225. Memorandum From Robert W. Komer of the National Security Council Staff to President Johnson1
Tab A is Rusk’s formal request for a green light on the remaining PL 480 for the UAR, and the draft Determination (cleared by BOB) for your signature.2
Tab B is Rusk’s view on how seriously Egypt has violated the PL 480 agreement.3 It did not bar sales to Communist states but did contain rice export quotas and other provisions which the UAR probably did violate at least in 1964.
State argues that the UAR fell short of its export quota in 1963 almost as much as it exceeded in 1964, so these should be offset. We have this sort of problem with many PL 480 clients, and have had to work them out by agreement. Agriculture is willing to go ahead on this basis so long as we put the UAR on notice that this matter must be cleared up, especially before any new PL 480 agreement. To meet [Page 475] any adverse publicity, we have the UAR Ambassador’s authority to say that the UAR fully agrees to negotiate out any such issues to our mutual satisfaction.
This is a messy problem, and will generate some flak, however we move. But the Secretary of State makes a powerful case for giving Nasser just enough rope to limit the risk of a difficult confrontation in the Near East. I can only add my sober judgment as your Middle East hand that he’s dead right.4
- Source: Johnson Library, National Security File, Country File, United Arab Republic, Vol. IV. Secret. A note at the end of the memorandum in Bundy’s handwriting reads: “I am absolutely sure we should do this—because if we don’t the explosion will be our fault. We can haggle like Hell in the next phase. McGB.”↩
- The tabs are attached but not printed. Rusk’s memorandum for the President is dated June 16; the draft Determination is undated.↩
- Tab B is a June 17 memorandum from Rusk to the President.↩
- Talbot met with Kamel on June 21 to tell him that a few hours previously the President had approved issuance of purchase authorizations for the $37 million remaining under the existing P.L. 480 agreement. (National Archives and Records Administration, RG 59, Central Files 1964–66, POL UAR-US)↩