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

281. Memorandum of Conversation¹

Washington, November 2, 1982, 9 a.m.

SUBJECT

• The Secretary’s Meeting with IFAD President Al-Sudeary

PARTICIPANTS

• United States

  • The Secretary
  • M. Peter McPherson, AID Administrator
  • Ambassador Toussaint, Deputy Assistant Secretary of State for International Organization Affairs
  • Elinor Constable, Deputy Assistant Secretary of State for Economic and Business Affairs
  • John Bolton, AID Assistant Administrator for Program and Policy Coordination

• International Fund for Agricultural Development

  • Abdelmuhsin M. Al-Sudeary, President

Summary. Al-Sudeary made a strong plea for the U.S. to meet its commitments concerning contributions to the first IFAD replenishment, stressing the ill-effects failure to do so could have upon IFAD programs and upon cooperation between OPEC and OECD. After expressing support for IFAD’s work, the Secretary said the Administration will be working to improve the Continuing Resolution as it relates to several foreign policy issues but said he could not promise anything specific with respect to IFAD. The Secretary made no commitment regarding a U.S. payment to IFAD during FY 1983. End Summary.

Al-Sudeary paid personal respects to Secretary Shultz and expressed IFAD’s gratitude to the United States for the encouragement and support it had given to IFAD from the beginning.

He then said he wished to convey several important points:

— IFAD is a major landmark in the cooperation between developed and developing countries, probably the best example in the world of effective North/South cooperation, and unique as an instrument of cooperation between OECD and OPEC countries.

— IFAD faces a very difficult situation in connection with the first replenishment, a replenishment worked out jointly by IFAD members and agreed to by all the parties, including the U.S.

— On the basis of that agreement, all but a small number of members have made or are making their contributions. Since the U.S. has the largest contribution to make, its non-payment will have a “devastating effect” on future IFAD programs and on the future of the institution; it would also create a very difficult situation in the cooperation between OPEC and OECD.

— After reviewing the situation in Congress concerning a U.S. contribution to IFAD, Al-Sudeary said he wished to request the Secretary’s direct and personal intervention in this matter—in part to insure a continuing good relationship between OECD and OPEC. Noting the focus of IFAD programs coincides with the focus of U.S. aid activities (a focus on the landless and small farmer), he said there is no other organization where OPEC countries contribute such a large percentage of the total funds.

— A decision concerning the U.S. contribution will greatly affect the attitudes of other countries towards their IFAD obligations; it will also greatly affect attitudes toward OPEC/OECD cooperation.

— Noting his understanding that the U.S. may not be able to pay its commitment by the end of 1983, the deadline for first replenishment pledges, Al-Sudeary said this would be “extremely harmful” for IFAD. He said it would be a “big political mistake” if the United States does not fulfill its obligations and commitments. He noted several heads of state have written to President Reagan urging the U.S. to meet its pledge—and that President Reagan has committed the U.S., in a letter to Pakistani President,² to meet its obligation by the end of 1983. [Note: What the President said was that “we plan to provide the balance of the total U.S. contribution before the end of calendar year 1983”.]

— He concluded by making an appeal for a decision prior to the next IFAD Governing Council that the Administration would do everything possible with Congress to insure an appropriation permitting a U.S. contribution to IFAD. The matter requires very high-level attention within the U.S. Government. If the effort should fail, if the U.S. is unable to make its contribution, OPEC countries will blame the United States for this failure.

In a brief reply, the Secretary said that he understands the importance and significance of IFAD’s work—and supports that work. He also said he shares the hope that it will be possible to get something better than the present continuing resolution—that improvement is important not only for IFAD but also in terms of other foreign policy issues. He said the Administration will be working to secure an improved continuing resolution, but it is not possible to promise anything specific with respect to IFAD.

The Secretary then noted Congress would be returning for a Special Session; historically speaking, he said such sessions had not proved very productive. Often members of Congress became embroiled in relatively insignificant battles and, on larger issues, sought to do only the minimum necessary to get out of town again. It is possible that, after the elections today, Congress could be inspired or encouraged to do better but it is not realistic to make any promises or have great expectations. The Secretary said the Administration is developing its own strategy with an aim to breaking out of the grip of the continuing resolution—a grip which has important results for many foreign policy-oriented appropriations. He said Al-Sudeary could be sure the Administration would be working on this improvement but again said it is not possible to give any predictions or assurances.

1. Source: Department of State, Executive Secretariat, S/S Files, Secretary Haig Memcons and Whitehead Briefing, Lot 87D327: Secretary Shultz—Memcons November 1982. Confidential. The meeting took place in the Secretary’s office. Drafted by Donald Toussaint (IO); cleared in S and S/S. All brackets are in the original.
2. Not found.