ECONOMIC COOPERATION WITH DEVELOPING NATIONS

Our relations with the developing nations are of major importance to the

United States. The fabric of our relations with these countries has strong

economic and political dimensions. They constitute the most rapidly growing

markets for our exports, and are important sources of fuel and raw

materials. Their political views are increasingly important, as

demonstrated in their overwhelming condemnation of the Soviet invasion of

Afghanistan. Our ability to work together with developing nations toward

goals we have in common (their political independence, the resolution of

regional tensions, and our growing ties of trade for example) require us to

maintain the policy of active involvement with the developing world that we

have pursued over the past four years.

The actions we have taken in such areas as energy, trade, commodities, and

international financial institutions are all important to the welfare of

the developing countries. Another important way the United States can

directly assist these countries and demonstrate our concern for their

future is through our multilateral and bilateral foreign assistance

program. The legislation which I will be submitting to you for FY 82

provides the authority and the funds to carry on this activity. Prompt

Congressional action on this legislation is essential in order to attack

such high priority global problems as food and energy, meet our treaty and

base rights agreements, continue our peace efforts in the Middle East,

provide economic and development support to countries in need, promote

progress on North-South issues, protect Western interests, and counter

Soviet influence.

Our proposed FY 1982 bilateral development aid program is directly

responsive to the agreement reached at the 1980 Venice Economic Summit that

the major industrial nations should increase their aid for food and energy

production and for family planning. We understand that other Summit

countries plan similar responses. It is also important to honor our

international agreements for multilateral assistance by authorizing and

appropriating funds for the International Financial Institutions. These

multilateral programs enhance the efficiency of U.S. contributions by

combining them with those of many other donor countries to promote

development; the proposed new World Bank affiliate to increase energy

output in developing countries offers particular promise. All these types

of aid benefit our long-run economic and political interests.

Progress was made on a number of economic issues in negotiations throughout

the U.N. system. However, in spite of lengthy efforts in the United

Nations, agreement has not been reached on how to launch a process of

Global Negotiations in which nations might collectively work to solve such

important issues as energy, food, protectionism, and population pressures.

The United States continues to believe that progress can best be made when

nations focus on such specific problems, rather than on procedural and

institutional questions. It will continue to work to move the North-South

dialogue into a more constructive phase.

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