220. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1

SUBJECT

  • Korry Report—Status and Prospects

As you know, the Korry Report2 suggested two kinds of initiatives: a broader role for the World Bank in Africa, and a number of modifications of U.S. bilateral programs. The following summarizes the state of play on each front. At Tab A, for your signature, is a proposed NSAM—explained below—to carry out the changes in bilateral programs.

World Bank Position

You will recall that George Woods reacted very favorably to the Korry ideas. He agreed in August to discuss them with the African Finance Ministers at the Bank/Fund meetings (September 26–30) if, in [Page 362] the meanwhile, we got the major Europeans to support the proposals. After some groundwork at lower levels, Livingston Merchant went to Europe early in September to solicit help. The results were:

(1)
enthusiastic support from the U.K., Italy and Canada;
(2)
a flat turndown from France;
(3)
inconclusive replies from Germany and Belgium.

Woods did in fact raise the proposals in a general way with the African Finance Ministers last week. There was not enough time to get a solid feel for their reactions. Well try to get Woods to follow up as quickly as possible. We also plan further approaches to the Europeans, particularly Germany.

Bilateral Program Changes

Bill Gaud and Joe Palmer have agreed to receive the attached NSAM.3 It has also been cleared on the Seventh Floor. Essentially, the NSAM asks State to set up a procedure for reviewing and carrying out each recommendation—absent a compelling case against it—by December 1. It also specifically requires State to consult with the other agencies concerned, and instructs my office to monitor the operation. I think it will do the job.

Walt
  1. Source: Johnson Library, National Security File, NSC Histories, President’s Speech on 3rd Anniversary of OAU, 5/26/66. No classification marking.
  2. Document 215.
  3. See Document 221.