Roy Jenkins, president of the European Common Market's governing body, indicated after meeting here yesterday with President Carter that American proposals to stimulate the world economy have quietly been laid aside.
This was confirmed by a high official of the Carter's administration. In a telephone interview, Assistant Treasury Secretary for International Affairs C. Fred Bergsten said:
"They (other countries) know where we stand on these issues, so we're not going to be making speeches beating the issue to death."
Jenkins, head of the Common Market's governing bureaucracy in Brussels, is here on his first official visit, to discuss U.S.-European relations, and issues that will come up in the London economic summit, May 7 and 8. He met also with Vice President Walter Mondale, Secretary of State Cyrus Vance, Secretary of Treasury W. Michael Blumenthal.
He told a press conference that instead of world-wide economic expansion, the issue that might dominate the summit is discussion of ways to deal with North-South (rich nation-ppor nation) problems.
President Carter had sent Mondale on a round-the-world mission immediately following their election, urging West Germany and Japan to follow the U.S. lead in what is called "reflation" - extra stimulus to reduce unemployment.
The basic idea was that the tree major industrial powers, by expanding their home eocnomies, could absorb more imports from less affluent nations, thus leading the way to a more vigorious world-wide recovery.
But West German Chancellor Helmut Schmidt refused to make more than minor changes in the German econimic program, stressing the time-honored German fear of inflation.
And last week, to the surprise of the British, French, and Italian governments who hoped for greater expansion among the Big Three, President Carter cut the proposed $31.6 billion U.S. stimuluspackage to $16.9 billion, of which only $3.5 billion will be spent this fiscal yea.
In the understated phrasing of the practiced European diplomat, Jenkins said that "the prospects of getting reflation from one or two stronger countries has somewhat receded."
Jenkins told reporters he came away from his meetings optimistic about U.S.-Common Market relationships.