269. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon1 2
SUBJECT:
- Special Sugar Allocation for the Dominican Republic
Acting Secretary Richardson in the memorandum at Tab B recommends that you
- 1. authorize a special allocation to the Dominican Republic of 50,000 short tons of sugar from the Puerto Rico deficit, provided the Dominican Government agrees to set aside at least 1–1/2 cents per pound for mutually agreed programs to diversify agricultural production; and
- 2. sign the directive to Secretary Hardin at Tab A to be implemented when the Dominican Government accepts the conditions.
You have authority in the Sugar Act to make special allocations. The legislative history singled out the Dominican Republic for special consideration in making deficit allocations, and such allocations have been made each year since the Sugar Act was passed in 1965.
The purpose of special treatment for the Dominican Republic was to provide additional support to the Balaguer government to help reestablish the economy following the severe political instability of the 1965–66 period. The Balaguer government, which has made good use of the additional help, still requires some special assistance, and has requested it again this year.
The special allocations to the Dominican Republic have been on a declining scale, however, and it is conscious policy to do this so as to wean the Dominican Republic from permanent dependence on such special treatment, while at the same time avoiding the traumatic impact of a sudden cut-off of aid. The recommended allocation of 50,000 short tons compares to the 1966, 1967 and 1968 allocations [Page 2] of 123,000, 105,000 and 75,000 tons respectively. Secretary Richardson states that it is State’s and Agriculture’s intention to phase out preferential treatment for the Dominican Republic by 1971, when the Sugar Act will expire.
While there has been some past criticism from other sugar producers over the preferential treatment granted the Dominican Republic, no serious criticism or problems are expected from the continuation of this allocation at the recommended level this year. On the contrary, evidence that the special allocations are being reduced should be welcomed by other hemisphere suppliers as evidence of our intention to move toward pro-rata reallocation of deficits.
The condition of setting aside a minimum of 1–1/2 cents per pound for agricultural diversification was accepted by the Dominican Government in connection with the 1968 special allocation, and President Balaguer has indicated to our Embassy approval of the stipulation if a special allocation is granted this year. It is State’s judgment that continuing the special allocation will contribute to economic and political stability and the evidence of our continued support of the constitutional government.
The Department of Agriculture is in full agreement with State’s recommendation. I concur.
Recommendation
1. That you approve Acting Secretary Richardson’s recommendations at Tab B.
Approve
Disapprove
See me
2. That you sign the directive to Secretary Hardin at Tab A.
- Source: National Archives, Nixon Presidential Materials, NSC Files, Box 783, Country Files, Latin America, Dominican Republic, Vol. I. Confidential. Sent for action. Kissinger initialed the memorandum. President Nixon approved Kissinger’s recommendation. Attached but not published at Tab A is a May 23 memorandum from the President to Secretary of Agriculture Hardin, which President Nixon signed. Attached but not published at Tab B is a May 14 memorandum from Acting Secretary of State Richardson to the President.↩
- Kissinger recommended that President Nixon approve a special sugar allocation for the Dominican Republic to support the Balaguer administration’s efforts at stabilizing the Dominican economy and demonstrate the continued United States support of the constitutional government.↩