184. Memorandum From Secretary of State Shultz to President Reagan1
[Omitted here is information not related to debt.]
[Page 479]2. Lunch with IMF Managing Director. Jacques de Larosiere and I had a wide-ranging discussion today on debt issues and the role of the IMF. He said our management of the debt problem in the first half of 1985 was successful, but noted that developments during the second half of the year could create problems. De Larosiere cited lower US growth, softness in oil prices, and the protectionist threat as the most worrisome. He was particularly concerned that protectionist actions in sectors of importance to developing countries, such as textiles and footwear, could adversely affect the debt strategy. He cautioned that by early 1987 the IMF will not be able to make new net disbursements, and that additional sources of external financing for developing countries will be needed, citing the role of the World Bank as crucial in this regard. I agreed with his basic analysis, and said it is time to concentrate more on ways of achieving growth in developing countries. (S)
[Omitted here is information not related to debt.]
- Source: Reagan Library, George Shultz Papers, President’s Evening Reading July–December 1985; NLR–775–33–25–1–7. Secret; Sensitive.↩