Office of the Historian

178. Memorandum From the President’s Special Assistant (Rostow) to President Johnson1

Washington, May 24, 1968, 7:15 p.m.

SUBJECT

  • $10 Million Tunisian Program Loan

Attached is Bill Gaud’s recommendation for this year’s program loan ($10 million) for Tunisia.2 As you know from your talks with Bourguiba, this is justifiable on economic grounds alone, but it will also be another demonstration to Bourguiba that your expressions of friendship during his visit here are backed by action.

Our past program loans have run about $15 million a year, but we don’t have that much money this year. The Tunisians, as Bourguiba told you, understand our problem so there shouldn’t be any serious reaction to the cut. In fact, we told them at one time we might have to cut all the way down to $5 million.

[Page 272]

The loan will be used to finance imports essential to Tunisia’s development program. Judging by their past performance and what the Tunisians told us last week, they will use the loan well.

There are no difficulties for this loan with the Conte-Long amendments. Charlie Zwick is aboard, and Secretary Fowler is satisfied that there will be no major adverse effects on our balance of payments.

I recommend you approve.3

Walt
  1. Source: Johnson Library, National Security File, Country File, Tunisia, Vol. I, Cables, 12/63–9/68. Confidential.↩
  2. Attached but not printed.↩
  3. The approval line is checked on the source text.↩