Foreign Relations of the United States, 1969–1976, Volume XXIX, Eastern Europe; Eastern Mediterranean, 1969–1972

214. Telegram From the Embassy in Romania to the Department of State¹

Bucharest, July 13, 1972, 0925Z.

2482. Subject: GOR Request for USG Assistance. Ref: State 098387.²

1. On evening July 10, I called on Manea Manescu in his Council of State office to convey Departmentʼs reply to GORʼs three “packages” of requests for assistance.³ Making points enumerated in referenced instruction, I said USG had increased CCC line of credit by 40 million dollars to total of 61 million with 36-month repayment, but that sales of agricultural commodities with longer-term credit and with repayment in other than dollars was not authorized for Romania under existing legislation. I said that some interest has been expressed within Department of Agriculture in legislation that would authorize PL–480type sales to Romania. However, it seemed not within realm of possibility that such legislation could be adopted this year, particularly in view of forthcoming US elections.

2. I told Manescu there was no existing legislative basis for government-to-government loan to Romania, and that any transaction of this nature would require action by Congress; it seemed to me that this would present many problems, and in any event could not be considered this year. In this connection I pointed out that EXIM Bankʼs authorized and pending credits for transactions with Romania are in neighborhood of 100 million dollars, and also that US has made Romania—alone among CEMA countries—eligible for OPIC programs. 3. Regarding package three, USG–GOR cooperation in African economic development, I said I understood that President Ceausescu raised this possibility during his private conversation with Secretary on July 6.⁴ Pointing out that US economic activity abroad involves mainly US private corporations, I again urged Manescu to provide a list of specific projects or areas of special interest to permit Department of Commerce to bring them to attention of US private firms interested in such trade and investment opportunities. I went on to say that whereas present legislation would not permit USG–GOR joint financing of aid activities, it might be possible to participate in multi-donor projects in Africa in which GOR was a participant. Referring to Secretaryʼs conversation with President Ceausescu on July 6, I said that, if relations should be re-established between US and Sudan in near future, a US aid program might be resumed in that country and, if so, there might be possibility of some procurement from Romania in connection with such a program.

4. Manescu thanked me for presentation and said he would inform GOR leadership fully. He said he had hoped that I would be giving him a “more positive answer,” but did not dwell on this disappointment. Instead, he said he understood fully difficulties of obtaining new legislation, particularly during election period, and said he hoped proposals could be re-examined after elections.

5. Manescu indicated that GOR gave highest priority to securing of long-term, low-interest government credits (second package) by stating this was of “great importance.” He expressed appreciation for increase in CCC credits extended to Romania, but indicated that need for these was no longer pressing (“we will study our needs”). (Comment: Manescu did not refer to current agricultural situation, but we think in view of greatly improved weather conditions since mid-April that earlier pessimistic crop forecasts no longer appear warranted.) Finally, Manescu said GOR was currently working on a study of possible economic projects in Africa (specialists are now in field studying possibilities first-hand). When this study is completed, GOR will be in a better position to identify specific areas of possible cooperation with US—either on multi-donor government aid project or in joint ventures with US firms. Manescu also expressed interest in possibility of supplying goods and services for use in aid programs.

6. At conclusion of meeting, Manescu referred to Secretaryʼs recent visit and continuing development of good relations between our two countries. However, he urged that both sides strengthen their efforts to do more to promote economic relations. He said that development of economic relations and trade is key to further development of relations in all other areas. He therefore hoped that 1973 would bring MFN and related disinvocation of Article XXXV of GATT.⁵

7. Comment: Although Manescu has been principally in Mangalia over past few weeks, undoubtedly deeply involved in preparations for national party conference, he has also visited Bucharest periodically and presumably could have arranged to see me earlier to receive reply to requests for USG assistance. He attended Independence Day reception and was present at Ceausescuʼs lunch for Secretary. Thus would appear that Manescu preferred to postpone meeting until after Secretaryʼs visit, being no doubt already aware of probable tenor of our replies to his three “packages.”

Meeker

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 703, Country Files, Europe, Rumania, Vol. IV., Jan 1972—Secret; Exdis.
2. Dated July 2; it instructed the Embassy to inform the Romanian Government that it was not eligible for P.L.–480 sales. (Ibid., RG 59, Central Files 1970–73, INCO WHEAT 17 ROM–US)
3. In telegram 1396 from Bucharest, April 28, Meeker reported that Manescu had presented an “appeal” for assistance in three areas. (Ibid.)
4. See footnote 8, Document 213.
5. For Article XXXV of GATT (61 Stat. [5] and [6]), signed October 31, 1947, see American Foreign Policy: Current Documents, 1947, p. 2955.