226. Memorandum From the Presidentʼs Assistant for National Security Affairs (Kissinger) to President Nixon1

SUBJECT

  • U.S./Yugoslav Economic and Technical Cooperation

The Under Secretaries Committee has forwarded its quarterly report on measures taken by this government to promote U.S./Yugoslav economic and scientific technical cooperation.2 You had requested these reports as a means of galvanizing the agencies into more activity in this field.

The current report contains a number of new steps taken in the past quarter:

  • —As a result of a visit of the Yugoslav Finance Minister to Washington in April, you authorized rescheduling of $61 million in Yugoslav debt.3 We are encouraging other governments to take equivalent steps to meet Yugoslaviaʼs severe payments crisis.
  • —The new aid legislation submitted to Congress includes provisions allowing you to permit the new aid organizations and the Overseas Private Investment Corporation to operate in Yugoslavia. Since the [Page 559] new aid legislation is temporarily stalled in the Congress, State and AID will seek an amendment to existing legislation authorizing OPIC to guarantee U.S. private investments in Yugoslavia.
  • —The Commodity Credit Corporation has relaxed its terms for an annual $30 million in sales and barter transactions.
  • —Defense is increasing its meat purchases, and arranging for tours of service men.
  • —The Export-Import Bank is substantially increasing its export credit activities for Yugoslavia.
  • HEW, the National Science Foundation, and other agencies are planning to expand their research in Yugoslavia.4

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 733, Country Files—Europe, Yugoslavia, Vol. II Aug 70–Aug 71. Sent for information. No classification indicated. A notation on the memorandum indicates the President saw it.
  2. The Under Secretaries Committeeʼs quarterly report, May 25, is attached but not printed.
  3. See Document 225.
  4. At the bottom of the memorandum Nixon wrote “good.”