Trade and Commerce, 1969-1972


273. Information Memorandum From the President’s Assistant for International Economic Affairs (Flanigan) to President Nixon

Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 402, Trade, Volume V 1/72-4/7/73. Confidential.


274. Memorandum of Conversation

Source: National Archives, RG 364, Office of the Special Representative for Trade Negotiations: Lot 78 B 1, Nonrubber Footwear-Telegrams, Congressional Correspondence. Limited Official Use. Another copy of the memorandum indicates that it was drafted by Theodore R. Gates on May 19. (Ibid.) Copies were sent to J.B. Loken, Stanley Nehmer, B. Ascher, H. Blackman, and J. O’Mahoney.


275. Memorandum of Conversation

Source: Washington National Records Center, Department of Commerce, Office of the Secretary of Commerce: FRC 40 77 A 85, Under Secretary File. No classification marking. Drafted on August 1, but no drafting officer is identified. The meeting was held in the Prime Minister’s office.


277. CIEP Decision Memorandum No. 14

Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 219, CIEP. Confidential. Copies were sent to the Secretaries of State, the Treasury, Defense, Agriculture, and Commerce; the CEA Chairman; and the President’s Assistant for National Security Affairs. This memorandum is Tab D to Document 281. An earlier version of this language comprises a memorandum from Flanigan to Eberle, September 12. (Ibid.)


280. Memorandum From the Assistant General Counsel, Department of the Treasury (Bradfield) and the Deputy Assistant Secretary of the Treasury for Trade and Investment Policy (Worthington) to the Council on International Economic Policy’s Legislative and Negotiating Steering Groups

Source: Washington National Records Center, Department of the Treasury, Files of Under Secretary Volcker: FRC 56 79 A 15, October 13, 1972, Flanigan Working Lunch. No classification marking.


281. Action Memorandum From Robert Hormats, Harold Saunders, and Helmut Sonnenfeldt of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)

Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 219, CIEP. Secret. The signed original of this memorandum is attached to Document 282. On that original Haig wrote: “Flanigan has asked that this be returned for reconsideration.” (National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 402, Trade, Volume V 1/72-4/7/73)


282. Action Memorandum From the President’s Assistant for International Economic Affairs (Flanigan) to President Nixon

Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 322, European Common Market, Volume IV 10/72-7/73. Confidential. This memorandum is a revision of Flanigin’s draft memorandum to President Nixon; see Document 281 and footnote 8 thereto. It is attached to a November 29 memorandum from Flanigan to Kissinger which reads: “The attached has been prepared in cooperation with your staff. It is agreed that you and I should discuss the appropriateness of this course of action at this time. Hormats feels the course of action outlined need not result in confrontation. Sonnenfeldt apparently feels that we should continue endless delay with regard to the EC preferential agreement until after the situation in the Middle East is clarified and the European study is completed. Please call me regarding this matter at your earliest convenience.” In the margin next to the reference to Sonnenfeldt’s view on delay, Haig wrote: “baloney.” A copy of Flanigan’s package is attached to an undated, handwritten note to Haig which reads: “Bob Hormats called to say this latest Flanigan memo is somewhat of a disaster. He is doing memo.” (National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 219, CIEP) See Document 283.


283. Action Memorandum From Robert Hormats, Helmut Sonnenfeldt, and Harold Saunders of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)

Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 322, European Common Market, Volume IV 10/72-7/73. Secret. Attached to an April 30, 1973, memorandum from Scowcroft to Dam. At the top of the page Kissinger wrote: “[illegible] Sonnenfeldt—please explain just what this implies operationally.” Hormats, Sonnenfeldt, and Saunders replied in a January 3, 1973, memorandum. They suggested that Kissinger contact Flanigan to indicate: 1) he agreed the United States must tell the EC, Spain, and Israel it would not accept preferential trade arrangements damaging to its legitimate economic interests, and would demand compensation; 2) the EC, Spain, and Israel might consider the proposed $750 million compensation claim so extreme as to jeopardize the U.S. negotiating position; 3) he agreed that at the onset of Article XXIII consultations Eberle and someone from the State Department should call on the three to explain U.S. objectives; and 4) most importantly, he recommend to Flanigan that the United States not present its views to the EC, Spain, and Israel until the President made his decisions on how he wanted to handle U.S.-European political, economic, and security relationships and relations with Israel. (Ibid.)


285. Action Memorandum From Robert Hormats of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)

Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 402, Trade, Volume V 1/72-4/7/73. Secret. Concurred in by Sonnenfeldt. Attached to a 6 p.m. December 14 note from Hormats to Haig informing him that the subject would likely be discussed the following afternoon and that it was urgent that Haig or Kissinger give Shultz and Flanigan their views within the next 18 hours. Also attached is a December 15 memorandum from Haig to Kissinger informing him that Shultz had stopped by that morning to discuss the broad approach to trade legislation, which would be taken up at a 6 p.m. meeting that day of interested Cabinet officers and Flanigan. Shultz reportedly wanted the most senior member of Kissinger’s staff to participate and since he (Haig) would be leaving shortly, he recommended Sonnenfeldt attend. Shultz would report to Kissinger the next day on the meeting.


286. Memorandum of Conversation

Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 290, Treasury, Volume III. Secret; Nodis. The meeting was held in Shultz’ office. Drafted by Hormats and forwarded to Kissinger under cover of a December 18 memorandum, in which Hormats noted: “The consensus of the meeting was that we should go forward with a comprehensive trade bill giving the President the authority to implement tariff reductions. The dissent from the consensus was Volcker (Treasury) and Shultz tilted towards his position. Timing of submission will depend in large part on the timing of the President’s foreign policy initiatives—specifically the ÔYear of Europe’.” Earlier on December 15 Sonnenfeldt and Hormats sent Kissinger a memorandum marked “urgent action” regarding that evening’s meeting, indicating their understanding that Shultz might be inclined not only to forego enabling legislation, but also to postpone trade negotiations for at least a year. Hormats and Sonnenfeldt thought Kissinger should give Shultz political input on the importance of moving ahead in 1973 with negotiations based on a firm legislative mandate. (Ibid.) Kissinger apparently was unable to attend the meeting and Hormats attended for the National Security Council.


287. Memorandum From Robert Hormats of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)

Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 290, Treasury, Volume III. Secret. Concurred in by Sonnenfeldt.