24. Memorandum From the Special Representative for Economic Summits (Owen) to President Carter1

SUBJECT

  • Food Aid for Laos

You asked me last night to check into the Laos food problem described in Mr. Schram’s Newsday article.2

Laos has been suffering from a serious food problem, which reflects both drought and Communist mismanagement. In August 1977, Laos put out an international plea for 130,000 tons of rice. Many nations contributed; the US did not, for fear of adverse Congressional reactions, which could have jeopardized the foreign aid bill.

In January 1978, Laos made a direct appeal to the US to contribute. Secretary Vance reported this request to you on February 3;3 you answered that you agreed in principle but that he should check out reactions on the Hill before proceeding. Subsequent soundings elicited a negative Congressional reaction, and State decided not to proceed [Page 89] at that time for fear, among other things, of jeopardizing the Panama Canal Treaty.4

More recent soundings indicate growing support on the Hill for help to Laos; opposition persists, largely among members of the Congress who are opposed to aid generally. In light of these recent soundings, Secretary Vance recommends in the attached memo (Tab A)5 that you approve a Title II grant6 of $5 million to ship 10,000 tons of rice to Laos. Jack Gilligan, OMB, and I concur. State points out that quick action is important, since it will take two to three months to get the rice to Laos, and the shortfall (now estimated at 30,000 tons) will begin to cause considerable human suffering in August.

The Congressional liaison staffs in State and the White House believe that if you make a decision approving this grant before the foreign aid bill clears the House floor in mid-June, this will add to our difficulties on that bill. They do not believe that this disadvantage should deter you from early action if inaction would cause increased human suffering, as State indicates would be the case.

We can ship $5 million of Title II PL–480 within present budgetary limits. We could ship more after the start of the new fiscal year October 1, if it proves needed.

This food will be given through the World Food Program, which means we will have no direct check on how it gets used, although we can monitor its use indirectly through the UN. The 10,000 tons would probably go largely to urban areas, where its use would be more readily observed. Still, we cannot be sure that the food will always go to those who need it most.

RECOMMENDATIONS

1. That you approve the attached request from State for a $5 million 10,000 ton Title II program for Laos.

Approve (recommended by Secretary Vance, Governor Gilligan, OMB, and me)7

Delay decision until after June 15

Disapprove

2. That I indicate to State Department that you will be prepared to consider a request for further US Title II assistance to Laos in FY [Page 90] 1979 depending (i) on future needs and on our judgment as to how this initial grant was used, and (ii) on our relations with Laos which, as you know, are now shadowed by Laotian uncooperativeness on the MIA question.

Approve (recommended by Secretary Vance, Governor Gilligan, OMB and me)8

Disapprove

The Department of Agriculture concurs in this proposed sale.

  1. Source: Carter Library, Office of the Staff Secretary, Presidential File, Handwriting File, Box 12, 5/25/78. Confidential. Sent for action. Carter initialed the top of the first page of the memorandum.
  2. Not further identified.
  3. Not found. The Lao request was transmitted in telegram 17 from Vientiane, January 5. (National Archives, RG 59, Central Foreign Policy File, D780009–0619)
  4. The Senate approved the Panama Canal Treaties in March and April.
  5. Not attached.
  6. Title II of P.L. 480 permitted the United States to provide famine relief to foreign governments and donate commodities to religious and voluntary organizations for use in overseas feeding programs.
  7. Carter checked this option.
  8. Carter checked this option and initialed “J” below the recommendations.