence, a historic commitment. A restructuring of international economic relations stems from the need to give practical meaning to that commitment. 36. I have always expressed the conviction that the United Nations provides an efficient framework for negotiations to that end. At thiscrucial moment in the evolution towards a new international economic order I wish to reiterate my faith in the success of the Assembly's endeavours.

I thank the Secretary-General for his statement. The general debate is now open. The first two speakers on my list are the Cc-Chairmen of the Paris Conference on International Economic Co-operation, the representatives of Canada andVenezuela. 38. Mr. MacEACHEN (Canada): The General Assembly has before it the report of the Conference on International Economic Co-operation. The Conference concluded its work in June, and it is now the task of this Assembly and of other internatlonal organizations to make the bestof its results. Although I was intimately involved in the work of the Conference from itsinception in December 1975 asone of the two Cc-Chairmen, I am speaking today from a Canadian perspective. As the Assembly knows, my partner in this work was the Minister from Venezuela, Mr. Manuel Perez Guerrero, and I should like to express my appreciation for the outstanding work he achieved in the course of our negotiations, which work had been preceded by an outstanding career in various development activities in the United Nations. 39. I want to give the Assembly some Canadian views on the outcome of the Conference and suggestions on how bestwe canpursue our work here. 40. At the conclusion of the Conference in Paris, andlater in reporting to the Canadian Parliament on the outcome of the Conference, I expressed the view that we had reached a positive conclusion. In the meantime, and in reflecting further upon what might have happened or, indeed, what nearly did happen at the Conference, I have not altered that assessment. For participants, depending on their particular perspectives, the results of the Conference represent a mixture of success and failure, of progress and disappuint- 41. In examining the results of the Conference I can see several key areas of agreement where work should be proceeding on implementation and where there should be detailed follow-up to the decisions of principle which were taken. 42. There was agreement that there should be a common fund, and negotiations on its purposes and operations will be pursued in the coming months under the auspices of UNCTAD. We want these talks to succeed and will work actively towards that end. 43. Important commitments were made by industrialized countries regarding the volume and quality of official development assistance. A $1 billion programme of special action to assist the poorest developing countries was established and the funds are already being disbursed. As a part of its contribution to this programme, Canada is cancelling over a quarter of a billion dollars in official development-assistance indebtedness of the least developed countries. Progress was made on food security and in bringing the prospect of a 500,000-ton international emergency grain reserve closer to reality. Canada will play a major part in thiseffort. 44. In energy, agreed conclusions were reached on a broad programme of national action and international co-operation aimed at transition from oiland gas towards renewable energy resources, at conservation, at increased efficiency in the use of energy, and at the development of new resources. These conclusions acknowledge the interdependence of world energy relationships. 45. We should now build on the areas of agreement here at the United Nations and through various United Nations agencies, in UNCTAD, at the multilateral trade negotiations, through IMF and the World Bank, and through the organizations involved in world food production and security. National Governments must follow up quickly and fully on theircommitments. 46. On a number of issues which were examined in depth at the Conference, the end result was disagreement. These included the areas of compensatory financing, purchasing power of raw materials and energy resources, indebtedness of developing countries and adjustment assistance measures for industrialization. The need for further work in these areas is obvious. 47. The 18 months of dialogue pointed out quite vividly the differences which existand which will continue to exist among countries on so many important economic issues. These differences wiJI continue because Governments will, quite naturally, pursue their political mandates and their national interests in economic policy, and this will lead them in different and often conflicting directions. 49. The purpose of this resumed session is to give some guidance to the United Nations system concerning the role its constituent elements should play in following up on the results of the. Conference. The Second Committee, beginning at this resumed session and continuing through the thirty-second session, must get on with this task. It shbuld address itself to the issues on which therewas agreement at the Conference as well as to those on which there was no agreement. It should provide for the involvement of existing institutions to the full extent of their capacities, and it should recognize the crucial role to be played by the World Bank, IMF, UNCTAD andthe General Agreement on Tariffs and Trade. SO. I want to say a particular word about energy, because it has been a sensitive andimportant element of the debate at the Conference and because there is no obvious place within the existing system of international institutions to deal with energy issues. As early as the mid-1980s, world energy supplies are likely not to be adequate to sustain the economic progress that all countries desire, There is consensus on the gravity of the energy challenge facing the world community, and on the need for a co-operative response. 51. We recognize the need for new and reinforced measures for energy conservation and efficient use, increased efforts to develop additional andalternative energy sources to replace depletable oil and gas, and energy research to develop new and more sustainable energy sources such as solar or wind power, We recognize the particular problems of energy-deficient developing countries, which require energy and related financial resources to sustain their economic development. To develop fully the indigenous energy potential of those countries, increased flows of capital from international financial institutions will be necessary, especially from the World Bank. To this same end, international measures to increase energy technical assistance will be required. In the short term, these financial and technical measures should aim at intensifying exploration for oil andgas and the exploitation of untapped alternative energy sources, such as coal and hydroelectric power, in those energy-deficient developing countries. 52. Our joint efforts to meet the energy challenge have been well launched, but, they are incomplete, It will be necessary for countries to work together to bring about the fullest and most efficient development of the earth's energy resources. At thisresumed session and at the regular session which begins next week the General Assembly will have to addreSi itself to the question of howbest to deal withthese issues on a practical and effective basis. Canada, as both a producer and a consumer of energy, isprepared to workin 54. In our futurework on issues of international economic and social development it would be wrong to underestimate the difficulties facing developed countries. In Canada, our people are understandably concerned with domestic economic problems, such as unemployment and inflationproblems which directly affect their lives. Governments have to muster public support in difficult economic circumstances for changes and adjustments which will, by their very nature,impose additional burdens on our people. This is an important challenge to the leadership of developed countries andone we muststrive to meet. 55. We shall be aided in meeting this challenge by an atmosphere of understanding. We know that developing countries are impatient for change in the world. They are right to be so. But there must be some recognition, some appreciation, of the important and difficult steps which developed countries have taken towards meeting the concerns of the developing countries. Several such steps were taken at the Paris Conference. They involved difficult decisions by Governments. If those steps are not recognized as being positive and as contributing to progress, the political atmosphere in the future may not beconducive to further positive steps. I hope that this political factis borne in mind by all of us in our deliberations at this resumed session. 56. The commitme~t' of Governments and leade~s can be iitfluenced by the 'atmosphere I have mentioned. At the Conference the direct andpersonal involvement of political leaders from participating countries contributed both to increased awareness on theirpart of the complexities of the economic problems which confront the international community and to the resolution of some of the differences which existed at the end of the Conference. We can learn from thisexperience andbuild uponit for the future. 57. I would underline, in conclusion, that all of us have a common interest in the health of the world economy, especially in reducing unemployment andinflation internationally. Full economic health must be restored and maintained if the international system and the economies of our countries are to increase theircapacity to contribute to economic and social development. Restoration of the health of the world economy and greater equity in the international economic system are urgent goals which I believe are compatible.

The delegation of Venezuela IJ.as been given the opportunity to speak at the beginning of our debate in this resumed thirty-first session of the General Assembly 59. We two therefore have the responsibility of making a brief oral presentation of the final report of the Conference, and I shall avail myself of thisopportunity to make some brief comments on its results and on the actions which we must undertake in this new stage of the North-South dialogue. These comments will, I am sure, in large measure reflect the thinking of the developing countries, even though it will be for Mr. Iqbal Akhund of Pakistan, Chairman of that group, to state the position of the 77. 60. My delegation is fully in accord with the opinion of the former group of 19, as stated in paragraph 8 of the report to which reference hasbeen made, anopinion which was supported by the Group of 77 when, on 7 June last in New York, I reported to it in my capacity as co-ordinator. 61. We shall always remember as a factor of great significance going beyond the significance of the Paris Conference itself the demonstration of unity by the 19 developing countries. We, the 19 countries which participated in the North-South dialogue, as it is called, are pleased that this attitude of solidarity was recognized as a positive contribution to the solidarity of the Group of 77 itself. Of decisive assistance in that regard was the constant link that we maintained with that Group, which represents all the countries of the third world. 62. The results of the Paris Conference were limited in scope, particularly when compared with the aspirations of the Group of 77, and were not commensurate with the magnitude of the problems already confronted not only by the third world but by all nations. We can hardly say that the Paris results came about as a result of great vision and consequent courage. Nor can we at this time fully measure the significance of the Conference, since that will depend on the implementation of the agreements reached and the promotion of effective solutions for problems that are still pending. In this connexion, the negotiating conference on the common fund to beheldin November acquires singular significance. 63. However, it would avail usnought to dwell at length at this time on a search for the causes of this limited result. Circumstances did not allow for the fulfilment of the aspirations of the participants, particularly from the developing countries. It was obvious that the key concern of the industrialized countries was to establish a forun. exclusively for a discussion of the energy problem. But it isno less true that the Conference contributed to a better understanding of the problems, particularly during the six months of the analytical phase of the Conference andthat that fact should free us from such discussions in the future. The dialogue lasted longer than had been expected, but it made us all understand that it was necessary to act without delay. 65. The best way to benefit from the few advances achieved in Paris is to proceed diligently to pursue the dialogue within the framework of the United Nations. But to prevent that dialogue from going on and on without concrete results it is essential to set targets within a definite time-frame. The interdependence of the problems requires that the approach be global. The message of the Paris Conference includes positive and negative elements which can be useful in this respect. 66. The apprehension that at the United Nations this dialogue might become diluted can 'be allayed by the adoption of effective methods that will enable us to deal with the problems flexibly and hold real negotiations. On the other hand, we now have a more representative body, the United Nations, which offers multiple advantages. It is in the interest of all to strengthen the United Nations system by the effective use of its organs. Furthermore, the participation of all Member countries, without any exception, is a peremptory need at this critical stage of the dialogue, which requires that we take decisions that will have a great impact on all. At Paris we realized the disadvantages of not having direct contact with all sectors of the international community. That was particularly true in the case of socialist countries in Eastern Europe and of the People's Republic of China. 67. Nevertheless, I should like to reaffirm our gratitude to President Giscard d'Estaing and the Government of France for their initiative and the arrangements whichallowed the dialogue to be carriedout in a cordial atmosphere. 68. We shall see whether what was missing to a decisive degree in Paris will be found in the United Nations now that the dialogue is being resumed: that is, the political will which is indispensable for effective negotiation. It is true that towards the end of the Conference on International Economic Co-operation we observed a new attitude in the group of the industrialized countries represented there, but the agreed schedule perhaps did not allow for that change to be reflected in concrete results. Yet it seemed to us essential to abide by our commitment not to prolong the Paris stage outside the United Nations for a further period. The future seemed uncertain,and the risk was great. 69. Here and now at the United Nations, we shall know whether that new attitude was a passing phenomenon or whether it is really deeply rooted and will be consolidated, as we hope, and thus make the dialogue a fruitful one. I am certain that the developing countries will always have a constructive, receptive attitude towards manifestations of political will by the industrialized countries. For the dialogue to acquire credibility, we must make a firm commitment really to move forward. We are prepared to shoulder our responsibilities, but doubt remains as to whether the wealthy countries are prepared to assume theirs. Let us hope that this doubt will be promptly dispelled and that there will be no errors in calculation which may prove to be very costly. For our part, we are equally determined to pursue international co-operation 70. While at the Conference on InternationalEconomic Co-operation stress was laid on the importance of the energy problem at the present stage and in the foreseeable future, no less emphasis was given to problems confronting the third world, problems which, although often of long-standing, are no less acute and pressing. Two of them were the subject of particular emphasis on our part: the problem of protecting the purchasing powerof the exports of the developing countries, and the problem of foreign indebtedness. 71. Regrettably, the results of the dialogue on those two fundamental subjects were discouraging. The Paris dialogue hascontributed to confirming that the root of the problems of the third world lies in the need to improve and preserve its purchasing power. It is fitting to recall the main elements which should help in the achievement of this objective: better and more stable prices for its raw materials, greateraccess to marketsfor its rawmaterials and for its processed, semi-manufactured and manufactured products; official development aid which will at least reach the target of 0.7 per cent and will thus become more predictable; greater access to capital markets; programmed relief for indebtedness which would cover all situations where such treatment is required; a transfer of technology that will make possible an industrialization process on a competitive basis; adequate participation in the establishment of new monetary liquidity and special attention to the problems of the most disadvantaged countries. We all recognize that not only does the South depend on the North, but the North also depends on the South. Thisnew interdependence means that the problems besettingus must be speedily solved; time is not on anybody's side. Even though the poor countries are the ones that wouldbe most seriously affected, those who have the most-the developed countries-would stand to lose the most. 72. Nevertheless, as I said, this is not the time to dwell on the substance of the questions which were the subject of the Paris dialogue. As regards matters on which there was agreement, we must without delay implement them with the support which the General Assembly gives them. Asfor the other subjects, on which agreement was not reachedat Paris, work will have to continue, in accordance with the procedures and within the framework to be agreed upon as a result of our deliberations. We are convinced that at this stage of the dialogue we must also bear in mind the ideaof ensuring a close co-ordlnation of the efforts to find solutions in the various areas because of their complementarity and the requirements of these important negotiations. 73. If the results are to be politically acceptable to all members of the international community, they must be to everyone's satisfaction, particularly to that of the developing countries, and must take account of the case of the neediest among them. To that end, basic needs must be satisfied within the framework of the new international economic order, and not through an isolated attack on poverty, which for lackof a solidsustaining base wouldnot bring about lasting results. As stated in the new international economic order, it is essential simultaneously to 74. We, the countries of the third world, are aware that the major responsibility for our development lies with us, and that national, regional and interregional efforts-the so-called "collective self-reliance"-are basic and essential. But we are also aware, as we must all be, that without a process of deliberate transformation in international economic relations, developing countries cannot make sufficient, self-sustaining progress. We must shun any easy way out that gives the appearance of a solution, when in fact it establishes links of dependence which are detrimental to all. Our interdependence, which has become clear to all and which we wish to organize, must be based on a lesser disparity of forces between the various sectors of the lnternanonal community. This is the onlyway to make the concept of interdependence compatible with the concept of the greater economic independence of the developing countries. We wish not only to be masters of our own destiny but also to participate effectively in decisionmaking at the international level. 75. The facts starkly and insistently remind us that we have not found a way out of the critical situation which was in the making and showing signs of dangerous maladjustments since the end of the 19608, and which led US to hold the sixth special session of the General Assembly. We must not content ourselves with palliatives or short-term measures. The new international economic order is a necessity, butit would seem that, despite statements of support for a radical change in the system, efforts are still being made in the industrialized countries, consciously or subconsciously, to restore the old order of international economic relations. If that illusion is kept alive, and unless we find a way out of our present situation, we shall sink, trying with inadequate means to attack the dilemma of inflation and unemployment, two seemingly antagonistic seourges. The inflation in the industrialized countries, subject as they are to monetary instability, has heightened local inflation in the developing countries andcaused major dislocations in their economies. Although thissituation has been recognized, little has been done to remedy it effectively. 76. Fortunately, in theindustrialized countries the conviction is gaining ground that the solution of their economic problems is not possible without the solution of the problems of the developing countries. This is not only because of a profound aspiration for harmony amcug our peoples but also by virtue of the very mechanics of the international economy which require new and broader fields of development such as are offered by the third world. Only thus can we replace the atmosphere of insecurity and ill-feeling that is undermining contemporary IOciety by a climate of confidence that will foster the endeavours of all towards our common goal. 78. A wise use of time would prove more fruitful than the already significant efforts for the best utilization of the non-renewable raw materials, because it is only by timely declslons that we can contain and correct a situation of alarming waste. 79. Shall we risk being told in the future, you had the opportunity to move resolutely towards a more just world, but did you not want to or did you not know how to seize the opportunity?

I now call on the representative of Pakistan, who will speak on behalf of the Group of 77.e

The thirty-first session of the General Assembly resumes this week in these brief concluding meetings, in pursuance of resolution 31/14 adopted on 19November last,to consider the results of the Conference on International Economic Co-operation. That resolution, in its preamble, expressed the view that the achievement of concrete and substantial results in all areas under consideration at the Conference on International Economic Co-operation was a prerequisite for the success of the Conference. 82. The report of the Conference issued on 2 June this year {see A/31/478, annex} sets out an assessment of its results by the participating countries themselves. We have just had the benefit of hearing the views also of the leaders of the delegations of Canada and Venezuela, Mr. Allan MacEachen and Mr. Manuel Perez Guerrero, who presided over the Conference on behalf, respectively, of the industrialized and the developing countries participating. A tribute is due to the two Co-Chalrmen for the tact, patience and devotion with which they guided the proceedings of the Conference. I should like to place on record the particular appreciation of the developing countries for Minister Perez Guerrero's conscientious advocacy of their cause and to express to him my own warm thanks for having kept me informed of the progress of the Conference at various stages. 83. Not surprisingly, the report of the Conference records, as have the statements of the two Co-Chairmen, the differences between the two groups of participants regarding the importance and achievements of the Conference. Nevertheless, the self-appraisal of the Conference by its participants expresses divergence within art essential convergence: the expression of disappointment at the failure to agree on most major issues isset off by the affirmation of a desire to continue negotiations. It is our task this week, in this wider forum, to consider the report of the Paris Conference submitted to the Assembly in compliance with its resolution 3515 (XXX); to take into account what was achieved; to weigh it against howmuch remains to bedone; and to assess with objectivity and realism the results of the Conference. It may be useful also to evaluate the effectiveness and viability, in pragmatic as well as in political terms, of the negotiating method andapproach represented by the Paris Conference. 84. One must begin by recalling the events and developments which have brought economic lssues-fhe so-called 85. The adoption by the General Assembly at its sixth special session of a Declaration anda Programme of Action for a New International Economic Order Iresolutions 3201 (8-VI) and 3202 (S- VI)J marked the beginning of an entirely new approach to the development issue, one based on equity and justice, on a fair share for all in the earth's resources and in the making of economic decisions that have a world-wide impact. Such a fundamental challenge to established ideas and order was bound to prove controversial, and it is not surprising that the sixthspecial session of the General Assembly took place in an atmosphere of tension and confrontation. What was surprising was that at its seventh special session, held only 15 months later, the General Assembly was able to reacha consensus not onlyin recognizing the imperative need for redressing the economic imbalance between developed and developing countries but on the lines of action to be pursued in siximportant fields, namely, international trade; transfer of reserves and monetary reforms; science and technology; industrialization; food and agriculture; and co-operation among developing countries. The goodwill and sense of purpose thus generated by that session gave rise to the justifiable expectation that the period of rbstract debate and discussion would give way to concrete negotiation and implementation of agreed decisions. 86. The raison d'stre of the Paris Conference was to provide a forum for such negotiations. In the report, all participants, representing the developing as wel1 as the industrialized countries, recall their agreement that the Conference should " ... lead to concrete proposals for an equitable and comprehensive programme for international economic co-operation, lncluding agreements, decisions, commitments and recommendations ... {and} that action by the Conference should ... make a substantial contribution to the economic development of the developing countries". {A/31/478, annex, para. 5./ 87. For their part, despite some misgivings about moving the dialogue out of the United Nations system, the developing countries went to the Conference in a cooperative and realistic frame of mind,as is evident from the following statement, issued by the developing-country participants in June 1976: "The Group of 19, while concurring with the Group of 8 that the North-South dialogue didnot begin andwill 88. Paragraphs 6 and 7 of the Conference report set out respectively the issues and measures on which agreczv,ent was reached and those on which differences persisted or on which there was a failure to agree. The most significant outcome of the Conference on International Economic Co-operation was the agreement that a common fund should be established as a new entity to serve as the key instrument in obtaining the agreed objectives of the integrated programme for commodities. The developed countries have promised a substantial increase in realterms in the official development assistance flows and have agreed also to consider measures for improving the quality, defmition and distribution of such assistance. A special action programme of $1 billion is to be launched to helpto ease the balance-of-payments and debt-servicing problems of the most seriously affected countries. The Conference agreed, furthermore, on the development of social and economic infrastructure, particularly in Africa. 89. In paragraph 7 of the report areset out the issues and measures on which agreement could not be reached, and these include virtually the entire gamut of demands, proposals and recommendations that have been in dispute for years between the developed and the developing countries. To mention only the most important, there was no agreement on the proposal to give immediate and generalized debt relief for the official debts of the most seriously affected, the least developed, the land-locked and the developing island countries, nor on the recommendation that the system of debt renegotiation be reviewed to give it a developmental instead of a commercial orientation. 90. Until the closing stages of the Conference the developed countries were not prepared even to discuss monetary questions in Paris on the ground that they fell within the province of IMF. When they did agree to discuss these issues they were unwilling to accept any of the specific recommendations or measures that were submitted withthe aim of increasing the share of developing countries in international1iquidity and in monetary decision-making, of gradually replacing with special drawing rights the present role of national currencies as the central reserve asset, and of establishing a link between special drawing rights and development aid. 91. In the circumstances, it is difficult not to asree with the assessment of the group of 19 developing countries participating that the conclusions of the Paris Conference fell short of the objectives set for it by both groups of participants. Moreover, the agreements that were reached in Paris are set out in somewhat generalized form and donot constitute the commitment for specific action that was 92.. The fact that the developing countries consider the results attainedin Paris to belimited in scope and general in nature should not be taken to mean that they belittle the effort made there or overlook tneimportance of thismajor attempt to discuss and settle economic issues which have defied solution in the forums where such issues are usually discussed. We are appreciative of the initiative taken by President Giscard d'Estaing in converting the Conference andthe constructive role played by France inits capacity as host of the Conference as well asa leading participant in it. We share the opinion of the participants asto the usefulness of the Conference in creating a broader understanding of the international economic situation. We take seriously the pledge made by the participants in paragraph 12 of the report "to carry out in a timely and effective manner the measures for international co-operation agreed to herein" /A/31/478, annex, para. 12/, The developing countries asa whole wUl not fail to respond to the call, made in the same paragraph, to join in a co-operative effort to the same end. 93. At the same time, from the Paris experience one can draw the lesson that concrete negotiation has a better chance of succeeding lfthere is political agreement on the aims and objectives of the negotiation and recognition of the mutual interest in attaining them and that whether the negotiating forum itselfis open-ended or limited insize the moat suitable forums for reaching political agreement are bodies and organizations having universal membership. The developing countries are of course mindful of the need to leek consensus and to join all in the search for common ground; indeed, the nature of the questions at issue precludes any other way of finding solutions. 94. The Group of 77, on whose behalf I have the honour to speak today, has prepared a draft paper based on the views and the approach I have outlined. The paper wiJI be formally introduced in the Second Committee at the 95. The need for such action in thisinternational forum is all the greater because of the prevailing economic environment, characterized, in the words of Secretary-General Waldheim, by "an uncertainty more pervasive than at any time since the end of the Second World War".2 In the developed countries economic recovery has been fitful and uneven, inflation and unemployment persist side by side, and the mood everywhere seems' to be to turn inward and foreachto fend for himself. The less-developed countries in their present state of dependence on the situation, the policies and the decisions of the developed countries cannot but experience, many times multiplied, the ill effects of these conditions. Their long-term prospects remain bleak; such progress as they have made in the lastquarter-century hasnot touched the lives of people-7S0 million according to the World Bank-who subsist in conditions of absolute deprivation. A recent studyhascome to the conclusion that the 13-to-l gap between the national product of the developed counr" q and that of the developing countries will remain unch. even in the year 2000 if things are allowed to go on as at present. Finally, even though the developing countries as a whole have, byandlarge, achieved the International Development Strategy targets in many sectors, development has not created the capacity for self-sustalning growth. 96. On the contrary, the indebtedness cl the lessdeveloped countries hasbecome a hindrance to the declared purpose for which aid and loans are giver•. The size of the debt has reached a magnitude which places injeopardy the debtor countries' capacity to repay and the stability of the financial institutions of the creditor countries. The very success of developing countries in manufacturing goods at competitive prices for the consumer abroad has stimulated demands from the affected industries in the developed countries for even greater protection and restrictions than already exist. 97. For their part, developed countries point to the unchecked growth of population in developing countries, their neglect of education and agriculture, mistaken prior- 2 See Official Record« of the General Alltmbl)J. 711irt)Jostcond StIlton, Suppkmmt No. J, sect. VI. 98. On 'a more practical plane, it is proposed that the strategy of development needs to be revised in order to concentrate on the removal of mass poverty and the satisfaction of the basic needs of all the poorof the world, by the end of this century. The concept was elaborated at the World Conference on Employment heldlastyearunder the auspices of the International Labour Organisatlone and has found strong advocates, particularly in the developed countries. ThePresident of the World Bank, Mr. McNamara, considers that the goal is attainable by the year 2000 and that its attainment should be the principal objective of the development effort in the coming decades. We agree that the goal can be attained, and even before the end of the century. A recent Bank staff study, for instance, estimates that with the injection of only '$1.3 billion of additional external aid per year and reforms in the international trading system to enable the low-income countries to increase their export earnings, these countries can double the rate of growth of their gross national productper head. But further study is required to arrive at an agreed definition of basic human needs, to determine whatpolicy changes, internal and external, will be necessary and to decide on concrete measures to attain the objectives. However, it can be seen that the basic needs strategy isbut a facet of the larger objective of increasing the productive capacity and earning power of the developing countries and that there is no conflict between the basic-needs approach and the concept of the new international economic order, which expressly recognizes the needfor social justice within as well as among nations. The declaration by the International Labour Organlsation.s while calling for a transformation of social structures in developing countries, also postulates the promotion of a reciprocally advantageous international division of labour and recognizes that the basic-needs strategy is only the first phase of the redistrib· utive global growth process. The developing countries, for their part, have never questioned that development policy must be people-oriented-both in terms of promoting the individual citizen's welfare and inenlisting his participation in the effort. 99. The fact is that the fundamental natureof the present crisis makes, it impossible to solve problems piecemeal. Given the interdependence of nations, the interlinked character of our problems, the blurring of the line between economic and political policy, between domestic action and foreign affairs, a world view of the current crisis and a comprehensive, all-embracing effort to solve it have become inescapable. The international conferences held in the last few years on issues of global concern-environment and ecology, population and human settlements, food and water, industrialization and employment, the seas and the 3 Tripartite World Conference on Employment, Income Distribution, Social PrOSfeSS ami the International Division of Labour, held at Geneva from 4 to 17June 1976. 4 See document fUS8S7• 100. Yet the world spent more than $300 billion on armaments last year and $85 million in 20 years to eradicate cholera and smallpox from the world. This paradox has become a commonplace of our debates. An even greater paradox lies in the factthat nearly a billion of the world's people and their children after them are doomed to live in self-perpetuating poverty in a world which does have the means, in terms of resources and capital, technology and manpower, not merely to eradicate mass poverty and to enable everyone to satisfy his basic needs, but to enable the world asa whole to advance to yet higher levels of welfare by the rational use and equitable sharing of the earth's resources. 101. The basic assumption underlying the North-South dialogue is that the prosperity and progress of one side cannot be divorced from the welfare and development of the other. This unifying principle must be given substance-the International Development Strategy has been but the shadow of the substance. The time has come to establish a coherent, comprehensive and massive programme which will reconcile conflicting interests and harness the effortsof all-Governments, the United Nations system and other concerned agencies and institutions-for the development of the world as a whole and the establishment of a newinternational economic order.

I now call on the representative of Belgium, who will speak on behalf of the European Economic Community.

I have the honour of addressing this Assembly on behalfof the European Community and its member States. Belgium is currently the President of the Council of the European Communities. 104. At the end of last year when you, Mr. President, decided to leave open the possibility of resuming the thirty·fint session of'the General Assembly, and in particular the "CIhlcussion of agenda item 66, the Conference on International Economic co-operation entered a decisive phase. 10S. This resumption of the thirty-first session is very timely. Sufficient time has now passed to enable us to examJne with objectivity and detachment the outcome of the dialogue of Paris, in which the European Community and its member States participated as a single delegation andexpressed its views with one voice. 106. The Conference was an important milestone in the dialoaue which the developing countries and the indus- 107. The Paris Conference ledto positive results in several important fields, The final report of the Conference, which is before the General Assembly, gives us in this respect an accurate analysis of the situation. Although agreement was not forthcoming in all the areas covered by the Conference in spite of the great effortsmade, we see several reasons for this: first, the scope and increasing complexity of international economic problems and, secondly, the difficulty of making simultaneous progress within the broad range of problems discussed without having first defined priorities andalso the difficulty of arriving at conclusions satisfactory to all. 108. However, the Conference didin factdemonstrate the advantage of a method which seeks to focus discussion more on specific problems and economic realities than on general considerations. 109. The Community for its part believes that it has demonstrated its political will to foster positive results and that it has made a significant contribution to this end.It has, inter alia, presented various proposals which have turned out to be good bases for discussion of several points on which agreements were finally reached. 110. I shall saysomething aboutthese different points. 111. First, in the field of raw materials, the Conference expressed its support for rapid andeffective progress in the application of the integrated programme for commodities. 112. During the meeting of the European Council, held in Rome in March 1977, the Community felt that in appropriate cases primary commodity price stabilization agreements should beconcluded. 113. At the same meeting in Rome the European Council stated tha~ there should be a common fund. At the Conference, the Community, along with its ~artners, made considerable efforts to reach an agreement on the establishment of this fund as a new entity and a key instrument in the attainment of the objectives agreed upon in the integrated programme forcommodities. 114. Secondly, still at the Rome meeting, theCommunity stressed that a study should be undertaken on the stabilization of export earnings for the benefit of developing countries. At the Conference the Community, along with its industrialized partners, proposed that such an international study be carried out, and suggested that the necessary work be undertaken as a matter of urgency within the Development Committee of IMF and IBRD and that it mould take account of all relevant economic and institutional aspects. Unfortunately, no agreement was forthcoming on this point, although all participant. did recognize the importance of the problems raised by fluctuations inexportearninp. 116. Fourthly, the Community and the industrialized countries which attended the Conference made substantial commitments towards increasing the volume andquality of their official development assistance and towards expanding the resources of the multilateral financial institutions for development. We hope that all the donor countries, including those which did not attend the Conference, will joinin tlu:; effort. 117. In the area of the transfer of resources, the Conference achieved significant results for the benefit of low-income countries. Following an initiative taken by the Community at the European Council meeting in Rome, the industrialized countries attending the Conference did in fact decide to contribute $1 billion to a special action programme. That programme would consist in the prompt payment of additional aid to help to satisfy the immediate needs of low-income countries facing general problems connected with the transfer of resources which curb their development. The Community, which for its part will contribute $385 million to a special account of the International Development Association, hopes that the other donor countries. will also contribute to this programme. 118. Fifthly, the Community, along with the United States, made considerable efforts through its proposals on the problem of debt; these proposals are such as would bring about a substantial improvement in the general situation of developing countries which are in debt. 119. Sixthly, an important commitment was made in the area of infrastructure through the recommendation on the Decade forTransport andCommunication in Africa. We are happy that the Economic andSocial Council hasrecognized the importance of this problem by adopting the resolution submitted by Kenya on behalf of the Group of 77. Appreciable progress has also been made in the areas of agriculture and food, as well as in the field of industrialization. 120. Lastly, agreements and conclusions were reached on access by the developing countries to capital markets, on monetary questions andon the support of the international organizations and developed countries for co-operation among developing countries. 121. Thus, conclusions were reached on a number of problems. With regard to others we must continue together to seek conclusions s:1tisfactory to all. 122. In this regard, I would venture to mention two points. First, discussions on the problems of investments have clearly shown the fundamenta' nature of thisquestion 123. The second point concerns energy. This was one of the main problems faced by the Conference. For the first time ~ joint analysis of the world energy situation was made poss' .le by the Conference, which reached common conclus:.""ns on certain major issues. Among the questions whose importance was stressed, I should like to mention the need to lncrease efforts to conserve energy resourcesand in this regard the non-renewable nature of petroleum and gllS was stressed-the need to progress from the present situation where oil is a primary source of energy to an energy situation based essentially on more permanent and renewable sources, and the importance of the availability of adequate and stable energy supplies, which is an indispensable condition for the well-being and economic progress of all countries. In this regard, IBRD has been called upon to play a greater role in the diversification and exploitation of energy resources in developing countries, particularly in energy-importing countries. 124. The need to establish international co-operation in the field of energy was stressed, and the importance of an adequate and stable energy supply, which I have just mentioned, was recognized. 125. In this spirit the Community wUl study with interest the sugestions made by the Secretary-General of the United Nations, and we should like to express to him our appreciation on this occasion. We shall also study other suggestions likely to increase such co-operation. 126. I should like to conclude by pointing out how much this analysis shows that, in terms of its positive results, the Conference on Intemational Economic Co-operation was a notable milestone in the dialogue between developing and industrialized countries. I should like to take this opportunity to pay a tribute to the two Co-Chairmen of the Conference, Mr. MacEachen and Mr. Perez Guerrero, who have done us the honour of coming here this aftemoon. If results were achieved, they were due in part to their understanding of the problems and their sense of realistic compromise. Once again, just a few moments ago, they showed usthe same qualities. 127. The European Community very much hopes that the dialogue that hasbegun cancontinue in appropriate forums on specific problems, without economic realities being lost to sight. In this regard, we share the concern you have expressed, Mr. President. 128. Stressing the interdependence of world economic problems hu become a commonplace; but surely it is this link that explains why it isin the interests of us allto strive to find solutions satisfactory for all in the different fields. 129. In this spirit, the Paris Conference confirmed our common interest in consistent and intensified co-operation between industrialized and developing countries with the

At this time, when theGeneral Assembly isabout to conclude the work of its thirty-first session on development and intemational economic co-operation, my delegation is particularly interested in the fact that the United Nations is considering the results of an initiative taken in 1974 by the President of the French Republic to reopen a dialogue between the industriali.zed countries and the developing countries and is examining the results of a Conference to which my country had the honour of acting as host for 18months inits capital. First of all I should like to paya tributeto the twoCo-Chairmen of the Conference, whose talents, skill, competence and devotion we have admired. I have listened with the utmost interest to Mr. Akhund speaking with his usual eloquence on behalf of theGro!Jp of 77. 132. It was the task of the representative of Belgium to describe the contribution of the European Community to the Paris Conference, but the Assembly will no doubt consider it natural that the representative of the host country should contribute his own thoughts to the debate. 133. In considering the report of the Conference on International Economic Co-operation, the Assembly must be mindful of two possible temptations. One would be to treat with a certain scepticism negoti"tions which were held outside our Organization and which, consequently, for many who are here, remain ratherremote. The otherwould be to be excessively demanding, denying that any progress Wa3 made, since the objective sought since 1974-the establishment of a new intemational economic order-was not immediately or completely attained. 134. While it is true that our common purpose is to establish a system of more equltable and rational relations, the PariI Conference appean as an important link in the chain of effortsundertaken especially slnce thesixthspecial Ielsion of theGeneral Assembly andinother bodies. 135. While the Conference fitted perfecdy into the major debate on the new intemational economic order, the experiment was an original one, first, because of the procedure adopted: nesotiations carried out within a restricted but representative group, with working methods that were no doubt diff4'rent from those of the United Nations. Furthermore, it was the fint global conference organized tu deal with relations between the indultri~ized oountrie. and the third world. Originally it wu launched on the single theme of enerIY, for the discussion of which there wu no forum; then, on the requflt of the developing countries, it wu jusdy broadened to cover all development subjects. Thu. it permitted a more just alleument of 136. The exercise was undoubtedly fruitful. Aremarkable effort at reflection andin-depth consideration was made by the delegations 'which prepared documents covering all subjects and in many cases shedding new light on those which had not so far been well studied. The materials accumulated during those 18 months will certainly not be lost and could continue to foster further work to becarried outby the United Nations. 137. Likewise, the personal contacts which became contacts of trust established among all participants-ministers, senior officers or experts-should assist in creating an atmosphere of understanding in future negotiations. 138. This global, organized dialogue was for its 27 participants dominated by the constant and patient quest for consensus. But it could certainly not attempt to bring a solution to all problems in North-South relations. Experience counsels modesty: it is step by step that progress is made towards a new international economic order, and even if we wanted to ignore that fact economic realities would promptly remind us of it. We must recognize, furt.hermore, that at its final stage the negotiation was not made any easier by the scope of the. subjects for eonsideration or by the difficulties encountered by all in defining priorities. 139. The 160 pages of the final report and its annexes have brought to light a number of agreements which balance out the elements of divergence. Despite areas of uncertainty and missed opportunities, the final result is therefore not negligible. 140. As regards raw materials, a subject that has been at tne centre of international debates for 15 years, the participants in the Conference could not or didnot wish to replace UNCTAD and embark on detailed negotiations on the integrated programme and the common fund. Furthermore, there was the very real problem of the purchasing power of raw materials whose economic and technical implications are, unfortunately, not always taken into account with the desired realism, and it is understandable that the work of the competent committee was arduous and that disagreements subsist. Among themissed opportunitres, one might deplore that a quarrel between parallel institutions prevented a decision on setting up machinery for the stabUization of exportearnings. 141. The fact remains that the Paris Conference wu an undeniable success in that respect: it recognized the principle of the common fund as a key instrument in the integrated programme. Anyone who remembers the difficult Nairobi negotiations, the ulterior motives and the reservations which prevalled when resolution 93 (IV)s was adopted is bound to recognize that the Paris Conference was a "conceptual break-throush". The importance of the 5 See ProcNdl., 01thl Un/t,d Nfltlom Conf",nc, on 'l'rtIdlMd DlHlopmtnt. Fourth Stlllon, voL I, RtpOrt find Amuxn (United Nations publication, Salfl No. E.76.ILD.I0), partoneA. 142. Under the heading of "Development", the participants dealt with a large number of subjects. Owing to a lack of time, the essential question for the future-the transfer of technology-was not considered as attentively as it should have been. The complete range of industrial and agricultural problems could not be covered either, even though agreement was reached on both controversial and fundamental issues for the future growth of the third world, issues such as the confirmation \')f the target of a 2S per cent share of induetrial production for the developing countries by the year 2000, the continuation of consultation mechanisms, and the increase of the flow of aid for agriculture so as to enable that sector to develop at the rate of4 percentperannum. 143. Questions relating to the transfer of resources were also at the core of the debates. As regards debt, we understand the insistence of the developing countries on obtaining relief from theheavy burden of debt which many of them bear. However, it is not possible to accept mechanisms for an automatic moratorium without endangering the entire international credit system-which would certainly not be in theinterest of the debtor countries. The countries of the European Community, together with the United States, have therefore conceived an improvement in the procedures for review'of the situation in those countries, making it possible to conserve a case-by-case approach and at the same time to come to the sZJCedy assistance of countries most seriously threatened by pay· ments crises. The proposal could not be justly assessed at the last meetings. That was yet another opportunity which was missed, but the fort~coming resumption of debates on debt enables usto hope that this will berecognized. 144. The situation of themost seriously affected countries confronted with ·balance-.of-payments difficulties wutaken into account. Special action for them was decided on by the industrialized countries which participated. This wlll complemerthe regular bilateral and multilateral programmes which should themselves register a marked increase for the eo jing years. That is one of the most positive results of the Conference, becaulC it really opened the eyes of several industrialized countries to the need to agree to more official development assbtance. Since the drafting of the InternaUonal Development Strategy for the Second United Nations Development Decade, the United Nations has met with reticence on the part of certain developed countries to accept the target of 0.7 per cent, which in practice wu reflected in relative stagnation with regard to official development assistance. The manner in which the problem was considered in Paris made it possible to overcome that obstacle and, for the first time, to arrive at differentiated commitments by all countries effectively andsubstantially to increase their assistance. The announcements made by certain developed countries are, in this respect, mOlt encouraaing, and it can be expected that the Paris Conference will have had the effect of renewing the stobal pr0ltess ot ;"fficial development assistance amonl the members of the Development AIIistance Committee in circumstances that wore rather difficult. France hopes that 146. In the financial sector, apart from indebtedness, the question of direct foreign private investment was discussed at length. It seems economically sound to have recognized the usefulness as well as the necessity of maintaining an appropriate investment climate with clear and stable conditjons and regulations in the recipient countries. Points of disagreement remain, on such subjects as indemnification and the settlement of disputes, but these are questions with strong political implications the solution of which will require, I believe, further debate and more mutual confidence. 147. As regards energy, it would be unreasonable, let us admit, to present a totally satisfactory report. When the dialogue was started, the French authorities were not the only' ones to point out the need to remedy the lack of institutions in this field and, in one way or another, to create an organ that would make possible continuous consultations among producers andconsumers. This forum, which many countries, andnot only the group of industrialized States, sofervently hoped for could not be established. Yet it is a fact that the Conference on International Economic Co-operation made it possible, for the first time, to have an in-depth debate on the economics of energy and on the problems raised by the transition to new sources of energy. Agreements were reached on the need to develop supplies in the importing developing countries in particular, to rationalize consumption, to increase co-operation in energy matters among industrialized and developing countries, and to intensify the activities of the World Bank in that sector. This review should be continued, and in this respect we are prepared to consider the suggestions already made by Mr. Waldheim or any which may be made in the future. 148. That, briefly, depicts the range of problems which we must take into account when considering the report of the Paris Conference. That Conference has strengthened dialogue by establishing negotiations without precedent in their framework and methods. It made possible anin-depth study of the problems of andobstacles to development. For the industrialized countries it represented an encouragement to consider the claims of the third world with more understanding. The Conference produced results which are all the more important, since they carry the weight of consensus and can therefore have a stimulating effect on later discussiors. 149. This is but little, some will say, compared with the no doubt excessive hopes they had placed in that exercise. But it represents some progre.., if we consider that the quest for rationality and justice in international economic relations is a long and arduous task.

One of our slave forebears once said that those who want freedom and justice without struggle want crops without the tilling of the soil; they want rain without thunder andlightning; they want the ocean's beauty without its mighty roar. A new international economic order will be a struggle; it will not be easy in any sense. But, thanks to the wisdom of the President of the thirty·first General Assembly session and of the Cc-Chairmen of the Conference on International Economic Co-operation, we are able to make this a diplomatic struggle. 152. We are here today to take further steps towards the promotion of a new international economic order-an order which serves the needs and concerns of all the world's citizens and encourages the participation of all in its development and improvement. The United States Government is prepared to contribute all that it can to the construction of that new order. 153. I believe there is a consensus in this body that this session should signal the beginning of a new phase in a continuing international economic dialogue-one in which we get down to business in a process of working towards more equitable and productive economic relations among States. My Government believes that the Conference on International Economic Co-operation contributed in an important way to the productive dialogue on development co-operation among all countries, to which we committed ourselves at the seventh special session of the United Nations General Assembly. The Conference did not accomplish everything for which we had hoped. It marked an important step forward in creating an international economic system built on growth, equity and justice. This session of the General Assembly should provide a general assessment of the work in Paris and provide thestimulus for renewed endeavours In many forums where negotiations can proceed on the unresolved issues. 154. The Conference on International Economic Co-operation adv~ced the dialogue in a number of significant .ways. We agreed on a large number of issues, as recorded in the Conference communique. We improved understanding of the international ene JY si'uatlon andagreed on the need for international co-operation in energy supply and development. We agreed to negotiate acommon fund. We agreed that the flow of resources to the developing countries should be increased substantially, committing ourselves to support a generalized capitsl increase in the World Hank and a special action programme to assist the poorest countries. We reached agreement on food and agriculture, and on the importance of infrastructure development, especially in Africa, andon many aspects of investment. 155. Certainly, there were areas in which the different views of various participants could not be reconciled. For example, we regret that the debt issue was not resolved and 156. The principal importance of the Conference on International Economic Co-operation is its role in the continuing process of building a new and more equitable international economic order based onglobal economic and social growth and stability, greater equity in income distribution, greater concern for human rights and basic human needs, and greater participation for the developing countries. 157. As Secretary of State Cyrus Vance stated before the Organization forEconomic Cooperation andDevelopment: UWe have concluded an era when the question was whether to co-operate. We have begun a period in which we must develop the means and institutions for co-operation. That is the corner we have turned a.t [the Conference] ." He added: "Solutions to our problems rest on the realization that our problems are linked to those of thethird world-and that the aspirations of our citizens are similar to theirs." 158. In this sense we feel that the Paris Conference represented very substantial progress in resolving some basic conflicts in attitude, which have so often characterized economic dialogue in the past. We have a new understanding of the common nature of world economic problems. 159. All nations, however, should renew their commitment that this continuing and vital effort to further an international system providing greater growth and justice for all nations and peoples should go swiftly forward. As Governments, we must be flexible in ourapproach, bearing in mind that a new international economic order can only be reached through an ever growing consensus, through an evolving process that includes a constant willlngness to grasp new proposals and, if necessary, to abandon or modify old ones, all the while keeping in mind certain fundamental principles. 160. In mentioning these fundamental principles, my delegation would like to make clear thatouracceptance of the concept of a new international economic order is not just a semantic exercise but a commitment to change. I need but be very brief in mentioning some of the key elements involved: equitable participation by developing countries in the global economic decuion·making process; the aSluranCe of greater stability in prices and supplies of raw materials through individual commodity agreements where appropriate; a commitment to the eradication of hunaer through increases in food production in developing countries; the development of indiaenous scientific and technological capacity in developing countries through co-opertttive andmutually beneficial efforts; the facilitation of transnationaJ investment and the spread of technology throup, amonl other means, a consensus on codes of conduct; an improved access to markets, partictllarly in 161. My Government would like to make clear its commitment to discussing all these issues, and the means of achieving them, in forums likely to produce results. Atthe same time, we wish to make clear that, in accepting the concept of a new Jnternatlonet economic order, we donot believe that there exists today agreement on all itselements nor a blueprint for achieVing all those elements on which we agree. There are major questions which remain to be resolved, But we do sense that there is both a renewal of political will to obtain mutually acceptable and beneficial solutions and a realization and reaffirmation of therealism necessary if these solutions are to be reflected in the operation of the world economy, and notjustinresolutions and documents of this body. Each country may have its ideal view of what a new lnternatlonal economic order might be. The process of its realization will involve a compromise of the elements ofeach "bestpossible" vision. But if we always keep in mind the basic objectives of our effort, the work of this resumed session of the General Assembly can contribute to further international consensus.

The General Assembly is now meeting in its resumed thirty-first session to consider the item entitled "Development and international economic co-operation: Implementation of the decisions adopted by the General Assembly at its seventh special session". The Chinese delegation would like to make a few observations on the relevant questions. 163. In recent years, the people of the world, particularly the people of the third-world countries, have been waging an increasingly extensive and intensified struggl" against imperialism, colonialism and hegemonism in the political and economic fields. Since the sixth special session of the General Assembly, the numerous third-world countries and peoples have carried out vigorous and momentous struggles against exploitation, plunder, control and the shifting of the consequences of economic crises by imperialism, particuJarl)' the super-Powers, against the decadent old order and for the establishment of a new international economic order, and new victcries have been won continuously in these struggles. We are pleased to note that a great number of third-world countries have firmly protected their sovereign right over their natural resources and to this end have taken a series of resolute measures to strengthen their administration and control over trans· national corporations and gradually to nationalize thoee foreisn monopoly enterprises that control their national economic life-lines. Standing up firmly against all kinds of threats and pressures exerted by the super-Powers, the oil-exporthlS countries of the third world have ufeluarded and developed the fruits of their successful joint strugle, and joined the other developing countries in mutual support and united struggle. Following the example of the ul .trugIe, various org£nizations of ccuntrles which produce and export raw materials have kept on arowinl 164. Naturally, the establishment of the new international economic order cannot possibly bean easy job;it will bean arduous and complicated struggle over a long period. One super-Power describes the new international economic order as a so-called "broad,evolving concept" in anattempt to protect its vested interests, while the other super-Power tries to substitute by fraudulent means the so-called "restructuring ofinternational economic relations" for"the establishment of a new international economic order" in a vain attempt to falsify the essence of a new international economic order and thus bring the numerous third-world countries into itsownsystem of exploitation. 165. This shows that, in order to establish a new international economic order, the numerous third-world countries must wage unremitting and tlt-for-tat struggles against sabotage and obstructions by the super-Powers, The Paris Conference on International Economic Co-operation, known asthe North-South dialogue, went on intermittently for one year and a balf. Throughout the Conference, the third·world countries maintained unity, upheld principles, persisted in struggle and made positive efforts by putting forward a series of correct propositions in various aspects. However, as a result of the numerous obstacles and unreasonable obstructions raised by a super-Power, the Conference failed to achieve substantive progreu on major Jalues. In order to preserve the old international economic orders, sabotage the just struggle of the third-world countries and lead the Conference astray, that super-Power even !iut forward the preposterous idea of 8Cparating the energy iuue from those of other raw materials and from other important issues, in a vain attempt to retain its manipulation and monopoly over oil prices and thcJs fetter the developina countries on the /'In!,;l¥)' is.ue. ThJa naturally met with strong opposit!~d on the part of the developing countries. 166. The Chluese Government and people have always deeply sympathized with and actively supported the thirdworld countries in their .truule to reform the most unreasonable pattern of exiatins international economic relation., to e.tabliah the new international economic order, and to oppose exploitation, plunder, controlanc. the shiftina of the consequences ofeconomic criJes byimperial- »m, particularly by the super·Powers. We support all the jut propotitions put forward by the third·world countries at the Paris Conferel1(e; we support their effort. to ettabliah the intearated prOJramme for commodities andits common fund; we support the alleviation of the debt burden of the developina countries and their reasonable

It is indeed a great pleasure for me to be given this opportunity to speak on the Conference on International Economic Co-operation, in which Japan participated and played an active role, including the exercise of the chalrmanshlp of one of the commissions. 169. The problems of development and economic cooperation which concern us all in our Organization, and which were the main subjects of the Conference, are not those susceptible of easy and quick solution, and accordingly I believe that various international conferences on development and international economic co-operation should be viewed in the context of our constant efforts to acWeve our objectives-that is, as a step or steps in the process of our common efforts. Thus, when we try to evaluate the Conference on International Economic Cooperation, we should not term it either a su:cess or a failure. It should not be judgad as an isolated effort. Rather, we should try to look at the Conference from the standpoint of whether it helped us to make progress in our joint search for the solution to various problems of development and co-operation. My answer to that question is"Yes". 170. The Conference on International Economic Co· operation was organized with clear recognition by all concerned of the sianiflcance of the arowing economic interdependence among countries. Over a period of one year and a half thi, North-South dialogue dealt with the problems of energy, primary commodities, the flow of resources and other problem areas which subatantially influence the world economy. I wish to take this opportunity to pay my tribute to the conatructive and ef.cctive leaderahJp exerted by the two 'Co-Chairmen of the Conforenee, Mr. AlIan MacEachen and Mr. Manuel P.rez Guorrero. The di.IOlue helped to increue undoratandinl of those problems and conatituted a lfanfflcant step forward in solidifyanl the foundation of co-operation between tJw North Ind the South. I would caU special attention to tht achievement of a number of sJaniflcant results, suchu the qreement on a common fund, theone·bnuon·doUar spedal action prOJramme, the increaH in the flow of resources, andso en. 171. This re.umed thirty·flrat MUion of the General A1Hmbly olfo... an important opportunity to dilCulI how 172. At the concluding ministerial meeting of the Conference our chief representative, the Minister of State for Economic Planning, Mr. Kuranari, stated that Japan plans to more thandouble itsofficial development assistance over the next five years. This policy was confirmed repeatedly during the recent visits to countries members of the Association of South-East Asian Nations and Burma byour Prime Minister, Mr. Fukuda, Here I wish strongly to reaffirm our determination to carry out this plan. As part of our efforts to assist low-income countries, the Government of Japan has decided to contribute $114 million to the special action programme decided upon at the ministerial meeting of the Conference. In addition to these commitments, my Government plans to implement the otheragreements reached at the Conference. 173. As regards the problems on which agreements were not reached at the Conference, my Government would like to continue the search for solutions satisfactory to all concerned through dialogue in a number of international forums. 174. Primary commodities constitute one of the most substantial and complex problems that are being taken up in the North·South dialogue. Long-term stability and improvements in commodity trade are anessential factor in making possible the steady economic development of the developing countries. In that connexton, I believe that the proceedings of the R~w Materials Commission, of which Japaa and Peru were Co-Chairmen, succeeded in furthering the common understanding necessary for the realistic solution of this problem. In particular, we consider that the agreement reached in that Commission for the establishment of a common fund was one of the most visible and valuable accomplishments of the Conference. My Governmentsincerely hopes that a satisfactory agreement, acceptable to a large number of both developed and developing countries, can be reached at, the resumed negotiation session in November. My Government plans to participate actively in the existing international commodity agreements, and especially with regard to making a voluntary contribution to the fifth international tin agreement. Also, we pledge that we wUl do our utmost to help achieve the ..tisfactory conclusion of other commodity agreements that are now being examined in otherinternational forums. 175. I believe that our attention should be focused on the many agreed areu, including conclusions and recommendations on availability and supply of energy, in the Energy Comntilsion.lt is resrettable that an asreement was not reached on the continuation of the dialogue on energy problems. My Government considers that it is extremely important to promote internationRI co-operation in the solution of enerIY problems and that the dialogue on the wide range of energy problems should continue in an appropriate international forum. 176. Many proposals regarding tll~ problem of accumul~ted debts were made. Althou~h no agreement was reached, the long negotiations have contributed to a clearer understanding of the problem. My (jewcrument plan, to 177. The problems of food, agriculture, industrlallzat.on and trade had already been examined in a number of international bodies, but the further discussion in the Development Commission contributed to a better understanding of the problems in all these areas, and my Government welcomes the significant progress made in several of the-n. I sincerely hope that the achievements of the Conference in these areas will induce further progress in various international bodies. 178. Japan has long been co-operating with other Asian countries in the construction of their various lnfrastructural facilities, since W0 recognize the importance of infrastructure in the process of economic development. We understand, therefore, the strong aspirations voiced at the Conference by African countries for the development of infrastructure, especially in transportation and communications, and we wish to express our satisfaction ~!t the important role that the Conference played in promoting international co-operation in Africa. When the programme of the Decade of Transport rnd Communication in Africa is being implemented, my Government will extend its eooperation along with otherdonor countries. 179. Considerable progress on international finance was made in the Plnrnclal Affairs Commission, and the agreement on access to capital markets is anespecially welcome development. Direct private investments properly executed in the developing countries are widely recognized for their contribution to the economic development of these countries. My country hopes that the dialogue will be continued on those factors that are intended to improve the investment climate in the developing countries. 180. Parallel with the efforts deployed in the Conference, some significant actions have recently been taken in other forums. One of them was the fifth replenishment of the Internatlonal Development Association; Japan has pledged a contribution of $792 million, that is, the equivalent of 10.4 per cent of the total of $7,638 million; and also a contribution of 900 million special draw'ng right~, that is, the equivalent of 10.4 percentof the total of 8,600 million special drawing rights that have been pledged to the supplementary lenc'mg arrangements of IMF. I firmly believe that these measures are certain to improve the balance of payments situation and contribute to the economic development of thedeveloping countries. I might add that these are not isolated actions by IBRD and IMP, but are the results of continuous andconstructive dialogue between North and South. IRI. The North-South dialogue on thesearch for solutions to the complex problems of the world economy is not an easy endeavour forany of us concerned. The Conference on

I wish to draw the Assembly's attention to a draft resolution, contained in document 183. I should like to offer my best wishes for success in their deliberations to the Chairman of the Second Cornmittee, Ambassador Valdes of Bolivia, and the members of the Committee. I hope the Committee will have its report ready for circulation at an early date.