Declassified per Executive Order 13526, Section 3.3
NND Project Number: NND 63316. By: NWD Date: 2011
- 21 -
SECRET
6. Import of luxury goods to an extent that would widen the gap between the rich and the other economic groups should not be allowed, and the means of controlling such luxury imports should be taxation.
7. To the extent consistent with other criteria, imports should be employed to promote general orderliness of markets and to avoid disruptive speculation.
The Vietnamese experts estimate the appropriate level of commercial aid imports to be as follows:
(US) FY 1962 - annual rate of $169 million (excluding P. L. 480)
(US) FY 1963 - annual rate of $193 million (excluding P. L. 480)
It is recommended that the parallel committees proposed in Section IV, working together, examine at an early date the application of the above criteria in order to arrive at an agreed estimate for the next six months and for the rest of FY 1962 and subsequent periods, and that they jointly keep under review the trend of imports, exports, commodity stocks, foreign exchange reserves, and markets. It is also desirable that they jointly consider possible improvements in procedures.
Looking to the future in terms of medium and longer term economic development, external financing does not appear to be a limiting factor for programs and projects which are tested and approved on the basis of mutually accepted criteria. Private capital, aid from other friendly governments, The International Development Association, and The Development Loan Fund afford varied and substantial funds for capital projects. The variety of terms currently available will be broadened still further if the recommendations made by the Executive to The United States Congress on foreign aid are accepted.
SECRET
