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NEED FOR COFFEE STABILIZATION FUND EXPERT ON AID LOAN PROJECT IN HAITI

March 7, 1974, 10:15 p.m.

1. AID IS DESIGNING A LOAN FOR SMALL FARMER DEVELOPMENT CONCENTRATING ON COFFEE PRODUCTION IN HAITI. THE PUR- POSE OF THE PROJECT IS TO INCREASE THE CASH INCOME OF SMALL COFFEE GROWERS BY PROVIDING AN INTERGRATED PROGRAM OF ASSIS- TANCE. AID DESCRIBES PROGRAM AS: (A) THE STRENGTHENING OF THE INSTITUTION RESPONSIBLE FOR THE COFFEE SUB-SECTOR WITH TECHNICAL ASSISTANCE AND ESTABLISHMENT OF FIVE REGIONAL CEN- TERS; (B) THE DEVELOPMENT AND DELIVERY OF THE NECESSARY TECHNOLOGICAL, FINANCIAL AND AGRICULTURAL INPUT PACKAGE, INCLUDING RESEARCH, INTRODUCTION OF IMPROVED RUST-RESISTANT COFFEE VARIETIES, AND AGRICULTURAL CREDIT; AND (C) PROVISION OF A STABILIZATION FUND TO ASSURE THE FARMER OF A FAIR PRICE FOR HIS PRODUCT RELATIVE TO THE EXPORT PRICE. UNCLASSIFIED UNCLASSIFIED PAGE 02 STATE 046263 2. AID IS SEEKING A HIGH CALIBER SPECIALIST, PREFERABLY FRENCH SPEAKING, FOR THE STABILIZATION PORTION OF THE PRO- JECT. ESSENTIALLY, THE INDIVIDUAL SHOULD BE KNOWLEDGEABLE IN THE ORGANIZATION AND IMPLEMENTATION OF ALTERNATE STABI- LIZATION FUND SYSTEMS. HE WILL BE REQUIRED TO DETERMINE THE FEASIBILITY OF A STABILIZATION FUND AND TO DEVELOP REGULA- TIONS AND GUIDELINES FOR SUCH A FUND. EMPLOYMENT WOULD BE FOR THE PERIOD BETWEEN APRIL 15, 1974 AND MAY 3, 1974. 3. THE POSSIBILITY OF OBTAINING AN EXPERT EITHER FROM OR THROUGH THE INTERNATIONAL COFFEE ORGANIZATION WAS DISCUS- SED ON MARCH 1 WITH ALEXANDRE BELTRAO DURING HIS VISIT WITH DEPARTMENT OFFICIALS. BELTRAO MENTIONED THE POSSIBI- LITY THAT MARK VANDERSTEEN OF THE COFFEE ORGANIZATION COULD POSSIBLY BE GIVEN A LEAVE OF ABSENCE FOR THE TIME REQUIRED FOR THE STUDY IN HAITI. VANDERSTEEN MAY BE AN EXCELLENT CANDIDATE, AS COULD SOMEONE WITH EXPERIENCE IN THE CAISSE DE STABILISATION SYSTEM AS PRACTICED IN WEST AFRICA. 4. IT IS REQUESTED THAT THE U.S. DELEGATE (YORK) APPROACH BELTRAO TO DEVELOP THE NAME OF AN INDIVIDUAL WHO MAY TAKE ON THIS ASSIGNMENT. BECAUSE OF THE SHORT DEADLINE IN- VOLVED, A REPLY WOULD BE APPRECIATED ASAP. WHILE AID HAD EXPRESSED A PREFERENCE FOR AN LDC EXPERT, THE REACTION TO VANDERSTEEN IS FAVORABLE. 5. FURTHER DETAILS CONCERNING DATES, SALARY AND ARRANGE- MENTS WILL FOLLOW BY SEPERATE COMMUNICATION. KISSINGER UNCLASSIFIED NNN