130. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1
SUBJECT
- Three North African Decisions
Secretary Rusk wants to discuss with you at lunch the three attached North African decisions.2 The two Moroccan decisions—one food and a $14 million military credit sale—are relatively easy and should be made before King Hassan arrives Thursday. The third is an Algerian PL 480 deal which the Secretary has added to the package because he would like to see us keep a foot in all North African doors.
We have also scheduled an NSC discussion on North Africa tomorrow to give you a picture of all our interests there and the whole complex of problems we face. You may want to give us a preliminary OK on the Moroccan programs and then hold the Algerian decision until after the NSC meeting if you still have reservations after the lunch today.
The attached bulky package boils down to this:
Tab A: The Secretary recommends you approve the $14 million credit sale of arms King Hassan has asked for. Bill Gaud would prefer no sale on the grounds that these countries can’t afford drain from economic development and that we should be trying to build regional cooperation in North Africa—not get into an arms race. We all sympathize with his view but, with $180 million in Soviet arms next door in Algeria, it’s hard to refuse Hassan permission to buy this small amount over 2–3 years. The Senior Interdepartmental Group, in endorsing this recommendation, recommended that we attach appropriate conditions to avoid disruption to economic development and to make sure the arms are primarily defensive.
Go ahead
See me3
Tab B: The Secretary recommends that you make a finding that it is in the national interest to make grain sales to Morocco under PL 480. If you approve, he would go ahead with negotiation of 167,000 tons of wheat [Page 193] ($11.3 million, 50–50 between local currency and dollar credit financing). The determination is necessary because Morocco still trades its phosphates for Cuban sugar. King Hassan will give you his personal assurance that Morocco will continue to phase down its Cuba trade to meet the requirements of the Findley amendment.4
Morocco has suffered from drought this year, and you approved sale last fall of a similar amount for the first half of the year. Morocco is overhauling its agriculture, and the King is behind a pretty decent program to increase cereal yields. Besides, Morocco is a good friend.
If you approve, we ask you to sign the determination at the signature tab.
[Here follows discussion of a dollar credit sale of wheat to Algeria; for text, see Document 33.]
- Source: Johnson Library, National Security File, Memos to the President, Walt W. Rostow, Vol. 20. Secret.↩
- None of the tabs was attached.↩
- Neither of the options is checked, but a handwritten note in the margin next to the paragraph reads: “President OK’d.”↩
- A handwritten note in the margin next to this paragraph reads: “President OK’d.”↩
- Printed from a copy that bears this typed signature.↩