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ACTION NEA-09
INFO OCT-01 ISO-00 AID-05 CIAE-00 COME-00 EB-07 FRB-03
INR-07 NSAE-00 TRSE-00 XMB-02 OPIC-03 SP-02 CIEP-01
LAB-04 SIL-01 OMB-01 NSC-05 SS-15 STR-01 CEA-01
DODE-00 PM-03 H-01 L-02 PA-01 PRS-01 USIA-06 INT-05
FEA-01 /088 W
--------------------- 110792
R 200940Z FEB 75
FM AMEMBASSY DACCA
TO SECSTATE WASHDC 5858
C O N F I D E N T I A L DACCA 0929
E.O. 11652: GDS
TAGS: PFOR, EINVQJ EAID, EAGR, EFIN, BG
SUBJECT: CALL ON FINANCE MINISTER
1. AMBASSADOR CALLED FEBRUARY 19 ON NEW FINANCE
MINISTER AZIZUR RAHMAN MALLICK. MINISTER, WHO HAD
DEVOTED ALL
OF FIRST THREE WEEKS IN OFFICE TO CLOSING
OUT HIS FORMER ASSIGNMENT AS HIGH COMMISSIONER IN
DELHI, NOTED TQT HE HAD JUST BEGUN TO MASTER HIS
NEW RESPONSIBILITIES. INDEED, AMBASSADOR WAS FIRST
DIPLOMATIC CALLER HE HAD RECEIVED. AGAINST THIS
BACKGROUND, AMBASSADOR SIGNALED FOLLOWING ISSUES
AS OF PARTICULAR INTEREST TO US, AND LOOKED FORWARD
TO FURTHER MEETINGS AFTER HIS RETURN FROM CONSULTA-
TIONS.
2. INVESTMENT CLIMATE. (DACCA 0512) AMBASSADOR
NOTED THAT EMBASSY HAD PERCEIVED BEGINNINGS OF
GREATER INTEREST BY US FIRMS IN POSSIBLE INVESTMENT
OPPORTUNITIES IN BANGLADESH. MINISTER REAFFIRMED HIS GOV-
ERNMENT'S INTEREST IN ATTRACTING SUCH INVESTMENTS
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AND SOUGHT DETAILS OF OPIC AGREEMENT.
3. NATIONALIZATION COMPENSATION. (DACCA 0043, DACCA 0842) IN
RESPONSE AMBASSADOR'S EXPRESSION OF INTEREST IN PROGRESS
ON THIS MATTER, MINISTER STATED HE NOT YET IN POSITION
DISCUSS THE ISSUE, BUT LOOKED FORWARD TO DOING SO
FOLLOWING AMBASSADOR'S RETURN.
4. AGREEMENT WITH IMF. (DACCA 0885; STATE 35511)
AMBASSADOR EMPHASIZED OUR WISH TO ENCOURAGE BDG REACH
COMPREHENSIVE AGREEMENT WITH IMF. MINISTER NOTED
GUARDEDLY THAT SUBJECT DISCUSSED AT BANGLADESH AID
GROUP LAST OCTOBER AND THAT NEXT MEETING SCHEDULED
FOR JUNE.
5. JUTE POLICY. (DACCA 0588) MINISTER EMPHASIZED
VITAL IMPORTANCE TO BDG OF STIMULATING RAW JUTE PRODUC-
TION TO ENSURE CONTINUED JUTE EXPORTS UNTIL SUCH FUTURE
TI K WHEN BANGLADESH COULD DIVERSIFY EXPORTS. HE NOTED
THAT WHILE MANUFACTURING AND EXPORTS CONTROLLED BY
BDG, THOUSANDS OF PRIVATE FARMERS PRODUCED RAW JUTE AND
AT CURRENT RICE/JUTE PRICES WOULD SENSIBLY ENOUGH GROW
RICE IN PREFERENCE TO JUTE. IN RESPONSE AMBASSADOR'S
INQUIRY CONCERNING REPORTED BDG CONSIDERATION OF RAISING
RAW JUTE PRICE TO FARMER, MINISTER NOTED QUOTE WE SEEM
TO BE HEADED IN THAT DIRECTION UNQUOTE. MINISTER ALSO
EXPRESSED GREAT CONCERN OVFD CURRENT ABSENCE OF DEMAND
IN US FOR CARPET BACKING. FINANCE MINISTRY FACED
DIFFICULT DECISION OF EITHER CLOSING THIRTY-ONE JUTE
MILLS, WITH 65,000 WORKERS, OR CONTINUING TO FINANCE
OPERATING LOSSES.
6. COAL. MINISTER ALSO REGRETTED RISING COST OF COAL
(ALL IMPORTED) AND EMPHASIZED BDG EFFORT TO SUBSTITUTE
USE OF GAS FOR COAL WHENEVER POSSIBLE.
BOSTER
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