Foreign Relations of the United States, 1961–1963, Volume XVII, Near East, 1961–1962

200. Policy Directive Prepared by the Bureau of Near Eastern and South Asian Affairs⁰

Washington, February 27, 1962.

SUBJECT

• Efforts to Help Stabilize the New Syrian Government
• United States officials will be guided by the following:

REFERENCES

• Memorandum to Mr. McGeorge Bundy entitled “U.S. Policy toward the UAR and Syrian Arab Republic”, November 16, 1961¹

Objectives:

1) To encourage the stability and Western orientation of new regime in Syria.

2) To aid the Syrian Arab Republic to establish free trade and a convertible currency which have great psychological as well as economic importance to the Syrian people.

3) To prevent excessive Syrian dependence on the Soviet Bloc for military supplies.

Plan of Action:

The above objections will be met by:

1) Extending P.L. 480 Assistance to redress urgent food shortages caused by several years drought.

2) Joining other Western countries and the IMF in providing credits needed by Syria to undertake a currency stabilization program.

3) Considering negotiation of an Economic Cooperation Agreement.

4) Considering ways we can assist in meeting Syrian arms requests made to Western countries.

5) Welcoming visits of important Syrian delegations to the United States.

Action by:

1) P.L. 480 Program: NEA

Title I and II P.L. 480 agreements for the supply of 150,000 tons of wheat and flour and 12,000 tons of rice valued in excess of $15 million were signed in November 1961. Shipments are presently underway.

Support Action by: AID, E, Agriculture, American Embassy Damascus.

2) Syrian Stabilization Program: NEA, AID

The Syrian Government was informed by our Embassy February 14, 1962 (Deptel 334)² of U.S. willingness to support Syria’s stabilization program to the extent of $14 million in Supporting Assistance and Export-Import Bank loans. This is contingent on contributions from other sources, including the IMF, West Germany and Italy, to bring the total participation to $40 million. A gap of only $5 million remains which Syria is attempting to obtain from the Italians with our support.

Support Action by: E, Export-Import Bank, American Embassy Damascus.

3) Economic Assistance Agreement: NEA, AID

We have authorized our Embassy in Damascus to negotiate an agreement relating to economic, technical, and related assistance at such time as it proves feasible to do so. (AID Airgram sent December 16, 1961).³ Action responsibility now lies with our Embassy in Damascus. In dealing with this issue we have to keep in mind extreme Syrian sensitivity with regard to agreements with foreign governments.

Support Action by: E, L, American Embassy Damascus.

4) Possible Syrian Military Assistance Requests: NEA

A position paper outlining U.S. policy regarding possible Syrian military assistance requests was forwarded by M for approval on February 13, 1962⁴ as part of a paper on Arms Policy for the Near East. Meanwhile, we have sent a Memorandum for the President requesting that Syria be made eligible for military sales assistance under the introductory clause of Section 503 of the Act for International Development of 1961.⁵

Support Action by: M, U, AID/PRCS, G/PM, L, S/P, White House, Department of Defense.

5) Visits of Important Syrian Delegations: NEA, CU

Our Embassy in Damascus has been in touch with Syrian officials regarding the possible visit of a Syrian economic delegation (which is intended as a parallel to the military and economic delegation currently visiting Moscow). We have welcomed the delegation’s coming. (Deptel 348)⁶

We have invited under the Leader Grant Program a five man Syrian Parliamentary Delegation headed by the Speaker, Dr. Mamoun al Kuzbari, to visit this country this spring. The delegation is to study U.S. constitutional concepts prior to the preparation of a permanent constitution for the Syrian Republic. (Deptels 309 and 352)⁷

Support Action by: H, E, AID, American Embassy Damascus.

0. Source: Department of State, S/S-NSC Files: Lot 70 D 265, NSC Standing Group 3/3/62. Secret. Drafted by Barrow and Dickman on February 26 and cleared by Anderson (AID/NESA), Robinson (G/PM), and Lewis (CU/PDS). Issued under the authority of Grant and Gaud. The paper was discussed at a meeting of the NSC Standing Group on March 2; see Document 204. The paper was reproduced on Department of State Policy Directive stationery as PD/NEA-8.1, dated March 15. (Washington National Records Center,RG 330, OSD/ISA Files: FRC 69 A 7275, Middle East Policy, 1957–1964)
1. Document 141.
2. Telegram 334 to Damascus, February 14. (Department of State, Central Files, 883.10/2–1462)
3. Not found.
4. Reference is presumably to a position paper, “United States Policy Regarding Possible Syrian Military Assistance Requests,” drafted by Barrow on February 10. (Department of State, NEA/NE Files: Lot 66 D 218, Syria Def 12–5) See Supplement, the compilation on Syria.
5. Section 503 of the International Development Act of 1961 authorized the President “to furnish military assistance on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance.” (P.L. 87–194; 75 Stat. 435)
6. Telegram 348 to Damascus, February 20. (Department of State, Central Files, 033.8311/2–1662)
7. Telegram 309 to Damascus, January 25. (Ibid., 511/833/1–2562) Telegram 352 to Damascus has not been found.