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PASTOR GENERAL'S REPORT, JULY 31, 1981
PAGE 11
achieved high marks from his peers who remarked that he was also a good lis
tener, one who readily acknowledged their own national economic problems,
especially as aggravated by high interest rates in the United States.
The private "no holds barred" sessions, journalists were told in press
briefings, were very frank, but apparently never acrimonious. And in the
end, the Europeans, Japanese and Canadians had little choice but to trust
Mr. Reagan's contention that his domestic economic reform package will "turn
things around" in the U.S. within a few months, to the expected benefit of
America's partners. One got the impression that the other six were giving
the U.S. a year's grace, at least until the next summit to be held in France.
The final communique showed the Reagan imprint. It stressed the importance
for governments to "urgently reduce public borrowing..• to rely on contain
ment of budgetary deficits, by means of restraint in government expendi
tures." Mr. Reagan let the Europeans know that he felt their economic prob
lems were largely of their own making, traceable primarily to skyrocketing
social expenditures, only secondarily to high U.S. interest rates. Appar
ently Chancellor Schmidt, for one, got the message, expressing the intention
to go home and cut West German federal spending and borrowing. This could
put Schmidt in hot water with his own Social Democratic party, however.
The President budged only ever so slightly on Prime Minister Trudeau's pet
project--improved "North-South" (developed vs. developing nations) rela
tions. Mr. Trudeau would have been embarrassed had no mention been given to
increasing North-South development aid. But the essentially Reagan final
communique stressed the necessity for encouraging development by means of
private investment, not government handouts, which all too often only end up
lining the pockets of despots.
Of what importance are such international heads-of-government meetings such
as the economic summit? It's easy to dismiss them as having little value,
but in the potentially explosive era we are living in, such summit confer
ences help keep international relations on an even keel--as long as reason
able men are in seats of authority. Personal contact among leaders does have
some value. It can help diffuse potential crises. As President Reagan re
marked: "Getting to personally know these other individuals, getting into a
really first-name basis, is worth its weight in gold."
But summits, of course, solve nothing of themselves. Final communiques-
written in advance--usually are cosmetic patchworks papering over deep divi
sion. Even before the Ottawa conference began, Prime Minister Trudeau pre
pared Canadians not to expect any concrete results, except, he said, "to try
to understand where the devil the world is going."
This has been a bit different "On the World Scene." But I thought some on
the-spot observations from the Ottawa Summit, especially about the pivotal
role of America's new president, might be of some value.
--Gene H. Hogberg, News Bureau