CARIBBEAN BASIN POLICY
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP83M00914R002200220013-4
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
39
Document Creation Date:
December 22, 2016
Document Release Date:
August 7, 2009
Sequence Number:
13
Case Number:
Publication Date:
February 24, 1982
Content Type:
REPORT
File:
Attachment | Size |
---|---|
![]() | 2.11 MB |
Body:
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
14 1 D/Pens
15 D/OEA.
SUSPENSE
DATE
NSC review completed.
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
THE WHITE HOUSE
WASHINGTON
Baker
Deaver
Anderson
Clark
Darman (For WI! Stffpng)
Jenkins
Gray
Beal
DATE: 2/24/82
CCNRE/Boggs
CCHR/Carleson
CCCT/Kass
CCFA/McClaughry
CCEA/Porter
NUMBER: 050164CA
SUBJECT: Caribbean Basin Policy
Vice President
State
Treasury
Defense
Attorney General
Interior
Agriculture
Commerce
Labor
HHS
HUD
Transportation
Energy
Education
Counsellor
Attached is the Caribbean Basin Fact Sheet for your
information. The speech will be circulated when it
becomes available.
NSC review completed.
CABINET AffAM ST ING MEMORANDUM
Craig L. Fuller
Assistant to the President
for Cabinet Affairs
456-2823
DUE BY:
/l ('~ a
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
FACT SHEET
CARIBBEAN BASIN POLICY
Table of Contents
1. Table of Contents
II. Summary of Caribbean Basin Initiative
in. Summary Table of Total Economic & Military Assistance
IV. Specific U.S. Economic Measures
A. Introduction
B. Free Trade Area
C. Textiles
D. Tax Measures
E. Bilateral Investment Treaties
F. Investment Insurance & OPIC Programs
G. Concessional Aid
H. Agricultural Modernization
1. Assistance for Private Sector Development
J. Trade Credit Program
K. Measures for Puerto Rico & the Virgin Islands
International Assistance Activities in the Caribbean Basin
A. Introduction
B. Canada
C. Mexico
D. Venezuela
E. Europe & Japan
F. International Financial Institutions
G. Consultative Groups.
Vi. U.S. Military Assistance
EMBARGOED FOR 12:30 P.M. EST
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
II. SUMMARY OF
CARIBBEAN BASIN INITIATIVE
The Caribbean Basin Region
The Caribbean Basin includes some two dozen small
developing nations in Central America, the Caribbean and
northern South America. The attachments provide basic informa-
tion on the location. and economies of these countries.
The CBI region forms the third border of the US, contains
vital sea lanes, through which three quarters of our oil
imports must flow, is an important market for US exports,
and is our second largest source of illegal immigration.
The Problem
The Basin countries have been seriously affected by
the escalating cost of imported oil and declining prices
for their major exports (sugar, coffee, bauxite, etc.).
This has exacerbated their deep-rooted structural problems
and caused serious inflation, high unemployment, declining
GDP growth, enormous balance of payments deficits, and
a pressing liquidity crisis. This economic crisis threatens
political and social stability throughout the region and
creates conditions which Cuba and others seek to exploit
through terrorism and subversion.
Uevelo ent of Caribbean Basin Initiative
The US has been developing its program for responding
to the economic crisis in close consultation with potential
recipients and other donor countries. Last July Secretary
Haig and US Special Trade Representative Brock met in Nassau
with the Foreign Ministers of Canada, Mexico and Venezuela.
They agreed to sponsor a multilateral action program for
the region within which each country would develop its
own program., Venezuela and Mexico are making a significant
contribution to the Basin, particularly through their joint
oil facility. Canada recently announced major increases
in its foreign assistance to the area. The Colombians
also intend to increase their financial contribution to
the Basin. We expect other donors will also expand their
efforts in the areas of trade and investment.
Key_ Elements of Proposed US Program
The proposed US program consists of integrated, mutually
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
reinforcing measures in the fields of trade, investment
and financial assistance.
The centerpiece of the US program is the offer of
one-way free trade. Presently, the countries of the region
are already afforded liberal entry into the US market.
Nevertheless, some of the duties which remain in place
are in sectors of special interest to the Basin countries.
They also limit export expansion into many non-traditional
products.
The President will request from the Congress authority
to eliminate duties on all imports from the Basin except
textiles and apparel. Sugar imports will receive duty
free treatment but only up to a certain limit in order
to protect the US domestic sugar price support program
mandated by Congress. A safeguard mechanism will be available
to any US industry seriously injured by increased Basin
imports. Rules of origin will be liberal to encourage
investment, but will require a minimum amount of local
content (25%). The President will have discretion.to designate
beneficiaries taking into account countries' own efforts
to carry out necessary reform of their internal economic
policies.
=The President will also seek Congressional authorization
to grant US investors in the Caribbean Basin a significant
tax measure to encourage investment. We are still consulting
with the Congress on the exact measures to be employed.
The President will request a FY 82 supplemental economic
assistance appropriation of $350 million to provide emergency
assistance for several key countries whose situation is
particularly critical. That will bring proposed FY 1982
economic assistance to $823.9 million or $403 million above
FY 81. The Administration's request is for $664.4 million
in FY 83 economic assistance. As the attached table shows,
the security assistance is only a small portion of the
total assistance provided by the United States to the Caribbean
Basin region.
Other Economic Initiatives
The US will extend more favorable treatment to
Caribbean Basin textile and apparel exports under bilateral
and multilateral agreements while continuing our overall
policy of seeking tighter limits on import growth from
our major suppliers.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
? The US will seek to negotiate double taxation
and bilateral investment treaties with interested countries.
The US will work with multilateral development
banks and the private sector to develop insurance facilities
to supplement OPIC's non-commercial investment risk operation.
The US Export Import Bank will expand protection,
where its lending criteria allow, for short-term credit
from commercial banks to Basin private sectors for critical
imports.
The US will work with each country to develop
private sector strategies to coordinate and focus development
efforts of local business, US firms, and private voluntary
organizations. The strategies will seek to remove impediments
to growth including lack of marketing skills, shortages of trained
manpower, poor regional transport, and inadequate infrastructure.
Puerto Rico and the US Virgin Islands.
A series of measures will support the efforts of Puerto
Rico and the Virgin Islands to play a dynamic role-in the
Caribbean region. For example, involvement of the possessions
will be critical to the success of private sector development
'strategies. In addition, the US Government has consulted
closely with Puerto Rico and the Virgin Islands about the
Caribbean Basin Initiative. Legislation under the Initiative
will reflect Puerto Rican and Virgin Island interests in.
many important ways. Excise taxes on all imported rum will be
rebated to Puerto Rico and the Virgin Islands. Inputs into
Caribbean Basin production from the possessions will be
considered domestic under the rules of origin. Their industries
will have access to the same safeguards provisions as mainland
industries.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
US ECONOMIC RELATIONS WITS
THE CARIBBEAN BASIN
E$ millions)
US Exports in 1981
(Major products: transportation
equipment, electrical and industrial
machinery, chemicals, manufactured
goods)
US Imports in 1981
(Major products: cotton, sugar,
bauxite, coffee, meat)
US Direct Investment in 1980
Total
Total Non-financial
US Tourism in 1980
Expenditures
Number of travelers, excluding
cruise travel, in millions
$ 6,841.5
10, 026.6
22,474
11,946
1,134
2,624
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4 .
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
Belize
Dominican Republic
Guyana
Haiti
Jamaica
Bahamas
Eastern Caribbean
Suriname
Barbados
Trinidad & Tobago
Turks and Caicos
Cayman Islands
Netherlands Antilles
CP?RIBBEA BBASIN DATA SHEET
Population
Glop
(US$)
2.24
4,847
4.50
3,484
7`.26
7,852
3.69
2,538
2.70
11566
1.94
3,511
015
165
5.43
6,733
.79
524
5.01
1.453
2019
2,402
.22
1,267
.65
500
.39
109
.25
815
1.14
6,708
007
??
.15
-?
.27
_m
Total CB population 39.04 million
Central America (22.33) million
Caribbean (16.71) million
Total GDP . $45 billion
Exports
to us
(US$)
imports
from US
(percent)
356
36
427
30
435
38
419
40
211
28
330
48
60
40
786
55
120 .
25
252
.89
383
29
1,382
51
37
45
109
30
96
28
2,378
39
- 3 Qs
3 ss
2,564 -~
Note: Population, GDP and Exports to US are in millions;
imports from US are as a percent of all imports;
Caribbean Basin Map - see attached
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4 .
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4 .
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
III. SLR ZNBM
US ECO MIC & MMI`IW ASSIZE
T O T H E W BASIN
Already Acted Announced Today
Upon by Congress
(Overal.l figures (To be Proposed
? Submitted in the to Congress)
F! 83, Budget)
1981
1982
1983
1982
(Actual)
(get)
(Proposed)
(Supplemental)
Economic 420.51
473.91
664.41
3503
Developpent (DA) 168.4
211.1
217.6
Ecnic Support (ESP) 143.4
140.0
326.0
Food Aid (PL 480) 108.7
122.8
120.8
Military 50.512
112.142
106.232
604
Training ( "P) 2.22
3.24
4.93
~-
Sales Credits (Fad) 23
29
41
4
101
3
.
.
.
Grants (ice & 506) 25.0
67.5
60
TCItMI ASSISThNM 471.01
586.04
770.63
410
Percent Military 10.7%
19.1%
13.8%
14.6%
1. For allocaticn by country, see Section IV. G.
2. For allocation by country, see Section VI.
3. Specific amounts by country will be presented in the
legislative request.
4. Dollar amounts by country will be detailed in the
Congressional submission.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
IV. U.S. ECONOMIC MEASURES
A. Introduction
The US program for the Caribbean Basin Initiative (CBI)
has been developed over the last eight months in an intensive
inter-agency process and wide-ranging consultations with the
governments and the private sectors of donor and potential
recipient countries. The resulting integrated program of
trade, investment and aid attacks both emergency problems
and structural impediments to long-range economic development.
The backbone of the program is the offer of one-way
free trade. While the economic benefits are long term,
the offer of an unimpeded US market to those small nations
is a major political commitment with immediate impact.
It will also strongly encourage sound internal economic
policies.
Investment incentives (particularly extension of a
significant tax incentive for US direct investment in the
Basin) promise an immediate return to US investors who
undertake the increased risk perceived in the Basin. They
thus encourage the location of new production there.
_'_ The emergency economic aid program confronts the acute
liquidity crisis faced by many countries in the region.
'At stake is the survival of the private sector -- and with
it the pluralism, diversity and political moderation on
which viable long-run policies depend. The Development
Assistance and Economic Support Funds in the FY 83 budget,
which incorporate significant increases from earlier years,
will be directed into new programs aimed at removing basic
impediments to growth.
In order to insure that Puerto Rico and the Virgin
Islands can not only contribute to, but benefit from, these
new policies, a package of new measures concerning them
is being prepared.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4 .
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
IV. U.S. ECONOMIC MEASURES
B. Free Trade Area (FTA)
Given the serious economic deterioration in the Carib-
bean Basin region, the trade component of the Caribbean
Basin Initiative(CBI) was designed to provide the most
favorable access possible for exports from the Basin.
Presently, the countries of the region are already afforded
liberal entry into the U.S. market. (In 1980, $6.4 billion,
out of total Caribbean Basin exports to the U.S. of $10.4
billion were free of duty; a large part of dutiable trade
was accounted for by petroleum -- $2.7 billion for
which tariffs are not economically meaningful). Neverthe-
less, some of the duties which remain in place are in
sectors of special interest to the Basin countries. They
also limit export expansion into many non-traditional
products.
The Generalized System of Preferences (GSP) already
extends duty-free treatment on many products to a large
number of developing countries. However, the GSP has a
complex structure which limits the ability of small and
relatively inexperienced traders which is the case of a
great many of the Caribbean Basin's enterprises -- to take
advantage of the opportunities which GSP offers. Many of
the more promising prospects for Basin exports are in
product categories which have been legislatively excluded
from the GSP program for global reasons which are not
relevant to the Caribbean Basin. Also, GSP has both
dollar and percentage limitations which are arbitrary in
their application to many Caribbean Basin products.
Therefore, the Administration will seek legislative
authority to grant beneficiaries in the Caribbean Basin
duty-free treatment for 12 years for all products with the
sole exception of textiles and apparel items which are
subject to textile agreements. Sugar imports will receive
duty-free treatment but only_up to a certain limit in order
to protect the United States domestic sugar price support
program mandated by Congress. The Secretary of Agriculture
will retain standby authority to further limit the entry
of duty-free imports, should this be necessary to protect
the sugar program.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
A safeguard mechanism will be available. This will
require a finding by the International Trade Commission that
increased imports are a substantial cause of serious injury
or threat thereof to United States domestic industry and a.
recommendation to the President to grant relief (e.g., a
restoration of the tariff). Where safeguard relief is
sought for perishable commodities, the CBI legislation
provides authority for the Secretary of Agriculture to
recommend to the President the restoration of MFN treatment
on an immediate basis if warranted pending the completion of
the formal escape clause process.
The Rules of origin under the free trade arrangement
are an important factor in determining the accessibility
of duty-free access for resource poor Basin countries. The
FTA has been designed to avoid fostering the type of inves-
tment in the region which would result in mere "pass through"
operations involving little value added in the host country.
The Administration does not want to reduce the level of
required local input to- the point where the FTA will encour-
age "runaway plants". Because of the relatively low level
of development of many of the countries in the region and
their limited access to local inputs, the FTA will require
..that-Basin countries supply a minimum of 25 percent of local
value added. Inputs from all Basin countries can be cumula-
ted to meet the 25 percent minimum. Inputs from Puerto Rico
and the Virgin Islands will be treated as Caribbean products
for purposes of the Rules of Origin.
The President will have discretion to designate countries
in the Caribbean Basin as beneficiaries of the Free Trade
Area subject to many of the same caveats contained in the
GSP system (non-designation of communist countries and of
countries which expropriate without compensation or which
discriminate against US exports). The President will also
take into account economic criteria such as the attitude of
the beneficiaries towards private enterprise and the policies
recipient countries are pursuing to promote their own
development. The United States Government will enter into
discussions with the Caribbean Basin countries to develop
self-help objectives.
The Free Trade Area will require the United States to
seek a GATT waiver.
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
12
IV. U.S. ECONOMIC MEASURES
C. Textiles
The textile and apparel industry in most Caribbean
Basin countries is of modest scale. U.S. imports from
the region in 1981 amounted to $472 million and 192
million square yards equivalent, accounting for 6 percent
of total U.S. imports of apparel on a volume basis.
Most textile exports from Caribbean Basin countries
to the Q.S. are made by U.S. companies which assemble
garments in those countries from fabric produced and
cut in the U.S. Under section 807 of the U.S. tariff
code, these companies pay duty only on the value-added
abroad.
In 1981 the U.S. exported $8 million worth of
textile machinery and $519 million worth of textile
and apparel products to the Caribbean Basin countries,
much of the latter as cut fabric for assembly into
garments.
International textile trade is governed by the
provisions of the GATT Arrangment commonly known as
the Multi-Fiber Arrangement (MFA). The MFA provides
a framework for insuring orderly development of textile
and apparel trade while avoiding disruption of importing
country markets. In recognition of the special nature
of textile trade as reflected by the MFA, textile and
apparel products are not proposed for duty free treatment
under the CBI. The U.S. government intends, however,
to allow more favorable access for Caribbean Basin
products, on a case-by-case basis within the context
of overall Administration textile policy implementing
the MFA. The U.S. government will continue to seek tighter
limits on import growth from our major suppliers.
The U.S. has textile trade agreements with Haiti,
the Dominican Republic, Costa Rica, and Jamaica, which
set agreed levels of trade for certain products.
(No quotas are currently in effect under the Jamaica
agreement.)
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
IV. U.S. ECONOMIC MEASURES
D. Tax Measures
The Administration recognizes that some US entrepre-
neurs may be hesitant to invest in some Caribbean Basin
countries. The risk may be perceived as high for venture
capital, especially when coupled with the start-up costs
of developing new markets and marketing channels, training
new local employees and managers, and overcoming transportation
bottlenecks to ensure a steady. flow of raw materials and
export products.
For this reason, the Administration is developing a
tax proposal to encourage US investment in the Caribbean
Basin. We are still consulting on the exact nature of this
proposal. An example of a possible tax measure under discussion
is a five year legislative extension of the domestic investment
tax credit for up to 10 percent of the amount of fixed asset
investment in the countries of the region. Such a system
would operate in much the same fashion as does the tax credit
for investment currently in effect in the United States.
The tax credit would be granted for a five year period to
individual countries which enter into executive agreements
for tax administration purposes. After the five year period.,
the program would be evaluated and a decision made on whether
to continue the extension. The credit would permit US businesses
to reduce their net tax liability in the United States.
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4 .
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
IV. U.S. ECONOMIC MEASURES
E. Bilateral Investment Treaties
Bilateral investment treaties (BITS) are intended
to help stabilize the bilateral investment relationship
with a developing country by establishing an agreed legal
framework for investment, by assuring certain minimum
standards of treatment, and by providing agreed means for
resolving investment disputes.
Other developed countries are further along in their
BIT programs than the US. (The Federal Republic of Germany,
for example, has approximately 50 outstanding.) During
.1981 the US developed a prototype BIT and late in the year
began discussions with several countries. It is generally
agreed that the US prototype treats the investment issue
more comprehensively than the treaties signed by other
developed countries and has the potential to have a greater
impact on LDC investment climates. The key elements of
the US prototype BIT are:
provisions concerning entry and duration of investment;
treatment for established US investors which is no
less favorable than that given domestic investors
and other foreign investors;
?- prompt, adequate and effective compensation in the
event of nationalization;
unrestricted repatriation and other transfers of assets;
dispute settlement provisions.
The US is prepared to negotiate bilateral investment
treaties with interested countries in the Caribbean Basin.
Negotiations have already begun with Panama, at that country's
initiative.
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
15 -
IV. U.S. ECONOMIC MEASURES
F. Investment Insurance and OPIC Programs
The Overseas Private Investment Corporation
(OPIC) currently offers political risk insurance for
U.S. investors in approximately 100 developing countries.
Coverages offered are for expropriation, war risk,
and inconvertibility. Similar programs are offered
by other developed countries, although their participation
in Latin America varies according to perceived commercial
and strategic interests. -
OPIC also has other programs to facilitate U.S.
investment flows to the Caribbean Basin region. OPIC
can make direct loans for certain kinds of investments.
This authority is used almost exclusively in the
region. OPIC also organizes missions of U.S..businessmen
to explore investment opportunities. In late 1981
OPIC took investment missions to two Basin states:
Jamaica and Haiti.
OPIC is increasing its activities in the Caribbean
Basin in both the insurance and other programs.
However, for legislative and other reasons, there are
gaps in insurance coverage available to Caribbean
Basin investment. These include:
--
Limited coverages in countries where OPIC
is at or near its country limit;
-
Lack of
country
domestic
general coverage for non-developed
investment, i.e., regional investment,
investment, OPEC investment;
Lack of sufficient coverage for major
investments in mining and energy production.
To expand insurance coverage available to eligible.
U.S.investors, OPIC is working with private sector
insurers to establish informal consortia where appropriate
on a project by project basis. Mixed coverage of
this kind is currently being discussed for a major
project in the Basin.
For other investments not eligible for OPIC
coverage, some form of multilateral insurance may be
possible. World Bank (IBRD) President Clausen stated
his interest in examining such a scheme in his September
1981 speech to the World Bank Board of Governors.
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
IV. US ECONOMIC MEASURES
G. CONCESSIONAL AID
Concessional US assistance is expected to increase
rapidly under The Caribbean Basin Initiative. The
three primary'tools for providing direct economic
aid are: (1) development assistance (DA), which is
project oriented; with emphasis on agriculture, health
and population problems; (2) economic support funds
(ESF), which are more flexible and can provide direct
balance of payments support as well as credit for
crucial imports; and (3) food aid, provided through
PL 480 programs, which provides needed foreign exchange
and generates counterpart development funds.
Some increase of total concessional assistance
to the Caribbean Basin is planned in FY 1982 under
the current budget level. A major increase will be
achieved, however, through a $350 million supplemental
request to Congress to increase FY 1982 funding.
In FY 1983 the proposed level is more than 50 percent
higher than the actual level of obligations in FY.
1981, and double the FY 1980 level.
The bulk of the planned increase in US assistance
is in the Economic Support Fund program for the region.
ESF assistance for the Basin would increase from $15
million in FY 1980 to $490 million in FY 1982 if the
supplemental request is approved, and to $326 million
in FY 1983. The ESF would be used primarily to finance
private sector imports, thus strengthening the balance-
of-payments of key countries of the Basin while facilitating
increased domestic production and employment. At the
same time, we will be discussing with Qther donors such
as the International Monetary Fund and the World Bank,
and with the policy makers of these countries, possible
reform measures to ensure that the ESP assistance
is utilized effectively and will have the greatest
possible impact on local production and employment.
In FY 1982, Development Assistance for the Basin
will increase by $43 million, or 25 percent, over
the FY 1981 level. In FY 1983, $218 million of DA
is proposed, a further increase of 3 percent over
the FY 1982 level. These amounts are approximately
the same as the $215 million of DA provided in FY 1980,
Approved For Release 2009/08/07: CIA-RDP83M00914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
but the DA level in FY 1980 was extraordinarily high
since it included funding provided in response to
several natural disasters in the Caribbean as well
as to the worsening situation in Central America.
Food for Peace assistance under PL 480 is projected
to increase by $40 million, or nearly 50 percent, over
FY 1980 levels. This will increase the foodstuffs
available in the Basin countries while also providing
balance-of-payments support. Local currency generated
through this assistance supports local development
activities and helps reduce government budget deficits.
Conditions associated with this assistance relate
to macroeconomic policy reforms as well as policies
and programs to increase agricultural production.
Assistance under the Caribbean Basin Initiative
will be focused. increasingly on private sector support.
Both capital and technical assistance will be provided
to ameliorate infrastructure, credit, institutional, and
training constraints to trade and investment expansion
throughout the area.
The attached table shows: (1) actual amounts
of...concessional assistance to the Basin in fiscal
years 1980 and 1981; (2) current planning figures
for FY 82; and (3) Congressional presentation proposals
for FY 83. Country planning figures for the $350
million supplemental for FY 82 will include increases
to El Salvador, Costa Rica and Jamaica. Other recipients
will be countries such as Honduras, Dominican Republic,
Belize and the Eastern Caribbean.
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
US Concessicnal Assistance to Caribbean Basin
($ 000)
1980
1981
1982
Current
1983
Congressional
Actual
Actual
Budq2t
Presentation
Costa Rica
13,635
13,289
50,955
85,000
13,561
11,475
12,955
13,000
ESP
-
20,000
60,000
PL 480
74
1,814
.18,000
10,000
El Salvador
58,524
104,522
104,478
164,921
43,L55
33,345
34,970
25,000
ESP
9,100
44,900
40,000
105,000
PL 480
6,269
26,277
29,508
34,921
Guatemala
11,440
161689
11,768
13
009
EA
7,764
9,135
5,764
2
8,000
EP
PL 480
3,676
7,554
6,004
5,009
Haas
50,653
36,106
38,012
631064
LA
45,824
25,660
28,770
29,000
I SF
-
-
-
25,000
PL 480
4,829
10,446
9,242
9,064
Nicara%a
37,002
59E639
23,0069
-
DA
18,306
1,825
2,426
ESP
1,125
56,574
-*
-*
PL 480
17,571
1,240
643
Panama
21104
10, 489
11,239
13c344
DA
1,043
8,639
9,191
11,000
EP
-
-
-
-
PL 480
1,061
1,850
2,048
1,344
FCCAP
4,156
11,498
17,950
19,000
CA
4,156
10,598
17,950
1000
ES?
-
900
-
-
Sub-Total Central America
177,514
252.232
257,471
357,338
IA
133,809
100,677
L12,026*
107,000
ESP
10,225
102,374
80,000
190,000
PL 480
33,480
49,181
65,445
60,338
Dominican Repiblic
54,803
36,749
45,222
47,783
CA
34,640
17,393
24,700
26,000
ESP
-
-
-
-
PL 480
20,163
19,356
20,522
20,783
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
Approved For Release 2009/08/07: CIA-RDP83MOO914R002200220013-4
U.S. Concessional Assistance to Caribbean Basin
1980 1981 1982 1983
Actual Actual Current Congressional
Budget Presentati
DA
ESP
PL-480
DA
ESP
PL 480
DA
ESF
PL 480
4,965 1234 2,286 2,672
2,537 1,207 2,210 2,600
2,428 27 76 72
27,851 34,036 31,531 34,725
10,127 9,160 13,015 15,000
1,000
16,724 24,876 19,516 19,725
12,694 69.132 87,098 112,014
2,684 12,924 29,571 37,000
? 41,000 40,000 55,000
10,010 15,208 17,527 20,014
Caribbean Regional 46,110 27,099 50,645 61,000
DA 41,183 27,044 30,605 30,000
ESP 4,000 ? 20,000 31,000
PL-480 927 55 40
Sub-Total Caribbean 146,423 168,250 2162782 258,194
DA 91,171 67,728 99,101 110,600
ESP 5,000 41,000 60,000 86,000
PL-480 50,252 59,522 57,681 60,594
LAC Regional,'* ? 50, 000
DA - .e.
`'
F - -? 50,000**
PL 480 ?. ..-. ....
Total Caribbean Basin **** 323,937 420,482 474,253 664,532
224,980 168,405 211,127 * 217,600
ESP 15,225 143,374 140,000 326,000
PL-480 83,732 108,703 123,126 120,932
Sucole