Office of the Historian

171. Memorandum From the President’s Assistant for National Security Affairs (Scowcroft) to President Ford1

Washington, April 26, 1976.

SUBJECT

  • Presidential Determination for an Increase in the PL 480 Program for Portugal

The Department of State (Tab C) recommends that you sign the determination (Tab A) to add up to $5.0 million of agricultural commodities under Title I to the 1976 P.L. 480 program for Portugal.

Although the commodity composition of this additional assistance is not yet certain, I expect it will be used to finance the concessional sale of 16,000 bales of cotton.

After months of turmoil, Portugal is now governed by politically moderate elements. The greatest danger now facing Portugal is that serious economic difficulties—high unemployment, a large refugee relief burden, balance of payments problems—will rekindle political unrest. This modest increase in Title I concessional sales will assist in alleviating Portugal’s liquidity crisis and will constitute further evidence of our willingness to be of assistance.

In order to amend our earlier P.L. 480 agreement to make the new sales, the law requires you to find that it is in the national interest to make the new sales agreements with a country which trades with Cuba (P.L. 480, Section 103(d)(3)). Portuguese nationalized firms exported to Cuba in 1975, and it is likely they will do so again this year. Therefore, in order to provide this additional assistance a Presidential finding and a determination is required under P.L. 480.

On February 3 you signed a national interest determination for 50,000 metric tons of rice ($15 million) for Portugal. An agreement for this amount was signed on March 18.

There was no adverse Congressional reaction to the March 18 Title I agreement.

Amendments to the Foreign Assistance Act calling on the Administration “to take timely action” to alleviate Portugal’s food needs [Typeset Page 572] passed both houses of Congress without opposition. On February 27, Senator Pell submitted a report to the Foreign Relations Committee based on his recent visit to Portugal and Spain urging that the United States play a supportive role in Portugal’s consolidation of democracy by providing economic assistance.

Recommendation

That you sign the attached determination (Tab A) that it is in the national interest to add $5.0 million of agricultural commodities under Title I to the 1976 P.L. 480 program for Portugal. OMB concurs (Tab D). A statement of reasons for the determination (Tab B) will accompany the determination to the Hill.

Max Friedersdorf and Jack Marsh concur.

  1. Summary: Scowcroft sought Ford’s approval of a Presidential Determination for an increase in the PL 480 program for Portugal.

    Source: Ford Library, National Security Adviser, Presidential Country Files for Europe and Canada, Box 10, Portugal (9). Limited Office Use. Sent for action. Hyland initialed the memorandum for Scowcroft. Attached but not published is Tab A, Presidential Determination No. 76–13, April 27, signed by Ford; Tab B, an undated statement of reasons for the waiver; Tab C, an April 3 memorandum from Sisco to Ford; and Tab D, an April 23 memorandum from Lynn to Ford. A stamped notation on the memorandum indicates the President saw it.

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