A/34/PV.43 General Assembly

It is a fine coincidence that agenda item 55 which we are now discussing comes under the purview of Article 55 of the United Nations Charter, which states: "With a view to the creation of conditions of stability and well-being which are necessary for peaceful and friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, the United Nations shall promote: "a. higher standards of living, full employment, and conditions of economic and social progress and development; "b. solutions of international economic, social, health, and related problems; . . . " 2. In fact, it is the noble provisions of Chapter IX, and particularly Article 55, which distinguish the Charter from the Covenant of the League of Nations, because at Dumbarton Oaks and at San Francisco the founding fathers of the United Nations stressed the importance of economic self-determination along with political rights. The main reason for establishing the Economic and Social Council as a principal organ of the United Nauons was the urgent need to cope with the economic and social progress of nations. 3. Since the adoption of the Charter along the silvery shores of the Pacific in the beautiful city of San Fran- cisco, more than three decades have passed and the United Nations has witnssed the achievement of near universality, and the political emancipation of Asia Afric~ and Latin America, except in a few places, ha~ happily been realized. But the political self- determination of nations, with colourful flags and beautiful and impressive national anthems, has done nothing to solve the economic. problems. Political and 8. As statistics show, there has been no increase in economic self-determination is a prerequisite for main- growth in the developing world during the last few taining the independence and sovereignty of' 'newly- years, and there is no hope for the future if the present emerging nations. Otherwise, the old form of co- short-sighted and inward-looking approach is followed lonialism which leaves from the front door will certainly by the industrial countries. As a result of ·this inward- come back under the guise of neo-colonialism and looking approach, under-development, malnutrition, ii- 905 A/34/PV.43 NEWYOAK economic domination through the back door. It is because of this injustice that after the passing of three decades, with a growing world population and increased poverty, the economic problems of the developing world have become more acute and serious and the gap between poverty and prosperity, between the rich and the poor, between the developed and the developing countries, is widening. Because'of the refusal to negotiate with reason and to restructure international economic relations, the world-wide economic crisis has increased. 4. Many centuries ago the Roman philosopher Seneca said: "Hungry men do not listen to reason nor care for justice and do not bend for prayers." But as we see in our times, some nations in the North do not' listen to reason nor care for justice. 5. Two Development Decades have been proclaimed but little progress has been made. The declarations of the General Assembly, the conclusions of five sessions of UNCTAD, the call of six Conferences of Heads of State or Government of Non-Aligned Countires, the many declarations by various regional and international gatherings as well asthe many appeals by the Group of 77 have all fallen on deaf ears. Today, two thirds of the people in the developing world are impatient and restless and express grave concern over their economic and social misery. They are r~ghtly dissatisfied with the insufficient progress made in the negotiations on the im- plementation of the Declaration and Programme of Ac- tion on the Establishment of a New International Economic Order adopted at the sixth special session of the United Nations General Assembly {resolutions 3201 (8- VI, and 3202 (8- VI)]. 6. The developed free market countries, neglecting their humanitarian obligations under the Charter and wishing to maintain the status quo based on economic domination and exploitation, display no political will for economic co-operation. 7. They stall when it comes to contributing a small amount of help.and understanding but they are willing to spend $1.5 billion every (fay for armaments and weapons of mass destruction; they are not ready to divert 10 per cent of that amount for a fund to save billions of hungry, naked, undernourished and sick peo- ple in the developing world. It was mainly because of that attitude that the fifth session of UNCTAD, which was held at Manila last May, was unable to achieve even minimum results. The present rigid attitude of those countries will result in an escalation of the world economic crisis. 9. The developed nations use the high level of inflation and unemployment, their failure to control them and their chronic difficulties with their balance of payments as an excuse for not adopting measures to meet the urgent needs of developing countries and for not agree- ing to restructure their economies to meet present-day needs. 10. Among the developing countries, the least developed and the land-locked countries of Asia, Africa and Latin America, in addition to the most seriously affected countries, suffer from both inflation and reces- sion, from the high prices of the capital goods of the industrial world, the uneven trends of trade, the dete- rioration of the international monetary situation, the increase of foreign debts, a protectionist policy and high tariffs, on the one hand, and spiralling high prices of energy, on the other. The proverb in my country that "from one side comes the bull's horn and from the other the hammer of the blacksmith" applies to the situation of the hungry, naked, sick, homeless and impoverished people of these countries. 11. After the disappointment of the fifth session of UNCTAD, the Committee of the Whole was established under General Assembly resolution 32/174 to monitor the economic situation. As was stated so ably at the 40th meeting, on behalf of the Group of 77 by its Chairman, the representative of India, as well· as by Mr. Stoltenberg of Norway as Chairman of the Committee of the Whole, that Committee held two important meetings before and after the Sixth Conference of Heads of State or Government of Non-Aligned Coun- tries l to review the serious plight of the developing world and to present its decisions to the General Assembly at this session for urgent consideration. 12. During the Committee's debate, both the Secretary-General of the United Nations and the Director-General for Development and International Economic Co-operation, as well as the Director of UNIDO, the Secretary-General of UNCTAD, represen- tatives of other agencies and the member States of the Committee, emphasized unanimously the need to restructure the pattern of global production, consump- tion and trade so as to ensure, among other things, a substantial enlargement of the share of the developing countries in world industry and their exercise of full and effective control over the use of their natural resources. The Group of 77 in the Committee of the Whole, the non-aligned countries at their meeting at Havana and their Ministers for Foreign Affairs, meeting earlier this month at Headquarters, supported the new proposal for a fresh round of global negotiations relating to interna- tional economic co.operation for development. This proposal was the most important step taken by the heads of State or Government at Havana; it was endors- ed in New York at the meeting of the Committee of the 13. In the light of the critical world economic situa- tion, the existence of the growing gap between the rich and the poor and the increasing importance of and restlessness in the developing world, the delegation of the Democratic Republic of Afghanistan believes that item 55 at present under consideration and the proposal put forward by the Group of 77 in the Committee of the Whole represent the most crucial and important matter before this session of the Assembly, and demand our serious attention. It is also our considered opinion that, regardless of its ineffectiveness during 1977 and 1978, the Committee of the Whole has tackled the issues before it this year very seriously, and we agree with the Chairman of the Committee, Mr. Stoltenberg, that it is only in this forum that we can revitalize and strengthen the North-South dialogue and make global negotiations effective. The failure of the Paris Conference on Inter- national Economic Co-operation, as well as that of the fifth session of UNCTAD at Manila to which I have already referred, makes it more essential that the Com- mittee of the Whole should be an effective forum for North-South dialogue, because that Committee pro- vides not only an economic but also a political forum in which we can move towards the basic solution of world economic problems. 14. The Committee of the Whole in the short time at its disposal was unable to adopt definite proposals, but it indeed considered seriously all the issues confronting it; it identified those principles on which agreement was possible and those issues on which further consultation was required; it was in no hurry to adopt any proposal but it offered time for reflection and negotiations. The Committee of the Whole agreed unanimously that if global negotiations take place within the framework of the United Nations, perhaps in the Committee of the Whole itself, many issues confronting us will be resolv- ed, provided that those negotiations take place within a strict time-frame in order to ensure speedy results. IS. We also consider that the global negotiations pro- posed by the Group of 77 would in no way duplicate ongoing negotiations such as those relating to the inler- national development strategy, but that more effective global negotiations, held seriously and honestly within a time-frame, would tackle all major issues and make the New International Economic Order a reality. It is up to the Chairman of the Committee of the Whole and the Committee itself to arrange to hold more frequent high- level meetings in order to make adequate and necessary preparations for the essential global negotiations and to prepare the ground for the forthcoming 1980 special ses- sion. 16. There are other proposals in relation to special categories of States, such as land-locked ones [ibid., annex VI!], which are facing acute economic situations because of the injustices of geography and history, as well as is~and developing countries [ibid., annex VI] and most senously affected countries [ibid., annex IV]. I hope that these texts will be given serious attention and consid~ration in both the plenary Assembly and the Committee of the Whole. While I am not giving priority to any. specific proposal attached to the report of the Committee. now before us, I deem it my duty, as a representative of the least developed countries and of 17. At this stage, as I have said, I do not want to touch upon the substance of these resolutions because, as the representative of India in his capacity as Chairman of the Group of 77 stated, those resolutions will be discuss- ed after careful consultations in November, and there is ample time to explain our views on them. What I would add now is that, in accordance with the old saying that charity begins at home, the Group of 77 and the developing countries should co-operate first in any way they can with one another; then they will be more united when it comes to the global negotiations to solve the ma- jor economic problems which confront us today. 18. We must be vigilant and determined in our efforts and not miss any opportunity for the good of mankind. We believe that the whole world is like a single home, and that under its roof every nation should live as a member of the same family. We should all help one another like members of one family. 19. Me. SADEGHI YARANDI (Iran): This is the sec- ond consecutive year in which the General Assembly is considering the item on development and international economic co-operation at its plens-y meetings. This procedure has been adopted in order to re-emphasize the legitimate concern of the international community at the grim prospects for the world economy and in par- ticular their grave consequences for the developing countries. It is therefore an appropriate occasion to make an objective evaluation of the results of the ongo- ing negotiations in the Committee of the Whole and other United Nations forums, with a view to giving new impetus to the future course of action. 20. The outcome of the negotiations on international economic co-operation both within and without the United Nations system have so far been alarmingly disappointing. 21. The convening of the sixth special session of the General Assembly raised much hope and expectation in the developing countries which have long suffered from the cruel injustices and inequities of the prevailing world economic order. They put their hope in the growing recognition of the fact that the world economic order created after the Second World War was coming to an end and that a new and just order was in the making. It 22. The Paris Conference on International Economic Co-operation was yet another phase of the North-South dialogue held outside the United Nations system, the outcome of which is well known to this Assembly. The establishment of the Committee of the Whole, at the United Nations level, to continue the negotiating proc- ess within the framework of the New International Economic Order has, so far, proved inconclusive. The results of other international conferences and meetings convened at great cost by the United Nations - such as the fifth session of UNCTAD, the United Nations Con- ference on Science and Technology for Development, the multilateral trade negotiations and so on - are also discouraging. 23. All efforts undertaken since the initiation of the first round of negotiations between the rich North and the poor South at the first session of UNCTAD2 have thus either failed or had meaningless results. It is par- ticularly disquieting to see that, while international negotiations on the pressing problems of the world economy have failed to produce any meaningful results, the actual economic situation is rapidly deteriorating. The world economy is facing the most serious crisis since the Second World War. The adverse effects of this deep crisis are increasingly imposed on the vulnerable economies of the developing countries. The studies and reports on the economic development of the developing countries bear witness to the shocking realities prevail- ing in those countries. Yet their situation is constantly worsening, in comparison to the economic gains of the developed countries. 24. The underlying cause of the failure of all interna- tional actions to redress the present condition of the world economy is the perpetuation of an unjust and unequal economic system which determines interna- tional economic relations. The main cause of the lack of success in international negotiations lies in the fact that the old system has remained untouched. The problems of the world economy which aggravate negative trends in international economic relations, with increasingly harmful effects on the developing countries, are struc- tural in nature. Piecemeal and short-term approaches do not lend themselves to the solution of those prob- lems. A resolute and drastic transformation in the structure of the world economy is long overdue. Indeed, the sixth and seventh special sessions of the General Assembly laid the groundwork for this imperative. 25. The Director-General for Development and Inter- national Economic Co-operation already referred to the need for structural change in his statement to the Sec- ond Committee on 1 October last, in which he said the following: "The characteristic feature of the Declaration and the Programme of Action on the Establishment of a New International Economic Order, elements of which were further elaborated in the Charter of 26. It is often stated that the continuation of this system is in the interest of no one. It is ironic, however, to nore that some developed countries adamantly resist any changes in the status quo. Instead of addressing themselves to the solution of the real problems, those countries have time and again attempted to divert atten- tion by means of introducing new concepts or pro- posals which do not reflect the reality of the situation prevailing in the third world. 27. Some other countries again have tried to focus in- ternational attention on the energy situation and the decision of the oil-exporting countries to adjust oil prices to offset the adverse effects of international infla- tion and currency fluctuations. The sixth special session of the General Assembly itself was held at a time when similar attempts were being made. For the people of Iran in particular, such attempts are reminiscent of an era during which the late Mohammad Mossadegh was leading the people in a struggle to exercise their sovereign rights over their natural resources - an era in which international imperialism succeeded in suppress- ing the struggle of the oppressed people of Iran by resort- ing to the most vicious means and plots at its disposal. 28. The increase in the price of oil- the so-called energy crisis - is an immediate and logical effect of the present economic crisis. It is basicaJly the. result of the inefficiency of the international monetary system in containing undue currency fluctuations which are eroding the real value of the export earnings of the oil- producing countries. According to the World Develop- ment Report. 1979,4 despite the recent increases in cur- rent terms, the price of oil has continued to decline in real terms, eroded by global inflation and the devalua- tion of the United States dollar. The price of a barrel of crude oil in July 1979 was at a level about the same, in real terms, as in 1974, that is to say, less than SUS 8. Needless to say, although the price of oil was frozen for 18 months, tne world economy did not indicate any sign of recovery. Furthermore, the world economy was faced with crises long before the so-called energy crisis of 1973. On the other hand, the present trend of oil con- sumption in the developed countries, which are using more than 80 per cent of the total world production, is not justifiable. Nevertheless, this trend has recently been aggravated by the stockpiling policies of those countries. 29. It is not in the interest of the international com- munity to divert its attention from genuine world economic problems and the negotiations on the establishment of the New International Economic Order. It is for all countries, particularly the developed ones, to demonstrate their goodwill and determination to bring about meaningful international co-operation. 3 See document A/C.2134/4, pp. 1-2. This document contains the complete text of the statement which appears in summary form in Of- ficiQI RecordsoftheGeneralAssembly, Thirty-fourth Session, Second Committee, 4th meeting, paras. 20-34, and ibid., SecondCommittee, I 31. At the outset, it has to be emphasized that the negotiations must be conducted on the basis and. within the framework of the decisions taken at the sixth and seventh special sessions of the General Assembly. The main thrust of these decisions is the restructuring of the present anachronistic world economic system-a system which is based on the exploitation of the masses of the third-world countries and the plundering of their natural resources; a system which is based on an unjust international division of labour at the expense and suf- fering of the developing countries; a system in which the decision-making process on international financial and monetary issues is essentially under the control of the North; a system that has led to devastating international inflation and monetary instabilities which transfer the effects of the economic crisis to the developing coun- tries. 32. The new round of glohal negotiations should be directed towards the solution of these fundamental prob- lems and should be aimed at rectifying prevailing in- justices and inequalities. 33. My country will spare no effort towards the fulfil- ment of these noble objectives. The goal of the Islamic Revolution of the people of Iran has been the realization of freedom, justice and equality. It is therefore only fit- ting for our people to lend their full support to the cause of creating an international economic order which would fully respond to the real needs and pressing prob- lems of the developing countries by promoting justice and equality for all the oppressed peoples of the third world.

I should like at the outset to express the Australian Government's apprecia- non to Mr. Stoltenberg for the report he has submitted to the General Assembly on the work of the Committee of the Whole. While the Committee's record of achieve- ment may have been modest, this was in no way a reflec- tion of the considerable effort which Mr. Stoltenberg in- vested in it. I should like him to know that weare aware of the extent of his efforts, particularly in preparing the ground for the Committee's meetings. This was very evi- dent in respect of the second session, held in March of this year on food and agriculture, as well as the third session, held last September. There is surely a lesson to be learned from this. When we reflect on the problems of the crowded United Nations conference schedule on North-South issues, we are too often aware that meetings are held without adequate prior preparation. 3S. We are also indebted to Mr. Stoltenberg for reminding us, as he did at the 3Sth meeting of the Com- mittee of the Whole, held on 1SSeptember, and again in his statement here last week, that the North-South dialogue cannot be advanced by a process which relies upon a juggling of words in order to give the appearance of agreement. We agree with him that it would be preferable to identify differences where they exist, to face them honestly and to look for practical, realistic solutions to them. 37. The discussions in the Committee of the Whole, acting as a preparatory committee, will inevitably be complex. We have no illusions on that score. The pro- posal now before us is, we recognize, still couched in rather general terms and there is a good deal of detail yet to be filled in. In this connexion, we have taken particular note of the statement made at the 31st meeting of the Committee of the Whole on 12 September by the then spokesman of the Group of 7i, Ambassador Mestiri, that the developing countries will be willing to consider all proposals. We welcome the openness and flexibility shown by that statement. At the same time, since the proposal is an initiative of the developing countries, we must await further clarifica- tion from the Group of 77 of what they have in mind in putting forward the proposal for global negotiations. The statement made on 18 October by the representative of India [40th meeting] on behalf of the Group of 77 was helpful, but clearly there are major issues still to be clarified. 38. One point which I should emphasize in relation to the setting up of the modalities for global negotiations is that Australia will be looking to make practical progress on issues which we well know are complex. We believe -and here again I refer to a point made by my Foreign Minister in his earlier intervention in the plenary Assembly-that progress will inevitably come by stages and not necessarily in an interlocked fashion. We make this point, notwithstanding that the global negotiations are seen to involve interrelated issues. We must seek to move forward wherever we can. Some areas will be more susceptible to forward movement than others. We are also concerned that, in embarking on global negotia- tions on a wide range of interrelated issues, we should not hold up negotiations which are going forward on the same issues in other, more specialized forums. These other specialized forums should, as far as possible. be enabled to resolve issues which it is within their competence to do. Above all. we expect all participants to engage in the new process in a common effort where practical co-operation. mutual support and the spirit of compromise are our guiding principles. 39. Mr. RAKOTONAIVO (Madagascar) (interpreta- tion from French): With the approach of the 1980 special session, consideration of the report of the Com- mittee of the Whole Established under General Assembly Resolution 32/174 is of overriding importance. Indeed, that Committee was mandated by our Assembly to follow closely, before the opening of that session, the progress achieved towards the establishment of a new international economic order. 40. The task of that body, III Which the third-world countries have placed so much hope, has become more and more complex at a time when the world is faced 42. The year 1979 has witnessed many important negotiations. Unfortunately, we note the lack of any en- couraging results. Indeed, very few of those negotia- tions yielded practical measures on the major problems of common interest. 43. With reference to the work of the Committee of the Whole, it will be remembered that we wasted the whole of last year in procedural discussions. This year, the Committee has discussed such important questions as the transfer of real resources to the developing coun- tries, food problems and industrial deveroprnent, but without making any substantial progress. 44. Generally speaking, the agreements reached on the first two issues brought nothing new to the already agreed common objectives in these fields. The developed countries can be expected to react negatively when it comes to translating these objectives into opera- tional realities. "'-5. The proposals of the Group of 77 on special measures for the least advanced, the land-locked and the most seriously affected countries failed to result in an agreement because they advocated twice the volume of assistance from the developed countries for those categories of countries. 46. The recommendation on island developing coun- tries was, however, adopted because it simply reiterated the terms of decisions that had already been taken previously. 47. The discussions.on industrial development also failed toproduce results. It is particularly regrettable that at the fifth session of UNCTAD the fundamental problems concerning appropriate measures to change structures could not be given all the attention they deserved. Trade and monetary questions suffered the same fate. 48. The work of the Preparatory Committee for the New International Development Strategy was also disappointing. 49. The Conference on Science and Technology for Development was able to adopt some decisions on financial and institutional matters. S But it must be recognized that those decisions cover only a very few cf the claims of the developing countries. SO. This brief balance-sheet is far from exhaustive but it leads us to make the following comments. 51. Cer tainly, differences in concept concerning the nature of the problems and the practical solutions thereof are obstacles to the formulation of a position that would be acceptable to all. We are none the less S See Report of the United Nations Conference on Science and Technologyfor Development, Vienna, 20-31August 1979 (United Na- tions publication, Sales No. E.79.1.21 and corrigenda). 52. The efforts that are being made within the framework of the establishment of the new interna- tional economic order were initiated by the developing countries. They have met with the systematic and, indeed, fierce opposition of the wealthy countries, which have been obdurate in preserving the norms and terms of in- ternational economic trade that are profitable for them. They have defended the positions of their monopolies in the economies and foreign trade of young States, 53. It is clear that the strategic objective of the im- perialist Powers amounts to giving way on problems of limited importance in order to avoid another open con- frontation with the developing countries, of the kind that took place in 1973and 1974during the oil crisis. 54. In refusing seriously to engage in real negotiations, the developed countries seek to postpone reorganization and to reduce the efforts that are being made to achieve a fundamental change in structure. How often have we dwelled on the necessity for those changes that must be made in international economic relations? The Director- General for Development and International Economic Co-operation expatiated upon this in his recent state- ment of 1 October to the Second Committee. 55. It is worth recalling that the international economic system, as it now stands, is characterized by imbalance and by major distortions that are harmful to the interests of the developing countries. 56. In view of the persisting misguided and indeed out- dated positions of our partners in the developed coun- tries, we are constrained from one session to another to repeat the same remarks. 57. But we feel that they have not lost their relevance. Quite the contrary, we feel that the relevance of our ef- forts is increasing, particularly now, when they have to be concretized and removed from the general discus- sions which constantly tie up the bodies and organs of the United Nations system. 58, Resolutions and statements must promptly be translated into reality. It is important that decisions be implemented as quickly as possible. 59. While, rightly or wrongly, the developed countries content themselves with the precarious situation we have described, the countries of the third world con- tinue to suffer the effects of the world economic crisis in a cumulative and tragic manner. 60. The President of the non-aligned movement recently had the opportunity from this podium [31st meeting] to describe the seriousness of all kinds of in- justices endured by the third-world countries in the economic, monetary and financial spheres. 61. In view of the situation, the international com- munity cannot remain indifferent. In this regard, in his report on the work of the Organization, the Secretary- General of the United Nations stated that: "It is essential that all States should take urgent heed of the dangers of delay and reassess their posi- 62. The present critical state of the world economy and the need for co-operation and international justice require concerted international action. In order to be ef- fective, that action must arise from a global view of the world economy and its machinery. We must strengthen the present machine~y through which gl~bal negotia- tions on the establishment of a new intemational economic order have been achieved within the United Nations. The establishment of the Committee of the Whole accords with that aim. 63. In accordance with its mandate, the Committee of the Whole must define new guidelines and give the necessary impetus to see that negotiations are p~rsued and solutions are found to the many problems still left pending. 64. The interdependence of problems concerning trade, development financing and the international monetary system does not need to be demonstrated. It is increasingly clear that these problems cannot be dealt with in isolation. In particular, they can be resolved only if consideration is given to the related structural characteristics of national economies and international economic relations. This situation justifies the new pro- posal of the Group of 77 that a series of global negotia- tions should be undertaken within the framework of the special session. The Committee has recommended con- sideration of that proposal on a priority basis. 65. As is mentioned in the draft, the negotiations will cover matters of capital importance for development, including energy, so as to dispel any misconception that the developing countries do not give this problem the necessary attention. 66. However, we reject the idea that changes in oil prices are the essential cause of the slow-down in economic growth rates. 67. Moreover, we should stress the principle of univer- sality contained in the proposal. On this point we should recall that lack of that principle was one of the things that made the Paris Conference on International Eco- nomic Co-operation difficult. 68. We therefore rely upon the effective and equal participation of all countries and all groups of coun- tries without distinction as to economic and social system. 69. Measures must be geared to action and lead to practical guidelines. What we are calling for, within the framework of these negotiations, is no longer a mere statement of the need for change but new agreements, new arrangements that would bring about effective change. 70. Particular importance will have to be attached to the preparation of those negotiations, a task that we think should be entrusted to the Committee of the 71. Other matters concerning the structure, the organization and the time-table for negotiations have already been raised. The Chairman of the Group of 77 has already had occasion to reply to some of those ques- tions, which should be dealt with as a whole at this ses- sion of the General Assembly. 72. Whatever machinery may be established, the negotiations will continue to be fruitless so long as the developed countries do not demonstrate that they can change their positions. The crisis we are now experienc- ing should make the industrialized countries more aware of the potential offered by the development of the third world as an instrument for making the world economy healthier. 73. The appeal that we make in this context should not be regarded by. our partners as an external constraint but, rather, as a positive response generating mutually satisfactory economic and social progress. 74. Those were the few comments my delegation wish- ed to make to the General Assembly in regard to North- South co-operation. 75. But that co-operation cannot be anything more than a new form of perpetuation of the present system so long as we fail to regard South-South co-operation as an integral part of the process of international develop- ment. It must be noted unfortunately, that certain developed countries seem to disregard-or wish to disregard-the importance and scope of this new form of co-operation; that is evident from the fact that, dur- ing the fifth session of UNCTAD, they included this concept in the global development strategy. 76. Based on the principle of collective autonomy, co-operation among developing countries makes it possible to strengthen those countries' positions in trade and related activities and to obtain better results from international negotiations. This question has now gone beyond the stage of commitment in princi- ple. Some initiatives were taken at the Buenos Aires Conferences and the Arusha Programme for Collec- tive Self-Reliance and Framework for Negotiations" offers several possibilities for co-operation. 77. In a desire to make the provisions of such a pro- gramme operational, the President of the Democratic Republic of Madagascar submitted to the non-aligned countries at Havana specific proposals for the establishment of three solidarity funds, with the essen- tial aim of promoting economic, monetary and finan- cial co-operation among the non-aligned countries. 78. These funds would be financed from subscrip- 6 See Report of the United Nations Conference on Technical Co- operation among Developing Countries, Buenos Aires, 30 August-12 September 1978 (United Nations publication, Sales No. E.78. II.A.II and corrigendum). . 7 Adopted by the Fourth Ministerial Meeting of the Group of 77, held at Arusha from 12 to 16February 1979. 79. The first would be a monetary fund which, by granting short-term and medium-term loans, would help the member countries to over the deficits in their balance of payments caused mainly by oil imports. Other advantages would be that it would promote trade among the member countries and would act as an intermediary on behalf of the latter in the issuance of loans on the money markets. Thus, it would at- tempt to abolish restrictions on current payments. 80. The second fund would be called a development fund. It would assist the member countries to finance their investment plans and would help them in choos- ing or implementing these plans. 81. The third fund would be an institution for finan- cing buffer stocks and stabilizing commodity prices. It would take action on the commodity markets as soon as prices went beyond a certain level, to be determin- ed periodically. 82. These funds about which we are speaking will come into being sooner or later. These are examples of the kinds of co-operation which can be carried out in the South direction and which our partners in the North can use as a basis for gaining a better understanding of our needs and aspirations. Hence, they should not be regarded as alternatives. This is a challenge which we place before ourselves and the international community. It is a challenge to ourselves, to test our 'eal capacities for self-development. It is a challenge to the interna- tional community in so far as such efforts will bring a new dimension to international co-operation and con- tribute effectively to the restructuring of international economic relations.

The General Assembly has before it a proposal submitted by the Group of 77 concerning global negotiations on interna- tional economic co-operation [A/34/34, part three, annex I]. This statement will be limited to that proposal. 84,. The Government of Finland understands well the reasons, in the present economic situation, which have led the Group of 77 to introduce this proposal. In the view of my Government, the proposal is important and deserves careful consideration by the General Assembly at its plenary meetings. 85. When considering the proposal, Finland bases its views mainly on the following principles. First, the dialogue on the global economic issues is an inherent part of the international politics of today. Secondly, the proposal of the Group of 77 contains several elements which have in the past been supported by my Govern- ment in United Nations forums. For instance, we welcome the fact that the proposed negotiations will be open to all States which, consequently, will lead to strengthening the role of the United Nations. We also welcome the fact that the proposal seems to aim at deal- ing with all major issues of international economic co- operation, including the question of energy. Thirdly, we recognize with satisfaction that the proposal is not in- 86. The proposal to initiate negotiations in specific areas, together with the preparations of the new interna- tional development strategy, is a comprehensive ap- proach and reaffirms, in our view, the principle of in" terdependence of nations and of issues. It is the hope of my Government that these proposals will bring about the much-needed impetus as well as agreement on the many-faceted elements of the work on global economic issues. 87. As regards procedure, we have taken careful note of the statement by the Ambassador of India, Chairman of the Group of 77, in which he indicated that his Group considers the proposal important enough not to be rush- ed into a decision; instead, it requests that the necessary facilities be provided at the proper time, for the pro- posal's consideration in the plenary meetings of the General Assembly itself [40th meeting, para. 54]. We have also taken note of his view that the General Assembly should unequivocally endorse, in principle, the commitment of all nations to the global negotia- tions, as described in the proposal of the Group of 77 [ibid, para. 55]. 88. My Government hopes that the international com- munity will, during this session of the General Assembly, reach an understanding which would make it possible for the Committee of the Whole to begin effec- tive preparations for the global round early next year. These preparations should make it possible for the special session of the General Assembly, to be held in 1980, to make a final decision on this important issue.

My country's delegation wishes first of all to point out that in this brief statement wedo not intend to list the positions adopted by Egypt on international economic problems. My delegation has already done this in detail in its statement at the 12th meeting of the Second Committee on 10 October last. My main pur- pose in making my present statement is to express our full support for the statement made before this Assembly by the representative of India, Chairman of the Group of 77, on 18 October last and to emphasize the position of the Government of Egypt on certain matters raised in the report of the Committee of the Whole. 90. Everyone realizes that the purpose for which the Committee of the Whole was set up was essentially to help the General Assembly by monitoring the im- plementation of the resolutions and the preparations agreed upon in negotiations in the United Nations organs for the establishment of the new international economic order, to give impetus to the solution of the problems encountered in those negotiations and to en- courage these solutions. It is clear from the report we have before us that in its three sessions the Committee of the Whole achieved only limited results. This is par- ticularly disappointing since many States attached great importance to the work of the Committee of the Whole and had great hopes that it would make progress towards the solution of the problems submitted to it, particularly those facing the developing countries. 92. We are now on the threshold of a new develop- ment decade and we are beginning a new round of global negotiations in respect of which the Group of 77 has introduced a proposal now being considered by the General Assembly. The Group of 77 has sought to give new impetus to the policy as regards these issues, which include those of energy and of an effective contribution to the implementation of the strategy for the next 'United Nations development decade. 93. The Group of 77 has made it clear that the coming global negotiations are not and must not be a repetition of the negotiations at the Conference 011 International Economic Co-operation, held at Paris, but that specific agreements must be reached within a specific time-limit. 94. The proposal of the Group of 77 is a serious attempt by the Group to confront the grave problems facing the world today. This proposal must have the support of all States and the necessary climate and preparations must be provided for it. Furthermore, sincere intentions and political will, particularly on the part of the developed countries, are two essential condi- tions for the success of these negotiations. 95. Consideration of the question of future global negotiations should not cause us to lose sight of the need for an evaluation of the commitments already made by the developed countries as regards the developing coun- tries, in accordance with the resolutions of the General Assembly at its sixth and seventh special sessions and those adopted in other international forums. The General Assembly approved the adoption of special measures for the benefit of developing countries with economic and geographical difficulties in the sphere of development financing, indebtedness, international. trade and the transfer of technology, as well as other spheres of international economic co-operation. In this category of countries are the least developed countries, the most seriously disadvantaged countries, the land- locked.developing countries and the island developing countries. 96. The conditions which gave rise to the establish- ment of these categories of developing countries have become more acute because of the continued interna- tional economic crisis and the aggravation of world in- flation. We see first, the continued decline in per capita income in these countries and the decline in production; secondly, the sharp rise in the cost of imports compared to returns on exports; thirdly, the increase in debt- servicing costs as compared to export earnings; fourth- ly, the decline in foreign exchange reserves and the in- ability to finance their own development programmes. AU this shows the persistence of the economic dif- ficulties of these States and requires prompt implemen- tation for the benefit of these categories of developing countries, of the programmes decided upon by the General Assembly which are considered to be an essen- tial factor in the establishment of the new international economic order. 98. At the present time, international economic rela- tions are passing through a critical phase which highlights the urgent need for the international com- munity to make structural changes-in the economic rela- tions between developed and developing countries on the basis of the principle of international inter- dependence and mutual assistance based on equality in sovereignty, equal opportunities and a fair distribution of the benefits of international trade and technological progress, within a framework of common understand- ing and interest. 99. Egypt is convinced of the need for continued dialogue, but it must be on a sound and serious basis, for the attainment of the objectives of the international community is impossible without the sincere efforts and the political commitment of all States, particularly the developed States. 100. Mr. McHENRY (United States): For over 30 years the United Nations has been a force for peace. It has been an obstacle to aggression and a pacifying presence in the midst of ancient conflicts. It has provid- ed a place for private consultations which have enabled public solutions to be reached. It has offered a prestigious platform where national frustrations could be expressed, international hopes extolled, world opin- ion mobilized and global action undertaken. 101. The horrors of war have not been avoided during the lifetime of the United Nations. But in large part because of this institution the international community has survived intact through what has probably been the most volatile, dangerous and dynamic period in record- ed history. 102. The mandate of the United Nations system, however, must am.': does range beyond the concerns of peace and security. It encompasses virtually all areas of human association, from the enhancement of human rights to the protection of'our physical environment. In recent years, it has become the central focus of the inter- national deliberations concerning economic relations between and among developing and developed nations. The question before us is whether the dialogue in the General Assembly, and elsewhere, is capable of being transformed into even more successful negotiations than are at present under way. The answer is neither clear nor simple, but in the debate in which we are now engaged both the question and the answer are crucial. 103. Why have global economic issues become a priority item on the international agenda? Because the economic interdependence of nations is a profound reality. The economic futures of our countries, whatever their economic systems, are inseparably linked -through trade, direct investments, public and private capital flows, technology, labour mobility and bilateral and multilateral institutions. We can be COMpetitive; we can be supportive; but we cannot be destructive of one another's material objectives without hurting-maybe even destroying-ourselves. 108. Our dialogue has been confused by the frequent insistence on a rigid division of the world into developed and developing nations. The fact is that there is a spec- trum of development along which each nation occupies , a specific space, from the poorest nations to the richest. Moreover, different parts of all countries occupy dif- ferent parts of the spectrum. Some sectors of the developing countries now compete on a world-market scale. Some parts of the developed countries themselves are in urgent need of development. Our common task is to move all nations and all sectors towards the more developed end of the spectrum. Our institutions must have the flexible capacity to help all countries while fulfilling a basic obligation to provide the appropriate assistance to the poorer countries. The more developed 104. I intend to be candid today-perhaps more so than diplomacy traditionally permits. I do so out of a strong personal commitment to the United Nations lOS. The United States will do its share to strengthen and reform the international economic system so that all nations have access to economic opportunity and to increasing prosperity in a framework of social justice. 106. To affect the direction of the international economy, all of us must work together. There was a time when the size of the United States economy was so overpowering that a decision by my Government alone could move the global economy,in a new direction. That may have been true in 1950, when the United States ac- counted for 67 per cent of the world's industrial produc- tion, but that era is over - not because the United States has become poorer, but because the rest of the world has become richer. We sought this new relationship; we facilitated it; and we welcome it. It is no longer possible for one country, or for even a group of countries, to decide the direction of our international economy. It is now for all of us - the industrialized countries, the oil- producing countries, the developing countries, the socialist countries and whatever other subgroups may exist - to act as united nations in reordering the interna- tional economy and eliminating the worst aspects of global poverty before the end of this century. 107. We do not advance our common objectives by unending speeches on whether, how and when the New International Economic Order will occur. The institu- tional structure of today's economy is not the same as that created at Bretton Woods. Tomorrow it will be dif- ferent - significantly different- from today. Whether we like it or not, the global economy is undergoing const- a.'·,~ and accelerating. change. A new order is arising before our eyes, and our task is to see to it that this order serves our common interest. This transformation will result from a combination of market forces, actions by Governments and the individual and collective ef- forts of our nations, our peoples, our entrepreneurs and our workers. As we guide and participate in this change, we must steadily pursue real progress and concrete results. We must be rigorous in our analysis and realistic in our expectations. We must not only talk; we must find a way to agree on how to move forward. 110. Too often, all of us fail to temper with realism our demands on others. In their just calls for assistance and investment, the developing countries should under- stand the restraints on other Governments because of economic austerity, rising unemployment and inflation and the need to marshal the support of public opinion and parliaments. Moreover, developing countries must recognize that the engine of growth in the countries of the Organization for Economic Co-operation and Development is the response of private initiative to economic incentives. If other countries want to use that engine, they must find ways consistent with their sovereignty to make their economies attractive to foreign investment. Ill. By the same token, when insisting on economic reforms in developing countries, the developed nations should realize the acute social and political problems such reforms present, and the political difficulties those countries' leaders face in pressing these changes vigorously and consistently. 112. If effective joint action-not debating points-is our goal, let us not pretend that there has been no pro- gress in reorganizing the global economic system. This is simply not so. There has been important progress. IMF has significantly expanded its facilities and made them more responsive to the needs of all members, particular- ly the developing countries. The creation of the trust fund, the extended finance facility and the supplemen- tary financing facility and, most recently, the substan- tial liberalization of the compensatory finance facility are examples. The Fund has also agreed to consider a lengthening of the repayment terms under the extended finance facility and means of lowering the interest cost of the supplementary finance facility. The lending levels of bilateral and multilateral assistance programmes have been raised and negotiations for major replenish- ments of the World Bank and the regional banks have been - or are - nearing completion. Special attention is being devoted to innovative new national and interna- tional endeavours in energy exploration and develop- ment, and in science and technology development and transfer. International trade has been liberalized, most recently with the multilateral trade negotiations, and generalized preferences provided and expanded for developing countries. The International Fund for Agricultural Development was created with initial financing of $1 billion. A common fund for com- modities could be completed in the near future. Price stabilizing agreements have been reached on sugar, tin, coffee, rubber and work .is under way on other com- modities. It is important to recognize the progress that has been made, so that Governments, citizens and parliaments will be encouraged to work for more pro- gress. 113. Despite the progress in international economic co-operation and development, the global economy is clearly in trouble. The industrialized countries face mounting inflation and unemployment, sharply declin- 114. It is unproductive to be critical of the oil- exporting countries without understanding that their favoured circumstances are tempered by special prob- lems. Some members of the Organization of Petroleum Exporting Countries [OPEC] themselves are poor. Some find that their financial bonanza is real only if the international economy is healthy. On the other hand, the Oil-exporting nations have a major respon- sibility for ensuring the growth and stability of the global economic system, a responsibility that they can- not ignore in their production and pricing policies. The jolt to the international economy of inadequate oil pro- duction levels could be devastating to the oil-exporting nations as well as to the oil-consuming countries. Oil prices should reflect the diminishing nature of the resource, but also the unique role of oil for the health and prosperity of all nations. 115. Global economic conditions increasingly affect as well the centrally-planned economies. Their growing reliance on food, energy and manufactured imports and their increased borrowing from the international bank- ing system link them tightly to the global economic system and to its fate. 116. And so, all of us must acknowledge that the economic destinies of our nations are tied together. 117. We must find mutually acceptable solutions to common problems. 118. Together we must find the means to end the tragic paradox whereby in the most prosperous era in human existence one fourth of the world's citizens live in abject poverty. We must rapidly complete a new food aid convention and encourage Governments to give urgent attention to adopting food 'sector strategies. We must act to prevent famine anywhere and at any time. 119. Together we must be sure that the growing deficits of countries can be managed in a way that strengthens the global economy. 120. Together we must intensify co-operative bilateral and multilateral efforts to ensure that the inte-national community can achieve the goal of adequate health care for all of us by the year 2000. It is unacceptable that many of the earth's inhabitants do not have access to basic health care. The United States hopes many other countries will join in sponsoring a text for ....Joption by this General Assembly calling on all relevant United Na- tions organizations and programmes to give greater priority in their activities to health care and its improve- ment. 121. Together we must confront and overcome the energy crisis. We must have the imagination and courage to fashion international solutions to the energy problem based on a sharing of responsibilities and 123. And together we must begin implementation of the agreements reached at Vienna at the United Nations Conference on Science and Technology for Develop- ment. 124. The nations of the Groip of 77 put forward for our consideration in the Committee of the Whole an im- portant draft resolution suggesting a round of global and sustained negotiations on international economic co- operation for development. Mr. Vance, our Secretary of State has already stated in his speech before the General Assembly that "the United States would participate, in the Committee of the Whole Established under General Assembly Resolution 321174, in consultations to decide on the most effective way of conducting such negotia- tions" [5th meeting, para 103]. 125. Clearly, the Group of 77 has made a major con- tribution to this Assembly's deliberations. 126. In discussing this draft resolution, let me go back to my earlier theme - the difference between dialogue and negotiation, a difference clearly understood by the sponsors of this text. The air, and millions of pages of United Nations documemts, have been filled by dialogue - a process the dictionary defines as "a conversation between two or more persons". These conversations have been useful, illuminating, sometimes brilliant, often dull, and too often unheard by the other par- ticipants. They can go on as long as the United Nations endures, and some cynics might argue tnat they will. But I understand this resolution to propose something else: negotiations, a process defined as "treating with another with a view to coming to terms". 127. If it is truly the sea of global negotiations we are to travel, then we must build a solid ship and navigate a course that offers all of us the prospect of a successful voyage. The Committee of the Whole is destined to be the shipyard, and the craftsmen in that institution will have an awesome responsibility. They will be entrusted with forging a consensus among all nations on the direc- tion, procedures and scope of these negotiations, a con- sensus required for the proposed round to be successful- ly launched. They will certainly have to take account of the various negotiations already in progress and of the progress already achieved. They must create an environ- ment for their discussions that emphasizes over and over again the global aspect of the proposed negotiations and the global responsibility for our objectives. I am not suggesting that any of us can or would forget our geographical, political or economic identities, but I am urging that we embrace a larger self, that we listen as well as talk, that we welcome the opportunity to be more than what we have been-each of us for each of us. The possibilities of success will depend in important measure on avoiding recrimination. I have never been in a successful negotiation which began with one party calling the other selfish, destructive, arrogant, ignorant, lazy or pointless. If that is the sport intended, let us stay in a dialogue where new participants in the conversation can forget what was said or tear out a page of the record 128. I read the draft resolution as saying that global negotiations will not duplicate negotiations going on elsewhere in the United Nations system. Rather our inten- tion is to reinforce and to draw upon those ongoing pro- cesses. That makes sense, considering the limitations of time and resources that face us. Which of our peoples would forgive us if, in the face of crisis, we carelessly allowed duplication of negotiations already going on elsewhere in the United Nations system? With the possi- ble exception of energy, the issues which have been sug- gested for global negotiation do not need new forums or organizations; our predecessors have done a good engineering job in building enough structures where any possible discussion can take place. 129. Those charged with planning these negotiations must help themselves to helpful schedules. By helpful I mean precise enough to encourage decision, but not so difficult that they cannot be met, and thereby detract from the seriousness of purpose. 130. Let us leave no doubt that all countries will have the right to participate in these negotiations. At the same time, all of us must be prepared to examine such organizational devices as limited working groups, in order to facilitate our work. 131. The major issues enumerated in the draft resolu- tion can certainly be interrelated, but clearly they are also entitled to different priorities and different time- tabl,?s of progress. In a serious negotiation, the different parties can be expected to u~e their negotiating assets to maximum advantage, and In that sense I have always understood the various attempts to link the apples and oranges of past negotiating efforts. Sometimes this is ef- fective, or at least is worth the effort, but too often the unhappy result is that linkage leads to stalemate. We should not be so ambitious as to believe that if these negotiations take place they will solve all OUf problems If we are seeking agreement, we should be very carefui about conditioning progress in one area upon equivalent progress in a!10ther. Linkage may be good for sausage- makers, but 1t has rarely helped progress in substantive negotiations where political pressures are an important element. 132. As has already been said in this Assembly: "Defining the problem constitutes a substantial part of the solution". Those words should be engraved on the door of the meeting-room of the Committee of the Whole if negotiations in the spirit of the text presented by the Group of 77 are to be successful. 133. If this Assembly envisages negotiations, and not just a continuation of the present dialogue, then all par- ticipants should be expected to give as well as to take, to offer as well as to demand, to suggest as well as to criticize and to compromise instead of censuring. 134. The United Nations has shown that it can be a successful negotiating forum for global economic issues. The CommonFund is an example, although im- portant work remains to be done before it can prove its possibilities. What we have learned in this multilateral process is clear: the issues must be clearly defined; 135. President Carter has said: "We need to share responsibility for solving problems and not to divide the blame for ignoring the problems." That is the challenge for all of us, and a challenge the United States en- thusiastically welcomes.

We are now considering the item relating to the report of the Committee of the Whole Established under General Assembly Resolution 32/174. The work of that Committee is devoted to inter- national economic co-operation for development. My Government wishes to express at the outset, its ap- preciation to Mr. Stoltenberg, Chairman of the Com- mittee, because of the way in which he has so patiently and wisely conducted the business of that Committee throughout the year so as to reach solutions acceptable to all parties concerned. 137. Owing to the Chairman's competence, some pro- gress has been made concerning measures on interna- tional food problems and agricultural development, as well as in certain aspects of the transfer of resources in real terms to the developing countries. We also stress the efforts made to set up time-tables for negotiations, but we must acknowledge that there has been disappoint- ment concerning the solution of other problems. This disappointment is greater than in the past, despite the appeal and proposals made by the Group of 77, which constitute an appropriate framework for constructive dialogue to remedy the disorder currently prevailing in the international economic order as it now stands and to establish a new international economic order based on law and justice and ensuring international peace and security. However, these proposals have met with the obduracy of a number of industrialized countries, which are far from responding to the challenge and which lack political will. This has meant that there has been a standstill in negotiations in various fields, particularly concerning the implementation of the Lima Declaration and Plan of Action on Industrial Development and Co- operation 8 and strengthening of the industrial capacity of developing countries; the solution of special urgent problems which confront the least developed, land- locked and island developing countries and the most seriously affected countries; the problems concerning trade flows, protectionism and monetary and financial problems; 'the attempts to prize open the grip of the transnational corporations on other countries' 138. The failure of the North-South dialogue has brought about a worsening in economic problems. The international community must begin a further stage of negotiations under United Nations auspices. We feel it necessary for the Committee of the Whole to continue its work and prepare for the 1980 special session on the basis of full participation by all countries with the aim of achieving results on the basis of solidarity among States, so as to establish security and stability in the economic sphere. 139. We are convinced that the proposal of the Ministers for Foreign Affairs of the Group of 77 concern- ing economic negotiations at the international level, to be held within the framework of the special session in 1980, provides a practical framework for equal and definitive negotiations within the United Nations system. That proposal will result in a thorough discus- sion of the main problems, of which the most important are raw materials, energy, trade, development, and financial and monetary problems. It will also result in the definition of the objectives of the international development strategy for the third United Nations Development Decade in a way that will be compatible with the other negotiations going on in United Nations bodies. 140. The United Arab Emirates, a developing country and a member of the non-aligned movement, recognizes its responsibilities with regard to the international com- munity, particularly the developing countries. It is ready to take part in any collective measure to enhance the concept of international economic co-operation, as it is convinced that co-operation is the essential foundation for the establishment of a world economy based on law, justice and equity, and that a new economic order can only be achieved through serious and constructive negotiations.

We have reached the state of action after years of debate and negotiations. The need for action is now crystal clear and the world cannot afford yet another delay in translating decisions into actions and words into deeds. 142. Since the Sixth summit Conference of non- aligned countries, held at Havana, serious talks have taken place with a view to reaching a consensus on global economic issues. The major stride made recently in Havana was the agreement on the inclusion of the issue of energy; that was done with the participation of my delegation. Hence the Group of 77 submitted a draft resolution [A/34/34, part three, annex I] which con- tains all the elements that beset the world economy. 143. We have always opposed the singling out of the issue of energy for discussion, but we also support the call for discussing all issues, including energy, within a comprehensive approach to all the problems of the world. Our strategy is to confront issues on a global basis; our aim is to achieve a comprehensive reform of the international monetary system so as to have a system that cannot be disturbed by developments in the price of 144. The Group of 77 has adopted a new and, no doubt, pragmatic approach to the global negotiations. There is no rhyme or reason in expecting a country like my own to continue sacrificing valuable assets simply to satisfy the insatiable demand for energy of the developed countries, and primarily of the United States. We in Kuwait support all measures designed to economize on energy and for the reduction of consump- tion. Our predicament arises from the fact that we are called upon to produce more oil than our immediate financial needs require. We do so primarily to satisfy world demand, because we are aware of our interna- tional responsibilityand moral obligation. But wecannot continue to underwrite the policy of over-consumption or stockpiling by the industrial countries at the expense of our future generations. 145. In his statement at the 13th meeting of the In- terim Committee of the Board of Governors of IMF, held in Belgrade on 1 October last, the Secretary- General of OPEC said: "The price of oil and its present supply by the OPEC countries are no longer the relevant issues. The pertinent issue is the extent to which the major industrial consuming countries are succesful in con- trolling the demand side of the energy equation, namely, in the oil supplyI demand equation in its three forms of demand: actual consumption, replenish- ment of existing stocks, and stockpiling for strategic purposes. "The oil market moved from a period of so-called glut and over-satisfaction in 1977 and early 1978to a period of tightness in late 1978 and early 1979, despite the fact that OPEC production in the first half of 1979 actually exceeded the production in the same period in 1978, by an equivalent of 1.7 million barrels per day. Even during the first two months of this year, with the stoppage of Iranian exports, OPEC production exceeded that of the same months of 1978 by about 1 million barrels daily. These are among a host of indicators that lead us to believethat tile shortages of 1979were fictitious ones, created by stock manipulations on the part of the industrial na- tions." 146. The OPEC countries have taken the initiative in guaranteeing the oil requirements of other developing countries and ensuring that they are not overcharged by traders and oil companies. 147. The crux of the matter is now how to cut the over-consumption of energy by the industrial countries. There is a lot of waste and almost over-extravagance in the employment of energy, as well as an unnecessary scramble to stockpile. It is wrong to expect the oil- producing countries to provide energy in quantities that adversely affect their national interests. Some of them, such as my own country, depend entirely on oil for sur- vival, and the present generation is duty-bound to follow a policy that guarantees continuity for future generations. 149. Our policy in Kuwait is to diversify our sources of income and investment. But investment cannot take place in a vacuum. The right atmosphere has to be established and incentives must be offered. No one should expect us to invest in a land beclouded by uncer- tainty. There must be fair guarantees for the security of investment. Otherwise, our endeavours will amount to an exercisein futility. At Havana, the non-aligned coun- tries endorsed this logic; so did the Group of 77. What is needed now is that we should embark on the initiation of steps that translate this understanding into action. 150. It is incumbent upon those who are able to do so to assist the developing countries in their programmes for economic progress. Kuwait is second to none in this field. We are pioneers in establishing national funds for economic assistance to developing countries. We are also a major contributor to the regional funds for economic assistance. The Financial Committee of OPEC just concluded its meetings at Vienna, at which it decided to increase the capital of the OPEC Fund for the assistance of developing countries. 151. The total assistance of OPEC donors to develop- ing countries, as a percentage of their own gross na- tional product, rose from 0.69 per cent to 2.01 per cent Over the period of 1972-1977, while that of the Develop- ment Assistance Committee of the Organisation for Economic Co-operation and Development actually fell from 0.33 per cent to 0.32 per cent. 152. The North-South dialogue that took place at Paris failed because the political will needed for restruc- turing the world economy was absent. Some of the 'n- dustrial countries thought that oil wouJd become cheaper and that therefore there was no need for a serious dialogue. Subsequent developments showed how mistaken they were. The adoption of the policy of palliatives, which does not confront the real issue, has failed, because the need is not for palliatives but for a fundamental long-term remedy. While the developing countries have suffered immensely from this short-term approach, industrial countries, too, have not escaped its impact. In this respect, one should refer to the policy of protectionism in trade with barriers against the exports of the developing countries. That policy has brought about an unjustified decline in the foreign earnings of the developing countries. 153. The Committee of the Whole, which was established in the wake of the failure of the Paris talks, has not been successful in formulating practical measures for the restructuring of the global economy. We understand the complexity of the issues, but wealso believe that there is no justification whatsoever for failure to adopt immediate measures to relieve the prot- lem of the debt of developing countries. This issue is too serious and too grave to be shoved aside for future negotiations. The developing countries tried, among other things, to draw the attention of the Committee of the Whole to the serious situation of the land-locked, the least developed of the developing countries and the island developing countries, but they could not get an agreement on measures to alleviate those problems. That is why it is important now to discuss the global 154. The responsibility of the General Assembly is a formidable one. There are five problems which should be seriously tackled and confronted in the future negotiations or dialogue: first, abolition of discriminatory and restrictive commercial policies; secondly, a guarantee of the stabilization at just levels of prices of raw materials exported by developing coun- tries; thirdly, support of the process of economic development in developing countries and the facilitation of the process of transferring modern technology to those countries at a fair price; fourthly, reconsideration of the structure of the debts to the developed countries and reduction of the burdens of servicing and repaying these debts; finally, the facilitation of the flow of capital to developing countries under conditions which are far from being exploitative. 155. The General Assembly, therefore, is considering a serious matter in which success or failure will affect adversely or favourably every country, if not every in- dividual. We must approach it with determination to en- sure its success. 156. Mr. d'ABZAC (Chad) (interpretation from French): Allow me, first of all, to pay a well-deserved tribute to the Chairman of the Committee of the Whole, Mr. Stoltenberg, whose common sense, wisdom and in- defatigable efforts have averted a failure of the negotia- tions within that Committee. 157. Nevertheless, the Committee of the Whole was unable to fully carry out its mandate to give impetus to the North-South dialogue for the preparation of a new international economic order because of the reluctance of some of the negotiators. Although we must recognize that there were some appreciable results, notably in the transfer of real resources to the developing countries and in food matters and agricultural development, we should have liked the dialogue to be a genuine one, leading, in a spirit of justice and equity, to positive results regarding the whole complex of problems with which we are concerned. But, as was correctly observed by the Secretary-General in his annual report on the work of the Organization [A/34/1] and by the Director- General for Development and International Economic Co-operation in his statement at the 4th meeting of the Second Committee, the negotiations are getting increas- ingly bogged down; instead of making progress, they unfortunately tend to give rise to tensions and conflicts which, we fear-if this attitude continues-could lead to the confrontation which no one wants. 158. As we never fail to mention, the essential objec- tive of our discussions is to master the elements that have challenged the current economic order and to pro- vide this order with the necessary corrections so as to enable all countries-developed and developing alike -to participate in it equitably and fully. 159. Despite their lack of enthusiasm during discus- sions in the Committee of the Whole and at all other major meetings of 1979, the developed countries are nevertheless still ready to pursue the talks in the hope that reason will prevail over obstinacy. J 161. The developing countries continue to endure helplessly the hardships of inflation and of' the deterioration of the terms of trade, which impose great strains on their peoples. It is not our intention here to accuse any group of countries that obstinately impedes any change in world economic relations, but rather to indicate that each country should take seriously into ac- count the interdependence of all the nations of the world. 162. It is, consequently, in the interests of the developed countries themselves to further the growth of the developing countries so that the latter may find a longterm solution to their own problems. At the same time, if conditions so justify, the developing countries should take into account the difficulties encountered by the developed countries. The notion of interdependence, if perceived objectively, should make possible a global meeting of minds among all countries. 163. Therefore, in order to avoid repetition of past errors, we favour global negotiations that are action- oriented and address the whole range of thorny prob- lems confronting the international community- raw materials, energy problems, trade exchanges, monetary problems and the approach to development of the developing countries - and we hope that the draft resolution presented by the Group of 77 will be adopted by the General Assembly. 164. We should like to draw the Assembly's attention to the special problems of the least developed countries - the land-locked countries, the island countries, the countries of the Sudano-Sahelian region-and to point out that those countries are not yet benefiting as they should from the special measures that have been adopted in their interest. For the least developed coun- tries, massive finarrcial and technical assistance from the international community is indispensable for the rehabilitation of their ravaged economies, which have suffered more severely than other economies as a result of the world economic crisis. For the land-locked coun- tries, it is highly regrettable that the Special Fund for Land-locked Developing Countries has thus far not acquired the necessary financial resources to enable it to be operational. 165. The persistence of the drought in the countries of the Sudano-Sahelian region has inflicted unbearable hardship upon the populations of the area at a time when the solidarity of the peoples of the world should make possible the substantial improvement of their liv- ing conditions. 166. For that group of countries it is important that more precise commitments to development aid should be made during the coming negotiations, if the General Assembly does not wish to hold a special session devoted to the rehabilitation of those countries. 167. In August last, at Vienna, the United Nations Conference on Science and Technology for Develop- 168. The recommendations contained in the Vienna Programme of Action on Science and Technology for Development9 adopted. by the Conference should receive special attention and the reservations of certain countries or groups of countries should be withdrawn. This Programme of Action should be implemented urgently so that conditions conducive to the transfer of technology to the developing countries and the improve- ment of the means available to them in the field of scien- tific and technical research should make it possible, without further delay, to use science and technology for purposes of development. 169. In conclusion, I would emphasize that the inter- national community has been given a further chance for negotiations, which we hope will be frank and fruitful, by the proposal that would transform the Committee of the Whole into a preparatory committee for the special session of the General Assembly in 1980. The economic prospects for the future of mankind are gloomy indeed. The Member..8ta+,es of the United Nations should show wisdom and enter into firm commitments during the preparatory work so that the forthcoming special ses- sion will result in success that will be of benefit to all.

Peace and world prosperity are closely linked to the degree of economic and social progress and ad- vancement. If peace is indivisible, so is the effort to eliminate poverty, disease and illiteracy in a world which must not be divided against itself. 171. The experience of the developed countries, whether in their relations with each other or in the framework of their community, has taught us that selfish and short-sighted policies led the world into an impasse at the beginning of the 1930s. 172. We must recognize that there is no magic remedy that will bring about a new and just economic system. The North-South dialogue has not been able to over- come the obstacles, which must be overcome by sincere concerted efforts. 173. If the problem is that of increasing production, with more just distribution, we must find a solution to this problem in the interests of mankind as a whole. A new international economic order based on principles of justice is not only in the interest of the developing coun- tries but also in that of the developed countries. 174. The world has a real need for radical, long-term solutions, not selfish provisional palliatives. 175. We hope that the Group of 77, of which Jordan is a member and which has agreed to prepare the strategy for the special session on the third development decade, willemphasize that the participation of the entire world, in terms of producers and consumers of goods and serv- ices, is not only a humanitarian matter dictated by 9 Report of the United Nations Conference on Science and Technology for Development, Vienna, 20-31August /979 (United Na- tions publication, Sales No. E.79.1.21 and corrigenda), chap. VII. 176. The Final Declaration of the Sixth Conference of Heads of State or Government of Non-Aligned Coun- tries, held at Havana, emphasized the fact that economic problems had become more complex than they had been at the Fifth Summit Conference. 177. The gap between the developed and the develop- ing countries has widened, quite apart from the stalemate in negotiations on the establishment of a new international economic order. The Conference drew at- tention to the fact that the developed States had follow- ed a selfish policy in dealing with economic problems, which had resulted automatically in immediate adverse consequences for the developing countries through in- ternational trade and monetary and financial relations. 178. As the Assembly is aware, Jordan is not an oil- producing country and the rise in the price of energy af- fects it in just the same way as it affects other countries which are not oil-producers. But there are many goods in the production of which oil plays a part. Their cost also has increased sharply and there are those who blame that on the increase in the price of oil. 179. On the other hand, many agree with me that a barrel of oil, which now costs $18, will sell, after con- version into fertilizer, chemicals, plastic, clothes and other goods, at a hundred times that price. Who pays the price? The developing countries, of course. 180. The rise in price of a single article is not the cause of the present economic situation. But the victims have been the countries that produce only that article or only one article. 181. In the establishment of a new international economic order, account must be taken of all articles and not of one article only. The Buenos Aires Plan of Action,» adopted at the United Nations Conference on Technical Co-operation among Developing Countries, in which the Crown prince of the Hashemite Kingdom of Jordan participated, stressed the urgent need to establish regional centres for technological research and institutions for the transfer of technological knowledge from the devet-r-ed to the developing countries. The Crown prince rt <.4t conference also stressed II the prob- lems of the "brain drain" whose aim is to hinder the establishment of centres for the transfer of technology. We hope that special attention will be paid to these two issue ..t the special session in 1980. 182. The establishment of a healthy new international economic order cannot be achieved so long as there is confrontation between the "haves" and the "have-nets". It can be attained only through a con- structive and fruitful dialogue, taking into account the 10 Report of the United Nations Conference on Technical Co- operation among Developing Countries, Buenos Airn. 30 August-II September /978 (United Nations publication, Sales No. E.78.1I.A.11 and corrigendum), part three, chap. I. 183. Thus, the developed countries are asked to show greater flexibility and better understanding and to display a more elevated manner to deal properly with the present crises. 184. The working groups required to draft the new economic strategy must be pragmatic and must call on the developing countries to make available to experts from the Group of 77 the objectives, priorities and needs of their development plans. Thus, the interna- tional community will be able to give priority to the im- plementation of those programmes. 185. ~ wish to stress that the assistance offered by the developed to the developing countries has not gone beyond 0.13 per cent of their gross national product. At the same time, I should like to recall that Mr. Paul Hoffman, former director of the Marshall Plan and former Administrator of UNDP, said that American assistance was merely an auxiliary factor and that the miracle in Europe was achieved by the European peoples which did the real work of reconstruction in their countries. 186. As His Majesty King Hussein said in the general debate, on 25 September 1979: "We are for an honest and a fruitful dialogue be- tween the South and the North, between the in- dustrialized world and the less fortunate countries which are seeking to achieve comparable progress. We are for the new international economic order in all its manifestations: equitable interaction among all nations; a new basis for international trade; the transfer of resources from developed to developing countries; the implantation of technology in the developing countries where it is most needed; the ef- fective supply of food to the poorer countries and the wherewithal to produce more of their own food; the dissemination of knowledge and education; the effec- tive solution of the problem of housing and clothing; the provision of medical care; and the promotion of individual dignity. We are for viewing the entire world as an indivisible unit with regard to resources, aspirations, peace and the solution of problems. We are for placing the resources of humanity at the serv- ice of progress and enlightenment for all of mankind." [7th meeting, para. 15.]

This is one of our last economic debates in the General Assembly in the 19708. It is reasonable to look at the subject of this discussion in the perspective of past experience as well as of future expectations. The important proposal by the Group of 77 for global negotiations relating to inter- national economic co-operation for development has to be considered as a part of our over-all economic en- vironment. There has to be a conscious effort on the part of all countries to solve what are, in fact, common problems. 188. As the 1970s have passed, the traditional objec- tives of economic policy-growth, fuli employment, internal and external equilibrium-have become more and more difficult to attain. The developed market 189. We in the developed countries have to understand that our fate and our future are unavoidably linked with those of the developing countries. A New International Economic Order is being born under the pressure of events. The interdependence of nations makes work on the new international development strategy for the 1980s particularly important. We need the strategy as the framework for our co-operation, a strategy that lays down the goals and objectives and the commitment of our efforts to improve the economic and social develop- ment of the developing countries. 190. All Governments represented here have one fun- damental commitment-namely, to improve the living conditions of their peoples. To make that possible we need a stable and well-functioning international economic system. This is our overriding common in- terest, which should be the basis and the framework of a global negotiation. 191. Let me here comment on only two of the central subjects which will be on the agenda for the global negotiations-energy and the transfer of resources. This should, however, not be construed as a wish to limit the over-all scope of global negotiations to these areas only. 192. First, let me deal with the subject of energy. I do not think there is anyone today who is not aware of the importance of adequate and stable energy supplies for economic and social development. I think that there are very few who do not recognize the formidable long-term problems that all countries confront in the energy field in attempting to avoid a situation where the cost and the availability of energy become a constraint on economic growth. 193. Energy is an area where international co- operation is imperative. Therefore, we welcome the fact that energy has been proposed as a major topic for the global round of negotiations. The issue of energy has been dealt with by many speakers in the general debate. The President of Mexico made an interesting statement on this issue [11th meeting] and drew our attention to several problems we are facing in this field. 194. What has struck us in looking at statements about the world's energy future by representatives of in- dustrialized and developing countries, oil-producing as well as non-oil-producing, is the basic agreement about the global nature of the problem and about many of the policies that will have to be adopted. 195. All countries share the responsibility for ensuring a reasonable balance between energy supply and de- mand. A particular responsibility rests with the in- dustrialized countries, which are large consumers of im- ported oil and have a large potential for savings. In recognition of this fact, many industrialized countries have considerably strengthened their energy conserva- tion and development policies in recent years. 197. Secondly, my delegation has elaborated on the question of transfer of resources in its statement in the general debate of the Second Committee. 12 Let me just briefly note that transfer of resources in the form of assistance plays a crucial role in the development pro- grammesof the poorest countries. Middle-incomecoun- tries, to maintain a reasonable growth momentum in the longer term, will depend on access to development finance, with a longer maturity structure than hitherto on private commercial loans. Renewedefforts and fresh initiatives in this regard are needed. 198. The resolution adopted at the-fifth session of UNCTAD on the transfer of real resources to the developing countries concerning "massive transfer of resources," 13 could form a basis for new action- oriented initiatives to accelerate development in developing countries and help stimulate global eco- nomic activity in a longer-term perspective. 199. The high-level meetings of IMF and the World Bank held at Belgrade at the beginning of this month, confirmed that international monetary issues now con- cern all nations. On that occasion, the Group of 77 presented a programme of action on international monetary reform to the Development Committee. In our view, the Bretton Woods institutions are the ap- propriate bodies for discussions on monetary matters to take place. The proposals will now be further con- sidered, and it is too early to express views on their substance, But under any circumstances, the discussions in the Belgrademeetings and·their follow-up will have a bearing on our present deliberations in the United Na- tions. 200. Considering the great importance of transfer of resources and technology, it would seem fruitful further to explore the positive potentials of direct private investment while at the same time taking care to mitigate their negative effects. The work on a code of conduct for transnational corporations could bring about a more stable framework for international co-operation in this field. 201. On these as well as other substantive issues, it might be easy to point to areas for action. We should however not underestimate the difficulties involved in 13 Proceedings of the United Nations Conference on Trade and Development, Fifth Session, vol. I, Report and Annexes (United Na- tions publication, Sales No. E.79.II.D.14), part one, sect. A, resolu- tion 129 (V), paras. 19-20. 202. A global round will not produce immediate rem- edies t<;> all pressing problems. This may avply both to Immediate problems of energy supply and to the serious threat posed to the development efforts of many developing countries by their deteriorating balance-of- payments situation. While a round of global negotia- tions should eventually contribute also to the long-term solutions to such problems, it may well be less than realistic to expect that the negotiations will bring im- mediate remedies to all of them. 203. The preparatory stage should result in a set of realistic conditions to govern the new round and to find directions which offer the most promising hope of a fruitful outcome. This means that we have to be selec- tivein our choiceof agenda items, avoid duplication, use existing UOlted Nations forums to the greatest extent possible and adopt efficient procedures. 204. In setting priorities, we should keep in mind that there should be prospects for all parties to gain something in negotiations based on the principle of mutual long-term interests within the framework of a New International Economic Order. 205. Every effort must be made to avoid a global round duplicating or interfering to the detriment of ongoing negotiations within the United Nations system. Such negotiations in other forums should instead be promoted and facilitated by the global round, as is stressed in the draft resolution presented by the Group of 77 to the Committee of the Whole. 206. The new negotiations should as far as possible be handled in existingorgans of the United Nations. To the extent possible, weshould have a decentralized arrange- ment for the discussions. Energy in particular will, of course, require special arrangements. In our view, the Committee of the Whole can play a central role in the negotiations and the effective preparations for them. 207. Other questions which need to be discussed and agreed upon are time-frames and procedures. The calen- dar for economic and social meetings in the United Na- tions has long since passed the handling capacity of Member States and of secretariats. In fact, I even believe that the combined effect of an increasing number of meetings and less efficient procedures has been counter-productive in many instances. Let us therefore approach a new round with a new sense of urgency and responsibility. 208. The proposal submitted by the Group of 77to the Committee of the Whole recommended that the nego- tiations in a new round should proceed simultaneously on the various issues. In our view, this method will have to be handled in a flexiblewayin order to avoid linkages that could unnecessarily jeopardize the over-all benefits to be derived from a new global round. 209. It has been proposed that the final recommenda- tions on the holding of a global round should be submit- ted to the special session of the General Assembly. As the preparatory stage will playa very important role, it 210. It is natural that this proposed new round has been compared to the Conference on International Economic Co-operation. A well-placed observer from a developing country characterized the Conference exer- cise as the end of a beginning. He also concluded that, in order to produce practicable results, future dialogues