26. Telegram From the Department of State to the Legation in Romania 0

288. Legtel 411.1 Gaston-Marin paid fifty-minute call on Governor Harriman November 26 and discussed three specific problems RPR economic relations with US:

1.
Rumanians desired import industrial installations from US in such fields as chemicals, rubber, power, metallurgy, electro-technology, cellulose, food products. Although now buying some of these products elsewhere in West, RPR wanted to achieve balanced commercial relations with other nations. Hoped obtain equally good or better equipment than that now being purchased in Western Europe.
2.
In order pay for such imports directly or indirectly, RPR needed to export to US and hoped determine goods which would be of interest to US. RPR realizes this is difficult since US could not absorb all potential categories Rumanian exports and high US tariffs created problem.
3.
Referred obliquely to problem of credit terms by remarking RPR presently obtaining good terms in WE and noted tendency toward further easing of terms.

Gaston-Marin said RPR hopes in further talks to establish a framework of understanding on these points.

Harriman replied in substance that we were planning invite Gaston-Marin for discussion these topics but that we not yet ready make definite policy commitments. US has recently issued certain export licenses as indication of a degree of liberalization of export control policy in response to RPR assertions self-interest. Referred specifically to Galati decision. Could not comment at this time on large number of US industrial installations RPR desires purchase from US. Since US does not engage in state trading, RPR would have to explore its export possibilities through private firms. Re credit terms, referred to pending Mundt bill which would pose difficulties if passed but which Administration hoped would be defeated as it since then has been.

Harriman emphasized in general discussion that US objective was to encourage Rumanian development for benefit of Rumanian people. Although US did not desire RPR to have other than friendly relations with its neighbor USSR, past US-Rumanian difficulties in large measure [Page 56] attributable to feeling in US that Rumania subject to Moscow dictates. US also desired insure that equipment and technology exported to Rumania would not be made available to USSR. Gaston-Marin replied that Governor had not seen Rumania since 1946 and much had since been accomplished to the benefit of Rumanian people. In addition, state policy of Rumania is to honor strictly all commitments made re protection of patents and industrial information.

At Harriman’s suggestion, arrangements now being made for further talks today without commitments with officials State and Commerce Departments concerned with economic and export control matters. Gaston-Marin scheduled depart morning November 28. Memcon follows.2

Rusk
  1. Source: Department of State, Central Files, POL 7 Rum. Confidential. Drafted by Carle, cleared in S/S, and approved by Harriman.
  2. Telegram 411, November 26, suggested high-level treatment for Gaston-Marin. (Ibid.)
  3. Not found.