SENIOR INTERDEPARTMENTAL GROUP ON INTERNATIONAL ECONOMIC POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-01156R000200220022-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 21, 2016
• Document Release Date: December 8, 2008
• Sequence Number: 22
• Publication Date: May 18, 1983
• Content Type: MEMO

Approved For Release 2008/12/08: CIA-RDP85-01156R000200220022-8
EXECUTIVE SECRETARIAT
Routing Slip
ACTION
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DATE
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 MEMORANDUM FOR
Executive ReciAry,
tE- 217 2=3
THE
VICE PRESIDENT
THE
SECRETARY
OF
STATE
THE
SECRETARY
OF
DEFENSE
THE
SECRETARY
OF
AGRICULTURE
THE
SECRETARY
OF
COMMERCE
THE
DIRECTOR,
OFFICE OF MANAGEMENT AND BUDGET
CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS
ASSISTANT TO THE PRESIDENT FOR
NATIONAL SECURITY AFFAIRS
ASSISTANT TO THE PRESIDENT FOR POLICY DEVELOPMENT
UNITED STATES TRADE REPRESENTATIVE
t/6IRECTOR OF CENTRAL INTELLIGENCE
SUBJECT Senior Interdepartmental Group on International
Economic Policy (SIG-IEP)
Attached are papers on public diplomacy aspects of the
Williamsburg Summit which were prepared by the Sherpa team and
Ambassador Rentschler's office for the SIG-IEP meeting to be held
Thursday, May 19, at 3:00 p.m., in the Roosevelt Room.
David E. Pickford
Executive Secretary
 Approved For Release 2008/12/08: CIA-RDP85-01156R000200220022-8
U.S. PRIORITIES FOR THE 1983 ECONOMIC SUMMIT
OF INDUSTRIALIZED NATIONS
President Reagan will host the ninth annual Economic Summit
in Williamsburg, Virginia, May 28 - 30, 1983. The President is
looking forward to the Summit with four priorities in'mind:
I. Mark the real progress that has been achieved in beginning
the economic recovery:
-- Some other Summit countries--UK, Germany, and Japan--
are experiencing improved economic circumstances.
-- The Summit countries' economic policies are more on a
converging path than they have been in some time.
-- Confidence is growing that the recovery will spread to
other industrial countries and the developing countries.
II. Make clear that only a sustained recovery can help the
Summit and other countries, especially in Europe where
unemploy-gent has increased for eleven straight years, and in
the developing countries where heavy debt obligations' will
persist for the rest of this decade.
-- Artificially stimulating the recovery may only,
increase expectations in inflation, which already remain high
because of lingering concerns about government spending and
excessive money creation.
-- Acting with steadiness and consistency across a range
of policy areas that exploit linkages between the domestic and
international economies and reinforce the impetus to growth
means:
- Bringing inflation down in all countries so as to
achieve treater stability in exchange rates.
- Reversing recent protectionist measures so growth
can spread to other nations, both industrial and developing.
- Supporting the international financial system so
as to maintain vital trade, to enhance recovery in the
developed world through exports and to provide markets for the
heavily indebted countries.
-- A sustained recovery requires a longer-term
perspective to guide current domestic policy actions and to
improve the international trading and financial system.
 Approved For Release 2008/12/08: CIA-RDP85-01156R000200220022-8
-2-
Encouraging convergence of domestic economic
performance around low inflation and higher output in a
medium-term perspective (two-three years) thereby ensuring
greater international monetary stability.
- Continuing ad hoc discussion of the relationships
between trade and financial issues to encourage, over time,
further liberalization of trade in the GATT, particularly with
developing countries, and to seek improvements in the
international financial system.
- Continued emphasis on fundamental adjustments in
both industrial and developing countries to adapt new-
technology,'-retrain workers, and reduce inefficiency.
III. Stress that if the recovery is to be a sustained one,
bringing real economic growth and increased employment, we must
avoid the lure of quick fixes and single solutions to complex
problems. In particular, we must avoid a new round of world-
wide inflation and rising interest rates.
IV. Secure broad recognition that the concern of the Summit
countries with economic progress is not primarily a matter of
material gain, but a reflection of the basic shared values of
these countries of individual freedom and economic opportunity
and an essential element of their security.
-- Economic progress and cooperation reinforce security
commitments to maintain peace and defend freedom.
-- The common approach taken by the allies to East-West
economic relations in the IEA, OECD and NATO is good evidence
that this recognition is growing.
-- In the interest of the free world's security, we will
work with our allies to restrict the flow of high technology
products and knowledge having a clear and important military
application to the East.
- The work of the Summit does not begin nor end in Williamsburg;
it is part of a process which focuses on longer-term strategies and
which has direct relevance to the concerns of the "successor generation."
 Approved For Release 2008/12/08: CIA-RDP85-01156R000200220022-8
Inc WHITE HUUbE
WASHINGTON
WILLIAMSBURG ECONOMIC SUMMIT
May 28-30, 1983
Framework for Public Affairs Strategy
I. Objectives/Perceptions
--- Primary Perception
-- The President as leader of vision, whose policies
spearheaded U.S. recovery and help strengthen the
West as a whole (Reaffirmation of U.S. Leadership
Role)
Secondary Perceptions
--
Shared values and objectives of the industrial
democracies far outweigh their differences
--
Grounds
for international optimism abundant
despite
problems
continuing complexity of economic
--
Williamsburg a useful consultative link between
Western economic concerns and security imperatives
Kev audiences
specialized press (Business Week, Fcrtu^e, WSJ,
etc.)
general press (nets, wires, major dailies,
national weeklies)
-- Congress (Percy, Hamilton, Mathias)
-- major interest groups (AFL-CIO, Business
Roundtable, Business Council, NAM, etc.)
Foreign
most influential media (USIA lead)
non-media opinion leaders (USIA lead)
 III. Substantive Priorities (Summit Agenda Items)
--- durable economic recovery, prosperity, and jobs are
achievable through
anti-inflationary policies, sustained growth
free/fair trade, long-term debt management
viable international financial system
sound East-West economic relations
(in addition to the above topics, possible
political discussion might focus on Poland,
Afghanistan, defense/arms issues, CSCE/Madrid,
Central America, etc.)
V. Major public affairs themes to support substantive
priorities
-- popularly elected leaders are determining the
agenda, not bureaucrats ("top-down")
emphasis on jobs, on bread-&-butter issues that
matter to everybody
informality of atmosphere and no-frills enviroh-
ment will promote freer discussions
--- Williamsburg coincides with marked improvement in U.S.
economy
--- the name of the Williamsburg game-is interrelationships
and linkage; this is not a single issue summit
(integrated view of domestic and international aspects
of the world economy)
N
--- the Summit Partners will stress strategies (i.e., long-
term as well as short-term approaches to world economic
problems)
--- Williamsburg spurs important work already going forward
in special fora (OECD, IEA, COCOM, NATO)
--- the Summit will seek greater convergence of domestic
economic policies toward low inflation
 Allied leaders intend to come to drips with long-term
management of international debt problems (access to
markets, need for adequate international finance, etc.)
economic vitality in the Sur_nit countries is an
essential element of Western security
--- Superb logistical and administrative organization of
Williaasburg Sugait itself reflects dynamic
L.S. leadership
 CHECKLIST OF POSSIBLE PUBLIC AFFAIRS PROBLEMS
General: Ho-hum Summit, papering over key issues, reaching no
decisions while millions are jobless, other economic crises
abcund, etc.
Macro: Skepticism about durability of economic recovery;
criticism of high US interest rates and massive budget deficit.
Trade: Gap between rhetoric and reality - US preaching free
trade but practicing protectionism; Mondale, et al. faulting
Administration for not protecting American workers.
Finance: Failure to bolster fragile international system or
address risk of new LDC debt crisis; concern that high US
dollar hurts American trade competitiveness.
North-South: No help for crying needs of LDC's; limp leadup to
UNCTAD VI.
East-West: Possible repeat of Versailles; criticism of Export
Administration Act.
UK: Thatcher pre-election spoiler (UK 2.5% debt-to-GNP ratio
lower than US 10% ratio).
 Approved For Release 2008/12/08: CIA-RDP85-01156R000200220022-8
PROPOSED MEDIA EVENTS
PRE:_UM.I I'
Wednesday, May 18
-- Shultz interview with Business Week
ACTION: Gergen/S_eakes
Roosevelt Rcom colu.?,nists briefing: Shultz/Regan.
(or Friday, May 20)
Mon-day, May-23
- BacC=rcund briefing for scecialists (at :cH) ; Shultz; r= _=', :ti3:1'
_s
Nall.
AC T ION:_"r_Prge-,'-._1_n/
T_esdav, May 24
-- General briefing for and National Press Corps (on
Recap/S`:cltz.
ACTION: Gar en/Szeakes/
A11in
 rsdav, May 26
-- RR: Interview with foreicr. :V _frc7 six tar:icizatinc
countries. -
ACTION: Gercen/Allin
Shultz speech to Foreign :oiicy association .
State
Meeting with PM Fanfan_ of Italy
Friday, May 27
RR: Meeting with PM Nakasone of Japan,-
RR: Interview with select WH print and TV- tress (er?arcoed
for Sunday)
ACTION: Ger
CDtion : RR interview with foreign print prezs (e'- arced for
Sunday).
CBS "Morning News": Secretary Shultz.
NBC "Today Show": Secretary Regan.
Saturday, May 28
-- RR: Radio speech on summit (pre-taped Friday).
-- RR:_ Bilateral with President Mitterand of France (Willia_-.sbure)
-- RR: Greetings to incoming heads of state (Willia.^_sburg).
 pieces to be Lre~areE, C_str=b;;te5 to press.
rCTION: Rentschler/5 ___
ACTION: Small
c ^:.iP^Cl:al interviews with key ad.^?ir.istration officials.
ACTION: Bistany
r.e :a.ers_, GIST papers to be completed.
ACTION: Rentschler