Page 1 - Argentina - Carter, Regan, and Bush VP

C< No Objection to Declassification in Part 2010/06/28: NLC-10-14-5-13-6
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MEMORANDUM
I v
NATIONAL SECURITY COUNCIL

August 25, 1978

MEMORANDUM FOR: ZBIGNIEW BRZEZINSKI

ON-FILE NSC RELEASE
FROM: NORTH/SOUTH INSTRUCTIONS APPLY
SUBJECT: Evening Report

Daily Activities (Erb)

North-South Initiatives. Garten chaired a session last
night at which s/p staff and some private consultants reviewed
possible North-South policies and actions that might be
taken in a climate that is hostile to major initiatives.
No conclusions yet, and further meetings and drafting will
take place over the next few weeks. (C)

Senate Consideration of foreign assistance bill. At different
times today and last week I discussed the aid bill with
Beckel, Bergsten, Albright, and Owen.* Two possible approaches
Beckel favors acceptance of Senate approval of the House aid
levels and elimination of the Cuba and Viet-Nam amendments as
well as the inevitable middle ground, emerge. Owen favors
a strong effort to restore half of the cuts made in the
House, plus elimination of the two amendments. Bergsten's
consultations with Senate Appropriations Subcommittee members
indicate that Inouye will strike the Cuba and Viet-Nam
amendments but the situation regarding aid levels is unclear.
Inouye apparently favors cuts in the IDB, but he will restore
Asian Development Bank levels, and Schweiker may support an
increase in IDA. No one in the Senate showed any enthusiasm
for a large restoration of the House cuts* (LOU) - -

The situation has been complicated by the possibility of IMF
and World Bank action to give cost-of-living salary increases
to their staffs and by pending IMF action on an arrangement
(that the Executive Branch accepted) with the new IMF Managing
Director to raise his salary to roughly $140-150,000 before
taxes. McNamara would follow suit, a development that has
incensed Congressman Long who feels that he was misled. He
wasn't, but he can do some damage on the .Senate side.
Bergsten has seen the British Executive Director, Dale, and
others in an attempt to postpone IMF/World Bank action on
these delicate issues. Sam Cross will follow this up next
week. (C)

NSA, DOE, DOS reviews Not referred to DOC. Waiver
completed.____________ applies._________________
CONriDENTlALA,Dg~

No Objection to Declassification in Part 2010/06/28 : NLC-10-14-5-13-6