 External imbalances that are still large, persistently high unemployment, large public sector deficits, high level of real interest rates. There are also continuing trade restrictions and increased protectionist pressures, persistent weakness of many primary commodity markets, and reduced prospects for developing countries to grow, find the markets they need, and service their foreign debt. The correction of external imbalances will be a long and difficult process. Change rate changes alone will not solve the problem of correcting these imbalances while sustaining growth. Surplus countries will design their policies to strengthen domestic demand and reduce external surpluses while maintaining price stability. Industrial countries, while following policies designed to encourage steady low inflation growth, will reduce their fiscal and external imbalances. We call on other industrial countries to participate in the effort to sustain economic activity worldwide. We also call on newly industrialised economies with rapid growth and large external surpluses to assume greater responsibility for preserving an open world trading system by reducing trade barriers and pursuing policies that allow their currencies more fully to reflect underlying fundamentals. Among the summit countries, budgetary discipline remains an important medium term objective and the reduction of existing public sector imbalances a necessity for a number of them. Those summit countries which have made significant progress in fiscal consolidation and have large external surpluses remain committed to following fiscal and monetary policies designed to strengthen domestic growth within a framework of medium term fiscal objectives monetary policy should also support non-inflationary growth and foster stability of exchange rates. In view of the outlook for low inflation in many countries, a further market-led decline of interest rates would be helpful. We also agree, the heads of state or government say, on the need for effective structural policies especially for creating jobs. To this end we shall promote competition in order to speed up industrial adjustment, reduce major imbalances between agricultural supply and demand, facilitate job creating investment, improve the functioning of labour markets, promote the further opening of internal markets, encourage the elimination of capital market imperfections and restrictions, and the improvement of the functioning of international financial markets. We warmly welcome the progress achieved by the group of seven finance ministers in developing and implementing strengthened arrangements for multilateral surveillance and economic coordination as called for in Tokyo last year. The new process of coordination involving the use of economic indicators will enhance efforts to achieve more consistent and mutually compatible policies by our countries. The heads of state or government reaffirm the important policy commitments and undertakings adopted at the Louvre and Washington meetings of the group of seven including those relating to exchange rates. They agree that if in the future world economic growth is insufficient, additional actions will be required to achieve their common objectives. Accordingly they call on their finance ministers to develop, if necessary, additional appropriate policy measures for this purpose and to continue to cooperate closely to foster stability of exchange rates. The coordination of economic policies is an ongoing process which will evolve and become more effective over time. The heads of state or government endorse the understandings reached by the group of seven finance ministers to strengthen with the assistance of the International Monetary Fund the surveillance of their economies using economic indicators including exchange rates in particular buy. The commitment by each country to develop medium term objectives and projections for its economy and for the group to develop objectives and projections that are mutually consistent both individually and collectively and the use of performance indicators to review and assess current economic trends and to determine whether there are significant deviations from an intended course that require consideration of remedial actions. The heads of state or government consider these measures important steps towards promoting sustained non-inflationary global growth and greater currency stability. They call upon the group of seven finance ministers and central bank governors to intensify their coordination efforts with a view to achieving prompt and effective implementation of the agreed policy undertakings and commitments monitor economic developments closely in cooperation with the managing director of the IMF and to consider further improvements as appropriate to make coordination process more effective. The heads of state and government we note rising protectionist pressures with grave concern the Uruguay Iran can play an important role in maintaining and strengthening the multilateral trading system and achieving increased liberalization of trade for the benefit of all countries recognizing the interrelationship among growth trade and development it is essential to improve the multilateral system based on the principles and rules of the general agreement on tariffs and trade gap and bring about a wider coverage of world trade under agreed effective and enforceable multilateral discipline protectionist actions would be counter proactive would increase the risk of further exchange rate instability and would exacerbate the problems of development and indebtedness we endorse fully the commitment to adopt appropriate measures in compliance with the principles of standstill and rollback which have been reaffirmed in the ministerial declaration on the Uruguay round it is important to establish within GATT a multilateral framework of principles and rules for trade and services trade related investment measures and intellectual property rights this extension of the multilateral trading system would also be beneficial to developing countries in fostering growth and enhancing trade investment and technology transfers basing ourselves on the ministerial declaration on the Uruguay round and the principles of GATT we call on all contracting parties to negotiate comprehensively in good faith and with all due dispatch with a view to ensuring mutual advantage and increased benefits to all participants Canada Japan the United States and the European community will table in Geneva a wide range of substantive proposals over the coming months progress in the Uruguay round will be kept under close political review in this context the launching the conduct and the implementation of the outcome of the negotiations should be treated as parts of a single undertaking however agreements reached at the early stage might be implemented on a provisional or definitive basis by agreement prior to the formal conclusion of the negotiations and should be taken into account in assessing the overall balance of the negotiations a strong credible working GATT is essential to the well-being of all trading countries and is the best bulwark against mounting bilateral protectionist pressures the functioning of the GATT should be improved through enhancing its role in maintaining an open multilateral system at its ability to manage disputes and through ensuring better coordination between GATT and the IMF and the World Bank we consider that it would be useful to have as appropriate in the course of the negotiations a meeting of the trade negotiating committee at the ministerial level at Tokyo we recognized the serious nature of the agricultural problem we agreed that the structure of agricultural production needed to be adjusted in the light of world demand and expressed our determination to give full support to the work of the OECD in this field in doing so we all recognized the importance of agriculture to the well-being of our rural communities in the past year we have actively pursued the approach outlined at Tokyo and we take satisfaction from the agreement in the ministerial declaration adopted in Punta del Leste on the objectives for the negotiations on agriculture in the Uruguay Round we reaffirm our commitment to the important agreement on agriculture set out in the OECD ministerial communique of May 13th 1987 in particular the statement of the scope and urgency of the problem which required that the concerted reform of agricultural policies be implemented in a balanced and flexible manner the assessment of the grave implications for developed and developing countries alike of the growing imbalances in supply of demand for the main agricultural products the acknowledgement of shared responsibility for the problems as well as for their equitable effective and durable resolution the principal reform and the action required the long-term objective is to allow market signals to influence the orientation of agricultural production by waver progressive a concerted reduction of agricultural support as well as by all other appropriate means giving consideration to social and other concerns such as food security environmental protection and overall employment we underscore our commitment to work in concert to achieve the necessary adjustments of agricultural policies both at home and through comprehensive negotiations in the Uruguay Round in this as in other fields we will table a comprehensive proposals for negotiations in the coming months to be conducted in accordance with the mandate of in the ministerial declaration and we intend to review at our next meeting the progress achieved and the tasks that remain in the meantime in order to create a climate of greater confidence which would enhance the prospect for rapid progress in the Uruguay Round as a whole and as a step toward the long-term result to be expected from these negotiations we have agreed and call upon other countries to agree to refrain from actions which by further stimulating production of agricultural commodities in surplus increasing protection or destabilizing world markets would worsen the negotiating commit climate and more generally damage trade relations we attach particular importance to fostering stable economic progress in developing countries with all their diverse situations and needs the problems of many heavily indebted developing countries are a cause of economic and political concern and can be a threat to political stability in countries with democratic regimes we salute the courageous efforts of many of these countries to achieve economic growth and stability we underline the continuing importance of official development assistance and welcome the increased efforts of some of our countries in this respect we recall the target already established by international organization 0.7 percent for the future level of official development assistance and we take note that overall financial flows are important to development we strongly support the activities of international financial institutions including those regional development banks which foster policy reforms by borrowers and finance their programs of structural adjustment in particular we support the central role of the IMF through its advice and financing and encourage closer cooperation between the IMF and the World Bank especially in their structural adjustment lending we note with satisfaction the contribution made by the eighth replenishment of the of the international development association IDA we support a general capital increase of the World Bank when justified by increased demand for quality lending by its expanding role in the debt strategy and by the necessity to maintain the financial stability of the institution in the light of the different contributions of our countries to official development assistance we welcome the recent initiative of the japanese government in bringing forward a new scheme which will increase the provision of resources from japan to developing countries for the major middle income debtors we continue to support the present growth oriented case by case strategy three elements are needed to strengthen the gross prospect of debtor countries the adoption of comprehensive macroeconomic and structural reforms by debtor countries themselves the enhancement of lending by international financial institutions in particular the world bank and adequate commercial bank lending in support of debtor country reforms which will play our part by helping to sustain growth and expand trade a number of debt agreements have allowed some resumption of growth correction of imbalances and significant progress in restoring the credit worthiness of some countries but some still lack adequate policies for structural adjustment and growth designed to encourage the efficient use of domestic savings the repatriation of flight capital increased flows of foreign direct investment and in particular reforms of financial markets there is equally a need for timely and effective mobilization of lending by commercial banks in this context we support efforts by commercial banks and debtor countries to develop a menu of alternative negotiating procedures and financing techniques for providing continuing support to debtor countries measures should be taken particularly by debtor countries to facilitate non-debt creating capital flows especially direct investment in this connection the multilateral investment guarantee agency meager should begin to serve its objectives as soon as possible it is important to maintain the flexibility on the part of export credit agencies in promptly resuming or increasing cover for countries that are implementing comprehensive adjustment programs we recognize the problems of developing countries whose economies are solely or predominantly dependent on exports of primary commodities the prices of which are persistently depressed it is important that the functioning of commodity markets should be improved for example through better information and greater transparency further diversification of these economies could be encouraged with the help of the international financial institutions through policies to support the efforts for improving processing of their products to expand opportunities through market access liberalization and to strengthen the international environment for structural change we recognize that the problems of some of the poorest countries primarily in sub-saharan africa are uniquely difficult and need special treatment these countries are characterized by such features as acute property and limited resources to invest in their own development unmanageable debt burdens heavy reliance on one or two commodities and the fact that their debt is owed for the most part to governments of industrialized countries themselves or to international financial institutions for those of the poorest countries that are undertaking adjustment effort consideration should be given to the possibility of applying lower interest rates to their existing debt and agreement should be reached especially in the paris club on longer repayment and grace periods to ease the debt service burden we welcome the various proposals made in this area by some of us and also the proposal by the managing director of the IMF for a significant increase in the resources of the structural adjustment facility over the three years from January 1st 1988 we urge a conclusion on discussions on these proposals within this year we note that UNCTAD 7 provides an opportunity for a discussion with developing countries with a view to arriving at a common perception of the major problems and policy issues in the world economy at this point we turn to more social topics first of all the environment further to our previous commitment to preserve a healthy environment and to pass it on to future generations we welcome the report by the environment experts on the improvement and harmonization of techniques and practices of environmental measurement accordingly we encourage the united nations environment program to institute a forum for information exchange and consultation in cooperation with the international organization for standardization and the international council scientific union assisted by other interested international organizations and countries so that continuing progress in this important field can be ensured the priority environmental problems identified by the environment experts in their report should receive full attention we underline our own responsibility to encourage efforts to tackle effectively environmental problems of worldwide impact such as stratospheric ozone depletion climate change acid rains indigent species hazardous substances air and water pollution and destruction of tropical forests we also intend to examine further environmental issues such as stringent environmental standards as an incentive for innovation and for the development of clean cost effective and low resource technology as well as promotion of international trade in low pollution products low polluting industrial plants and other environmental protection technologies we welcome the important progress achieved since tokyo particularly in the international atomic energy agency in enhancing effective international cooperation with regard which is aimed on promoting through international cooperation basic research on biological functions we're grateful for the informal opportunities our scientists have had to take part in some of the discussions of the feasibility study undertaken by japan we note that this study will be continued and we would be pleased to be kept informed about its progress we welcome the positive contribution made by the conference of high-level experts on the future role of education in our society held in Kyoto in January 1987 we shall continue to review the ethical implications of developments in the life sciences following the conferences sponsored by summit governments by japan in 1984 by france in 1985 by the federal republic of germany in 1986 and by canada in 1987 we welcome the italian government's offer to host the next bioethics conference in italy in april april 1988 finally the heads of state or government have agreed to meet again next year and have accepted the invitation of the canadian prime minister to meet in canada i have two further declarations to make one is on aids and the other is on drugs on the basis of the concern already shown in the past for health problems london chairman's oral statement on cancer and bonn chairman's oral statement on drugs the heads of state or government and the representatives of the european community affirm that aids is one of the biggest potential health problems in the world national efforts need to be intensified and made more effective by means of international cooperation and concerted campaigns to prevent aids from spreading further and will have to ensure that the measures taken are in accordance with the principles of human rights in this connection they agree that international cooperation will not be improved by duplication of effort priority will have to be given to strengthening existing organizations by giving them full political support and by providing them with a necessary financial personnel and administrative resources the world health organization is the best forum for drawing together international efforts on a worldwide level to combat aids and all countries should be encouraged fully to cooperate with the who and support its special program of aids related activities in the absence of a vaccine or cure the best hope for the combat and prevention of aids rests on a strategy based on educating the public about the seriousness of the aids epidemic the ways the aids virus is transmitted and the practical steps each person can take to avoid acquiring or spreading it appropriate opportunities should be used for exchanging information about national education campaigns and domestic policies the heads of state or government and representatives of the european community welcome the proposal by the united kingdom government to co-sponsor with the who an international conference of ministerial level on public education about aids further cooperation should be promoted for basic and clinical studies on prevention treatment and exchange of information as in the case of the c program the heads of state or government and the representatives of the european community welcome and support joined action by researchers in the seven countries as in the case of the joint program of french and american research researchers which is being enlarged and similar programs and all over the world for the cure of the disease clinical testing on components of the virus and the development of a successful vaccine the heads of state of government and the representatives of the european community welcome the proposal by the president of the french republic aiming at the creation of an international committee on the ethical issues raised by aids and another declaration that already announced concerns drugs the heads of state or government have examined this problem especially from the point of view of drug abuse which causes a tragic loss of human life and now has spread all over the world especially the young and their family affecting mainly the young and their families they emphasize the importance of undertaking a strategy in support of national regional and multilateral campaigns in order to overcome this problem they intend to continue their fight against illegal production and distribution of drugs and to create all necessary conditions for more effective international cooperation they will also work for the eradication of illegal cultivation of natural drugs and for its replacement with other types of production which will further the aims of social and economic development the leaders welcome the agreements already reached on bilateral and multilateral basis and look forward with confidence to a successful international conference on drug abuse and illicit trafficking which the united nations are convening next week in vienna this morning the venice summit the four closing had a report on behalf of the foreign ministers who attended the summit by minister andreotti the italian foreign minister and has found that it led to a useful exchange of views on shall we say regional issues concerning the present international situation the same spirit of constructive cohesion which inspired the declarations that were disseminated and released yesterday on east west relations on the gulf crisis and on the fight against terrorism inspired debates and show that there were significant convergences first of all as regards Pakistan it was felt that it was afghanistan it was felt that it was necessary to maintain pressure to make sure that the afghan people can autonomously decide on their fate in a country that is free of foreign military intervention it was found that the presence in kambodia of foreign troops continues to be an obstacle to a peace in the in southeast asia and in the pacific area insular states which have recently achieved independence are confronted with difficult economic situations and for this for this the advisability was underlined of supporting their development process in conditions of autonomy without outside interference we agreed that particular attention must be paid in asia to efforts in towards the economic restructuring which is taking place in china's world the situation in the korean peninsula where the olympic games as some say the coming olympic games might offer a prospect which would be a favorable to a more confident and trusting dollar between north and south in the philippines the democratic government is committed to a courageous action towards a social and economic renewal which merits support now turning our attention as we did to africa as a content with continent with huge a huge potential we realize that we are faced with very that they are faced with very serious economic political and social problems and we confirmed and we dwelt particularly on the situation in south africa where the present crisis can be appeasably and lastingly overcome only by dismantling apartheid and replacing it with a new style of non-racial non-racist and democratic government this was felt to be urgent and it was necessary to bring in all representatives of south african society importance must be attached to humanitarian aid to the victims of apartheid and the need was stressed to support the members of sadak and their efforts to consolidate their economies particular concern was expressed for the persistence of dangerous foci of tension and possible conflict in the near immediate middle east in the absence of concrete progress and the search for a settlement of the arab-israeli conflict it is necessary we said to make every effort to create the proper conditions for just global and lasting peace the concern was underlined for the situation in the occupied territories also the lebanese situation with continuation of seris internal tension and the problem of palestinian camps continues to cause grave apprehension and the hope was put forward that sooner would be a process of national reconciliation starting up as regards net in america the debate showed that it was necessary to promote suitable initiatives to support democratic governments and to further the return to democracy and its consolidation throughout the continent we also agreed that the efforts at regional integration will make it possible to open up a profitable dialogue with the west and these efforts must be promoted and supported and it is to be hoped that the next summit in guate mall will lead to prospects for peace and stability and then returned our attention to the problems of the united nations organization in particular it's financial it's a current financial difficulties and the initiatives that might be taken in order to facilitate overcoming them i should like to inform you that these conclusions were were greatly aided by messages from various sources and various people private people groups of scholars government and also heads of state and i cannot pass over in silence the fact that we received a particular two message received two particularly important messages one from president alfonsin and from president another from president said we know today from net in america and from the president of the congo as regards the associated community of central africa i wanted to give you this information so that it will be apparent that in the course of the year and particularly in the last a few weeks many parties have endeavored to facilitate our work and it would be blind of me and i'm grateful if i were not to recall what the press has done in the last few months in the last few weeks to facilitate our work both by pointing to issues which deserved particular attention and by offering criticism which we found particularly stimulating and by creating around the summit a climate of expectation and we hope of welcome for the decisions that were taken i thank you for attending this conference and perhaps you will want to reread what i have just read out to you thank you