In 1980, the International Natural Rubber Agreement entered into force provisionally.  U.S. membership in this new body was approved overwhelmingly by the Senate last year.  The natural rubber agreement is a model of its kind and should make a substantial contribution to a stable world market in this key industrial commodity.  It is thus an excellent example of constructive steps to improve the operation of the world economy in ways which can benefit the developing and industrialized countries alike.  In particular, the agreement has improved important U.S. relationships with the major natural rubber-producing countries of Southeast Asia.

COMMON FUND

The United States joined members of the United Nations Conference on Trade and Development, both developed and developing nations, in concluding Articles of Agreement in 1980 for a Common Fund to help international commodity agreements stabilize the prices of raw materials.

ECONOMIC COOPERATION WITH DEVELOPING NATIONS

Our relations with the developing nations are of major importance to the United States.  The fabric of our relations with these countries has strong economic and political dimensions.  They constitute the most rapidly growing markets for our exports, and are important sources of fuel and raw materials.  Their political views are increasingly important, as demonstrated in their overwhelming condemnation of the Soviet invasion of Afghanistan.  Our ability to work together with developing nations toward goals we have in common (their political independence, the resolution of regional tensions, and our growing ties of trade for example) require us to maintain the policy of active involvement with the developing world that we have pursued over the past four years.

The actions we have taken in such areas as energy, trade, commodities, and international financial institutions are all important to the welfare of the developing countries.  Another important way the United States can directly assist these countries and demonstrate our concern for their future is through our multilateral and bilateral foreign assistance program.  The legislation which I will be submitting to you for FY 82 provides the authority and the funds to carry on this activity.  Prompt Congressional action on this legislation is essential in order to attack such high priority global problems as food and energy, meet our treaty and base rights agreements, continue our peace efforts in the Middle East, provide economic and development support to countries in need, promote progress on North-South issues, protect Western interests, and counter Soviet influence.