International records / Foreign Relations of the United States

160. Briefing Memorandum From the Chairman of the Policy Planning Council ( Bosworth ) to Secretary of State Shultz

of actual operation of Treasury-State cooperation on debt we do need more consideration from Don Regan and Treasury on three points. 1. We are, with reason, more worried than Treasury about some of the second-tier LDCs (Peru, Chile, the Philippines, Nigeria, Morocco), whose collapse would not threaten the international financial system—Regan’s main concern—but would cause major foreign policy problems. 2. We believe that some increase in World Bank non-project lending to these countries offers the best chance of avoiding serious problems. ( S/P and EB are working on a specific proposal for you…