121. Memorandum From Secretary of State Shultz to President Reagan1

[Omitted here is material unrelated to Algeria.]

3. Mac Baldrige’s Visit to Algeria. Mac Baldrige’s recent visit to Algeria was a success. Mac, leading a Trade and Investment Mission, saw most of the key Algerian economic decision makers and had a 90-minute meeting with President Bendjedid,2 who said that Algeria desires better political and economic relations with us. The Baldrige mission revealed significant commercial prospects in the fields of agribusiness, water resources, telecommunications, aviation and avionics, operations and maintenance services, and manpower training. In the wake of Mac’s visit, the Algerian Government signaled its wish to begin negotiations soon on a civil air agreement providing for direct flights from Algeria to the US and is negotiating two large contracts, each in excess of $200 million, with Lockheed and Boeing. President Bendjedid also indicated his desire for other high level US visits. (C)

[Omitted here is material unrelated to Algeria.]

  1. Source: Reagan Library, George Shultz Papers, President’s Evening Reading September–December 1982. Secret.
  2. A record of the Baldrige-Bendjedid conversation is in telegram 42404 from Paris, December 8. (Department of State, Central Foreign Policy File, Electronic Telegrams, D820637–0093)