SECRETARY CLINTON'S RESPONSE TO DE GUCHT

UNCLAS STATE 068481 SIPDIS E.O. 12958: N/A TAGS: ECON EFIN OPDC BE CG SUBJECT: SECRETARY CLINTON'S RESPONSE TO DE GUCHT REGARDING DRC AND IMF REF: 22 JUNE 2009 LETTER FROM DEPUTY PRIME MINISTER AND FOREIGN MINISTER KAREL DE GUCHT ¶1. Please deliver the following text from Secretary Clinton to Belgian Deputy Prime Minister and Foreign Minister Karel De Gucht. The Department does not plan to release the text of this message. There will be no signed original. ¶2. Begin Text: Dear Mr. Minister: Thank you for your note of June 22 and your kind wishes for my recovery. I am glad we are in agreement on the issue of an IMF Poverty Reduction and Growth Facility (PRGF) program for the Democratic Republic of Congo (DRC). A PRGF program is inappropriate if the DRC's borrowing practices are not consistent with debt sustainability. The concerns we shared with IMF First Deputy Managing Director John Lipsky and DRC authorities in an August 2008 letter from G-7 Finance Deputies have not yet been fully resolved. We would not support a PRGF program until the terms of the China-DRC infrastructure and lending package have been revised to be compatible with debt sustainability. Unfortunately, I was unable to attend the OSCE summit last week due to my recent injury. However, I agree that this issue is an important one that requires continued vigilance. Sincerely yours, Hillary Rodham Clinton End Text. CLINTON