PSB files, lot 62 D 333, Luncheon Meetings

No. 40
Memorandum by the Assistant Secretary of State for European Affairs (Merchant) to the Under Secretary of State (Smith)1

secret

Subject:

  • Proposal to Extend Offer of Food Supplies to Eastern European Satellites.
[Page 76]

Discussion:

In a memorandum of July 11 to the Members of the Board of the PSB,2 Mr. C. D. Jackson advises that the President would like the PSB to work out a plan to institute a food program for the satellites similar to the current program for East Germany. This matter will be considered at Wednesday’s PSB meeting.

You will recall that this question was considered by the PSB last May and was dealt with in a memorandum to you of May 12 from Mr. Linder and me (Tab A3). It was then considered that while there were serious shortages of certain foodstuffs in each of the Soviet orbit countries there was no indication that the situation was critical or threatened to be in the near future. It was concluded that in the absence of conditions of critical need offers of foodstuffs to satellite countries would be inadvisable.

It is believed that reasons outlined in the memorandum of May 12 are still valid and that the present situation in the satellites is even less favorable for offers of foodstuffs.

Recommendation:

It is recommended that:

1.
You take the position that while offers of foodstuffs to the satellites may be an effective move at the proper time it would be advisable to defer any such step for the present for the following reasons:
a.
The expectation everywhere that the offer would be refused in view of the Soviet refusal of the offer for East Germany would make it difficult for this offer to appear genuine, since no food could be gotten into the satellites in the event of a refusal.
b.
This would be particularly true since harvests are already in progress in most of the satellites and there should be greater food supplies immediately at hand than at any other time of the year. Some of the satellite regimes have also recently made available in the stores and markets more foodstuffs possibly as a result of good harvest prospects or as a result of the East German experience.
c.
The difficulty of giving plausibility to an offer to the satellites at this time might react adversely on our program for East Germany where there is at least a possibility of getting our food supplies into the area.
2.
Consideration might be given to a Presidential statement at an appropriate time which would summarize our efforts to aid the people of East Germany and declare that in accordance with our traditional policies we would also be willing to aid people in other [Page 77] satellite countries should conditions exist which would make possible the shipment of food to these people.
3.
The possibility of making an offer of food supplies for the satellites should be kept under continuing consideration in relation to a close scrutiny of the developing food situation in the satellites. In this examination the views of the missions in the field should be obtained as to when conditions of critical need might exist to make this program desirable.4

  1. Drafted by Vedeler and Katz and cleared by Barbour, Bonbright, Winthrop M. Southworth, Jr., and an officer in the Bureau of Economic Affairs.
  2. See supra.
  3. No memorandum was found attached to the source text.
  4. According to a memorandum recording the decisions of an informal PSB meeting of July 15, the foregoing recommendations were approved by the Board. It was also decided that the Department of State and CIA should instruct their representatives in the field to watch for favorable opportunities for the extension of the food offers to Eastern Europe. (PSB files, lot 62 D 333, Psychological Strategy Board) An instruction to that effect was transmitted to the U.S. Missions at Warsaw, Praha, Moscow, Budapest, and Bucharest in circular airgram 412, July 30. (860.03/7–3053)