Kissinger: We haven't set a date because of the British elections and Genscher has a meeting of his party conference. We may have to push it into October. Callaghan said 13th, the first day he would be free [Laughter]
Heath: There is recycling, but that just increases everyone's debts. The third world has such debts already that recycling just pays the interest. That could spread to the developed countries. By 1980 we would have a debt of $15 billion. We must convince the producers to take up more of the deficit burden themselves.
Ramsbotham: There are so few in the Arab countries who understand the problem. It is an educative process.
President: In the long term they are better off reducing prices and keeping the world economy healthy.
Kissinger: They are really Bedouins and don't really understand the world economy.
Ramsbotham: Their sophistication is just a veneer. When they get back to their roles, they are Bedouins.
Heath: I told them how could they keep getting votes for their policies when all the third world is going broke? The Shah is the big problem. He despises the Arabs and wants to get what he can.
Ramsbotham: The Shah wants to tie it to industrial prices.
Kissinger: The Shah thinks the Saudis are trying to make him the villain. I don't believe the Saudis are the key. We have to tackle the Algerians to get at the Saudis. Faisal won't get out ahead.
Heath: At least the Shah spends his money in the West.
President: He has used his money in a fairly big way. I have seen no action from the Saudis that way.
Kissinger: They have no concept of how to spend so much money. We need more activity in the Joint Commissions we've set up with them.
Ramsbotham: Are there consumer pressures which can be applied?
Kissinger: If we can stick together.
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