Foreign Relations of the United States, 1961–1963, Volume XVI, Eastern Europe; Cyprus; Greece; Turkey

20. Memorandum of Conversation⁰

Washington, August 8, 1963, 1 p.m.

SUBJECT

• Rumanian-American Relations

PARTICIPANTS

• W. Averell Harriman, Under Secretary for Political Affairs
• Mircea Malita, Rumanian Deputy Foreign Minister
• Petre Balaceanu, Rumanian Minister
• Nicolae Bucur, First Secretary, Rumanian Legation
• William A. Crawford, American Minister to Bucharest
• Harold C. Vedeler—EE

Following the ceremony at which Mr. Malita signed on behalf of the Rumanian Government the Nuclear Test Ban Treaty¹ the above group met in Governor Harriman’s office for luncheon. Deputy Foreign Minister Malita and Minister Crawford had arrived from Bucharest the previous evening. Apart from congratulations and general comments on the Nuclear Test Ban Treaty as a first step toward improved general relations, the following points emerged in the luncheon discussion:

1. Rumanian Position at Moscow Summit Meeting on June 26–28 on CEMA. In response to Governor Harriman’s question in this regard, Mr. Malita made a guarded presentation, noting that Rumania clearly intends to pursue its established course of building up its industry, and that the Summit meeting confirmed that no decisions can be taken by CEMA without unanimous approval of all members and that nothing can be done there contrary to the desires and interests of any individual member.

2. Signs of Independence from Moscow. Governor Harriman referred to newspaper reports here over recent months of evidence of a more independent Rumanian position and spirit vis-à-vis Moscow both with regard to CEMA and to Sino-Soviet differences, and noted that the Rumanians had returned their Ambassador to Albania, contrary to the action of other Bloc countries. He said that these signs of an independent spirit met with an approving reaction on the part of the American people and that in this atmosphere it might be possible to be more receptive to Rumanian requests for more trade and to Rumanian needs for industrial installations to which Mr. Gheorghiu-Dej had referred in his recent talk with Agriculture Secretary Freeman.²

3. Trade and Industrial Installations. Mr. Malita and Minister Balaceanu spoke at some length on this point, emphasizing the importance which the Rumanian Government attaches not only to increased trade with the United States but to “some signs” of response on our part to their requests to purchase industrial installations. They emphasized that Mr. Gheorghiu-Dej had made clear to Secretary Freeman that this was their basic concern and had several times requested Secretary Freeman to convey to President Kennedy the Rumanian desire for some positive action in this sense, and particularly with regard to two synthetic rubber plants, one a polybutadiene and the other an isoprene installation. Both of these had been included in the $100 million shopping list Minister Balaceanu had presented the United States Government in the spring of 1962, and it was still hoped that they could be provided. They would only be intended for wholly peaceful uses, and if licenses could be granted the Rumanian people would feel greatly encouraged. Mr. Malita observed that more than half of the 10 installations on their original shopping list for which licenses were not forthcoming last year were meanwhile contracted for by West European firms, and he cited as one example a tire factory supplied by the UK. Mr. Malita and Mr. Balaceanu also expressed the Rumanian desire to increase exports to the US through assistance of MFN if possible. If this were not possible, Mr. Balaceanu hoped that some favorable tariff arrangements might be made for a limited number of products they would particularly like to export to the US.

Governor Harriman repeated that the Rumanian show of independence toward Moscow created a better atmosphere for considering improved economic relations and that Mr. Gheorghiu-Dej’s proposals would be carefully studied. He warned that action on such matters may take time but assured Mr. Malita that he would look further into the entire question. As for the desired industrial installations, there were really two aspects of the subject, those of licensing and financing. Minister Crawford explained some aspects of the Rumanian financing procedures in comparable deals with Western European firms which have sold Rumania some $350–$400 million worth of industrial installations over the past three years. Mr. Malita made the personal suggestion that a US-Rumanian joint study group on trade expansion might be usefully set up at this juncture. Governor Harriman expressed interest in the idea but was noncommittal.

Mr. Malita said that he planned to extend his stay here by several days and Minister Balaceanu would like to have Minister Crawford and Mr. Vedeler for a stag dinner on August 12 to pursue matters further.

0. Source: Department of State, Central Files, POL Rum–US. Confidential. Drafted by Crawford and approved in M on August 10. The meeting was held in Harriman’s office.
1. For text of the Test Ban Treaty, see Department of State Bulletin, August 12, 1963, pp. 239–240.
2. Secretary of Agriculture Orville L. Freeman visited Romania August 3–5. The Legation reported on his activities in airgram A–41 from Bucharest, August 8. (Department of State, Central Files, POL 2–1 Rum)