260. Memorandum From Marshall Wright of the National Security Council Staff to President Johnson 1

SUBJECT

  • Rice for Indonesia

The Indonesian aid package that you approved in June included the possible shipment this fall of 100,000 tons of PL–480 rice as a downpayment on our 1969 aid. This was contingent upon domestic availabilities and Vietnam needs.

We would now like to go ahead with this sale. Our domestic crop is good, and Vietnam’s requirements are no problem. Our domestic rice market is a little weak, and Agriculture wants this sale now in order to firm it up.

The extra rice will be very helpful to Indonesia in assuring an adequate food supply during the critical months of January–March. A firm commitment from us now will enable the Indonesian Government to go ahead with arrangements for the commercial rice imports that will be required in addition to our PL–480 assistance.

Attached are memos to you from Bill Gaud, Orville Freeman and Charles Zwick, all of whom recommend this transaction to you.2 Zwick affirms that the transaction is within the 1969 budget cutbacks.

[Page 562]

I recommend that you approve the sale to Indonesia of 100,000 metric tons of rice ($20 million) to Indonesia under PL–480 Title I.

Marshall


Approve3
Disapprove
Call me

  1. Source: Johnson Library, National Security File, Country File, Indonesia, Vol. VIII, 6/67–6/68, [1 of 2]. Confidential. A note indicates that this memorandum was sent to the Johnson Ranch in Texas on 1:45 p.m., August 9.
  2. Memorandum from Gaud and Freeman to the President, August 2, and memorandum from Zwick to the President, August 6. (Both ibid.)
  3. This option is checked.