Here are excerpts from the text of the official English version of the joint declaration issued today at the conclusion of the seven-nation economic summit:
. . . World economic conditions are better than they have been for a considerable time. Since we last met, further progress has been achieved in bringing down inflation and strengthening the basis for growth. The recovery in the industrial countries has begun to spread to the developing world. The debt problems of developing countries, though far from solved, are being flexibly and effectively addressed.
Nevertheless, our countries face still important challenges. Above all, we need: to strengthen the ability of our economies to respond to new developments; to increase job opportunities; to reduce social inequalities; to correct persistent economic imbalances; to halt protectionism; and to improve the stability of the world monetary system.
Our discussions of these challenges have led us to the following conclusions:
(a) The best contribution we can make to a lasting new prosperity in which all nations can share is unremittingly to pursue, individually in our own countries and cooperatively together, policies conducive to sustained growth and higher employment.
(b) The prosperity of developed and developing countries has become increasingly linked. We will continue to work with the developing countries in a spirit of true partnership.
(c) Open multilateral trade is essential to global prosperity and we urge an early and substantial reduction of barriers to trade.
(d) We seek also to make the functioning of the world monetary system more stable and more effective.
(e) Economic progress and the preservation of the natural environment are necessary and mutually supportive goals. Effective environmental protection is a central element in our national and international policies.
I. Growth and Employment
In order to sustain noninflationary growth and higher employment, we have agreed that: * We will consolidate and enhance the progress made in bringing down inflation;
* We will follow prudent, and, where necessary, strengthened monetary and budgetary policies with a view to stable prices, lower interest rates and more productive investment. Each of our countries will exercise firm control over public spending. . . .
II. Relations with Developing Countries
Sustained growth in world trade, lower interest rates, open markets and continued financing in amounts and on terms appropriate to each individual case are essential to enable developing countries to achieve sound growth and overcome their economic and financial difficulties. Flows of resources, including official development assistance, should be maintained and, wherever possible, increased, especially to the poorer countries. In particular, more stable long-term finance, such as direct investment from industrial countries, should be encouraged. We welcome longer-term debt restructuring agreements between debtor countries and commercial banks. We continue to stand ready, where appropriate, to negotiate further multiyear reschedulings of debts to governments and government agencies.
We continue to encourage the constructive dialogue with the developing countries in the existing international institutions with a view to promoting their economic development and thereby their social and political stability. We emphasize the crucial role of, and the improved cooperation between the International Monetary Fund and the World Bank Group in supporting policies by debtor countries necessary to strengthen the confidence of domestic and foreign creditors and investors, to mobilize domestic savings and to ensure efficient use of resources and sound long-term development. We agree to work to ensure that these institutions are equipped with the necessary resources and instruments, and we stand ready to discuss an increase in the resources available to the World Bank which may be necessary in the coming years. . . .
We are deeply concerned about the plight of African peoples who are suffering from famine and drought. We welcome the positive response from our citizens and from private organizations, as well as the substantial assistance provided by the governments of many countries and the establishment by the World Bank of the Special Facility for subSahara Africa. We shall continue to supply emergency food aid. In addition, we shall intensify our cooperation with African countries to help them develop their economic potential and a long-term food strategy, based on their own agricultural programs. We are prepared to promote increases in food production by supplying inputs such as seed, pesticides and fertilizers, within the framework of agricultural development projects. We agree upon the need to improve the existing early warning systems and improve transportation arrangements. Political obstacles in the countries concerned should not be allowed to stand in the way of the delivery of food to the hungry. We emphasize the need to examine the establishment of a research network on dry-zone grains. We shall strengthen our cooperation with African countries in fighting against desertification. . . .
III. Multilateral Trading System and International Monetary System
Protectionism does not solve problems; it creates them. Further tangible progress in relaxing and dismantling existing trade restrictions is essential. We need new initiatives for strengthening the open multilateral trading system. We strongly endorse the agreement reached by the OECD Organization for Economic Cooperation and Development Ministerial Council that a new GATT General Agreement on Tariffs and Trade round should begin as soon as possible. Most of us think that this should be in 1986. We agree that it would be useful that a preparatory meeting of senior officials should take place in the GATT before the end of the summer to reach a broad consensus on subject matter and modalities for such negotiations. We also agree that active participation of a significant number of developed and developing countries in such negotiations is essential. We are looking to a balanced package for negotiation.
It is also essential to improve the functioning of the international monetary system. We take note that the finance ministers of the Group of Ten, at their meeting in Tokyo in June, intend to complete their current work on ways to improve the functioning of the monetary system and to put forward proposals, to be discussed at the next meeting of the Interim Committee of the International Monetary Fund in Seoul in October, with a view to making the international monetary system more stable and more effective. . . .