497. Memorandum From the Executive Secretary of the Department of State (Read) to the President’s Special Assistant for National Security Affairs (Bundy)1
SUBJECT
- 1965 Sugar Quota for Rhodesia
As you know, on November 12, the President decided that the 1966 Rhodesian sugar quota of 6,094 tons would be withheld.
There remains the question of what, if anything, should be done about the 1965 Rhodesian quota. The entire 1965 Rhodesian quota of 9,542 tons has been contracted for earlier this year by a US importer and is on the high seas at the present time. As I understand it, the decision reached in Texas was that we would give firm support to the British but not get out in front. Our information is that the British, although withholding their 1966 sugar quota, do propose to honor contracts entered into prior to November 12 for importation of Rhodesian sugar. For us to suspend the 1965 quota would, therefore, involve a deviation from the Texas decision.
Arthur Goldberg feels very strongly, however, that we should suspend the 1965 quota. He is joined in this by our African Bureau. The AFL–CIO also feels strongly on the Rhodesian issue. The fear both in New York and among the State Department experts is that the appearance of a boatload of Rhodesian sugar at an East Coast port would cause considerable excitement at the United Nations and cast doubt on the good faith of our determination to bring down the Smith regime. Representatives of the Afro-Asian Bloc at the United Nations are apparently aware of the projected arrival of this shipload of sugar and may well undertake to start some kind of demonstration if it is permitted to arrive in the United States.
The Legal Adviser’s Office of the State Department advises that the President has the authority to suspend the 1965 quota under this year’s amendments to the Sugar Act of 1948. While this might result in legal action against the US purchaser and perhaps the Government, they regard it as unlikely that such an action would be successful. Possible damages involved are on the order of $760,000, based on the difference between the contract price and the current world price of sugar.
[Page 846]The matter is of some urgency. The ship is due to dock at Yonkers on December 10, and it is desirable to give the owners as much time as possible to divert the shipment.
The Agriculture Department would prefer not to interfere with the 1965 Rhodesian quota in view of adverse comment in the trade and the possibility of legal actions. However, Under Secretary Schnittker advises that he will go along if it is determined that such action is called for by overriding political considerations.
White House guidance is requested.2
- Source: Johnson Library, National Security File, Country File, Rhodesia, Vol. I, Memos and Miscellaneous, 12/63–1/66. Confidential.↩
- The President decided on November 18 to suspend the 1965 and 1966 U.S. sugar quotas for Southern Rhodesia. (Memorandum from Ball to Johnson, November 19; Department of State, Central Files, POL 16 RHOD)↩
- Printed from a copy that indicates Read signed the original.↩