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  3. Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy
  4. Document 205

205. Circular Telegram From the Department of State to Certain Diplomatic Missions 0

Washington, May 29, 1963, 8:11 p.m.

2047. Re: Circular Tel 1957.1 Assistant Secretary Bullitt held follow-up meeting mentioned reftel May 27 with IDA Part I Representatives. Pledges toward $250 million per annum target made at meeting total $233.37 million, subject to varying conditions. Total does not include amount hoped for from Kuwait ($3.36 mil.) or from Luxembourg (about $0.25 mil.).

Following table in four columns: country; share of present subscriptions in percent; share of $250 million based on present percentage; amount pledged. Australia 2.64; 6.60; 6.46; Austria 0.66; 1.65; 1.00; Canada 4.96; 12.40; 12.40; Netherlands 3.64; 9.10; 3.75; South Africa 1.32; 3.30; 1.33; Denmark 1.15; 2.88; asterisk; Finland 0.50; 1.25; asterisk; Norway 0.88; 2.20; asterisk; Sweden 1.32; 3.30; 5.00; France 6.94; 17.35; 19.40; Germany 6.94; 17.35; 24.20; Italy 2.38; 5.95; 10.00; U.K. 17.19; 42.98; 30.70; U.S. 41.97; 104.93; 100.00; Japan 4.40; 11.00; 11.00; Belgium 2.97; 7.43; 3.50; Luxembourg 0.13; 0.33; dash; totals; 100.00; 250.00; 233.37; asterisk—aggregate of $4.63 million; end table.

Major problem is Belgian and Dutch pledges which substantially below minimum necessary to make $250 million target feasible. Belgians proposed $3.5 million and indicated would not go above actual Dutch contribution. Proportionate Dutch contribution would be $9.1 million; Dutch proposed $3.75 million on basis earlier standing instructions and noted difficulty in obtaining further commitment due caretaker government. Further direct approaches Belgians and Dutch planned which are subject separate messages Brussels and Hague.2 Total $12 million for two countries seems reasonable.

View low Austrian pledge, Secretary Dillon seeing Austrian Ambassador Tuesday, June 4 and has written Minister of Finance directly. Swedish pledge represents 150% increase and was warmly welcomed by Bullitt; other Scandinavians, however, contemplating reduction their aggregate contribution to point where their subscriptions plus Sweden would only total proportionate increase for whole group. Bullitt [Page 452]called in Baron Nauckhoff, Swedish Commercial Counsellor who represented Sweden at meeting and requested him urge G.O.S. to urge Denmark and Norway to maintain share. Efforts also being made through Danish IBRD/IDA Director representing group to keep Norwegian and Danish Contributions up to level of proportionate increase. UK Director’s (Pitblado) assistance being enlisted this effort, as well as to seek some increase in Australian pledge and further move toward proportionate increase by South Africa. Reasonable prospects for greater-than-proportionate increase by Japan and U.S. officials urging $15 million target on Japanese IBRD/IDA Director.3

Rusk
  1. Source: Department of State, Central Files,AID (IDA). Limited Official Use. Drafted by Bullitt (Treasury), cleared by Kaplan (in substance), and approved by John S. Whitt (OC/DCT). Sent to Canberra, Vienna, Brussels, Ottawa, Copenhagen, Helsinki, Paris (Embassy and USRO), Bonn, Rome, Tokyo, Kuwait, Luxembourg, The Hague, Oslo, Pretoria, Stockholm, and London.↩
  2. Document 204.↩
  3. Neither message has been found.↩
  4. The IDA Part I members agreed during the summer of 1963 to increase IDA’s resources by $750 million over a 3-year period. The Federal Republic of Germany pledged the largest increase, and significant increases were pledged by France, Italy, Japan, and Sweden. The United Kingdom, South Africa, and the Netherlands made the largest reductions in share. (Letter from Bullitt to Ball, September 26; Department of State, Central Files, AID (IDA))↩