283. Memorandum From the Executive Secretary of the Department of State (Platt) to the President’s Assistant for National Security Affairs (McFarlane)1
SUBJECT
- Policy Toward the GDR
Since his meeting with Foreign Minister Fischer in September 1984,2 the Secretary has been considering new tactics in relations with East Germany. The GDR wants dialogue and trade. We need a settlement of the claims of US nationals ($79 million plus interest); humanitarian emigration cases; and the claims of Jewish victims of the Nazi era (whom the GDR, unlike the FRG, has never compensated). Both sets of issues have been with us since we recognized the GDR in 1974. Informal explorations in Berlin suggest the GDR may now be interested in an agreement to resolve them simultaneously.
Because of the 1974 Trade Act, we continue to oppose most-favored-nation trading status for the GDR. However, after a careful review, the Secretary has concluded that we should consider a more limited reduction of tariffs in return for a settlement of the three US concerns described above. The proposal we are currently exploring would involve a five-year period of lowered tariffs on a selected list of GDR exports, keyed to the level and payout period for our claims. An annual review would guarantee continued compliance by both sides with the terms of the agreement.
Ambassador Ridgway has informed the GDR that we are prepared to discuss such an agreement on an official basis. This will be without commitment at this point, particularly on the question of how high our price should be on emigration. We will be working with Commerce and STR to assess the trade component of such an agreement.
We may in the end conclude that such an agreement does not serve our interests. The Secretary would not recommend proposing enabling legislation on the Hill unless the votes to pass it had been counted and were certain. Even if we ultimately decide not to conclude such an agreement, however, discussion of it as a practical possibility has helped us open a useful dialogue with the Soviets’ most important ally.
- Source: Reagan Library, Paula J. Dobriansky Files, Chron, May 1985 (1). Confidential. Dobriansky sent a copy to McFarlane under a May 3 cover memorandum. (Ibid.)↩
- See Document 274.↩