Foreign Relations of the United States, 1977–1980, Volume XX, Eastern Europe

248. Memorandum From Robert Hunter of the National Security Council Staff to the President’s Assistant for National Security Affairs (Brzezinski)¹

Washington, February 15, 1978

SUBJECT

• Tito Visit: Economic Cooperation

Larry Eagleburger proposed the setting up of a government-to-government economic commission with Yugoslavia,² to replace the current non-governmental one, as part of Tito’s visit. We asked State, Commerce, and Treasury for a recommendation. (See Tab II.)³

They have recommended that there be two working groups, instead—one here and one in Belgrade—which could meet alternatively every few months.⁴ Commerce Assistant Secretary Weil would co-chair the one here; and Eagleburger there. This course was chosen because:

—the nature of the Yugoslav economy does not require the same kind of apparatus as for Poland, Romania, or the Soviet Union;

—the Yugoslavs would probably prefer having an arrangement different from that of other states; and

—once meetings start at a high level, they cannot then be downgraded.

We sought a further judgment on this point, especially in view of Larry’s initial recommendation. State says that he now concurs, and thus so do I.

RECOMMENDATION:

That you approve the memorandum for Secretary Vance at Tab I.⁵

1. Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 57, Yugoslavia: 1–3/78. Confidential. Sent for action.
2. Noting the successful development of relations between the United States and Yugoslavia during the first year of the Carter administration, Eagleburger proposed the creation of a joint economic/trade commission chaired at the Assistant Secretary level to better coordinate U.S. policy in the economic field. (Telegram 8574 from Belgrade, December 5, 1977; National Archives, RG 59, Central Foreign Policy File, D770450–0304)
3. Attached but not printed is a December 28, 1977, memorandum in which Brzezinski requested the opinion of the Department of State on the idea of establishing a Joint Economic Council with Yugoslavia. (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 57, Yugoslavia: 1–3/78) Hunter initially proposed setting up both a Joint Economic Council and a Joint Defense Council, but both Brzezinski and Aaron opposed the idea of a Defense Council. (Ibid.)
4. Tarnoff forwarded the Department’s concurrence in a memorandum to Brzezinski on January 16. (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 57, Yugoslavia: 1–3/78)
5. Attached but not printed is a February 17 memorandum in which Brzezinski informed Vance that “your recommendation for two U.S.-Yugoslav Economic/Commercial Working Groups” was approved and noted that “while this approach may be discussed and agreed with the Yugoslavs now, public announcement should be reserved for President Tito’s visit to Washington.”