Foreign Relations of the United States, 1981–1988, Volume XXXVIII, International Economic Development; International Debt; Foreign Assistance

177. Memorandum From the President’s Assistant for National Security Affairs (McFarlane) to President Reagan¹

Washington, August 30, 1984

SUBJECT

• IMF/World Bank Annual Meetings, September 24–27, 1984

Issue

Whether or not you should make a brief welcoming address to the IMF/World Bank annual meetings in Washington, D.C. September 24–27.

Facts

Attached (Tab A) is a memorandum to you from Secretaries Shultz and Regan strongly recommending that you deliver brief welcoming remarks to the opening session of these prestigious meetings of the world’s Finance Ministers, Governors of Central Banks, senior financial officials and leading commercial bankers.² You delivered such remarks in 1981 and 1983 which were very well received.³ U.S. Presidents have an almost forty-year tradition of making the welcoming address to these annual meetings (e.g., 17 of the last 22 years that these meetings have been held). The IMF/World Bank annual meetings are the single most important event of the year for the international financial community and focus world attention on a broad range of key multilateral economic and financial concerns. Statements at these sessions receive extensive press coverage. The IMF and World Bank exist, in large part, due to U.S. efforts and have been the cornerstone of our international monetary and economic policy since World War II. More recently, the IMF has been the centerpiece of our strategy for managing the international debt crisis. Last year, your address was key to obtaining Congressional approval of the much needed IMF quota increase.⁴

Discussion

A welcoming address would provide an excellent opportunity to highlight your substantial international economic policy successes including the crucial role of a strong U.S. economic recovery in advancing global economic growth and stability. In addition, it is an appropriate occasion to chart the enormous progress made in the economic summit process and the benchmarks for the future that have been established with our key allies. Your appearance would also demonstrate the sensitivity of the U.S. and other industrialized nations to the wrenching economic adjustment measures adopted by many developing countries, particularly in our Hemisphere, in managing their debt burdens. Finally, you could applaud the recent unprecedented multi-year rescheduling agreement between the commercial banks and Mexico which holds promise for responsible debtor countries such as Brazil and others. Unfortunately, your absence could be mistakenly interpreted as disinterest in the economic and financial hardships faced by these developing countries and could potentially set back Administration efforts to secure legislation providing additional resources to the World Bank group which may well be awaiting floor action at the time of the annual meetings.

Recommendation

That you agree to make a brief welcoming address to the annual IMF/World Bank meetings in Washington, D.C. either the afternoon of September 24 (some time between 3 and 4 p.m.) or alternatively, at approximately 9:30 a.m. Tuesday, September 25.⁵

1. Source: Reagan Library, Roger Robinson Files, Chronological File, Robinson Chron July 1984–August 1984; NLR–487–11–16–4–8. Confidential. Sent for action. Prepared by Robinson. Copies were sent to Bush, Meese, Baker, Deaver, and Ryan.
2. Tab A, dated August 17, is attached but not printed. In a September 20 memorandum to Reagan, Regan again stressed the importance of the President’s scheduled address to the annual meeting of the Board of Governors of the International Monetary Fund and World Bank Group. (Reagan Library, Roger Robinson Files, Chronological File, Robinson Chron September 1984–October 1984; NLR–487–11–18–10–9)
3. See footnote 3, Document 267 and footnote 5, Document 298.
4. See footnote 5, Document 302.
5. Reagan checked and initialed the “OK” option and underlined “Tuesday, September 25.” For the text of Reagan’s remarks at the annual meeting of the Board of Governors of the International Monetary Fund and World Bank Group on September 25, see Public Papers: Reagan, 1984, Book II, pp. 1365–1370.