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    "localId": "1553487",
    "label": "June 29, 1976 - Cabinet Meeting",
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    "title": "June 29, 1976 - Cabinet Meeting",
    "citationUrl": "https://catalog.archives.gov/id/1553487",
    "collections": [
        "Memoranda of Conversations (Nixon and Ford Administrations)",
        "Ford Administration Memoranda of Conversations"
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    "subjects": [
        "Puerto Rico",
        "Cabinet meetings",
        "Economics",
        "International economy",
        "Summit meetings"
    ],
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    "ocrText": "File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library\nMEMORANDUM\nTHE WHITE HOUSE\nWASHINGTON\nMEMORANDUM OF CONVERSATION\nPARTICIPANTS:\nPresident Ford\nThe Cabinet\nBrent Scowcroft, Assistant to the President\nfor National Security Affairs\nDATE AND TIME:\nTuesday, June 29, 1976\nPLACE:\nThe Cabinet Room\nSUBJECT:\nPuerto Rico Economic Summit\nPresident: I want to express my appreciation for the fine staff work\nthat was done in preparation for the Puerto Rico meeting. The two\nmeetings we've had at Rambouillet and at Puerto Rico -- clearly\nindicate to me there is an interdependence among the industrial\npowers in the economic, political and security areas. Here we were\nmeeting to avert a crisis, not to cope with one. At Rambouillet, we\nhad been in the midst of a recession. I think this is the was for the\nheads of government to meet.\nWe covered the major areas: economic recovery and expansion\n[some description]; and the monetary and financial areas. We agreed\neach country should try to avoid imbalances and help with any\ntemporary imbalance in conjunction with a firm program to correct\nthe situation. On North-South relations we agreed we had to have a\ncooperative -- not a competitive -- approach. On trade and invest-\nment, we agreed to try to complete the Multilateral Trade Negotiations\nby the end of 1977. In the area of East-West trade, we need to monitor\nit to insure that trade enhances Western objectives. There has been a\nmassive increase.\nIn conclusion, I am convinced this nation has the leadership\namong the industrial democracies. We clearly are in a position of\nleadership -- across the board. Henry, do you want to add anything?\n- 2 -\nKissinger: The most important part is that the solidarity of the\nWestern democracies is the best guarantee of peace. The industrial\ndemocracies have 60% of the world GNP. The press has commented\non the meeting being political. But for whatever reason it was done,\nfor six heads of state to set aside two-tc-three days at the call of\nthe President -- that in itself is a testimony to the President's\nleadership.\nSecond, the level of the discussion was most impressive. There\nwas a level of discussion one usually doesn't find -- there were no\ncanned speeches. On East-West trade there was a great discussion\nbetween the economic and political motivations of the trade -- a dis-\ncussion which would have been unthinkable a year ago. We should\nnot expect great pronouncements from these meetings. If there were\nevery six months, it could be a sign something was wrong. On East-\nWest trade, we just wanted to raise the issue, but we got all the\ncountries to agree that this trade had to be looked at in more than\ncommercial terms - - rather in terms of overall relationships and in\na coordinated way among us.\nThe same with North-South relations. Virtually all North-South\naid comes from these states or their close association. So the\ndeveloped democracies need not be defensive at international confer-\nences -- or act competitively with each other. We made a great\ncontribution in this direction on this subject.\nNot since the early 50's has there been such a spirit of cooper-\nation among the allies. All this talk about the Soviet bloc being on the\noffensive and the democracies on the decline just isn't true. These\nleaders are dynamic and the West under this sort of coordinated action\ncan handle all the problems before us easily.\nPresident: Bill?\nSimon: The key aspect was the informality of the meeting and the\nfrankness and honesty of the dialogue. The President was impressive\nand clearly gave the others confidence in him as a leader of the\nwestern world.\n[Discussed the super tranche idea. ]\n- 3 -\nI found the East-West trade discussion the most stimulating\nand I think this is one of the most challenging areas before us.\nWe have had an explosion of credit to the East. On commodities,\nSchmidt gave a pitch which sounded like Treasury arguing with\nState. All in all, I can only agree that the depth which these subjects\nwere discussed was most impressive.\nGreenspan: It was an extraordinary meeting, especially in the context\nof other meetings I have attended. There was a real intellectual\ngrappling with major philosophical issues.\n[Rambling discussion]\nWe may have developed a new form of international institution.\nWe have broken down the formality and protocol of summit meetings\nso that true dialogue can take place.\nPresident: One of the big changes between this and Rambouillet was\nthe discussion about competition to extend credit to the Soviet Union.\nThere was no discussion of the magnitude of the credit. At Puerto\nRico, Henry pointed out that this credit gave us leverage which could\nskillfully be utilized and there was general agreement with that concept.\n[Discussion about Eastern debt, possibility of default, etc. ] We dis-\ncussed the situation of Poland, which announced a price increase and\nthen had to rescind it.\nKissinger: This was a remarkable phenomenon. To imagine that\nthese monolithic dictatorships are so weak they can't impose this\nkind of decision -- which makes economic sense and has profound\npolitical implications.\nFurther, the idea that the Soviet Union might have to reschedule\nits debts is also of profound political significance. The idea that the\nSoviet Union, which claims to have the most advanced economic system\nin the world, would have to show this kind of economic bankruptcy, is\nreally of great political significance.\nRichardson: [Suggested an NSC study of the political and economic\nrelationship of East-West trade.]\nCoteman To Quim am\n2\nSimon &\nCahint inty\n29 June 76\nP Wants your my appear for fine ctolf croch\nin Kup for enty. The 2 mtq at Rt PR. alway\nindicate 8 me thus is en interedue among\nin evn you, receivity Her\nur to anuta erisis, with\nat Runn, and had her in a insim\nIthint the is way for C heals of govth mut.\nWe count 5 major chlas: he very parrain\n(some description); monthly + personal each\nHundred try 8 and imbalances + help w/. temperary\ninvolvement incorpreation or/ always Pown K to event\ncit; N-S- we ayead ta corp nota\napproach; Trader Invest- agreed to by to example\nMIN by and 7); E-W trade univites to insures\nthis Truch enhances crestern agentives There has\nhimo 6 massive T In anchision I on\nevancimed this nation hase backship many\nc industrial allms We always an in a postrict\nof nathing - brand\nK The hust yourtant past is that C of\ncertifies dimn is C best permatic of felnd.\nThe intertrial lems home 60% of and Crick John\npress has corrented on political, Bew\nfor whating union, 6 heads of state set aside 2-3\nImporte are of Pres. That in atter itsking\nto P. learniship ul c - discraft\nwas want impressive The who a Carely\ndiscred one under doont fine - no canned\nspeciales- OnE-w, there non a first housen M.V\nlater even r put instination P. trub a his\nwhich would have her mnthrinkals a Jen ags.\nG₂ should expect quat at prevannents from\nBERALD\nthere meting of the chese they 6 m Gras it asses\nhea sign southing was wrog-\nOn E -W Gards, and just rental h earne - issue,\nhrt we get all Co agree to a ferended statement\nin environment the and had & he looked\nat in smoketon emal terms- wather in\nterms denal Matroiships + in coordinated may\novery and\nSome W/N-S. Vertually one N-5 and casses\nfrom these stated them else assoc. So, the\nDezel also wed not he defension at into\nemplunes we at competitions\nI and agent cratitution m this direction or\nthis sobject GAT since c early 50's has there hall\nsee ha opinit of aver alway < allies. all this\nTNVh that Sor blos an c offersive deros\nbroing non C defensive just but the. These\nballs one dymmine F c mm const ender this not\nof cord atm can handle all puro hype\nin easily.\nSiam- Te hay accupt were important ofs ents\n+c frombress + hoursty of C chapper The Prio am\nimpressive t clearly good - others everythere a\ne seeder of - carston credit\n(Desinsed 1 - sayer hourche richar)\nI found - -w Gale disinsion most stringheting r\nIthe This 14 one of most challenging awas where\nNo. we have had a Xplasim evelitto c Earth\nOn emilities, Schmilt gomla speach ptch which\nstambed like Treasury anying or/ State. av in all,\nI company agen that depth which which Chare\nThe whe choursed who mot impussive\nthat hyper 100/ Subsinsing?\nGreensper It was du extrading mesting, esp in unstagt\nof other contry & have attended. Then was wells\nnal intellutional groppling w/ major\nessis.\n(Rumbling devision\nwe may have abroped a new formand intl\nengirtution. are have botten doner c fromits\npotterb of mit into so that true chabges\ncan take place.\nP\nbig changes betchio r lan has there\nC disc. was about competition to xtand with SV,\nThere brass he his of inagementate of c receit. the\nat VR, Henry scount ant that This cribit\ngave bo energe which smill shallforthy be untitizide\nthere was girl agreementer / that everyt\n(Disersion about Eastern debt, pase of efamilt, etc)\nwe desisied a it of dolard, which number\npince n+ then had to uscial it.\nK Thousand remarkable physican. To hungise That\nthear nord mondithes one 20 wenk they\ncan't injoye this devil of decision - which maters now\nsincer has propered pol. implication\nFersther, the idea that Sd might have is\nreschadrele its educate letts is willing also If profond\npol sig. The Sv, which claims TO have that\nadvanced I com septem in world, and home\n& show this hand of like hawkrupty, is\nReviewbon an NSC standy of C relations politional\nreally of - yrd sig,\n& econ relationship of E-W tends"
}