134. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1
SUBJECT
- Findley Waiver for Morocco
When King Hassan was here, you agreed to a PL 480 credit sale of 167,000 tons of wheat worth $11.3 million, repayment to be half in dollars and half in local currency. Before negotiation can start, we need your signature on the attached waiver to the Findley Amendment.
The main reason for a waiver in Morocco’s case is its barter of phosphates for Cuban sugar. The King has agreed to end trade in all items that PL 480 prohibits waiving. When he was here, he also assured Secretary Rusk that he would phase down his phosphate exports but he asked help in finding new markets. We believe his assurance is a fair basis for your waiver.
Morocco’s barter with Cuba has been a persistent problem—largely because it’s clearly the best deal Morocco can make to buy badly needed [Page 201] sugar. We’ve tried for a couple of years to help them work out a good arrangement elsewhere. We’ve even tried three-way barters involving our own commodities. But so far we haven’t hit on a good solution. Hassan understands the politics of our problem and obviously has no heart in helping Cuba. It’s been pure economics, but even at that he’s trying to work with us.
Attached is a report from State indicating they have consulted with the Leadership of both Houses and of the appropriate committees on the above deal, and there are no objections.2
If you want to go ahead on this for Morocco as agreed with Hassan, the next step is to sign the attached so negotiations can legally begin.3