FOUNDATION TO GIVE PRIVATE SECTOR A VOICE IN WORLD DEBT

FOUNDATION TO GIVE PRIVATE SECTOR A VOICE IN WORLD DEBT

A foundation was formed Tuesday to represent the multinational private sector on Third World debt issues.

The Foundation for Global Economic Restructuring, an international non- profit organization,seeks to give industry and commerce a say in global debt management and development."Business, commercial and industrial relations between the developed world and the developing world have become marginalized to the extent that the less-developed countries are almost irrelevant to economic events of the world," said Norman A. Bailey, co-founder of the new organization along with David P. Michaels of the United Kingdom.

Mr. Bailey, a principal author of the Caribbean Basin Initiative, served as senior director of international economic affairs for the National Security Council and as a special assistant to President Reagan.

"The foundation was formed in response to the erroneous method of dealing with the LDC debt crisis as if it were almost entirely a financial issue," Mr. Bailey said in a telephone interview from his Washington office Tuesday.

He said the Brady initiative on LDC debt "breaks this thing wide open and gives us the opportunity to look at the problem in a broader context. Anyone can make any deal they can come up with."

Mr. Bailey said the foundation intends to promote various forms of debt conversion to facilitate trade. The Washington office's phone number is (202) 293-8678.

"I envision multinationals, trading companies, government agencies, individuals and even banks becoming involved with this effort," he added. ''This (organization) is not intended to be exclusive."

The foundation, established in Washington, D.C., with a representative office in New York, plans regional offices in Europe, the Far East and Latin America.

Mr. Michaels, an adviser to multinational corporations and government entities, has created a number of programs for investment and economic restructuring using sovereign debt instruments, blocked currencies and trade incentives.