170. Editorial Note

Pursuant to NSDM 136 ( Document 169), Peter Peterson on October 14, 1971, sent a letter to Secretary of State Rogers indicating that the expropriation policy statement would be announced shortly and requesting his recommendations for a draft statement by October 21. (National Archives, RG 59, S/S Files: Lot 83 D 305, NSDM 136) On November 9 Nathaniel Samuels sent a memorandum to Peterson forwarding a draft statement that the Department of State recommended be issued by the Secretary. Samuels noted that the draft statement had been written “in a form and manner intended to be generally acceptable to developing countries” and expressed the concern that if it were issued by the President it might polarize the issue with those few governments that had expropriated without compensation and might result in confrontation, not only with the expropriators but with more responsible governments as well. (Ibid., Central Files 1970-73, FN 9) On November 15 Peterson sent Samuels a note thanking him for the draft [Page 442]expropriation statement and providing a copy of a Treasury Department draft from Charls Walker. (Ibid., S/S Files: Lot 83 D 305, NSDM 136)

Anticipating Secretary of the Treasury Connally’s return from Asia, Walker sent him a memorandum on November 12 informing him of the receipt of the State Department’s proposed draft statement, which was substantially different from a draft prepared in the Treasury Department. Walker called Connally’s attention to the Treasury Department’s strong view that to be credible the statement must be released by either the President or Connally, rather than Rogers, and that the policy on multilateral institutions still awaited resolution. Walker informed Connally that Kissinger wanted to discuss the issue with him. (Washington National Records Center, Department of the Treasury, Secretary’s Memos: FRC 56 74 A 17, Memo to Secretary 11-12/71)

On January 14, 1972, Robert Hormats sent Henry Kissinger a memorandum summarizing the issues surrounding the issuance of the expropriation statement and noting that the section in the statement dealing with multilateral institutions was still unresolved pending Kissinger’s discussion with Connally. Hormats disagreed with Connally and Peterson that the President should issue the statement. Hormats recommended that Kissinger support Option 3 in Peterson’s memorandum ( Document 172). At the top of the memorandum is the handwritten note: “Peterson’s office says HAK advice received orally by Peterson 15 Jan 72.” (National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 219, CIEP) The President chose Option 1; see footnote 4, Document 172.