289. Memorandum From the Executive Secretary of the Department of State (Tarnoff) to the President’s Assistant for National Security Affairs (Brzezinski)1

SUBJECT

  • Nauru and the Asian Development Bank

At the credentials ceremony June 6, Nauru Ambassador T.W. Star raised the issue of Nauru’s interest in membership in the Asian Development Bank (ADB).2 Nauru has sought membership as a developing-member country eligible for bank assistance. Based on Nauru’s per capita income of over $6,000 from the mining of extensive phosphate deposits, the ADB management (with U.S. concurrence) turned down Nauru’s request that it be granted developing-member status. Nauru’s position is that the phosphate is a non-renewable resource and that after the phosphate is exhausted in fifteen years Nauru will be economically crippled. Nauru believes, however, that it can diversify its economy now through favorable development loans from the ADB and other international financial institutions.

Ambassador Star discussed this situation in detail on the morning of June 6 with Frank Maresca, Director of Treasury’s Office of Multilateral Development Banks. Maresca suggested to Ambassador Star that alternatively Nauru might seek technical assistance on a reimbursable basis from the ADB to undertake an economic survey leading to recommendations for Nauru to take over the long term. We believe this would be the most productive course for Nauru to follow.

Peter Tarnoff
Executive Secretary
  1. Source: Carter Library, National Security Affairs, Staff Material, Office, Unfiled Files, Box 143, Nauru, 6/80. Limited Official Use.
  2. The ceremony took place from 2:51 to 2:55 p.m. at the White House. (Carter Library, Presidential Materials, President’s Daily Diary) No record of the discussion has been found.