256. Memorandum From Secretary of State Vance to President Carter1
SUBJECT
- Aid to Zimbabwe: Reply to Prime Minister Thatcher
Issue
Prime Minister Thatcher’s message to you (Tab 1) appealing for US support for the new government of Zimbabwe, to take office on Independence Day, April 18 raises the issue of US assistance to that country.2 Our delegation to the Independence Day ceremonies may wish to make an announcement concerning our assistance plans. This memo recommends bilateral assistance levels of $15 million in FY 80, and up to $30 million in FY 81. Due to the very tight assistance budgets in FY 80 (which did not contain funds for Zimbabwe), we shall have to reprogram within current Economic Support Fund levels for southern Africa for this fiscal year as well as in FY 81. Finally, attached at Tab 2 is a suggested response from you to Mrs. Thatcher on our assistance plans for Zimbabwe.3
Proposed Program
To provide the new government of Zimbabwe with a visible, quick-disbursing assistance program and to demonstrate our support for our UK ally, we are proposing a US assistance program of $15 million in 1980.
The British estimate total reconstruction needs in 1980 at $44 million and that over the next three years, Zimbabwe will need more than one billion dollars worth of longer-term assistance. Our program will address these needs and support the successful conclusion of a very [Page 737] significant accomplishment in sub-Saharan Africa. As we stated at the time of the Lancaster House Talks, this effort should be undertaken within a wider development concept for southern Africa as a whole.
Our funds would principally support reconstruction and rehabilitation activity primarily in rural areas for such needs as rebuilding and restocking health clinics, schools, and cattle dips, thereby helping to resettle the returning refugees. The FY 80 funds would be reprogrammed from the $60.5 million in ESF monies for Southern Africa.
In considering possible sources of funds, we have not recommended the use of development assistance or a PL–480 program for Zimbabwe. Even small amounts of DA, if in fact reprogrammed, would have to come from programs of importance to us and would be less appropriate for quick disbursing reconstruction assistance than ESF. PL–480 Title I food aid is also inappropriate since Rhodesia has been a food exporter; Title II is fully programmed in FY 80, unless and until we get a PL–480 supplemental. Some amount of Title II to meet specific humanitarian needs could be made available in FY 81, but it is too early to foresee any such emergency needs within Zimbabwe now.
For FY 81, we propose an assistance program of up to $30 million in southern Africa ESF monies for projects to be developed in consultation with the Government of Zimbabwe. The $30 million would be drawn from a $90 million proposed ESF level for southern Africa in FY 81. Illustratively, the program could include:
—Additional rehabilitation/reconstruction activities, e.g., rebuilding war-damaged health clinics and schools;
—Vocational/technical training;
—Agricultural services directed to African small farmers;
—Regional activities;
—Low-cost housing for low-income urban dwellers;
—Assistance for small-scale enterprises.
The provision of $30 million for Zimbabwe would reduce funding for other activities in southern Africa. The remaining $60 million, assuming the full $90 million ESF appropriation, would preserve our ability to help the other majority-ruled countries there and to support promising southern African initiatives toward regional cooperation. The funds provided to Zimbabwe may be used within Zimbabwe to support activities developed in a regional context.
Given the importance of American support for Zimbabwe and its immediate needs, we consider a $30 million program of US assistance to Zimbabwe in FY 81 to be necessary and justifiable at this time.
[Page 738]Recommendations:4
FY 80
That you approve a $15 million grant assistance level to Zimbabwe in FY 80. This money would be reprogrammed within current ESF levels for the southern Africa program.
FY 81
That you approve a planning level of $30 million for Zimbabwe from ESF for southern Africa on the assumption that Congress does not cut your request for $90 million.
Attached is a recommended reply to Mrs. Thatcher. This message assures her of your continued support for the process of peaceful change in Zimbabwe and explains that despite the current stringent budgetary situation we will be able to allocate $15 million for Zimbabwe this fiscal year and up to $30 million for FY 81.
Recommendation:
That you sign the draft letter to Mrs. Thatcher at Tab 2.
- Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 44, Rhodesia: 1980. Confidential.↩
- Attached, but not printed. In a March 23 message to Carter, Thatcher requested significant financial assistance for Zimbabwe, noting that Mugabe had “for the moment” pursued moderate policies and actions. Thatcher wrote: “There is no doubt in my mind that Mugabe’s ability to hold this course will be crucially affected by the readiness of the West to provide economic help. Although Zimbabwe is potentially a wealthy country, the immediate problems of reconstruction after the war are daunting. The new government will have to convince its supporters that moderate policies pay. In particular they will attach the highest importance to agricultural development.” (Ibid.) Carter wrote at the top of the first page of this message: “Zbig—Give me a State-OMB–NSC option paper. C.”↩
- Attached, but not printed. See Document 257.↩
- There is no indication of approval or disapproval of the recommendations, but in a March 31 memorandum to Vance, Brzezinski stated that Carter approved: “15 million in grant assistance for Zimbabwe in 1980 from Southern Africa ESF; and approved in principle grant assistance in 1981 from ESF at a level of $25 million.” (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 44, Rhodesia: 1980)↩