TRANSLATION - jw

Munich, 26 May 1982

Dear Dr. Kissinger:

As expected, your visit to Germany was a great success.
The press department will soon be sending you the thoroughly
positive results of the press conference and other reviews.

I also would like to take this opportunity to again thank
you very much for making yourself available in Frankfurt and
thereby assuredly helping attain the desired circulation of
the book. In addition, as promised in Frankfurt, I am enclosing
the leather-bound author's copy for you.

During one of my next visits to New York, I will try to
again set up a breakfast appointment with you to bring you up
to date on developments concerning the second volume of your
memoirs.

With best wishes, especially for your health and well-being,

Enc: * BOOK NOT ENCLOSED

WILLIAM S. PALEY 51 WEST 52 STREET NEW YORK, N.Y. 10019

Dear Henry:

I have read the memorandum you left with me
with a great deal of interest. It is well put
together and makes some excellent points
particularly for the more sophisticated com-
panies that want personal and specific atten-
tion.

Here are a few of my reactions:

1. You talk about a select list of clients. I don't think I'd make that a policy at the outset. Most people will take for granted that your clients will be carefully selected. You might easily change and want to widen the number of people to serve or even develop a new kind of service aimed at a larger group.

2. As something to review: I always thought that the creation of a monthly paper going to companies interested in foreign affairs would be the way to get established. This would cause a binder between your company and x number of companies throughout the country. It also would, I think, in a short space of time bring a profit, but more importantly, would give you a list of people who are prospective clients. A specialized service according to my plan would develop after the paper has been established. I've always felt that you needed some base, some connection, some ongoing activity that is on a regular basis and not be in a position where you must depend solely on the special demands of clients from month to month. Also it could be an ongoing enterprise even after you have laid aside your overflowing energies.

JUN 24 1982

Page 2

I'm sure you've thought this thing through and maybe the creation of a publication to begin with is too difficult or too expensive -- I'm not sure what the economics are -- but, in any event, I think you ought to give consideration to it. I can understand that there will be problems such as picking the right subjects to cover but then again things are happening at a very fast pace throughout the world and with a couple of good writers and imaginative people I think you could fill a four, six or eight page pamphlet without much trouble. Of course the quality of the writing and the quality of the analysis would have to be high.

I hear you are off to Europe now and so I don't know when I'll be seeing you. I'll be here until about the first of August and then I'll be in South Africa where we meet on August 28. If you are here before the first of August, please let me know. I hope that you and Nancy have a great trip to Europe and also I hope that you will come and spend a weekend with me if you return before the first of August.

All good wishes.

Sincerely,

The Honorable
Henry A. Kissinger
Suite 520
1800 K Street, N.W.
Washington, D. C. 20006

June 18, 1982

CBS

CBS Inc., 51 West 52 Street
New York, New York 10019
(212) 975-3535

William S. Paley, Chairman of the Board

SEP 10 1982

To All Employees of CBS:

September 8, 1982

The Board of Directors of CBS Inc. met this morning. At that time I informed the Board of my decision to resign as Chairman of the Board effective at the end of my present term on April 20, 1983.

I plan to remain an active Director of CBS Inc. and continue as Chairman of the Executive Committee of the Board. I also intend to remain a major stockholder in CBS.

Simultaneously with the effective date of my resignation as CBS Board Chairman and the termination of my full-time employment, I will enter a new long-term consulting relationship with CBS.

I founded CBS nearly 54 years ago, and except during World War II, I have served the Company full time since its inception. I take great pride in CBS.

In resigning as Board Chairman, I am reflecting my complete confidence in Tom Wyman and his skilled, dedicated management team which heads the various CBS operating and staff units. I feel the time has come for me to relinquish a full-time commitment.

Fortunately, however, my energy level remains high, and I want to stay reasonably active. For example, I plan to become partner of Whitcom Investment Company which owns a one-third interest in the *International Herald Tribune* and is the sole stockholder of the expanding Whitney Communications Corporation. (The other two owners of that Paris-based newspaper are *The New York Times* and *The Washington Post*.) I will represent Whitcom Investment Company's interest in the *International Herald Tribune*.

Because of my long-term personal association with the late John Hay Whitney, former Chairman of the *International Herald Tribune*, I have long been familiar with Whitcom and its publishing and communications interests. I am looking forward to my association with the Whitcom partners and with the other owners of the *International Herald Tribune*.

CBS

CBS Inc.
51 West 52 Street

New York, New York 10019
(212)975-4321

September 8, 1982

The CBS Board of Directors announced today that, when
William S. Paley's resignation as CBS Board Chairman takes place,
Thomas H. Wyman will be elected to the additional position of
Chairman. Mr. Wyman is currently CBS President and Chief Executive
Officer. No other changes in titles or positions within CBS are
contemplated as a consequence of this action.

CBS Broadcast Group: CBS Television Network, CBS Entertainment, CBS Sports, CBS News, CBS Television Stations, CBS Radio, CBS Cable, CBS Theatrical Films

CBS Records Group: CBS Records, CBS Records International, CBS Video Enterprises, Columbia House, CBS Songs

CBS Columbia Group: CBS Musical Instruments, CBS Gabriel Industries, CBS Specialty Stores

CBS Publishing Group: CBS Educational and Professional Publishing, CBS Consumer Publishing

THIS IS RECYCLED PAPER

CBS

To All Employees of CBS:

September 8, 1982

OCT 12 1982

Dear Henry:

I've just finished reading the remarks you made to the Fifth CSIS Quadrangular Conference -- "Challenges to the West in the 1980s". It is a very interesting piece, expresses thoughts about the situation in various parts of the world which are not only stimulating but helpful in causing me at least, to have a better feel of what's going on.

The thing that struck me mostly, however, about the piece, is the beautiful way in which it was written. It has real style and makes extremely good reading. I want to congratulate you on both the contents and the style of writing.

I hope you are enjoying China to the full. I'll be waiting patiently for your return when I expect to hear all about it.

My very best.

Dr. Henry Kissinger
Suite 520
1800 K Street, N.W.
Washington, D. C. 20006

October 8, 1982

HENRY A. KISSINGER

December 6, 1982

Dear Mr. Prime Minister:

I want to thank you for our meeting last
week at a time I know was very busy for
you. It was a great personal pleasure
to see you as well as a valuable dis-
cussion.

I wish you every success.

His Excellency
Olof Palme
Prime Minister
Statsradsberedningen
Rosenbad 4
10333 Stockholm
Sweden

SUITE 1021 • 1800 K STREET, N. W. • WASHINGTON, D. C. 20006 • (202) 872-0300

Pan-World Happiness Society

Secretariat of Tokyo General Head Office
3-6-10 Nihonbashi, Chuo-ku, Tokyo, Japan 103
Phone: Tokyo (03) 271-4181

November 19, 1982

Dr. Henry A. Kissinger
Suite 400, 1800 K. Street N.W.
Washington D.C., 20006

Dear Dr. Kissinger:

As a winner of the Nobel Peace Prize, you definitely are in a position to fully appreciate the value of this esteemed award. But when such renowned foundations start selling these coveted honors to individuals wealthy enough to afford them, it can jeopardize the entire system of selection by which the awards are made and give rise to doubt regarding the worthiness of persons who have already received them.

Specifically I have reference to this year's United Nations Peace Prize as presented to Ryoichi Sasaki of Japan.

Ryoichi Sasaki spent three years in prison as a war criminal on charges of pillage and murder during World War II. He has amassed a tremendous fortune through swindling, gambling and a host of other shady activities, and is guilty of tax evasion, smuggling and homicide, to name just a few. But he manages to stay out of jail by continually bribing national dietmen and the police, making a mockery of Japan's legal system. To white-wash his character, Sasaki is wont to contribute money to worthy causes, taking great pains to assure its being given maximum publicity. But he never donates personal funds, but rather pelf routed from his gambling syndicate.

To this moral mausoleum, the undertakings of whom would impress the most villainous of Mafia ringleaders, WHO awarded a Peace Prize. Why? Because he contributed something like a million dollars to their organization? In consideration of what he is, there can be no other possible conclusion. In other words, the World Health Organization sold Sasaki a United Nations Peace Prize. He bribed WHO. This being the case, even Adolph Hitler or Hideki Tojo, were they alive today, could expect a United Nations Peace Prize if they paid enough for it.

Enclosed is a document which gives a fairly accurate description of this man's character. Should you require further evidence, just read Japanese periodicals.

I earnestly request that you check into this matter for the sake of those who have benefitted from these awards honestly and to preserve the honor of these organizations for the future.

NOV 29 1982

[cc]

Pan-World Happiness Society

The following is a translation of a Japanese language certified letter from Isamu Tamura, friend of one of Ryoichi Sasakawa's bodyguards, to Ryoichi Sasakawa. This is just one of many testimonials describing the real character of Ryoichi Sasakawa.

* * * * * *

You are exceptionally arrogant. You repeatedly accused me of working for Mr. Kaoru Hosokawa as a mercenary. In response, I demanded you produce evidence to back up your accusation. Fully a month has passed since I sent you my demand, but you have failed to reply, which proves, as everyone concerned agrees, that you lied.

Look into your eighty-three years. There you will find a plethora of blackmail, murder and all-around cheating perpetrated by yourself. You openly brag that Japan's mass communication system is your slave, but some of its representatives have finally recognized you as the killer you are. Your mask has slipped down and exposed you. Now is the time for you to confess to your life of crime and terminate your career of evil. I advise you to give yourself up. The Japanese police and legal structure, which you ridicule as being asinine, will not remain, as you have often said, your "henchmen."

Nobuo Hamaya stated, "Ryoichi Sasakawa is in the habit of going abroad to create alibis for his murders," and, "He is the world's most notorious con man, guilty of cheating, lying, forging official and private documents, and murder. He is the worst con man/killer in history." And Hamaya once respectfully called you "sensei" (master), but that was before he discovered what you really were. Soon after he revealed your true, monstrous nature Hamaya was found dead.

It has been a year since the mysterious death of Nobuo Hamaya. It is now the Bon Festival season, when the souls of the deceased return to earth. Hamaya's spirit is among us, crying, "Damnation to Sasakawa!" Hamaya must be thinking that his only way to retaliate for what you did to him is to send you to hell.

It is said that money works even in hell. But you are the
lone exception. Even Satan would be shocked by your evil.
He has eight hells for sinners, but the worst of them, called
the Hell of Abi or Inferno or Jahannam, is too good for you.
Satan will have to make a new hell of yet a lower grade,
called the Hell of Sasakawa. You will be the first and the
last to enter it. Anyone who knows your true character thinks
of murder and deceit at the sight of you, and hears the dying
screams of your victims at the rasp of your voice.

As I stated previously, you must either prostrate yourself
before me to apologize for your slander, or furnish me with
evidence to back up your accusation. Make your choice. There
is no other way.

You say your hobby is to wish people good health and long life.
I tell you: Your hobby is to slander innocent people to death.
Practically everything you say about anybody is a lie. You
are the most wretched liar in history. If the Nobel Prize
commission had a medal for lying or blackmail or murder, you
would win first place. Hell of Sasakawa! How grisly! But
never try to take another person with you when you are plunged
into it.

I hear that at the Komanji-Kai in Ginza you pretend to pray
for the souls of those you have victimized, persons who have
fallen prey to your greed and ambition. But do not pretend;
do it with sincerity! Atone for your sins with all your heart!
Repent! Live in repentance for the rest of your misbegotten
life, no matter how few years may remain!

Friday, August 13, 1982

ISAMU TAMURA

PAUL LEE

1271 AVENUE OF THE AMERICAS
NEW YORK, N. Y. 10020

November 12, 1982

Dr. Henry Kissinger
1800 K Street, N.W.
Suite 400
Washington, D. C. 20006

Dear Dr. Kissinger:

It is my sad duty to relay the following message from
Sir Yue-Kong Pao:

Quote

Dear Henry:

With deep regret, I wish to inform you that
my beloved father, Mr. S. L. Pao, Honorary
Chairman of the World-Wide Shipping Group,
passed away peacefully on November 11 in Hong
Kong at age 91 after a short illness.

Funeral will take place at 3 P.M. on Tuesday,
November 16 at the Hong Kong Funeral Home.

Kindest regards.

Y. K. Pao

Unquote

NOV 16 1982

[L.C.]

PAUL LEE

November 17, 1982

NOV 19 1982

Dear Dr. Kissinger:

It is my pleasure to relay the following message received from Hong Kong this morning:

Quote

Dear Henry:

I want to thank you most sincerely for the
message of condolences on the passing of my
beloved father. The warm sentiments from
you and Nancy have certainly helped ease the
pain on the loss of a man who not only nurtured
the Pao family but was also the guiding force
in my career.

I deeply appreciate the consolation your
words brought at this moment of sorrow.

Y. K. Pao

Unquote

PL:sm

82168110815101

5677

446080

CCY 11896

CJ

Western Union
Electronic Mail, Inc.

1651 Old Meadow Road, McLean, Virginia 22102

CONFIRMATION OF INT LTR

TO:

LT TDLX MCLEAN VA 5677,110815101
INT LT MR. MICHAEL PARKINSON
PAVILION BOOKS
196 SHAFTESBURY
AVENUE
LONDON WC2H 8JL, (ENGLAND)

CSIS/GEORGETOWN UNIVERSITY
PAT DENNY
1800 K ST SUITE 400 NW
WASHINGTON DC 20006

A CABLE WAS SENT TO YOU 17 MAY ADVISING THAT PRIOR TO GIVING
FINAL AUTHORIZATION, DR. KISSINGER WISHED TO REVIEW ANY INTERVIEW
EXCERPTS TO BE INCLUDED IN YOUR ANTHOLOGY. TO DATE, NOTHING HAS
BEEN RECEIVED FROM YOUR OFFICE. PLS ADVISE ON STATUS.
REGARDS, JODY WILLIAMS, STAFF ASSISTANT

5677

FOLLOWING CABLE SENT 5/17/82

MR. MICHAEL PARKINSON
PAVILION BOOKS
196 SHAFTESBURY AVENUE
LONDON WC2H 8JL, ENGLAND

WITH REFERENCE TO YOUR LETTER OF 4 MAY, DR. KISSINGER AGREES IN
PRINCIPLE TO YOUR INCLUDING SEGMENTS OF HIS INTERVIEW IN YOUR
ANTHOLOGY BUT WISHES TO REVIEW THESE EXCERPTS PRIOR TO GIVING
FINAL AUTHORIZATION.

VERIFICATION: REC'D 137 1 10545 101

[Lc]

PAVILION BOOKS

196 Shaftesbury Avenue
London WC2H 8JL

Telephone 01-836 1306/7/8

Dr. Henry Kissinger
Suite 520
1800 K. Street NW
Washington DC 20006
USA

4th May 1982

MAY 11 1982

Dear Henry Kissinger,

Following the conclusion of my BBC series this Spring, I am preparing an edited anthology of a number of the interviews that have been conducted over the past eleven years.

We would very much like to consider the possibility of including excerpts from your appearance on the show, together with relevant photographs, and as the royalties for the book will be going to charity, I very much hope you will agree to this.

We have to make our final selection for the book by the end of May, and so if we do not hear from you by that time, we will have to move ahead on the assumption that you would be happy to be included in the anthology.

Managing Director COLIN WEBB, Directors TIM RICE, MICHAEL PARKINSON

Pavilion Books Ltd, Registered number 1529168 England Registered office Ashley House 18/20 George Street Richmond Surrey TW9 1HD

SEOUL

KTA

DANIEL K.H. LEE ADVISOR
WITH BEST REGARDS

ASSOCIATION, SEOUL. KOREA. CABLE ADDRESS:KOTRATO WORLD TRADE.
YOU'RE REPLY TO DANIEL KIE-HOME LEE, ADVISOR, KOREAN TRADERS
AFTERNOON OF MAY 21 OR ANY TIME SATURDAY MAY 22 APPRECIATE
BE POSITIVE FOR THEM TO VISIT YOU BRIEFLY FRIDAY

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WOULD IT

NEW YORK ON MAY 21 AND SS.

WITH YOU. MR. PARK AND VICE MEMBERS OF DELEGATION WILL BE IN
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FOLLOW UP TO CONVERSATION WITH PRESIDENT. SPITER OF ASPEI INSTITUTE

W2AHIMG. D.C.

1800 K STREET. N.W.
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JERRY M. PATTERSON, CALIF.
CHAIRMAN

JOHN J. LAFALCE, N.Y.
MARY ROSE OAKAR, OHIO
STEPHEN L. NEAL, N.C.
HENRY S. REUSS, WIS.
MIKE LOWRY, WASH.

THOMAS B. EVANS, JR., DEL.
J. WILLIAM STANTON, OHIO
JAMES K. COYNE, PA.
DAVID DREIER, CALIF.

U.S. HOUSE OF REPRESENTATIVES

SUBCOMMITTEE ON
INTERNATIONAL DEVELOPMENT INSTITUTIONS AND FINANCE
OF THE
COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS

NINETY-SEVENTH CONGRESS

WASHINGTON, D.C. 20515

June 10, 1982

Dr. Henry Kissinger
Suite 520
1800 K Street, NW
Washington, D.C. 20006

Dear Dr. Kissinger:

The Subcommittee on International Development Institutions and Finance of the House Banking Committee has been conducting a series of hearings focusing on the multilateral development banks and U.S. foreign policy. The hearings are being conducted in the context of the recently released Treasury Department assessment, U.S. Participation in the Multilateral Development Banks in the 1980s. This study is intended to guide the Reagan Administration in negotiating future MDB replenishments and will have a substantial impact on the extent of U.S. participation levels over the next few years.

These hearings represent the first detailed examination by the Congress of the Treasury assessment. The topics for each session are as follows: The MDBs and U.S. Foreign Policy, The MDBs and Other Financial Institutions, The MDBs and the U.S. Private Sector, and Funding the MDBs. In addition to testimony submitted at the hearings, I anticipate receiving written comments from a number of experts from both the private and public sectors. I would be most appreciative if you would submit your views on the multilateral banks in view of your knowledge of and experience with the subject. Any statement you are able to submit will be published in the hearing record in order to create a permanent source document which will be helpful in future debates and discussions regarding the MDBs. I anticipate sending this document to be printed by July 15.

I am convinced of the importance of these hearings as a foundation for informed Congressional influence on future replenishment negotiations. Your advice and comments will be most welcome.

JUN 21 1982

JOHN'J. LAFALCE, N.Y.
MARY ROSE OAKAR, OHIO
STEPHEN L. NEAL, N.C.
HENRY S. REUSS, WIS.
MIKE LOWRY, WASH.

U.S. HOUSE OF REPRESENTATIVES

For release June 9, 1982

Contact: Richard Feinberg
(202) 225-2495

CONGRESSIONAL HEARINGS ON THE
FUTURE OF THE
MULTILATERAL DEVELOPMENT BANKS

Chairman Jerry M. Patterson (D-CA38) today announced that the Subcommittee on International Development Institutions and Finance of the House Banking Committee will hold a series of hearings this month on the future of the multilateral development banks.

"The ability of the U.S. to continue to provide leadership in encouraging global economic growth and stability has been placed in doubt," Patterson said. "Competing budget demands and changing perceptions of the function of development assistance have put traditional aid programs under fire. This is an important opportunity to talk with leaders of the financial community, the Administration and development professionals about the future of multilateral development assistance."

The schedule of topics and witnesses is attached.

Contact: Richard E. Feinberg
(202) 225-2495

## The MDBs and U.S. Foreign Policy

Tuesday, June 15 at 10:00 a.m. - 2128 Rayburn HOB

- Honorable Beryl W. Sprinkel, Under Secretary for Monetary Affairs, Department of the Treasury

- Honorable Robert D. Hormats, Assistant Secretary of State, Bureau of Economic and Business Affairs

- Honorable Elliot L. Richardson, partner, Milbank, Tweed, Hadley and McCloy; chairman, United Nations Association of the U.S.A.; former U.S. Attorney General; former Secretary of H.E.W. and of the Commerce Department; former Ambassador-at-Large and Special Representative of the President to the Law of the Sea Conference

- Douglas C. Bennet, Jr., president, Roosevelt Center for American Policy Studies; former Administrator, Agency for International Development

- Edward R. Fried, senior fellow, The Brookings Institution; former U.S. Executive Director, World Bank

## The MDBs and Other Financial Institutions

Thursday, June 17 at 10:00 a.m. - 2128 Rayburn HOB

- Catherine Gwin, senior fellow, Carnegie Endowment for International Peace, co-author of *Collective Management: Reform of the Global Economic Organizations*

- John Williamson, senior fellow, Institute for International Economics; former professor at Princeton, MIT and University of Warwick

- Jeffrey Garten, vice president, Lehman Brothers, Kuhn, Loeb, Inc.; former Deputy Director, Policy Planning Staff, State Department

## The MDBs and the U.S. Private Sector

Thursday, June 17 at 2:00 p.m. - 2128 Rayburn HOB

- John R. Petty, president, Marine Midland Bank; co-director of the United Nations Association of the USA panel on international financial institutions; former Assistant Secretary for International Affairs, Treasury Department

- Gary Hufbauer, senior fellow, Institute for International Economics; former Deputy Assistant Secretary, Treasury Department

- Albert Fishlow, professor of economics, Yale University; former Deputy Assistant Secretary for Latin American Affairs, State Department

## Funding the MDBs

Tuesday, June 22 at 10:00 a.m. - 2128 Rayburn HOB

- Nicholas Rey, managing director, Merrill Lynch White Weld Capital Markets Group; accompanied by John M. Niehuss

- Edward J. Waters, vice president, Kidder, Peabody

- Thomas C. Dawson, Deputy Assistant Secretary for Developing Nations, Treasury Department

For release June 9, 1982.

Chairman Jerry M. Patterson (D-CA38) today announced that the Subcommittee on International Development Institutions and Finance of the House Banking Committee will hold a hearing on the role of the multilateral development banks and U.S. foreign policy on Tuesday, June 15 at 10:00 a.m. in room 2128, Rayburn House Office Building. The hearing will be the first in a series devoted to scrutinizing the role of the multilateral banks in the 1980s.

"The Administration has recognized that the multilateral development banks are an important asset for U.S. foreign policy, yet it recommends we reduce our budgetary support," Chairman Patterson said. "I am interested to see how these positions can be reconciled."

The Treasury Department's report, *United States Participation in the Multilateral Development Banks in the 1980s*, calls for a reduction in the growth rate of the multilateral banks. "If the growth rates of the MDBs are reduced, will they be able to maintain their influence in the developing world?" Chairman Patterson asked. "Moreover, if the United States reduces its participation in the multilateral banks, will we have the influence to implement the reforms that the Treasury advocates?"

The hearing will also address the nature of U.S. interests in the Third World. "Are our interests in the poorest countries so marginal that the U.S. can afford to reduce our support for their development efforts?" Patterson asked. "Will our relations suffer with the more advanced industrializing countries, such as Mexico, Brazil and South Korea, if we push them away from the Banks, as the Treasury recommends?"

The witnesses will be asked to address the importance of the multilateral development banks for U.S. foreign policy and to comment on the recommendations in the Treasury report. The witnesses will be:

* Honorable Beryl W. Sprinkel, Under Secretary for Monetary Affairs, Department of the Treasury

* Honorable Robert D. Hormats, Assistant Secretary of State, Bureau of Economic and Business Affairs

* Honorable Elliot L. Richardson, partner, Milbank, Tweed, Hadley and McCloy; chairman, United Nations Association of the U.S.A.; former U.S. Attorney General; former Secretary of H.E.W. and of the Commerce Department; former Ambassador-at-Large and Special Representative of the President to the Law of the Sea Conference

* Douglas C. Bennet, Jr., president, Roosevelt Center for American Policy Studies; former Administrator, Agency for International Development

* Edward R. Fried, senior fellow, The Brookings Institution; former U.S. Executive Director, World Bank

For release June 9, 1982

Chairman Jerry M. Patterson (D-CA38) of the International Development Institutions and Finance Subcommittee and Chairman Stephen L. Neal (D-NC5) of the International Trade, Investment and Monetary Policy Subcommittee of the House Banking Committee today announced that they will hold a joint hearing on Thursday, June 17 at 10:00 a.m. in room 2128, Rayburn House Office Building.

The hearing will be second in a series looking at the role of the multilateral
development banks in the 1980s. It will examine the interactions of the World
Bank, regional development banks and International Monetary Fund.

"The international financial environment has changed in the past few years, especially with the disappearance of the OPEC surplus," Chairman Neal noted. "We now need to examine how well the World Bank, regional development banks and International Monetary Fund have adapted and to look at the evolving role of conditionality."

A recent Treasury report, United States Participation in the Multilateral Development Banks in the 1980s, urges the World Bank to press countries to adopt free market, private sector oriented policies. "The private sector has a crucial role to play in development," Chairman Patterson affirmed, "but we have to avoid overestimating its interest in investing in countries which lack roads, reliable electricity and healthy, literate workers. Also, developing countries are having increasing difficulty repaying their foreign debts. We need to examine the proper role for the World Bank and IMF with regard to Third World debt and debt reschedulings."

The witnesses who will address these and related issues follow:

Catherine Gwin, senior fellow, Carnegie Endowment for International Peace,
co-author of *Collective Management: Reform of the Global Economic*
*Organizations*

For release June 9, 1982

Chairman Jerry M. Patterson (D-CA38) today announced that the International Development Institutions and Finance Subcommittee of the House Banking Committee will hold a hearing on the relationships between the multilateral development banks and the United States' private sector on Thursday, June 17 at 2:00 p.m. in room 2128, Rayburn House Office Building. The hearing will be third in a series devoted to scrutinizing the role of the multilateral development banks in the 1980s.

"In an age of budgetary constraints, we must find ways to increase the participation of the private sector in development," Chairman Patterson said. "The United States needs to examine closely mechanisms through which the MDBs, especially the World Bank, could stimulate more investment and lending in the Third World."

"At the same time," cautioned Mr. Patterson, "we should not overestimate what the private sector can do. Given global financial imbalances and increasingly nervous capital markets, we should have a realistic appraisal of what U.S. banks and firms are willing to do in the Third World."

"Once we have determined what the private sector is likely to accomplish, we will have a better understanding of the role that the official lending agencies must play," Patterson added.

The witnesses will be asked to discuss the proper mix between official and private finance and the rate of official capital flows that is consistent with financial stability and economic growth in the Third World. The witnesses will be:

For release June 9, 1982

Funding the MDBs

Chairman Jerry M. Patterson (D-CA38) today announced that the International Development Institutions and Finance Subcommittee of the House Banking Committee will hold a hearing on the future funding of the multilateral development banks. This will be the fourth and last in a series of hearings on the role of the multilateral development banks in the 1980s.

"In this era of budgetary stringency, the multilateral development banks must maintain their capability to borrow from the private capital markets," Chairman Patterson said. "The United States must take care that the MDBs' lending activities and internal financial structures are consistent with maintenance of their prime credit ratings.

The recent Treasury report, United States Participation in the Multilateral Development Banks in the 1980s, made several recommendations that might affect the multilateral banks' access to private capital markets. "The elimination of paid-in capital, the increased risks involved in co-financing, and the graduating out of the more attractive, wealthier developing country borrowers could affect market perceptions," Mr. Patterson warned.

The Treasury report did not a firm stand on whether the World Bank should alter its gearing ratio (the ratio of capital to commitments). "We want to explore whether the World Bank might expand its resources without additional U.S. contributions by altering its very conservative gearing ratio," Chairman Patterson stated.

The witnesses who will be asked to address these and related issues follow:

[c]

NOV 15 1982

November 8, 1982

Dr. Henry Kissinger
435 E. 52 Street
New York, N. Y. 10022

Dear Dr. Kissinger:

It is my pleasure to relay the following telex which
was received from Hong Kong early today:

Quote

Dear Henry:

I am extremely sorry that a bad turn in my
father's condition necessitated cancellation of
my trip to New York at the last minute and
denied me the opportunity of seeing you at the
IAC meeting and at breakfast on November 9. His
health remains very unstable and needless to say,
causes much concern.

Kindest regards.

Y. K. Pao.

Unquote

With best regards.

PL:sm
c.c. Mrs. Suzanne McFarlane

HAND DELIVERED