"Mr. Speaker, we know that our alliance -- if it holds firm -- cannot be defeated, but it could be outflanked. It is among the unfree and the underfed that subversion takes root. As Ethiopia demonstrated, those people get precious little help from the Soviet Union and its allies. The weapons which they pour in bring neither help nor hope to the hungry. It is the West which heard their cries; it is the West which responded massively to the heart-rending starvation in Africa; it is the West which has made a unique contribution to the uplifting of hundreds of millions of people from poverty, illiteracy and disease. But the problems of the Third World are not only those of famine. They face also a mounting burden of debt, falling prices for primary products, protectionism by the industrialized countries. Some of the remedies are in the hands of the developing countries themselves. They can open their markets to productive investment; they can pursue responsible policies of economic adjustment. We should respect the courage and resolve with which so many of them have tackled their special problems, but we also have a duty to help. How can we help? First and most important, by keeping our markets open to them. Protectionism is a danger to all our trading partnerships and for many countries trade is even more important than aid. And so, we in Britain support President Reagan 's call for a new GATT round. The current strength of the dollar, which is causing so much difficulty for some of your industries, creates obvious pressures for special cases, for new trade barriers to a free market. I am certain that your Administration is right to resist such pressures. To give in to them would betray the millions in the developing world, to say nothing of the strains on your other trading partners. The developing countries need our markets as we need theirs, and we cannot preach economic adjustment to them and refuse to practise it at home. And second, we must remember that the way in which we in the developed countries manage our economies determines whether the world's financial framework is stable; it determines the level of interest rates; it determines the amount of capital available for sound investment the world over; and it determines whether or not the poor countries can service their past loans, let alone compete for new ones. And those are the reasons why we support so strongly your efforts to reduce the budget deficit. No other country in the world can be immune from its effects -- such is the influence of the American economy on us all."
Third World

January 1, 1970

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