Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

204. Circular Telegram From the Department of State to Certain Diplomatic Missions⁰

Washington, May 13, 1963, 9:08 p.m.

1957. Re Circular Telegram 1904.¹ Assistant Secretary of Treasury Bullitt (U.S. Executive Director, IBRD/IDA) held meeting May 10, 1963 as discussed Reftel. Bullitt described over-all target for Part I countries of $250 million per annum for 3 years, payment commencing 1965. Informed group of U.S. willingness make final offer of $100 million as its share, conditional on $250 million package actually being reached. Also indicated willingness four other large countries make following contributions: UK $30.7 million; Germany $24.4 million; France $19.4 million; Italy $10 million. Total of 5 countries $184.3 million, leaving $65.7 million to be found among remaining 13 Part I countries. Stated belief that certain members of group would feel improvement their financial and economic position since 1959 when IDA shares first negotiated would warrant increase in their relative share. Reiterated importance U.S. attached to reaching rapidly $250 million total and emphasized need for early action in view decreasing availability IDA resources for new commitments and tightness of legislative schedules in several countries.

Group agreed to have a follow-up meeting May 27 to review responses by governments.

In discussion, Bullitt avoided tying individual country subscriptions to precise formula but noted that increase from present level IDA subscriptions roughly $150 million per year to proposed level of $250 million per year would require minimum increase by factor of 1.66 in other’s contributions and urged those in an improved position to consider greater increase.

Addressees again requested in any discussion of aid or related matters and otherwise as appropriate, stress IDA as tested IBRD affiliate to channel resources into economic development on soft terms and express hope that constructive attitude will be taken on question of new resources.

Rusk

0. Source: Department of State, Central Files,AID (IDA). Limited Official Use. Drafted and cleared by Bullitt (Treasury), Springsteen, and Read and approved by A. Evans Hiley (OC/DCT) and Jacob J. Kaplan (AID/IDOS). Sent to Canberra, Vienna, Brussels, Ottawa, Copenhagen, Helsinki, Paris (Embassy and USRO), Bonn, Rome, Tokyo, Kuwait, Luxembourg, The Hague, Oslo, Pretoria, Stockholm, and London.
1. Circular telegram 1904, May 7, outlined the purpose of the upcoming May 10 meeting, which was to discuss progress on the amount of subscriptions by Part I countries to the replenishment of IDA resources and to see which ones might be able to increase their share because the United States, United Kingdom, and Netherlands were seeking to reduce their share. (Ibid.) The Part I countries were Australia, Austria, Canada, Denmark, Finland, France, Federal Republic of Germany, Italy, Japan, Kuwait, the Netherlands, Norway, Union of South Africa, Sweden, the United Kingdom, and the United States. Belgium and Luxembourg were not yet Part I members but had recently applied for membership.