U.S. cuts aid outlay in shock move

Press, 4 May 1981, Page 1

U.S. cuts aid outlay in shock move

NZPA-Rcuter Honolulu .The Asian Development Bank has announced that a meeting of contributing countries will be held at Geneva early in July, after the United States disclosed, plans to cut its aid programmes by SUSS6 billion (5NZ62.16 billion) next year.

The A.D.B. president, Mr Taroichi Yoshida, said in Honolulu at the end of the bank’s annual meeting ■that the United States plans had serious implications, and might affect donations from other countries. including European member nations. “Countries in Europe are;also having a difficult time,” Mr Yoshida said in -a' apparent reference to

President Reagan’s Budgetslashing programmes. “There is no question that the American position might have very serious implications,” he said.

The American Deputy Treasury Secretary, Mr Timothy McNamar, told the 1000 delegates from the bank’s 44 member States that his Government planned to cut 86 domestic and foreign assistance programmes; by roughly SUSS6 billion in the 1982 financial year. The bank, which made loan commitments of SUSI.3S billion (SNZI.S billion) last year through its associated Asian Development Fund, supplies loans and other aid to two-thirds of the world’s poorest countries.

Mr Yoshida said that a meeting of donor countries would be held at Geneva early, in July to prepare for the replenishment. of the fund, which supplies loans free of interest and for a service charge of only 1 per cent. He said that the bank’s needs for the 1983-87 period were being studied, and the bank. expected to seek substantial additional resources during the year. He had held informal conversations with representatives of contributing countries in Honolulu, and had taken into account that the present economic climate for increasing assistance was not particularly favourable.