34. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1
SUBJECT
- Algerian Food Deal
Following our NSC meeting Wednesday, Joe Palmer called in the Algerian Ambassador to discuss future Algerian purchases here. Ambassador Guellal said he is “confident that Algeria would continue to have every reason to look to the American commercial market for its future requirements.” He felt that approval of the PL 480 request would make it easier for Algeria to continue buying here commercially.
It’s difficult to spell out a precise condition for making them continue their purchases here next year. Our 200,000 tons would complete their requirements for this year (500,000 tons or 50% already bought here for about $31 million cash), and next year’s needs aren’t clear yet. We feel sure Algeria will be in the market again, but Algiers may have to put up a more optimistic front. Katzenbach and Palmer believe circumstances will drive the Algerians to buy here again.
Harriman has also talked with Guellal and feels going ahead with this deal is the best basis for keeping the door open for future purchases when they know what they need.
I see the deal shaping up like this: We tell the Algerians we’ll go ahead with this deal. At the same time, we’d explain the importance of their purchases here this year in enabling us to make this decision. If they come back into the market again, they’ll be clear on what we have in mind.
If you agree to go ahead on this basis with the 200,000 ton dollar credit sale Secretary Rusk recommends, we’ll need your signature on the attached Findley amendment waiver.2 Algeria’s trade with Cuba is limited to non-strategic commodities for which you can make an exception. Algeria does not have any current trade with North VietNam. I recommend we go ahead.