RECE
--RESTRICTED
HKCB OLO/27
IN RE
REPEATE
то TO H.R
8
060045 MDHIAN 1353
Y
03 OCT 1990
28/9/90
RESTRICTED
FM UKDEL IMF/IBRD WASHINGTON
TO DESKBY 270730Z FCO
TELNO 352
OF 26230OZ SEPTEMBER 90
AND TO DESKBY 270730Z CABINET OFFICE, HM TREASURY
AND TO DESKBY 27123OZ UKMIS NEW YORK
AND TO DESKBY 27073OZ UKREP BRUSSELS
AND TO IMMEDIATE ESC LONDON
INFO PRIORITY TOKYO, BONN, PARIS, ROME, OTTAWA, RIYADH, SEOUL INFO PRIORITY ABU DHABI, DOHA, ANKARA, CAIRO, AMMAN, BAGHDAD INFO PRIORITY THE HAGUE, BRUSSELS, STOCKHOLM, BERNE
FCO FOR TOMKYS, MILES, YOUNG (EMERGENCY UNIT) AND MILLETT (ERD), CABINET OFFICE FOR APPLEYARD AND GOWAN, HM TREASURY FOR MOUNTFIELD, PICKERING AND MRS. S. BROWN UKMIS NEW YORK FOR SECRETARY OF STATE'S PARTY
IRAQ/KUWAIT:
SUMMARY
1.
BURDEN SHARING
US CHAIR MEETING TO DISCUSS FOLLOW-UP ACTION ON COORDINATING FINANCIAL ASSISTANCE TO FRONT-LINE STATES. GENERAL AGREEMENT TO SET UP GULF CRISIS FINANCIAL COORDINATION GROUP, THOUGH ITALIAN PRESIDENCY AND EC COMMISSION EXPRESS SOME RESERVE PENDING FURTHER DISCUSSION WITHIN EC. NEXT
MEETING IN WASHINGTON ON 12 OCTOBER. SIMILAR AGREEMENT TO SET UP WASHINGTON-BASED TECHNICAL GROUP TO DISCUSS NUMBERS ETC,
WITH SUPPORT FROM IMF AND WORLD BANK.
DETAIL
2.
MULFORD (US TREASURY) OUTLINED BACKGROUND, INCLUDING PRESIDENT BUSH'S SPEECH TO IMF ANNUAL MEETINGS THE PREVIOUS
DAY. HE MADE IT CLEAR THAT THE MEETING WAS NOT INTENDED AS A PLEDGING SESSION, BUT RATHER TO SET UP A COORDINATING FRAMEWORK. HE EMPHASISED THE IMPORTANCE OF RAPID DISBURSEMENT TO MEET SHORT-TERM REQUIREMENTS. HE SAW A NEED FOR THE GROUP TO REFINE THE ECONOMIC AND FINANCIAL NEEDS OF THE FRONT-LINE STATES, TO CONSIDER THE COUNTRIES TO BE COVERED (I.E. WHETHER THERE SHOULD BE ANY EXTENSION BEYOND EGYPT, TURKEY AND JORDAN), TO CONSIDER THE ROLE OF THE IFI'S AND, LINKED TO THAT, TO CONSIDER WHAT SORT OF CONDITIONALITY MIGHT BE ATTACHED TO FINANCIAL SUPPORT FOR THE MEDIUM-TERM, I.E. TO
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