113. Action Memorandum From the Assistant Secretary of State for European Affairs (Burt) to Secretary of State Shultz1

SUBJECT

  • Landsat for Romania

ISSUE FOR DECISION

Whether to telephone Judge Clark to urge approval of the pending Landsat-related export licensing cases for Romania and to sign the attached letter along the same lines to Secretary Baldrige.2

ESSENTIAL ELEMENTS

On July 8, Judge Clark decided to turn down Landsat to Romania. He did so on the basis of an end-run letter from Secretary Weinberger based on intelligence which the CIA, State, Commerce, and NASA previously had refuted.3 We are concerned that none of the political arguments nor the countervailing technology transfer arguments were presented to him.

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This could create a major problem in our relations with the Romanians. Coming just on the heels of President Ceausescu’s eating enormous crow over the education tax and splitting from the Soviets at Madrid, it will be seen by him as a direct act of bad faith on our part. There is a longstanding commitment through several Administrations to provide Landsat to Romania. Making a negative decision at this very moment will be inexplicable to him on political grounds.

The Department of Defense opposed differentiation from the beginning and has been using Landsat to try in effect to reverse the President’s decision in NSDD–54, which specifically singled out Romania for more favorable treatment. DOD’s technology transfer arguments are spurious. John McMahon has just confirmed to Hugh Montgomery that the CIA does not find Weinberger’s letter has changed their conclusion that the sale should go ahead, with appropriate safeguards. This continues to be the view of all other agencies.

There are also important economic stakes here. Commerce is doing an analysis now showing that we could lose several hundred million dollars in exports if Ceausescu reacts strongly to this decision.

I believe you should call Judge Clark to state that he needs to consider the strong foreign policy arguments and the views of all other agencies on the technology transfer question.

RECOMMENDATIONS

1.
That you telephone Judge Clark to present our views on Landsat for Romania, using the attached talking points.4
2.
That you sign the attached letter to Secretary Baldrige, with a copy of Judge Clark, providing our reaction to the Weinberger-Baldrige letter.
  1. Source: Department of State, Executive Secretariat, S/S Special Handling Restrictions Memos, 1979–1983, Lot 96 D 262, ES Sensitive, July 1–14, 1983. Secret. Drafted by Palmer; cleared by Davis. Sent through Dam. The date July 9, 1983, is stamped at the top of the memorandum. “GPS” is also stamped at the top of the memorandum.
  2. Attached but not printed. McKinley noted at the top of the memorandum that the letter to Baldrige was signed on July 11 (see Document 114).
  3. Attached but not printed. See Document 112.
  4. An unknown hand checked the “Approve” option. The talking points which were attached at Tab 2 are not printed. McKinley wrote in the right-hand margin adjacent to the recommendations: “Letter requires correction Monday a.m. BMcK.”