118. Memorandum From the Administrator of the Agency for International Development (Hannah) to Secretary of State Rogers 1
Two actions are being taken to implement the President’s decision of June 13, 1969 that additionality requirements should be eliminated from our economic assistance programs.2
- The Assistant Secretary and U.S. Coordinator of the Alliance for
Progress, Mr. Meyer, is
making the following statement in his address to the Inter-American
Economic and Social Council:3
“I should like to announce that we have already decided upon action in one area that happens to be subject to immediate action by the Executive Branch. The President has authorized me to say that, effective immediately, the present practice of applying so-called “additionality” requirements to U.S. economic assistance programs will be discontinued. This action represents the earnest desire of the President and his Administration to improve the effectiveness of our assistance in doing what it is supposed to do: promote development.”
- I have drafted the following Policy Determination to send to all
A.I.D. overseas missions
announcing the President’s decision and defining the specific
changes in A.I.D. procedures to put
it into effect:
Policy Determination: Elimination of “Additionality” Requirements
The President has directed that “additionality” requirements be eliminated from our economic assistance programs.
“Additionality” measures are conditions attached to some types of A.I.D. assistance which narrowly restrict commodities eligible for A.I.D.-financing and require imposition of discriminatory or regressive exchange, import or credit arrangements for the purpose of ensuring that A.I.D.-financed exports are without exception additional to U.S. commercial sales.
A.I.D. will henceforth:
- Make eligible for procurement a broad range of U.S. goods important to the development of the aid-receiving country, in accordance [Page 277] with existing A.I.D. procurement regulations governing commodity eligibility, which will continue in force.
- Refrain from seeking discriminatory tariff, credit, exchange and import controls, government-controlled procurement, or other special arrangements for the purpose of attaining additionality of exports beyond the requirements and effects of A.I.D.’s regular tying and procurement procedures.
- Consider adjustment of existing obligations whose additionality requirements are creating serious difficulties.