382. Letter From Secretary of the Treasury Baker to Representative Fernand St Germain1
Thank you for your recent letter2 responding to my request that your Committee schedule a markup of MDB legislation early in September.
I am encouraged by the commitment to those institutions that was expressed in your letter. The President and the Administration very strongly support this legislative request, and your efforts to move it forward. We want to work with you to meet the commitment we have made, recognizing that some members of our own party may, as occasionally happens, disagree.
From the outset, the Administration’s support for the FY 1988 MDB legislative request has been very strong. Last year I was deeply involved in consultations with OMB to formulate the Administration’s FY88 budget request. The resulting request of $1.8 billion for the MDBs and the FY87 supplemental request for an additional $293 million would [Page 930] have fully eliminated all shortfalls in U.S. funding for the MDBs. It is also important to note the bipartisan support for the MDB part of the FY87 supplemental appropriation—$258 million, as finally approved. Republican support was particularly critical in two key Senate votes and, as you know, the Senate numbers were accepted by the House in conference.
Beginning in February of this year, I testified seven times to Congressional Committees regarding the quintessential importance of the MDBs and IDA to U.S. foreign policy and national interests. Neither my formal statements nor the verbal presentations were idle words. They were a true indication of the Administration’s firm commitment to those institutions. Moreover, I met personally with Mr. Fauntroy and members of his Subcommittee in June to discuss my unqualified support for our FY88 legislative request. Mr. Fauntroy’s Subcommittee subsequently endorsed the request by a strong, bipartisan vote of 10–2.
But, as you well know, other important issues have also demanded a great deal of my time and attention. These issues included the preparations for the Summit,3 a full range of Economic Policy Committee matters and my responsibilities as a member of the National Security Council. I have also had to devote considerable effort to FSLIC, the national debt ceiling, exchange rates, the trade bill, the Third World debt situation, and support for the substantial IDA funding provided in the FY 1987 supplemental appropriation. I took the time needed to address these legislative issues in the order Congress or events presented them, knowing that the MDB authorizations would remain a top legislative priority.
I am hopeful that we can have the same positive outcome in full committee that we had in subcommittee. For my part, I will seek to mobilize support for the bill among Republican members. Your letter suggests that we meet to discuss the specific steps that might be taken, and we will be contacting your staff to arrange a mutually agreeable date and time.
I appreciate your continuing to share your views and perspective with me. This matter is too important to the nation not to be a priority issue for all of us.
Sincerely,
- Source: Washington National Records Center, RG 56, Executive Secretariat, Congressional Files, 1987, 56–90–29, Box 35, Group Letters /s/ 9/9/87, Groups Ltrs to St Germain & Nine Others Re MBD Authorization Strategy 87-54796. No classification marking. Identical signed letters were sent to the following members of Congress: Walter Fauntroy, John LaFalce, Bruce Morrison, Joseph Kennedy II, Esteban Torres, Charles Schumer, Kweisi Mfume, Mickey Leland, and Tony Coelho.↩
- See Document 380.↩
- A reference to the Venice Economic Summit, which took place June 8–10.↩
- Baker signed “Jim Baker” above his typed signature.↩