Foreign Relations of the United States, 1969–1976, Volume XXXVIII, Part 2, Organization and Management of Foreign Policy; Public Diplomacy, 1973–1976

178. Memorandum From Robert Hormats of the National Security Council Staff to Secretary of State Kissinger ¹

Washington, December 2, 1974.

SUBJECT

• Your Lunch with Bill Seidman

Your lunch provides an opportunity to correct a totally unsatisfactory relationship between the NSC and the EPB.² Seidman has proposed to the President a restructuring of the economic policy making apparatus. My memo of November 11 (Tab A)³ describes this, indicates several major problems and recommends a response to Jerry Jones (a) pointing out that the NSC has significant responsibilities in the area of international economic policy which are not reflected in the Seidman proposals and (b) suggesting provisions for NSC and State participation in meetings, preparation of papers, and clearances.

It is totally incomprehensible to me why the NSC is not included in meetings of the Executive Committee of the EPB. The argument that the Committee wishes to keep down the size of attendance or to limit meetings to principals only is nonsense—since others regularly attend. Moreover, numerous issues relating to foreign economic policy—food, trade, tax policy, etc., arise almost daily. At times State is invited to attend and the NSC is not. (I have not attended an Executive Committee meeting in over a month.) This, of course, is inconsistent with the coordination responsibilities of the NSC, not to mention depriving you of whatever substantive advice I might be able to provide. My feeling is that Seidman is not against my coming to meetings but that he has been intimidated by Simon—who wants to run the show himself, keeping your knowledge of what is happening to a minimum, except as he chooses to inform you.

I would recommend that you make the following points to Seidman on these issues:

—The NSC must continue to have primary responsibility for providing advice to the President and ensuring proper coordination on East-West, aid and PL–480 issues. On many other economic issues it must clearly work based on guidance and under the leadership of EPB. But on these issues it should be meaningfully involved in the advisory, implementation and coordination process.

—The NSC and the Department of State could usefully contribute to the work of the EPB, help me to reflect the group’s views and recommendations in my activities, and strengthen coordination in key areas of international economic policy if:

—My NSC Deputy for International Economic Affairs were to sit in on meetings of the Executive Committee (at least when issues relating to international economic policy are discussed). When a matter of significant importance in this area arises, a senior State official should also be invited.

—State and the NSC staff should participate in drafting position papers on international economic issues used by the Executive Committee, EPB or going to the President.

—A senior State official and a member of the NSC staff should be included in the clearance process on all international economic issues, and on domestic issues which impact on foreign policy.

1. Source: Ford Library, National Security Council, Institutional Files, Box 52, Relationship between NSC and Economic Policy Board. No classification marking. Sent for action.
2. No record of Kissinger’s lunch with Seidman has been found.
3. Attached but not printed. For Seidman’s proposal, see Document 175.