CODE 18-77
Mr White
HKB
243
1/11
ERD
112
Reference..
بات کا
regli orly,
in
To Mhitascall, i&1). Mr. Garson (dir)
рд ADEGU-N
MR AINSCOW'S MEETING FOR MR CASSELL UK EXECUTIVE DIRECTOR AT IMF AND WORLD BANK
1.
I attended Mr Ainscow's meeting in ODA on 25 July. Mr Manning, Mr Buist and Mr Sandersley were also present.
Vietnam
2.
Mr Cassell said that we would come under some pressure to provide money in support of Vietnam's IMF programme.
Mr Manning said that in view of the Prime Minister's strong views, he would be surprised if the withdrawal of Vietnamese troops would be deemed sufficient to enable ODA to release aid money.
Guyana
3.
Mr Cassell said that there were 3 reasons why the Support Group was looking to the UK for a further contribution. The financing requirement was now higher than expected as a result of falls in the sugar price, and the strikes in the sugar and bauxite industries; some donors were not providing aid as fast as pledged; and the UK contribution pledged in sterling had been reduced in value by about $0.5 million in dollar terms because of the fall of the pound. Mr Cassell commented that there had been absolutely no margin of safety in the Guyana programme, and pointed out that this was becoming a fairly general problem given the inadequacy of external finance to support structural adjustment programmes in all the countries who were now pursuing them. Mr Manning said that there was simply no additional money available in ODA's budget this year (see paragraph 10 below). He recognised that it would be very difficult for Guyana to tighten the screws further without causing unrest in Georgetown. Mr Cassell and Mr Manning agreed there was a real risk that Guyana would default on its current payments to the IMF, and that the whole programme would unravel before the arrears were cleared and Guyana's ESAF came to the Board in November. We agreed that in the Support Group meeting this week in Washington, UKDel would