69. Memorandum From Allen Lenz of the National Security Council Staff to the Executive Secretary of the Department of State (Bremer)1

SUBJECT

  • MFN Renewal (Romania, Hungary, PRC)2
  • S/S 8112916

The NSC Staff suggests that the Presidential waivers of prohibition of MFN for Hungary and the PRC should be considered separately from a potential waiver for Romania. We concur with your recommendation that the situation with regard to Hungary and the PRC does not warrant any additional examination and the said waivers should be granted unconditionally. (C)

However, the Romanian case is quite different. Jewish emigration from Romania has decreased considerably in numbers and the Romanian authorities have not alleviated the harassment of those Jews desiring to emigrate. Their behavior contradicts several pledges extended by the Romanian Government to the American Jewish community. Hence, before MFN can be granted we should seek assurances from the Romanian Government that the current unsatisfactory state of Jewish emigration would be remedied. (C)

We are aware of Romania’s sensitivity to the issue of Jewish emigration and the likely resentment with which it will meet our direct [Page 224] pressure. Yet, given its need of U.S. trade and technology and a manifestation of our determination on this issue, it is most unlikely Romania will refuse to grant these assurances. Moreover, given the current sentiment on Capitol Hill, and the already existent Jewish disenchantment with this Administration’s proposed AWAC sale,3 the likelihood that Congress would overrule the Presidential waiver to Romania is considerable. If this were to occur, it would embarrass the Administration and would worsen U.S.-Romanian relations to a greater extent than simply not renewing the Presidential waiver. (C)

However, if the Romanians are not forthcoming on this issue and do not provide the required assurances, MFN should not be renewed and our trade agreement with Romania would lapse. It is unlikely, though, that even this improbable contingency would significantly damage overall U.S.-Romanian relations or considerably alter Romania’s foreign policy. (C)

Based on the above considerations, we propose that a separate PD, transmittal message and recommendation for extension of waiver authority be prepared for Romania. We seek your comments on the above by noon tomorrow. (C)

Allen J. Lenz
Staff Director
  1. Source: Reagan Library, Paula J. Dobriansky Files, Chron 5/19/81–5/28/81. Confidential. Sent via LDX.
  2. See Document 2.
  3. Reference is to the proposed sale of AWACS aircraft to Saudi Arabia.