247. Memorandum by Secretary of State Rusk1
The President agreed2 that we should try to put together a food arrangement with Egypt combining four elements (1) the procurement of rice from Egypt which we ourselves need in Viet Nam (2) Egyptian purchases of agricultural products in the American market on the usual commercial basis (3) dollar repayable food shipments under Title IV of P.L. 480 and (4) food shipments under Title I repayable in local currency.
The President was not asked to approve any particular mix of these four elements. Nevertheless, it should be emphasized that the total package should be one which is in our interest as well as in Egypt’s interest—beyond the mere proposition that what is good for Egypt is good for the United States. We should not approach this particular combination in terms of how best to put together a large subsidy to economic development in Egypt but rather a reasonable, mutually beneficial combined transaction which will be realistic in terms of our own abilities, Egyptian market operations in foodstuffs (both export and import) and other elements affecting trade and assistance in food itself.
- Source: National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) 15 UAR. Confidential; Nodis. Drafted by Rusk.↩
- Rusk met with the President at the LBJ Ranch on October 27. (Johnson Library, President’s Daily Diary) A memorandum of that date from Komer to Bundy describes the proposal Rusk took to the Ranch, apparently his October 11 memorandum. (Johnson Library, National Security File, Country File, United Arab Republic, Vol. IV)↩