Office of the Historian

252. Action Memorandum From the Assistant Secretary of State for African Affairs (Crocker) and the Administrator of the U.S. Agency for International Development (McPherson) to Secretary of State Shultz1

Washington, July 3, 1986

SUBJECT

  • Proposed NSSD on U.S. Support for Economic Growth in Sub-Saharan Africa

ISSUE FOR DECISION

Whether or not to prepare a National Security Study Directive (NSSD) reviewing U.S. economic programs and policies in Sub-Saharan Africa.

ESSENTIAL FACTORS

Following the recent African drought the President asked the White House Office of Policy Development and the NSC to look into U.S. responsiveness to growth and hunger in Africa.2 These offices responded to the President last week3 proposing (1) an interagency review of U.S. assistance programs and instruments, (2) improved coordination of international donors and agencies to achieve better economic growth results and (3) the mobilization of greater U.S. public support for economic assistance as opposed to relief for Africa.

As a result of the President’s interest the NSC is now proposing an NSSD to review and to develop further U.S. economic responsiveness to Africa’s development. This would include a much greater effort for private sector involvement in and approaches to economic development in Africa. The timing for such an exercise would appear to be auspicious. We have just completed the very successful U.N. Special Session on Africa4 where those nations have candidly admitted that many of their past statist policies have failed and they accepted the need to make further market oriented policy reforms as a basis for enhanced growth. With the adoption of the U.S. sponsored IMF Struc [Page 679] tural Adjustment Facility and the prospect of closer IBRD/IMF cooperation on African growth strategies, and given two years of experience with our own ESF-funded economic reform program we should try to take advantage of the new policy realism in Africa by reviewing once again our own response. This would take the form of the NSSD, the draft outline for which is attached.5

It is our understanding that the President or Admiral Poindexter will want a meeting in the near future6 to discuss and approve this initiative. In our discussions with the NSC staff we have proposed some modification to the outline so that objectives are more clearly focused and that we not repeat background analysis already completed. We have also proposed that State co-chair the NSSD to ensure that our views are given an important weight in this interagency process.

RECOMMENDATION

That you approve an NSSD reviewing U.S. support for economic growth in Africa with the understanding that AF would co-chair the work. We would plan to work very closely with AID, EB and Treasury in that regard.7

  1. Source: Reagan Library, Executive Secretariat, NSC: NSSD File, NSSD 3–86 [US Support for Economic Growth in Sub-Saharan Africa] (1 of 2). Secret. Drafted by Stacy on June 26; cleared in AFR, EB/IFD, and AF. A stamped notation on the document indicates Shultz saw it. In the upper right-hand margin, Shultz wrote: “The draft NSSD should be sent over to the WH under a Platt–PDX memo.”↩
  2. See Document 236.↩
  3. See Document 251.↩
  4. This Special Session on the Critical Economic Situation in Africa took place from May 27 until June 1.↩
  5. Attached; printed as Document 255.↩
  6. Not further identified.↩
  7. Shultz initialed the approve option.↩