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ECONOMIC OBJECTIVES

1. MACROECONOMIC POLICY AND LOW INTEREST RATE ENDORSEMENT

   The pending US election in early November will lead the administration to avoid controversial issues. As US elections focus on the state of the domestic economy rather than foreign policy, the US priorities relate to macroeconomic policies, trade and trade disputes, and international financial institution reform. They will seek summit endorsement of their macroeconomic policy stance, above all an assessment of the particular US situation that justifies keeping interest rates at their current low level.

2. TRADE

   The US seeks to avoid being singled out and criticized for its unilateral, extraterritorial measures on trade and investment over Cuba, Iran and Libya, to prevent a link with its desire multilateral agreement on investment, and to have a communique passage no stronger, and preferably weaker than issued by the OECD.

3. IFI REFORM

   The US has contributed extensively to IFI reform and will look to continue pushing for greater financial stability and accountability.

4. RUSSIAN PARTICIPATION

   America will resist proposals allowing Russia greater participation in the G7, but offer some public recognition and endorsement of Yeltsin and the process of Russian reform. The U.S. considers itself to have a large stake in the outcome of the election.

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POLITICAL AND GLOBAL ISSUES OBJECTIVES

1. TERRORISM

   In response to precieved threats as host of the 1996 Olympic Game and the recent terrorist attack on US military personnel in Saudi Arabia, Clinton has identified terrorism as an issue of vital importance at the Summit. This form of violence disrupts national stability and undermines proposed peace efforts in the Middle East.

2. MIDDLE EAST PEACE PROCESS

   With the recent Israeli election, Middle East security has once again become a prominent foreign policy issue with the American public. The US may ask for an endorsement of the Oslo Agreement by its G7 partners. Clinton may also try to make amends for betting on the wrong horse in the election.

3. BOSNIA AND EUROPEAN SECURITY

   The US will seek endorsement of the recent Conventional Forces in Europe Agreement, the Ukraine's total elimination of nuclear weapons and, most importantly, the progress of the Dayton Peace Accord.

4. CRIME

   Despite indications that crime is decreasing in most us urban centres, American voters still consider it to be a key issue. The US will seek to strengthen G7 co-operation on transnational crime.

5. PREVENTION OF ENVIRONMENTAL DEGREDATION

   Gore has championed this issue. It has been a recurring issue for the State Department since December of 1995.