32. The Meeting had before it a review of the working of economic sanctions prepared for it by the Commonwealth Sanctions Committee. The Meeting agreed that the comprehensive mandatory sanctions were having some effect. It was important to strengthen the enforcement of these and other pressures on the illegal regime, and to intensify them wherever possible, in order to bring about an acceptable political settlement. Heads of Government therefore affirmed their support for the Supervisory Committee of the United Nations Security Council and for the Commonwealth Sanctions Committee, which they requested to continue to keep the situation under review.

33. Notwithstanding some differences of opinion on method, Heads of Government remained unanimous on the ultimate objectives to be sought in Rhodesia. They were more than ever resolved that, whatever the time needed to reverse it, the seizure of power by a small racial minority could be neither recognised nor tolerated. Concerted international action was being steadily built up particularly through the United Nations and the Commonwealth and Heads of Government pledged their continuing support for all efforts to strengthen and extend this and to continue to assist Rhodesian Africans in preparing themselves to take their rightful place in the Government and administration of their country. The special problems encountered by Botswana and Zambia arising from the Rhodesia crisis were recognised.

34. The British Prime Minister undertook to continue to consult Commonwealth members on the issue of Rhodesia.

SOUTHERN AFRICA

35. The Meeting considered other problems in Southern Africa. It reaffirmed the condemnation expressed at previous meetings of the policy of apartheid of the South African Government—a policy totally abhorrent to world opinion. It expressed serious concern at the continued refusal of South Africa to accept its international obligations in respect of the territory of South West Africa. 36. The Meeting deeply regretted that Portugal continued to deny the right of self-determination to the inhabitants of her colonial territories in Africa and called on Portugal to concede that right without delay. Some Heads of Government felt that the situation in Southern Africa if continued, would endanger peace and security and pointed to the threats which they felt were posed to their countries by the armed forces of South Africa and Portugal.

MIGRATION

37. Informal discussions took place outside the meeting between some Commonwealth countries on certain problems of migration between those Commonwealth countries. The Secretary-General was requested by the countries engaged in these discussions to examine in consultation with representatives of those countries general principles relating to short and long term movement of people between their countries and to consider the possibility of exploring ways and means of studying this subject on a continuing basis with a view to providing relevant information to those Governments.

38. The Prime Ministers re-affirmed the declaration made in communiqués of 1964 and 1965 that for all Commonwealth Governments it should be an objective of policy to build in each country a structure of society which offers

equal opportunity and non-discrimination for all its people, irrespective of race, colour or creed. The Commonwealth should be able to exercise constructive leadership in the application of democratic principles in a manner which will enable the people of each country of different racial and cultural groups to exist and develop as free and equal citizens.

ECONOMIC AFFAIRS

39. Heads of Government held a general discussion on the world economic situation and broadly reviewed recent developments and trends. They agreed that the representative character of the Commonwealth and its tradition of informed and sympathetic interest in the problems of development make it a most valuable forum for constructive discussion and a useful instrument for co-operative endeavour.

40. They noted that early last year, in New Delhi during U.N.C.T.A.D. II, Commonwealth Ministers had exchanged views on some of the problems affecting trade and development of member countries, and that more recently, Commonwealth Finance Ministers at their annual meeting held in London had a full discussion of the world economic situation with special reference to international monetary problems, development and aid.

41. Heads of Government were concerned that the gap between the rich and poor was widening, but were encouraged by growing recognition of the increasing inter-dependence of nations. Greater co-operative action was vital to ensure economic progress and prosperity on which stability and peace so largely depend. Postponement of adequate and united efforts would lead to greater political and economic problems.

42. They took note of the fact that developing countries of the Commonwealth were making efforts to help themselves. They were steadily laying the ground-work of future self-sustained growth by paying increasing attention to agriculture, education, population control and administrative and institutional reforms. It was therefore hoped that if they were assisted by appropriate international measures, they would be in a position during the decade of the 1970s to achieve higher rates of economic growth.

43. Heads of Government noted the growing movement towards greater regional co-operation among the developing countries of the Commonwealth. This represented a valuable form of self-help on the part of the developing countries.

44. Heads of Government recognised that the results of U.N.C.T.A.D. II had been very disappointing to the developing countries. While there had been ageement on the need to evolve an international policy for development and a global strategy to implement it, little progress had been made in achieving this. On the other hand U.N.C.T.A.D. II had mapped out certain promising lines of approach.

45. They stressed the need to give practical effect to the unanimous agreements reached in principle at U.N.C.T.A.D. II. They expressed the hope that it would soon be possible to conclude successfully the negotiations on a scheme of generalised preferences which would be of benefit to all developing countries and which would provide compensation for the less developed countries whose export trade might be adversely affected by the introduction of such a scheme.

They agreed that close and continuous consultations among Commonwealth countries would be necessary during the consideration of the scheme of generalised preference. They emphasised the importance of continuing consultation at the Trade and Development Board and other organs of U.N.C.T.A.D. and asked the Secretary-General to maintain close contacts with these and other international agencies in order to keep these developments under review.

46. Heads of Government agreed that the first Development Decade had fallen short of expectations in achieving practical results. They hoped, however, that the experience gained would help in the identification of areas of development and the strategy to which urgent attention needs to be directed with a view to achieving greater concrete results during the second Development Decade.

47. It was recognised that the terms of trade had moved against some countries of the Commonwealth who depend to a great extent on the export of primary products. More orderly and satisfactory markets for primary products were crucial for Commonwealth countries. Recognising the present unsatisfactory state of major export markets for many primary products, Heads of Government stressed the need for further efforts by Commonwealth countries in international forums to secure improved conditions for international commodity trade, including better access to markets in both developed and developing countries and equitable and stable prices for primary products. They expressed gratification at the extension of the Commonwealth Sugar Agreement which has always been of special interest to the Commonwealth producer countries. They welcomed the recent conclusion of the International Sugar Agreement and expressed the hope that those governments which had not already signed it would do so. They further hoped that other commodities of special economic importance to Commonwealth countries would be covered similarly by suitable international arrangements which arrangements would be pursued and be supported by Commonwealth countries.

48. In this connection, they noted recent developments in the negotiations for the conclusion of an International Agreement on Cocoa. They urged all parties to the negotiations to intensify their efforts so as to reach a speedy agreement, and on the progress of which the Secretary-General should keep members fully informed.

49. Heads of Government welcomed the liberalisation of trade in respect of manufactured products consequent on the conclusion of the Kennedy Round of negotiations, and hoped that this process of trade liberalisation would be carried further in respect of all products. They regretted however that these negotiations had produced no significant benefits for most developing countries. They expressed the hope that continuing efforts would be made under the auspices of G.A.T.T. and U.N.C.T.A.D. to enable developing countries to secure improved access for their products to international markets with a view to increasing their foreign exchange earnings, while making every effort to increase trade among themselves.

50. They stressed the dangers of excessive protectionism in a number of Foreign industrialised countries for agricultural products of export interest to Commonwealth countries.

51. While it was recognised that Commonwealth trade must be seen in the larger context of global trade of which it was a vital part, they agreed there

was continuing scope for the expansion of Commonwealth trade and for this purpose there was need to strengthen the well-established links amongst Commonwealth members.

52. Heads of Government took note of the Secretary-General's report that, in pursuance of an earlier decision, the Secretariat had begun a study on the feasibility of Commonwealth co-operation to assist in trade promotion. They looked forward to the completion of this study.

53. The Meeting took note of the special difficulties of Lesotho and other African landlocked Commonwealth countries. These countries expressed the hope that all concerned would find it possible to accede to or ratify the international convention on the transit trade of landlocked countries. Heads of Government hoped that all countries concerned would make every effort to provide adequate transit facilities to the trade of such landlocked countries.

54. Heads of Government reiterated the importance of continuing close consultation by the British Government with Commonwealth Governments in regard to developments of interest to them concerning the British application for entry into the European Economic Community.

55. In discussing the international monetary situation, Heads of Government stressed the importance of restoring stability in world payments-and of adapting the world monetary system to meet evolving needs. They stressed the need for providing adequate international liquidity for implementing and activating as early as practicable the scheme for Special Drawing Rights through the International Monetary Fund to supplement reserve assets. They regretted that it had not been possible as yet to get the necessary broad international agreement on a special link between international action to increase liquidity and the needs of developing countries. They hoped that further consideration would be given to establishing such a link.

56. They expressed the hope that more liberal trade policies would follow from improvements in the international payments system.

57. Some Heads of Government felt that Commonwealth countries should call for a world monetary conference, open to all members of the I.M.F., to reappraise the World Monetary System since Bretton Woods and to make recommendations for its improvement, and that there should be a Commonwealth Meeting prior to such a conference. Others while sympathising with these objectives felt that it would be inappropriate to attempt to achieve them through such a conference and that it would be better to continue official discussions through existing channels.

58. The Meeting discussed international assistance for economic development, and noted with concern that the net transfer of resources from industrialised to developing countries had stagnated at a level which was inadequate to facilitate an acceptable rate of economic development in the developing countries. A critical situation was emerging for a number of countries because of the burden of debt servicing. Heads of Government expressed the hope that countries which had not already done so would be in a position to signify their acceptance of an early date for complying with the U.N.C.T.A.D. resolution on the target of 1 per cent of gross national product at market prices. They stressed the urgency of the replenishment of the resources of the International Development

Association and expressed the hope that all countries concerned would follow the lead already given by some in effecting such replenishment.

59. Heads of Government noted with approval the recent tendency on the part of some Commonwealth countries to soften the terms of their loans which they were extending to the less developed Commonwealth countries. They considered that Commonwealth donor countries should take the lead in seeking further improvements in the terms of international aid generally, and hoped that donor Governments would view sympathetically in appropriate cases the granting of more flexible terms.

60. Heads of Government expressed the hope that the consideration of the scheme of supplementary financing would lead to early results of benefit to developing countries.

61. They welcomed the appointment of an International Commission by the World Bank to review the total aid experience of the past two decades and to make recommendations for future aid programmes, and were particularly gratified that a former colleague, The Rt. Hon. Lester B. Pearson, was presiding over the Commission's work.

COMMONWEALTH CO-OPERATION

62. Heads of Government reviewed the extensive range of co-operation which exists among Commonwealth countries in such areas as technical assistance, education, science, medicine, law and many other functional fields. Such co-operation is facilitated and rendered more fruitful by the advantages the Commonwealth association offers a common working language, similar traditions in government, administration, educational methods, and the organisation of the professions. With the increasing membership of the Commonwealth and the potentially wider areas of co-operation, they recognised the importance of seeking ways and means of achieving more effective co-operation among members in all fields.

63. Much was being done through bilateral arrangements between member countries. The Meeting noted that intra-Commonwealth official bilateral assistance, which accounts on the average for about 85 per cent of the total of such assistance provided by Commonwealth members in all developing countries, had increased in 1967 and 1968, and they hoped that this would continue to grow.

64. They also reaffirmed the value of programmes of specifically Commonwealth effort in certain fields. An example would be increasing application of the principle of third-party financing, as a useful mechanism for bringing qualified experts and important tasks together quickly and efficiently. Thirdparty financing, by which experts from one country can be financed wholly or in part by another, can significantly enlarge the pool of expertise available for technical assistance arrangements by drawing on skills available in developing countries. These skills, moreover, are often of particular relevance to the needs of other developing countries. The Meeting agreed that early consideration should be given to the extension of the principle of third-party financing to education, training and consultations. This would allow students to be trained in surroundings and under conditions more appropriate to their future employment, and in this way ease the problem of the brain-drain.