366. Action Memorandum From the President’s Special Assistant (Rostow) to President Johnson 1

SUBJECT

  • Approval of PL 480 Credit Sale for Israel

Bill Gaud, Orville Freeman and Charlie Zwick recommend you approve a $30.8 million PL 480 credit sale including 300,000 tons of feed grains and 200,000 tons of wheat for Israel.2 The sale would be repayable in dollars.

Israel continues to improve its agricultural performance, but still has to import over half its grain requirements. This credit sale would reemphasize self-help measures, and is a continuation of previous programs. The terms are identical to last year’s $40 million sale except for an increase to 3 percent in the interest.

[Page 727]

In approving the 1968 PL 480 program, you concurred in a finding that Israeli military expenditures did not materially interfere with development. State/AID confirms that the basis for this finding is still valid.

Walt

Approve3

Disapprove

  1. Source: Johnson Library, National Security File, Country File, Israel, Vol. XI, Cables and Memos, 12/68-1/69. Secret. A handwritten notation indicates that the memorandum was received at 6:45 p.m.
  2. The recommendations came in a December 12 memorandum to the President signed by Gaud and John Schnittker, Freeman’s Under Secretary, and a December 18 memorandum to the President from Zwick. (Both ibid.)
  3. President Johnson checked this option.