SENIOR INTERDEPARTMENTAL GROUP ON INTERNATIONAL ECONOMIC POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-01156R000200220017-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: September 7, 2010
• Sequence Number: 17
• Publication Date: June 30, 1983
• Content Type: MEMO

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EXECUTIVE SECRETARIAT
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 UNCLASSIFIED
(With Confidential Attachment)
MEMORANDUM FOR THE VICE PRESIDENT
THE SECRETARY OF STATE
THE SECRETARY OF DEFENSE
THE SECRETARY OF AGRICULTURE
THE SECRETARY OF COMMERCE
THE SECRETARY OF THE INTERIOR
THE SECRETARY OF ENERGY
THE ATTORNEY GENERAL
ASSISTANT TO THE PRESIDENT FOR
NATIONAL. SECURITY AFFAIRS
ASSIST' T Cl THE PRESIDENT FOR POLICY DEVELOPMENT
UNITED TES n4ADE REPRESENTATIVE
VtIRECT CENTRAL INTELLIGENCE
DIREc y;e GENCY FOR INTERNATIONAL DEVELOPMENT
HE DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET
SUBJECT Seer Interdepartmenta2. Group on International
economic Policy (SIG-IEP,'
Attached are the minutes of the SIG-IEP' meeting held on
June 17th.
David E. ickf;nn?.d
k1
Executive Secretary
UNCLASSIFIED
(With Confidential Attachment)
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SENIOR INTERDEPARTMENTAL GROUP - INTERNATIONAL ECONOMIC POLICY
June 17, 1983
3:00 p.m.
Roosevelt Room
Treasury
Secretary Regan
Beryl Sprinkel
Marc Leland
Office of the Vice President
G. Philip Hughes
State
W. Allen Wallis
Elinor Constable
Defense
James Blaker
Donald Goldstein
Agriculture
Secretary Block
Commerce
Lio len Olmer
Albert Kingon
Interior
Secretary Watt
Energy
George Bradley
Justice
Jonathan Rose
J. Michael Shepherd
AID
Peter McPherson
USTR
Ambassador Brock
Harvey Bale
OMB
Alton Keel
OPD
Roger B. Porter
CEA
William A. Niskanen
Christopher Ballinger
NSC
Norman Bailey, Executive Secretary
Roger Robinson
William F. Martin
Williamsburg Summit
The Chairman asked Under Secretary Wallis to review the
highlights of the Williamsburg Summit. Mr. Wallis noted that
almost everyone at the SIG knew of the tremendous success of the
President. Williamsburg was a demonstration of allied unity on
both economic and security matters. The President's personal
abilities contributed greatly to the success. The Under Secretary
also called attention to the importance of the "interrelatedness"
theme, noting that the issues of trade, debt and finance are
clearly linked. The Finance minister's statement (annexed to the
Williamsburg Declaration) was also an important contribution which
provides impetus to the necessary follow-up work, particularly in
the area of seeking greater convergence of domestic economies -- the
only lasting solution to exchange rate fluctuations.
DECLASSIFY: OADR
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CONFIDENTIAL
The Chairman then asked the SIG-IEP to consider the draft
text of U.S. International Investment Policy. Investment plays a
vital and expanding role in the world economy. To ensure its
maximum contribution to both global and domestic well-being, the
United States believes that international direct investment flows
should be determined by private market forces and should receive
nondiscriminatory treatment consistent with the national treatment
principle. After a discussion of some of the unresolved language,
the SIG-IEP adopted the statement. The Chairman asked Roger Porter
to talk with White House officials as to the best means for release
of the statement and to coordinate with Marc Leland. The possibility
of including mention of it in a Presidential speech was suggested.
International Debt
The Chairman asked Under Secretary Sprinkel to provide an
update on the debt situation in a number of key foreign countries.
Highlights of the presentation:
Brazil. In response to the suspension of drawings under
its IMF program, Brazil has undertaken further adjustment measures
to reduce inflation and the budget deficit. Negotiations with the
IMF on resuming drawings will likely be protracted and difficult,
and, while financial markets have remained relatively calm so far,
Brazil's financial situation could deteriorate rapidly without some
clear progress with the IMF by end-June. Brazil also needs to obtain
an additional $3 billion of bank financing for 1983 and to begin lining
up funding for 1984.
Poland. The Paris Club has requested by end-June a clari-
fication of Polish data submitted in March. A working group will
review the reply and report to an end-July meeting. At that meeting
we expect other creditors will decide to re-open rescheduling
negotiations. The outcome of the Pope's visit is important to the
U.S. position, but less so for other creditors. In the meanwhile,
Poland has asked western banks, and indirectly governments, to
reschedule all outstanding debt for 20 years with an 8 year grace
period; banks indicated this was unacceptable.
Argentina. There has been progress in Argentine dis-
cussions witch banks on the rescheduling of maturing loans and on a
$1.5 billion medium-term facility, but final agreement will be
delayed at least until early July. Argentina has also relaxed its
restrictions on profit and dividend payments by some U.K. firms in
Argentina.
Chile. Chile's restructuring of its debt to foreign
banks is proceeding smoothly. Additionally, banks have committed
more than 90 percent of a new $1.3 billion medium-term facility,
and a $1.2 billion short-term trade facility is overcommitted.
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CONFIDENTIAL
Mexico. Mexico is in compliance with its IMF program,
and made its second drawing of $325 million on May 31. New
commercial bank financing is proceeding; a restructuring of $20
billion of public sector debt to commercial banks falling due by
end-1984 will probably be completed by August; and a rescheduling of
private sector debt to foreign official creditors should be completed
during the week of June 21. The balance of payments situation has
improved dramatically, although the domestic economy continues to be
an area of concern.
Peru. Peru's restructuring of debt to foreign banks is
also proceeding satisfactorily, and a Paris Club rescheduling is
set for July 25-26.
Venezuela. The 13-bank Advisory Committee has agreed to
request a 90-day extension of the moratorium on public sector
principal payments, to end-September. Venezuela is now requesting
a restructuring of $2.6 billion of debt maturing in 1984, in
addition to $13.7 billion falling due this year. The bank Advisory
Committee and Venezuela differ on the adequacy of adjustment
efforts and the need for an IMF program; Venezuela hoped to resolve
this by obtaining a $1.4 billion CFF from the IMF for oil export
shortfalls, but Treasury has advised Venezuela that such a CFF
would raise major problems and face the possibility of rejection by
the IMF Executive Board.
Nigeria. Reports that Nigeria has agreed on a rescheduling
of short-term bank debt are erroneous. In addition, negotiations
with the IMF are not yet underway.
Yugoslavia. Yugoslavian representatives continue to meet
with the international bank coordinating committee to resolve
technical problems which were holding up the bank portion of the
financial assistance package. We hope an agreement will be reached
shortly.