Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

100. Information Memorandum From the Deputy Director for Industrial Development, Agency for International Development (Draper) to the Administrator of the Agency for International Development (Bell)¹

Washington, January 29, 1965.

SUBJECT

• Meeting of U.S. Government Experts with United Nations Commissioner for Industrial Development on December 16, 1964

This memorandum supplements my preliminary report to you by Information Memorandum of December 23, 1964 (Red Tab A)² which described what took place and recorded some preliminary observations.

Summary

The meeting in New York City was arranged to present to the U.S. technical team the tentative 1965 work program of the UN Center for Industrial Development and get technical suggestions for changes and improvements. However, the discussions identified a number of areas in which the U.S. can be helpful to the Center. These are detailed below under “Items of Support and Cooperation.” Memoranda to me from the U.S. team members elaborating on some of these are attached (Red Tab B).³

While there are major problems in the UN concerning reorganization and budgetary support, the following individual areas of U.S. support, and cooperation can be pursued, with the primary AID action offices in each case being responsible for coordination with PC/UN and TCR/IDTH and for resolution of any policy questions that might arise.

Items of Support and Cooperation

1. AID’s Office of Research and Analysis (TCR/RA) should keep the Center for Industrial Development informed of AID research activities and results, especially those in the industrial development area. Coordination should also include asking the Center for comments on selected research proposals received by AID and periodically advising the Center on the status of research proposals being processed by AID. A copy of the TCR/RA Report of Active Research Contracts might be furnished on a regular basis.

2. AID (TCR/RA) should furnish the Center several copies of American Research Centers on the Developing Areas,⁴ prepared by the Department of State External Research Staff for AID. It describes the research on developing countries being conducted by 140 selected university centers and private research organizations in the United States.

3. The Center should follow up its expression of interest in AID’s research contracting experience and in its industrial project evaluation experience by sending a senior staff member of the Center to Washington to discuss these subjects with appropriate AID officials in TCR, ENGR, PC, DFPE and the regional bureaus.

4. In support of the Center’s work on LDC country studies, AID/PC should undertake to provide the Center with as much of the Country Data Book material as can be released on each UN Member State in which AID has a program, and consider means of updating such material from time to time as it is done in AID/W.

5. AID/PC should furnish the Center a copy of the AID Directory of U.S. Resources for Planning Assistance dated December 1964,⁵ and supplements and revisions as they are distributed.

6. AID and the Center should consider joint sponsorship of research activities in which both organizations have a direct interest and in which the Center may wish to add (and assign in financing) certain work for its own needs.

7. Commerce Department should explore ways in which the Center might contribute to, and be served by, the research and development clearinghouse function being set up in the U.S. Bureau of Standards. Mr. McGann of Commerce/BDSA, who was a member of the U.S. team, can be helpful in this respect.

8. Both Commerce and AID should benefit from the data which the Center plans to collect from developing countries in respect to manufacturing capital expenditures and sources of funds. Such data is considered by Commerce to be very helpful in stimulating the interest of manufacturers and contractors in industrialized nations in the whole problem of development.

9. The U.S. (AID and Commerce, and perhaps certain private organizations) could be of considerable help in the expanding efforts of the Center to stimulate improvement in project formulation and evaluation. The UN and AID similarly recognize the death of soundly conceived and adequately documented and formulated requests for project assistance—both technical and financial. Improvements in this area would represent a substantial saving from many standpoints. The U.S. should consider detailing or seconding to the UN professional staff personnel specially qualified in the several aspects of project planning, formulation and evaluation.

10. Further, on the subject of (9) above, AID/PC should support the request of the Center for AID help in preparing for and participation in the forthcoming UN Inter-Regional Symposium at Brno, Czechoslovakia in October 1965 on Industrial Project Evaluation. (Mr. Dell, Director of the Center’s Research Division, wrote you recently a special letter urging such AID participation.)⁵

11. AID/DFPE should contribute its experience and techniques for promoting and securing feasibility studies and pre-investment studies. (The AID Catalog of Investment Opportunities⁶ was sent to the Center when it was published by DFPE.)

12. AID and Commerce should be responsive to a future call from the Center for a future meeting to discuss the topic of “Use of Second Hand Machinery in Less-Developed Countries” on which the Commissioner said he was very anxious to get the help of U.S. experience and consultation.

The Commissioner expressed a desire to have the U.S. consider hosting a group training program in fertilizers and the electro-chemical industry (drawing on TVA experience); he also hoped the U.S. would participate in a Working Group in Training of Industrial Administrators targeted for Paris in September 1965. Both of these items should be followed up by the Center in a more formal communication through USUN in New York before AID pursues them with the Center.

Initial Coordination

Copies of this Information Memorandum will be provided with appropriate explanatory information to concerned offices in AID, State and Commerce.

Frederick G. Draper

1. Source: Washington National Records Center, RG 286, DAC Material: FRC 70 A 5922, E/CID-Center for Industrial Development. No classification marking. Drafted on January 28 and concurred in by John F. Hilliard (AID/AA/TCR) on January 29. A handwritten note on the source text reads, “Noted D.E.B.” A copy was sent to Gaud.
2. Not attached but printed as Document 98.
3. Not attached. These memoranda may be those cited in footnote 6, Document 98.
4. Foreign Affairs Research Documentation Center, Research Centers on the Developing Areas, comp., Margaret M. Rhoades (Washington, 1964).
5. Not found.
5. Not found.
6. This AID publication, produced periodically beginning in May 1964, brought together many industrial feasibility and economic studies, many of which contained information on specific investment opportunities abroad.