Office of the Historian

27. Memorandum From Stephen Larrabee of the National Security Council Staff to the President’s Assistant for National Security Affairs (Brzezinski)1

Washington, October 25, 1978

SUBJECT

  • Priorities, Emerging Issues and Initiatives

EASTERN EUROPE

1. Basic Priorities

Relations with Romania, Poland and Hungary have visibly improved. This improvement has underscored our desire to move forward with countries that have either edged away from the Soviet Union in foreign policy or have shown a significant degree of internal liberalization. In contrast to past, East European countries have been treated as countries in their own right, not just as appendages of the Soviet Union.

2. Emerging Issues

  • —The major emerging issue is the question of CCC credits to Poland; a PRC meeting to discuss this issue is to be held in next weeks.
  • —The question of the Czech Gold/Claims issue2 is also looming on the horizon again; State has a number of task forces working on it at present. The main problem remains getting Senator Long to sign on.
  • —There is a need to put relations with Romania back on an even keel in the aftermath of the Pacepa affair; your meeting with Stefan Andrei at the end of September was an important step in this direction.3
  • —We should also pay heed to maintaining the momentum in U.S.-Hungarian relations begun with the return of the crown.

Beyond this, there are a number of more general issues which should receive some systematic attention:

  • —how to deal with an increase of nationalism and dissent in Eastern Europe, especially Poland, which may emerge in the aftermath of Pope John Paul’s investiture and if there is a succession crisis in the [Page 94] Soviet Union. In general, East Europe is likely to be less quiescent than it has been in the first 2 yrs of the Administration.
  • —growing instability in GDR.4 GDR has failed to stabilize to the degree expected after signing of Basic Treaty in 1972. Unrest by intellectuals is only part, if most visible, aspect of problem. Church-State friction has escalated, and may continue to do [so] in aftermath of Pope’s investiture, even though GDR is predominantly Protestant; youth has become increasingly restless, and there has been increased evidence of worker discontent as economic situation has deteriorated over last few years. In short, despite orthodoxy of Honecker regime and strong ties to Moscow, GDR remains a country to watch.

3. New Initiatives

  • —return Czech Gold
  • —visits to Hungary, Poland and Romania by high-level U.S. official, possibly Vice President or Secretary of State, within context of trip to other countries/region (such as Middle East).
  • —Gierek visit to U.S.
  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Subject Chron File, Box 59, Administration’s Policy: NSC: 1978. Secret. Sent for information.↩
  2. See Document 98.↩
  3. In July, Major General Ion Mihai Pacepa, the Director of the Romanian Foreign Intelligence Directorate, and a close adviser to Ceausescu, defected to the West while in West Germany. He was granted asylum in the United States and was placed in protective custody. See Document 208.↩
  4. See Document 126.↩