TALKING POINTS: ZAIRE'S IMF PROBLEM

Created: 9/15/1986

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TALUK POINTS: ZAIRE'S IMF PROBLEM

tsckqround: President Mobutu, with periodic encouragement personally from the President and other senior US officials, has kept Zaire In compliance with IMF-mandated reforms anderies of IMF programs for almost fourrecord in Africa. Earlier this year, Mooutu reisee Civil servant wagesercent In response to increased grumbling caused by refor*-fnduced austerity. This exceeded the IMF recommend ationS percent raise. esult, the IMF suspended payment of the April and June trancnes of0 million

should the IMF not grant this

-- President Mobutuecord in terms of reform and compliance with IMF teams unmatched in Africa. Ke continues to try, despite Increasing pressure! arising from the continuing short-term

-elver, Mobutu Is likely to abandon compliance and dismiss the most reform-minded members of his government.

The Belgians have promised Mobutu their support in tbe IMF and have suggested he focus on the US vote as the key. The French are likely to do the seme. Mobutu would Interpret anything otheravorable US position eery negatively, reinforcing Ms suspicions about alleme* us plans to ease hiaa Marcos.

A negative imf voteegative US position would likely impel Mobutu to reassess our extremely close ties. This could jeopardise rogram wnlch the President has deemed of major Importance to U< security. It would altoyter period of mutual support and cooperation unmatched in Africa.

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A negative US position would tt bestall over Secretary Shulti's forthcoming Africa trip and hisctober meettno with Mobutuffect on the Washington visit and Presidential ateeting planned for Mobutu in November/December.

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