Office of the Historian

214. Action Memorandum From the Presidentʼs Special Assistant (Rostow) to President Johnson1

Washington, May 28, 1968, 7:35 p.m.

SUBJECT

  • Special Sugar Allocation for the Dominican Republic

Secretary Rusk in the memorandum at Tab A2 recommends that you:

1.
make a special allocation to the Dominican Republic of 75,000 short tons of sugar from the Puerto Rico and Virgin Islands deficits, provided Balaguer agrees to set aside at least 1½ cents per pound for mutually agreed programs to improve the efficiency of Dominican agricultural production;
2.
sign the directive to Secretary Freeman at Tab B3 to be implemented when Balaguer accepts the condition.

You authorized special sugar allocations to the DR in 1966 (123,020 tons) and 1967 (105,000 tons). Balaguer still needs additional support and has asked for it again this year. In recommending a special allocation, Secretary Rusk proposes to continue the weaning process by cutting the level back 30,000 tons over last year. But this reduction will not materially affect the DR overall quota as compared with what it received in 1967. Higher US consumption and a larger deficit in the Puerto Rico and the Virgin Islands quotas will bring increases in the amount received by the DR under the regular pro rata system.

Balaguer continues to make good use of the additional help. Other sugar producers have not complained about the special treatment and are not likely to do so since we are progressively decreasing the special allocation. You have authority in the Sugar Act to make special allocations, and the legislative history singles out the DR as needing help.

Secretary Freeman is in full agreement with the special allocation. BOB has no problem with it.

[Page 520]

I recommend you:

1.

Approve Secretary Ruskʼs recommendation.

Approve4

Disapprove

Call me

2.
Sign the directive to Secretary Freeman at Tab B.

Walt
  1. Source: Johnson Library, National Security File, Country File, Dominican Republic, Vol. XVIII. Confidential.↩
  2. In this May 20 memorandum to the President, Rusk wrote that “it would be in the national interest to assign to the Dominican Republic a substantial special allocation again this year as evidence of continued support of the Balaguer Government and its efforts to re-establish its economy,” although “it would not be in the national interest of either the United States or the Dominican Republic to perpetuate dependence on this special treatment. The Dominican Republic must be encouraged to diversify away from exaggerated dependence on sugar exports.” The memorandum was attached but is not printed.↩
  3. Not attached and not found.↩
  4. This option is checked.↩