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1534557
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1975/05/26 - Economic Meeting
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doc
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1534557
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document
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1975/05/26 - Economic Meeting
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James M. Cannon Files (Ford Administration)
James Cannon's Meetings Files
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International economy
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1534557
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1975-05-31
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5
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1975
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1975-05-01
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5
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1975
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The original documents are located in Box 45, folder "1975/05/26 - Economic Meeting" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. 8 AM - White House SEnior Economic meeting Staff Meeting Monday, May 26, 1975 1) Nessen- Suichment Deadhmi A Digitized from Box 45 of the James M. Cannon Files at the Gerald R. Ford Presidential Library THE WHITE HOUSE WASHINGTON May 24, 1975 ECONOMIC MEETING May 26, 1975 8:00 a.m. Cabinet Room From: L. William Seidman I. PURPOSE To discuss the Administration's approach to the "new economic order" and Secretary Kissinger's speech at the OECD Ministerial meeting May 28. II. BACKGROUND, PARTICIPANTS AND PRESS PLAN A. Background: The LDC's are continuing to press their demands for a new economic order entailing economic agreements and arrangements that would redistribute wealth from the relatively rich to the relatively poor nations. The topic was ad- dressed at the recent EPB International Economic Policy Review and it was agreed that further dis- cussion and development of the U.S. Government's response to these demands is needed. Secretary Kissinger will be addressing an OECD Ministerial meeting May 28. A draft of his re- marks is attached at Tab A and has been reviewed by members of the Economic Policy Board Executive Committee. This provides an appropriate occasion to discuss with you what should be the Administra- tion's general approach to the new economic order. B. Participants: Henry A. Kissinger, William E. Simon, L. William Seidman, James T. Lynn, Alan Greenspan, John T. Dunlop, Rogers C.B. Morton, Frank G. Zarb, Brent Scowcroft, Donald Rumsfeld C. Press Plan: No press. 2 III. AGENDA A. Administration Approach to the New Economic Order Secretary Simon, Secretary Kissinger, Alan Green- span and Jim Lynn will indicate their views re- garding what should be the Administration's gen- eral approach to the new economic order. THE SECRETARY OF THE TREASURY WASHINGTON 20220 MEMORANDUM FOR THE PRESIDENT During the past several weeks, we have participated in discussions on important international economic issues. Recent public presentations by the Secretary of State have been sufficiently ambiguous to preserve the oppor- tunity for you to decide policy issues. This is also true of a speech he will deliver at the OECD this week. However, as a result of this process it has become obvious that in the international field, we are in danger of com- promising our basic commitment to the free enterprise system. At this point, we believe it is important for you to focus on the principles on which our strategy in the international area is founded. 1. Much of the Third World is pushing for a new interna- tional economic order based on socialist principles. While we would like to avoid a confrontation, we clearly cannot acquiese in, or compromise with, this new economic order. A socialist economic order out- side the United States would require us to either (a) become socialist or quasi-socialist or (b) become economically isolationist. 2. The issue that is posed is fundamental: --Do we respond by reaffirming our own commitment to the basic principles of free enterprise and free markets, but offering to discuss and negotiate on problem areas in a spirit of practical cooperation? --Or do we respond by being forthcoming and indicating that we are prepared to accept the inevitability of a fundamental change in international economic arrange- ments, but still bargaining hard on a case by case basis on particular issues? 3. We do not want to pursue a policy based on promising the rest of the world a great deal now, knowing that we do not intend to deliver on these promises, implied or stated, at a later time. Instead, we should be maintain- ing our leadership role which seeks to preserve the economic system based primarily on private ownership and free competitive markets. - 2 - 4. We believe that our interests can only be served by speaking out frankly and forthrightly concerning our basic disagreement in principle with those who are demanding a new world economic order. The principles of free markets and free enterprise are, after all, what we stand for and what we believe in. If we fail to speak out in their defense, no one else will be able to do SO. 5. Clearly, an area where this fundamental choice is confronting us is in the third world's pressure for international arrangements with respect to commodities. It was central to the breakdown of the preparatory conference on energy in Paris and it will be presented to you throughout your upcoming European trip. If we posture ourselves as willing to discuss this area with an eye toward "new solutions" or "new arrangements," the world will perceive this as a willingness on our part to compromise our basic system. In any state- ments referring to discussions on this issue, we should not be afraid to strongly assert that the United States, as well as the less fortunate countries, can best be served not by a system of government agreements on various aspects of international trade and finance, but rather by continued reliance on the effective private institutions which have evolved in these areas. 6. This policy does not'mean that we need posture ourselves as seeing no avenues of improvement in the existing system. However, if we agree, or give the appearance of agreement, to changes in the international economic system abroad, we will be in danger of jeopardizing the principles you have been building at home and our economic and military strengths will increasingly count for less in the world. THE ECONOMIC POLICY BOARD W.E.SIMON L. W. SEIDMAN 5/4/75 Evenue meeting I believe in from entryper P I an a progructest But I also betw w publect solving, new concern about getting it don them the Phonology. How one Gum a little on work in our to orlveri in poblem soloring efforts we make. on other law, no corporan or bonz philosophy. HAVE CAC - domneter by Soudent nucks Condun Salem of Eamn. GERALD, FORD Democrance stated my the people who Kun Who they which - we own foundy buthers HAVE lets' unt when or new aka one or above- - at is woh at The problem and an what we can do P- new the -Time apport - 1) got I regatate 2) what do you wegating Bunn- Rehini lead in catalizui, The work GERALD FORD LIBRARY