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


  • PL 480 Program for Chile

The attached memorandum (Tab B)2 from Orville Freeman/Bill Gaud recommends your approval of a $3 million PL 480 sales agreement with Chile for corn/grain sorghum and rice. Chile would repay this amount in dollars over a 20-year period, with a 10 percent down payment.

This PL 480 assistance for Chile is urgently needed because of a severe drought which has caused an emergency shortage of livestock feed. Chile has done quite well in meeting the self-help conditions we set in an earlier agricultural sector loan and PL 480 agreement.

The Chilean Governent is feeling particularly isolated after the recent military coup in Peru, as Chilean leaders see themselves completely surrounded by military regimes. President Frei would undoubtedly welcome a sign of US support for his democratic government at this moment.

Charlie Zwick supports the Freeman/Gaud recommendation (Tab A)3. I also recommend that you approve the negotiation of this sales agreement with Chile.




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  1. Source: Johnson Library, National Security File, Country File, Chile, Vol. V, 8/67–11/68. Confidential.
  2. Tab B was a memorandum from Gaud and Freeman to the President, October 10; attached but not printed.
  3. Tab A was a memorandum from Zwick to the President, October 15; attached but not printed.
  4. This option is checked. Handwritten notations by Bowdler indicate that Dottie Fredley and Sam Lewis were informed on October 17 at 4:50 p.m. and 4:55 p.m., respectively, and a copy was sent to Fredley on October 18.