Foreign Relations of the United States, 1964–1968, Volume XXVII, Mainland Southeast Asia; Regional Affairs

79. Memorandum From the Presidentʼs Special Assistant (Rostow) to President Johnson¹

Washington, November 11, 1966.

Eugene Black is in a bind on the Prek Thnot Mekong Project in Cambodia. The Mekong Committee, the Japanese and others had counted on a U.S. contribution to this the next natural Mekong Project after Nam Ngum in Laos.

Section 107–B of the Foreign Assistance Appropriations Act² requires that you determine that it is in the security interest of the U.S. to make a loan to a country which is trading with North Viet Nam. The well publicized movement of goods across the Cambodian-Vietnamese border makes it hard for us to recommend that you make a “national security” determination as now required as opposed to a “national interest” determination which would earlier have been required. State and AID propose to go back to Black, who raised this matter, and have him tell the Japanese and others that “while we are unable to participate in the first phase of this project, we would hope the restoration of peace in Viet Nam or other changes in the situation would permit substantial U.S. participation in financing the projectʼs second phase.” The first phase is likely to take a little over a year.

This is going to create difficulties for Japan and will be regarded as a blow to the Mekong Committee. Blackʼs job will be to persuade the Japanese and other interested countries to finance the relatively small start on the projects ($11 million) and to preserve Cambodian participation until we are through these rough waters.

Unless you perceive some other way around this, we shall proceed along these lines. But I did not want a matter this closely related to your whole Asian program to be dealt with without your knowledge and personal guidance.

We ought to get a telegram out to Black within the next day or so.

Cannot sign national security waiver³

Prepare national security waiver

1. Source: Johnson Library, National Security File, Country File, Vietnam, SEA Development Program, Vol. II, 1966. Confidential.
2. The Foreign Assistance Appropriation Act for Fiscal Year 1967, P.L. 89–691, October 15, 1966, 80 Stat 1018. Text also printed in American Foreign Policy: Current Documents, 1966, pp. 1058–1063.
3. A note on the source text reads: “11/11/66, 5:40 p.m.—Jake Jacobson telephoned Mr. Rostow that the President first checked ʼcannot sign waiverʼ then crossed it out & said ʼsend back to Walt Rostow to talk with me.ʼ”