Foreign Relations of the United States, 1969–1976, Volume IV, Foreign Assistance, International Development, Trade Policies, 1969–1972

9. Memorandum From the President’s Counselor (Burns) to President Nixon¹

Washington, May 22, 1969.

SUBJECT

• Foreign Aid Bill

I interested myself in the Foreign Aid Bill originally because of certain questionable features in the proposed Overseas Private Investment Corporation. These matters have now been straightened out.

In the course of my study I became concerned, also, about certain non-financial proposals. I have discussed these with Henry Kissinger, and I feel he has put the issues fairly and objectively before you.

I think, nevertheless, that the political dimension merits emphasis, and that you will want to ponder carefully the following facts.

The prohibition section of the Foreign Assistance Act (Section 620) has been drastically changed in the proposed bill. Specifically, this bill repeals a number of present restrictions on distribution of foreign aid. Some of the changes include:

(1) Repeal of the prohibition of assistance to countries which permit shipping to or from Cuba, or of assistance to countries which trade with or permit shipping to or from North Vietnam.²

(2) Repeal of the prohibition against assistance to countries engaging in or preparing for military aggression against the U.S. or any aid recipient.

(3) Repeal of the prohibition against assistance to a country in default on debt owed to U.S. citizens.

(4) Repeal of prohibition against aid to be used to compensate owners of expropriated or nationalized property.³

(5) Repeal of discouragement of assistance to countries failing to prevent mob action against U.S. property.

Such changes appear to go directly contrary to your campaign policy statements and to the general foreign policy enunciated by the Republican Party.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 194, AID Volume III 8/11/70-9/10/70. No classification marking. This memorandum is Tab E to Document 31. Another copy of the memorandum, without the President’s written decisions, is attached to an undated handwritten note from Haig to Kissinger informing Kissinger that “all has been taken care of.” (National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 194, AID Volume I 1969)
2. Next to this paragraph in the left margin the President wrote, “No.” Haig made a checkmark over the President’s note.
3. Next to both paragraphs 3 and 4 in the left margin the President wrote, “No.” Haig made a single checkmark over both notes.