RESTRICTED
060045 MDHIAN 1353
WAS TO LISTEN TO VIEWS AND REPORT BACK TO HIS GOVERNMENT. MAAS (NETHERLANDS) AND LUND (SWEDEN) TOOK A SIMILAR LINE.
7.
RAVASIO (EC COMMISSION) WAS GENERALLY SUPPORTIVE BUT STRESSED HE WAS NOT IN A POSITION TO ENDORSE THE PROPOSALS FORMALLY, AT LEAST UNTIL AFTER THE FURTHER DISCUSSIONS IN NEW YORK. AL-SABAH (KUWAIT) GAVE HIS SINCERE THANKS TO THE US. HE CAUTIONED THAT COUNTRIES NOT COOPERATING WITH UN SANCTIONS SHOULD NOT RECEIVE FINANCIAL SUPPORT.
8.
THERE WAS SOME DISCUSSION ABOUT THE TECHNICAL GROUP. WICKS URGED STRONG IMF AND WORLD BANK INVOLVEMENT IN THE SECRETARLAT. DALLARA SAID HE WOULD PURSUE THIS WITH IMF AND WORLD BANK AND WOULD CALL A FIRST MEETING OF THE GROUP ON MONDAY, 1 OCTOBER.
9.
MULFORD ANNOUNCED THAT THE NEXT MEETING OF THE COORDINATING GROUP WOULD BE ON FRIDAY, 12 OCTOBER. MOST WERE CONTENT WITH THIS, BUT VAUNI D'ARCHINAFS OBJECTED TO THE PRINCIPLE OF TAKING A DECISION ON THE DATE OR VENUE FOR THE NEXT MEETING. MULFORD, WHO HAD ALREADY EXPRESSED IRRITATION AT THE ITALIAN POSITION, SAID THE MEETING WOULD GO AHEAD ANYWAY, BUT EVENTUALLY SOFTENED HIS LINE SLIGHTLY TO SAY THAT IT WAS ENVISAGED THAT THE GROUP WOULD RECONVENE IN WASHINGTON ON OR ABOUT 12 OCTOBER.
10.
DALLARA PRODUCED A PRESS LINE, INCLUDING QUOTE THE GROUP AGREED ON THE NEED FOR FLEXIBLE COORDINATION OF THE PROVISION OF FINANCIAL ASSISTANCE AND THAT A COMMITTEE WILL MEET TO REVIEW VARIOUS TECHNICAL ISSUES RELATING TO THE COORDINATION PROCESS UNQUOTE. THE ITALIANS OBJECTED TO THE PRINCIPLE OF SIGNING UP TO AN AGREEMENT OF THIS KIND. THE FRENCH WERE UNHAPPY AT NOT HAVING A CHANCE TO GO THROUGH THE TEXT IN DETAIL. MULFORD MADE IT CLEAR IT WOULD BE USED AS A US PRESS LINE NOT AN AGREED COMMUNIQUE.
COMMENT
11.
IT WAS A PITY THAT THE OBDURATE LINE BY THE ITALIAN PRESIDENCY THREATENED TO DISRUPT WHAT WAS OTHERWISE UNANIMOUS AGREEMENT ON THE WAY FORWARD, THOUGH THE US WERE RATHER HEAVY- HANDED IN RESPONSE. NONETHELESS, IT APPEARS THAT THE COORDINATING PROCESS WILL PROCEED AS ENVISAGED.
PERETZ
PAGE
RESTRICTED
3