Foreign Relations of the United States, 1969–1976, Volume E–10, Documents on American Republics, 1969–1972

24. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon¹ ²

Washington, January 29, 1970

SUBJECT:

• U.S. Position for Special Meetings of the IA–ECOSOC

The Chairman of the NSC Under Secretaries Committee submitted a report to you on the Committee’s consideration of twelve proposals for the U.S. position at the special meetings of the IA–ECOSOC, which began Monday in Caracas.

I am submitting separately for your decision the most controversial proposal on which interagency agreement could not be reached.

In view of the pressures on your time, I have made the following decisions on your behalf on the remaining proposals:

• 1. Approved five proposals on which there was no dissent among the agencies.
• 2. Approved six proposals, about which there was some question or disagreement, as follows:
  • a. Approved restatement of our GATT commitment to avoid new trade restrictions especially for Latin America. (Reason: Consistent with your October 31 speech, but does not go further than existing commitments.)
  • b. Approved untying completely AID and IDB local currency loans to Latin America. (Reason: More effective implementation of your previous decision to untie AID loans to Latin America. Overruled Treasury dissent because this action will have no real effect on U.S. balance of payments.)
  • c. Authorized the U.S. Delegation to indicate that we are studying various possibilities for special treatment for “least developed countries” under a generalized preferences scheme. (Reason: Proposal is responsive to Latin requests.)
  • d. Approved expanded “positive list” of products eligible for tariff preferences, including four tuna and bonito items. (Reason: Consistent with your decision on trade preferences. Interior objected to inclusion of tuna items, but these a) can be helpful to a settlement of our fisheries dispute with Peru and Ecuador and b) will not have much effect on U.S. industry, since the most competitive item—tuna in oil—is not included.
  • e. Authorized the Delegation to announce that we will give sympathetic consideration to imports from developing countries on a case-by-case basis, but did not authorize any commitments on specific commodities, such as meat and sugar. (Reason: Consistent with your October 31 speech. Accepted Agriculture objection to State proposal to promise future increases in sugar allocation on grounds it would arouse domestic opposition prematurely.)
  • f. Authorized the Delegation to announce that you are prepared to appoint a special representative to work closely with CIAP and IDB to determine the best method of studying the debt service problem and to develop a joint approach to creditor nations and institutions. (Reason: Follow up your October 31 speech.)
• 3. I also added specific action directives agreed by Secretary Richardson and my staff in three areas specified in your October 31 speech strengthening multilateral frameworks for aid, assistance for capital markets, and assistance for export expansion. Specifically, AID was directed to reprogram $3 million for strengthening CIAP/IDB technical staff, $15 million for a project development fund for DIAP/IDB, and $5 million for joint studies on establishment of capital markets. Also the Export-Import Bank was asked to provide technical assistance to countries which wish to set up export credit mechanisms. (Reason: Follow up your October 31 speech.)

Annex II

IA–ECOSOC Position

undated

Under Secretaries Committee Proposals Adopted without Dissent

Proposal Number in Under Secretary’s Memorandum (Tab A)
4	That you approve the elimination of nuisance duties on items totalling $18 million as listed in the Under Secretary’s memo at Tab A, with the proviso that additional recommendations be prepared for your consideration in the light of Latin American suggestions to be submitted next month
6	We would announce that the Administration will ask Congress for authority to increase from one quart to one gallon the duty free liquor allowance for returning residents of the U.S. for certain specific beverages not similar to beverages produced in the U.S.
8	We would apply the new regional untying policy to AID loans signed before November 1, 1969, in cases where the borrower specifically requests such exception and where the procurement process has not yet been initiated.
10	At Caracas, we plan to: (a) review recent US actions designed to promote integration including the Presidential commitment to participate in financing construction of the Darien Gap Highway, the decision to permit region-wide procurement with AID funds, and our increased support for export promotion activities; and (b) reiterate our outstanding offers for financial assistance to the Andean Group, CARIFTA and CACM, for which funds are already earmarked in the FY-70 or FY–71 budgets, and to an eventual Latin American Common Market when the necessary preliminary steps have been taken.
11	We will propose that to encourage greater participation of other donors in Latin America, the merits of various alternatives be discussed at the forthcoming IDB Board of Governor’s meeting in April.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–213, NSDM Files, NSDM 39. Confidential. Sent for information. Annex I has not been found. Annex II is published.
2. Kissinger discussed the U.S. position for the special meetings of the IA–ECOSOC. Kissinger informed the President of the decisions that he had made on behalf of the President regarding the IA–ECOSOC special meetings.