Foreign Relations of the United States, 1969–1976, Volume E–7, Documents on South Asia, 1969–1972

21. Telegram 7466 From the Mission to the Organization for Economic Cooperation and Development to the Department of State¹ ²

Paris, May 21, 1969, 1750Z

Subject:

• Pakistan Consortium Meeting-Summary

1. Annual consortium meeting Paris 19–20 generally went very well. Problem of declining net aid transfers fully explored in context need for increased resources for expansion social sector while maintaining growth. Pakistan impressed by members with necessity for better mobilization of domestic resources, particularly through progressive taxation. Donors showed understanding bank proposal for softer terms and larger portion of commodity aid. Growing debt servicing problem to be subject of further study and then separate meeting.

2. Against $500 million request, members (except Belgium, France, Italy and US) indicated about $250 million would be forthcoming. Belgium, France and Italy will participate subject to governmental approvals and in case Italy and France movement of prior year funds. US delegate referred to request of 140 million to Congress. Germany and Netherlands disclosed softening of terms their aid. Germany to new DAC 30 year level, Netherlands fully to old DAC with agreement in principle to move to new.

3. Main speech by US delegate underscored challenge of tax problem, reduction in defense of expenditures to assist in investment, East Pakistan development, rural works program, family planning, “second generation” food grain problems. Presentation was warmly commended by Paks, who requested text for use their own struggles in bureaucracy. Transcript being hand carried to Rawalpindi and Washington.

4. Full report of session follows in separate cables on a) opening statements, b) delegates response, c) debt servicing problem, d) aid contributions, e) closing remarks and f) press statement.

Trezise

1. Source: National Archives, RG 59, Central Files 1967–69, AID 9 PAK. Limited Official Use. Joint State/AID message. Sent also to Rawalpindi. Repeated to New Delhi for Spain. The consortium of governments and institutions organized to provide development assistance to Pakistan met in Paris, May 19–20, under the chairmanship of the World Bank. The meeting was attended by representatives of Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the United States. The International Monetary Fund also sent observers.
2. The telegram reported the results of the Pakistan consortium meeting, May 19–20.