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

[Page 1]

SUBJECT:

  • Followup on Your Conversation with President Somoza of Nicaragua

When you met with President Somoza on June 2 he raised a number of topics in the economic area, including sugar, meat, cotton textiles, and tobacco. The Department of State followed up on President Somoza’s requests in coordination with other interested agencies and concluded that, except for textiles, there is little we can do to respond to his concerns because our policies on most of the commodities he mentioned are governed by international agreements, making it difficult to oblige any one producer.

State recommends that we double from 500,000 to 1 million yards the restraint level currently imposed on certain categories of Nicaraguan cotton textile exports to the U.S. In addition, State suggests that we take steps to facilitate increased exports of fresh fruits and vegetables from Nicaragua to the U.S. This subject was not raised by President Somoza in his conversation with you, but action in this area has been requested by other Nicaraguan officials and would be of great economic benefit to Nicaragua. Thus far, the obstacle has been difficulty in complying with U.S. Department of Agriculture public health standards. Agriculture is willing to send personnel to help Nicaragua comply with our standards.

Commerce strongly dissents from State’s recommendation that we raise the restraint level on certain categories of Nicaraguan textile exports to the U.S. on grounds that this action in favor of Nicaragua would be a dangerous precedent in view of the fact that the normal method of regulating cotton textile imports from any country is entering into a bilateral agreement. Commerce recommends that we negotiate such an agreement with Nicaragua. Pete Peterson supports the Commerce position. (However, it is likely that the level of imports under such an agreement would turn out to be considerably below the 1 million yards suggested by State as a new restraint level.)

I suggest that you approve State’s recommendation that we raise the restraint level on Nicaraguan cotton textile imports because there is so [Page 2] little we can do to respond to President Somoza’s other requests. The additional 500,000 yards is minuscule compared to our total imports of cotton textiles, much less our total consumption, but would mean a good deal to Nicaragua.

Attached for your signature (Tab A) is a letter from you to President Somoza which informs him of your decision to raise the restraint level and of our intention to send Department of Agriculture personnel to Nicaragua in order to find ways of facilitating increased exports of fresh fruits and vegetables to the US. The letter has been coordinated with Ray Price.

RECOMMENDATION:

That you sign the letter to President Somoza at Tab A.

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 790, Country Files, Latin America, Nicaragua Vol. I (1969–1974). Secret. Sent for action. A stamped notation at the top of the memorandum indicates the President saw it. Attached at Tab A is a draft letter to Somoza. As signed, it is published as Document 507. Attached but not published at Tabs B and C are a July 15 memorandum from the Department of State to Kissinger and a July 14 memorandum from Stans to Kissinger, objecting to the Department of State’s recommendations.
  2. The Department of State indicated that, except for textiles, little could be done to respond to President Somoza’s requests, because quota policies were governed by international agreements. The Department of State recommended that the textile quota be doubled. Despite a dissenting view from Commerce, Kissinger recommended that President Nixon approve the Department of State’s recommendation.