PROSPECTS FOR ADDITIONAL ECONOMIC ASSISTANCE TO HONDURAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001800180008-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: August 11, 2008
• Sequence Number: 8
• Publication Date: June 7, 1982
• Content Type: CABLE

Approved For Release 2008/08/11: CIA-RDP84B00049RO01800180008-1
ROUTING AND RECORD SHEET
FROM:
Duane R. Clarridge
Chief, Latin America
Division
TO: (Officer designation, room number, and
building)
State Dept. review completed
FORM 61 O USE PREVIOUS
1_79 EDITIONS
OFFICER'S
INITIALS
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
Attached is an outgoing
cable from the Department
of State addressing Ambas-
sador Negroponte's desire
for additional economic
assistance for Honduras
above that earmarked for
the country in the CBI
package.
Approved For Release 2008/08/11: CIA-RDP84B00049RO01800180008-1
 Approved For Release 2008/08/11: CIA-RDP84B00049RO01800180008-1
ACTION: NONE INFO: OALA/HO-2. OALA/MC, OALA/MC/CA, GALA/MC/DC,.,......
OALA/MC/R-2.. OALA/MCMIL, OALA/POLA, ODPH-H;:ODPN-N, 'DP'-S. _0Gi/EC/IF,
OGI/EC/IT, OGI/I/IT, OGI/R-2. OGI/R/AT, OOE/EI/E, OOE/WE, 05A/SE/I,
PLANFAC-E ( ), RF, FILE, F R LA/CATF-3. LA/RR, CR/WH, IAD/CAS-3,
NICAG/LA, NIO/LA, DER, STD/SSTB, .(14/W)'
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82 8775463 SCO PAGE 001
TOR: 0723372 JUN 82
00 RUEAIIS
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FM SECSTATE WASHOC.
TO AMEMBASSY TEGUCIGALPA
BT
CONFIDENTIAL
E.O. 12065: GDS 6/7/88 (PENFOLD, JOHN H.)
TAGS: EAID, EGEN, ETRD, HO
SUBJECT: PROSPECTS FOR ADDITIONAL ECONOMIC ASSISTANCE
TO HONDURAS
2. IN RESPONSE TO REFTEL B PARAGRAPHS 3,4 AND
5, DEPARTMENT HAS UNDERTAKEN A PRELIMINARY REVIEW
OF POSSIBILITIES OF PROVIDING ADDITIONAL ASSISTANCE
TO GOH. PENDING THE PASSAGE OF THE CBI THERE ARE
NO IMMEDIATE POSSIBILITIES OFADDITIONAL ASSISTANCE
TO HONDURAS. THE COUNTRY'S DETERIORATING ECONOMIC-
SITUATION WILL, HOWEVER, PLACE IT IN A POSITION
TO REQUEST ADDITIONAL ASSISTANCE SHOULD UNEARMARKED
CB! FUNDS BE,AVAILABLE. IN THE MEDIUM TERM WE
ARE SEEKING INCREASED ASSISTANCE FOR CARIBBEAN
SUGAR PRODUCERS AFFECTED BY THE RECENT QUOTAS.
3. A CAP ON ASSISTANCE TO EL SALVADOR UNDER
THE CBI SUPPLEMENTAL WAS AGREED UPON IN THE HOUSE
FOREIGN AFFAIRS COMMITTEE. IF A CAP IS MAINTAINED
IN THE FINAL BILL, FUNDS ORIGINALLY PROGRAMMED
FOR EL SALVADOR MAY BE AVAILABLE FOR REALLOCATION
TO OTHER CBI BENEFICIARIES. ADDITIONAL ASSISTANCE
70 HONDURAS WOULD BE REVIEWED CONCURRENTLY WITH
AN ANALYSIS OF THE URGENT NEEDS AND REQUIREMENTS
OF OTHER POTENTIAL C3i BENEFICIARIES.
4. THE PROGRAMMING OF AN ADDITIONAL 20-25 MILLION
DOLS. IN 1982 ESF FUNDS TO HONDURAS IS NOT POSSIBLE
AS THERE ARE NO UNEARMARKED FUNDS AVAILABLE.
5. THE DISTRIBUTION OF SUGAR QUOTAS WAS BASED
ON A SIMPLE, IMPARTIAL FORMULA, CONSIDERING EACH
COUNTRY'S AVERAGE LEVEL OF ANNUAL SUGAR EXPORTS
TO THE U.S. OVER THE PERIOD 1975-81 (EXCLUDING
ITS HIGHEST AND LOWEST PERFORMANCE YEARS). IT
WAS DECIDED AT THE CABINET LEVEL THAT ONLY SUCH
AN IMPARTIAL FORMULA IS DEFENSIBLE IN VIEW OF
BOTH OUR FORMAL OBLIGATIONS IN THE GATT AND
THE ADMINISTRATION'S GENERAL TRADE POLICY OBJECTIVES.
SOME COUNTRIES, LIKE HONDURAS. WHICH HAVE ONLY
RECENTLY INCREASED THEIR PRODUCTION AND EXPORTS
ARE UNDENIABLY DISADVANTAGED BY THIS FORMULA.
CONIDENTI L
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LA/CAT F.
INCOMING
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THE SIZE OF NICARAGUA'S QUOTA RELATIVE TO THAT
CF HONDURAS IS ENTIRELY A REFLECTION OF NICARAGUA'S
PAST LEVELS OF EXPORTS OVER THE SEVEN YEAR PERIOD.
ADDITIONAL DETAILS ON SUGAR QUOTAS, TO BE ANNOUNCED
SOON WILL, WE BELIEVE, EFFECTIVELY ADDRESS THE
DIFFICULTIES THAT HONDURAS AND MANY OTHER EXPORTERS
HAVE EXPERIENCED IN THE FIRST WEEKS OF THE QUOTA SYSTEM.
PROSPECTS FOR HONDURAN SALES OF SUGAR TO
THE U.S. MARKET. IN THE SHORT TO MEDIUM TERM
WILL NECESSARILY DEPEND ON FUTURE U.S. DEMAND
FOR SUGAR, SINCE THIS WILL. DETERMINE FUTURE GLOBAL
QUOTA LEVELS. AS USDA IS ABLE TO RAISE THE GLOBAL
QUOTA IN RESPONSE TO A RECOVERY IN U.S. DEMAND
FOR IMPORTED SUGAR. ALL EXPORTERS WILL BENEFIT.
OF COURSE. A SUFFICIENT INCREASE IN WORLD PRICE-
.WHICH REMAINS AN OBJECTIVE OF THE U.S. AS WELL
AS OF SUGAR EXPORTING COUNTRIES-WOULD PERMIT
US TO LIFT QUOTA IMPOSITION ALTOGETHER AND RETURN
TO A FREE-MARKET APPROACH.
WE WOULD EXPECT HONDURAS TO BE ONE OF THE
PRINCIPAL BENEF!CARIES OF INCREASED U.S. ASSISTANCE
FOR CARIBBEAN BASIN SUGAR PRODUCERS THAT THE
PRESIDENT. MENTIONED IN HIS ANNOUNCEMENT OF SUGAR QUOTAS.
6. EMBASSY INQUIRIES REGARDING POSSIBILITIES
OF ADDITIONAL FY82 PL 480 FUNDS WILL BE ADDRESSED
SEPTEL, AS WILL BE OTHER SUGGESTIONS RAISED IN
REFTEL B. STOESSEL
END OF MESSAGE CONFIDENTIAL
CO'
Approved For Release 2008/08/11: CIA-RDP84B00049RO01800180008-1