Speech #960085981

Both publicly and in private bilateral approaches we have urged that the Vietnamese authorities accept their responsibility under the UN Charter and as a member of the international community to provide for the basic human needs of their own people. We have demanded that they treat their own people humanely and not create conditions In their own country. such as the policy of forcing people into primitive "new economic zones." which make their citizens feel compelled to flee. We have also urged the Vietnamese authorities to end their policy of deliberate encouragement of a refugee exodus. a process involving expropriation of property. collection of exit fees. and forcing people out to sea in overcroweded. unseaworthy vessels.... Our policy toward assistance to Vietnam is consistent with these concerns. The U.S. has opposed all multilateral bank loans to Vietnam and will continue to do so. For months we have been pointing out to these institutions. and In bilateral discussions. that Vietnams diversion of its own scarce economic resources to military purposes raises questions about Hanois commitment to economic development. The institutions have responded positively to these approaches. A number of other governments. and the (European Community). have also indicated decisions to reduce or cease aid to Vietnam. some of them opting instead to contribute these funds for refugee support instead. No new lending to Vietnam has taken place since mid1978 nor do we expect any loans to be brought forward for approval this year. It is clear that Vietnams deliberate policy of expelling large numbers of refugees further calls into question the appropriateness of any loans to Vietnam at this time. It is noteworthy that only a small percentage of the commitments of the World Bank and the Asian Development Bank In recent years have been made to Vietnam. Total World Bank/Asian Development Bank commitments to Vietnam since 1975 have amounted to $84.35 million. of which $24.35 million represented reactivations of loans made to the South Vietnamese regime.