16. National Security Decision Memorandum 281 2
TO:
- The Secretary of State
- The Administrator, Agency for International Development
SUBJECT:
- Untying of Aid
At the NSC meeting on October 15 the President decided that the United States should untie all AID loans to Latin America for procurement throughout Latin America, The President has reviewed that decision in the light of the considerations raised in Mr. Hannah’s memorandum to me of October 16, but has decided to reaffirm his decision to untie all AID loans to Latin America for Latin American procurement.
The President wishes to announce that decision in his October 31 speech on Latin America for implementation shortly thereafter. Accordingly, you should (1) take the actions required to prepare the implementation of the President’s decision, and (2) inform the President by October 27 of the implementing actions planned.
The President has asked that initial Congressional consultations be undertaken by Mr. Harlow’s office. Therefore, any Congressional consultations you may wish to undertake should be carried out subsequently after coordination with Mr. Harlow.
- Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–211, NSDM Files, NSDM 28. Confidential. Copies were sent to the Secretaries of Treasury and Commerce, and the Director of the Bureau of the Budget. For the text of Nixon’s October 31 speech see Public Papers: Nixon, 1969, pp. 893–901. The October 15 NSC meeting is published as Document 14. In an October 17 memorandum to the President, Hannah advocated Nixon only untie U.S. assistance used to acquire local currencies for financing local costs of development programs in Latin America. (Ibid., NSC Files, Box 193, Agency Files, AID, January 1969–December 1969, Vol. 1)↩
- Kissinger informed Secretary of State William Rogers and AID Administrator Hannah that the President had decided to untie all AID procurement loans to Latin America.↩