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

312. Letter From President Reagan to the Chairman of the Independent Commission on International Development Issues (Brandt)¹

Washington, April 17, 1984

Dear Mr. Chairman:

I am writing to thank you, Edward Heath and Shridath Ramphal for your recent letter on the seventh replenishment of the International Development Association (IDA VII).² I was pleased to hear that an agreement was reached by the IDA Deputies on January 14, and hope that the Executive Directors of the World Bank will soon forward the resolution to their Governors for approval.

I was asked to review the United States contribution to IDA VII before the meeting of the IDA Deputies in Paris last December.³ I concluded that the level of $750 million per annum proposed by the U.S. Deputy in Tokyo last July would preserve the role of IDA in the poorest countries and allow IDA to continue to make a significant contribution to development, especially if the funds were concentrated on those countries with limited access to alternative financing and used to encourage the pursuit of effective economic policies.

As you know, the IDA VII program is scheduled to begin in July this year. Given this tight schedule, I think our top priority should be to ensure that the IDA VII resolution is adopted as soon as possible to prevent any disruption in IDA’s lending program. In January, the Deputies endorsed a Canadian recommendation that the IDA VII program be reviewed in eighteen months. I assure you that the United States will approach that review with an open mind and will work constructively with other members to assess the effectiveness of the IDA program.

Should you wish to discuss the issue further, George Shultz and Don Regan would be able to meet with you at a mutually convenient opportunity.

Sincerely,

Ronald Reagan

1. Source: Reagan Library, Roger Robinson Files, Subject File, International Finance: 04/02/1984–04/23/1984. No classification marking.
2. The letter, dated March 1984, is attached but not printed. The letter asked Reagan to reconsider his “earlier decision on behalf of the US not to subscribe to IDA replenishment at a level favoured by all other donors.”
3. See Document 307.