Foreign Relations of the United States, 1969–1976, Volume E–10, Documents on American Republics, 1969–1972

291. Memorandum From the Executive Secretary of the Department of State (Eliot) to the President’s Assistant for National Security Affairs (Kissinger)¹ ²

Washington, July 20, 1971

Subject:

• Special Sugar Allocation for Dominican Republic

President Nixon’s letter of July 10 to President Balaguer (not yet delivered), includes the following statement:

“While it is impossible to forecast what action Congress will take on pending legislation to extend the Sugar Act beyond 1971, my Administration continues to support equitable treatment for the Dominican Republic with respect to its access to the United States market, and we will continue to make the position known to the Congress. I also wish to assure you that, should circumstances warrant, I am prepared to give further special consideration to the Dominican Republic in allocating possible deficits which may occur next year.”

Since the signing of the letter, the Senate Finance Committee has proposed to eliminate the President’s discretionary authority for special allocations in the pending Sugar Act. Should the finally approved Act eliminate this authority, the present wording of President Nixon’s letter, specifically the second sentence quoted above, could prove embarrassing. We therefore propose that it be reworded by replacing that sentence with the following:

“Subject to the terms of the Sugar Act as finally approved by the Congress, I also wish to assure you that, should circumstances warrant, I am prepared to give further special consideration to the Dominican Republic in allocating possible deficits which may occur next year.”

We wish to be able to deliver the re-worded letter to President Balaguer as quickly as possible. We have considered the alternatives of (a) delaying delivery of the letter until final action is taken on the Sugar Act, and (b) eliminating the sentence in question entirely from the letter. Neither alternative is desirable. Our Embassy believes maximum favorable impact will be achieved by having the United States 1971 special allocation known to President Balaguer as far in advance as possible of the new legislation, to help offset any unfavorable impact the latter may produce. Also, should the final bill retain the discretionary authority, we think it will be most helpful to our overall foreign policy interests in the Dominican Republic for President Balaguer to have this kind of assurance from President Nixon.

The Embassy is holding the present letter pending the arrival of a revised version. Attached is a draft of the complete text of the suggested revised letter.

Theodore L. Eliot, Jr.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 783, Country Files, Latin America, Dominican Republic, Vol. I. Confidential. Ted C. signed for Eliot above Eliot’s typed signature. Attached is a draft of a suggested revised letter. On July 22, President Nixon signed the revised letter. (Ibid.)
2. The Department of State called Kissinger’s attention to the fact that the Senate Finance Committee proposed to eliminate the President’s discretionary authority for special allocations under the pending Sugar Act. The Senate’s decision came after President Nixon had already signed an undelivered letter indicating approval of a special sugar allocation for the Dominican Republic. The Department of State recommended that a new letter be drafted to include the caveat that any special sugar allocation would be contingent on Congress.