BAKER URGES SUPPORT FOR DEVELOPMENT BANKS
Treasury Secretary James Baker urged
Congress to support the administration's financing requests for
the multilateral development banks in the next two fiscal
years.
    Baker told a House appropriations subcommittee the
administration's request for a total 2.1 billion dlrs in fiscal
1987 and 1988 would meet administration shortfalls and fulfill
Washington's annual payment responsibilities.
    In testimony that went over much of the same ground as his
remarks to a Senate committee some two weeks ago, Baker said
support for the MDBs was crucial to U.S. economic leadership.
    Baker told the committee, "Our national self respect and
our international leadership depend on our willingness to
fulfill this responsibility."
    The administration budget requests include a supplemental
request for fiscal 1987 of 293 mln dlrs and a 1.8 billion dlr
request for fiscal 1988.
    Baker noted these requests included funding requirements
negotiated by the administration with this committee.
    Baker's remarks outlined why the development banks were
formed and the stake the U.S. had in maintaining them.
    Baker pointed out the U.S. has successfully sought reforms
in several of the institutions and was pressing for reforms in
others aimed at making them more efficient, with policies
oriented toward free markets.
    He also gave the House subcommittee a progress report on
the debt strategy and emphasized the importance of continued
financing for the MDBs if the U.S. is to continue to lead in
resolving the debt crisis.
    In other remarks, Baker repeated the need to finance the
general foreign affairs budget and underscored how MDBs have
served U.S. national interests.
 Reuter
