88. Memorandum From the President’s Assistant for National Security Affairs (Clark) to Secretary of State Haig, Secretary of the Treasury Regan, Secretary of Defense Weinberger, Secretary of Agriculture Block, the Director of the Office of Management and Budget (Stockman), and Director of Central Intelligence Casey1
SUBJECT
- CCC Credit for Romania
The Commodity Credit Corporation has under consideration a $65,000,000 loan to Romania for the purchase of corn and soybean meal.
It is well known that Romania is in serious financial difficulty, primarily because of mismanagement. It is the best judgment of the CIA, Treasury and OMB that Romania is unlikely to be able to repay this loan.
Although it is true that Romania has exhibited some degree of foreign policy independence from the Soviet Union, it is internally one of the most repressive of Soviet Bloc governments. Thus, granting this loan at this time would not only be bad business but would also send the wrong signals to the USSR and to other countries with reference to our current posture vis-a-vis the Soviet Bloc.
FOR THE PRESIDENT:
- Source: Reagan Library, Paula J. Dobriansky Files, Romania—EE Memoranda (1). Confidential. Bailey sent a copy of the memorandum to Clark under a January 27 cover memorandum, requesting that Clark sign the memorandum to “department heads.” (Ibid.)↩
- Printed from a copy that bears this typed signature.↩