FROM: Viron P. Vaky MEMORANDUM THE WHITE ...
DECLASSIFIED A/ISS/IPS, Department of State E.O. 12958, as amended September 4, 2008
MEMORANDUM
THE WHITE HOUSE WASHINGTON
ACTION February
9,
1970
"IVT*ORANDUM FOR DR. KISSINGER FROM:
Viron P. Vaky
SUBJECT:
Governor Rockefeller's Recommendations Re Ecuador
Attached for your signature at Tab A is a letter to Governor Rockefeller responding to his letter of November 13 regarding Ecuador. You may recall that we asked State to consider and take action on Governor Rockefeller's suggestion that we help the Government of Ecuador with its financial problem, possibly by using the "Woods Plan" for debt renegotiation. (Tab C) State reports (Tab D) that debt renegotiation would be of very limited value to Ecuador because Ecuador's debt payments schedule over the next few years are very modest (about 9% of exports). There is no emergency situation now, but Ecuador does face serious fiscal problems if remedial measures are not taken. The World Bank, IMF, and CIAP are advising the Ecuadorean Government on a fiscal program. State and AID are working closely with those agencies and with the new Ecuadorean Finance Minister. However, the G0E's ability to carry out a strong fiscal reform is limited by internal political factors, The Finance Minister wants to move in the right direction, and I agree with Ambassador Sessions, who recently recommended that the US should provide support to the GOE, even if its performance 'is not ideal, so that the present government can continue and try to make further progress. The State memorandum is pretty vague about what form or amount of support it would be prepared to provide, indicating only that it is watching the situation "sympathetically". This is probably due to AID's reluctance to commit itself. I, therefore, think it would be useful to jog State for a specific description of the assistance it would be prepared to provide under alternative conditions of G OE performance. A Watts Eliot memorandum calling for such a report, and for continuing status :reports, is at TO . B for your approval.
DECLASSIFIED A/ISS/IPS, Department of State E.O. 12958, as amended September 4, 2008
RECOMMENDATION 1.
That you sign the letter to Governor Rockefeller at Tab A.
2.
That you approve the Watts-Eliot memorandum at Tab B. Approve
Attachments: Tab A - Letter to Governor Rockefeller Tab B Watts-Eliot Memo Tab C Vaky-Kissinger Memo 12/3/69 Tab D - State Report
Disapprove
MEMORANDUM
THE WHITE HOUSE WASHINGTON
ACTION February
9,
1970
"IVT*ORANDUM FOR DR. KISSINGER FROM:
Viron P. Vaky
SUBJECT:
Governor Rockefeller's Recommendations Re Ecuador
Attached for your signature at Tab A is a letter to Governor Rockefeller responding to his letter of November 13 regarding Ecuador. You may recall that we asked State to consider and take action on Governor Rockefeller's suggestion that we help the Government of Ecuador with its financial problem, possibly by using the "Woods Plan" for debt renegotiation. (Tab C) State reports (Tab D) that debt renegotiation would be of very limited value to Ecuador because Ecuador's debt payments schedule over the next few years are very modest (about 9% of exports). There is no emergency situation now, but Ecuador does face serious fiscal problems if remedial measures are not taken. The World Bank, IMF, and CIAP are advising the Ecuadorean Government on a fiscal program. State and AID are working closely with those agencies and with the new Ecuadorean Finance Minister. However, the G0E's ability to carry out a strong fiscal reform is limited by internal political factors, The Finance Minister wants to move in the right direction, and I agree with Ambassador Sessions, who recently recommended that the US should provide support to the GOE, even if its performance 'is not ideal, so that the present government can continue and try to make further progress. The State memorandum is pretty vague about what form or amount of support it would be prepared to provide, indicating only that it is watching the situation "sympathetically". This is probably due to AID's reluctance to commit itself. I, therefore, think it would be useful to jog State for a specific description of the assistance it would be prepared to provide under alternative conditions of G OE performance. A Watts Eliot memorandum calling for such a report, and for continuing status :reports, is at TO . B for your approval.
DECLASSIFIED A/ISS/IPS, Department of State E.O. 12958, as amended September 4, 2008
RECOMMENDATION 1.
That you sign the letter to Governor Rockefeller at Tab A.
2.
That you approve the Watts-Eliot memorandum at Tab B. Approve
Attachments: Tab A - Letter to Governor Rockefeller Tab B Watts-Eliot Memo Tab C Vaky-Kissinger Memo 12/3/69 Tab D - State Report
Disapprove
