Foreign Relations of the United States, 1981–1988, Volume X, Eastern Europe

143. Memorandum From the President’s Assistant for National Security Affairs (Poindexter) to President Reagan¹

Washington, May 31, 1986

SUBJECT

• Determination to Extend Jackson-Vanik Authority

Issue

Should MFN status for Romania, Hungary and the People’s Republic of China (PRC) be extended for 1986?

Facts

The Trade Act of 1974 prohibits the granting of MFN treatment to any nonmarket economy country which restricts emigration. The Jackson-Vanik Amendment authorizes you to waive these prohibitions by June 3, if you determine that a waiver will foster freer emigration and if you receive appropriate assurances from the country concerned.

Discussion

Secretary Shultz forwarded you a memorandum (Tab C)² which recommends that MFN be extended to Hungary, Romania and the PRC for 1986. MFN has been an effective instrument in monitoring and promoting freer emigration in these countries. Moreover, their emigration records for the last year have been satisfactory. Both Hungary and the PRC have established acceptable emigration practices which largely comply with the terms of the Jackson-Vanik Amendment. Although significant human rights problems exist in Romania, its emigration performance is satisfactory. In 1985, more than 17,000 Romanians departed for the US, Israel and West Germany.

As State’s memorandum notes, Congressional opposition to MFN renewal is anticipated. Some Congressmen have expressed concern about Romania’s overall human rights record and have urged the Administration to suspend or withdraw Romanian MFN based on the country’s human rights practices—not a legal criterion of the Jackson-Vanik Amendment.

In order to pressure the Romanians to improve their performance and to be responsive to Congressional concerns, your report to Congress (Tab A)³ contains a strong statement of our human rights concerns and the steps we have urged the Romanians to take. The report instructs Secretary Shultz to report periodically to you and to Congress on Romania’s MFN performance. Also, at Tab C⁴ is a letter from you to President Ceausescu which warns that our current MFN policy may not be sustainable in the absence of Romania taking meaningful steps to respond to our human rights concerns. The speechwriters have cleared the text. OMB concurs.

Recommendations

That you sign the transmittal message at Tab A, the Presidential Determination at Tab B,⁵ and the letter to President Ceausescu at Tab C.⁶

1. Source: Reagan Library, Paula J. Dobriansky Files, Country File, Romania—MFN (Most Favored Nation) EE (9). Confidential. Sent for action. Sent through the White House Executive Clerk. A notation is stamped at the top of the memorandum: “President sgd per WH Executive Clerk.” It is dated in an unknown hand, “3 June 86.”
2. Printed as Document 142.
3. Attached but not printed.
4. Printed as Document 144.
5. Attached but not printed.
6. Neither the “OK” option nor the “No” option were selected, but the Presidential Determination and the message transmitting the report, all dated June 3, are printed in Public Papers: Reagan, 1986, Book I, pp. 714–716.