Statement by Principal Deputy Press Secretary Speakes on Economic Assistance for Sudan

The President and members of his administration have had an opportunity to review with President Nimeiri recent economic policy actions undertaken by the Government of Sudan as part of a comprehensive economic reform program. The President believes that exchange rate adjustments, elimination of subsidies, and limitation on the budget deficit are highly commendable actions, worthy of international donor support. He recognizes that these are difficult steps to take, requiring sacrifice.

In support of these recent economic reforms, the President has directed that the United States Government proceed with disbursement of the balance of our FY 1984 Economic Support Funds Program in Sudan—$67 million. We are prepared to proceed immediately to work with the Government of Sudan and other donors to build a viable 1985 assistance program.

It is clear that the Government of Sudan is taking the steps that are required to bring its economy under control while it is faced with the added difficulties of drought and refugee emergencies. Prior to President Nimeiri's visit, the United States had already delivered or agreed to provide 750,000 tons of grain this year. We have now agreed to provide an additional 225,000 tons and will continue working with Sudan and other donors on its total needs. This will mean a total of 975,000 tons from the United States for this year.