47. Personal Note Prepared by the Deputy Secretary of State (Dam)1
[Omitted here is material unrelated to the Soviet Union.]
Today was the day that we decided to go public with our offer to the Soviet Union to negotiate a new long-term grain agreement.2 On April 7 Shultz had proposed to Dobrynin a negotiation of such a long-term agreement,3 but when we did not hear from the Soviets as to their willingness, the decision was to go public. The decision was taken [Page 161] for two reasons. First, the Hill and particularly the Democrats on the Hill were gaining the initiative in beating up on the Administration on the ground that we were not interested in a long-term grain agreement, an obviously high-powered issue in the farm states.4 Secondly, the danger of a leak grew as time passed, as more and more people came to know of the offer. There was, of course, reluctance within the Administration to take this step, because the ending of the five-year grain agreement had been one of the Polish sanctions. Of course, the sanction had been imposed by the Carter Administration, which had actually imposed an embargo, but nevertheless, the decision to negotiate a new agreement was a hard step to take. It was essentially thrust upon us by the politics of the situation, recognizing that the embargo and the cancellation of the agreement had not had any significant effect upon Soviet willingness to be moderate on Polish matters. On the other hand, it is not so clear that it has hurt the United States all that much, because the Soviets, in shifting to purchases from other wheat exporters, were at the same time creating new markets for U.S. exporters. That is to say, there is a single international wheat market. But in a period of over-supply and surpluses, it was difficult for the farm community to see the issue that way.
[Omitted here is material unrelated to the Soviet Union.]
- Source: Department of State, Executive Secretariat, S/S–I Records, Deputy Secretary Dam’s Official Files: Lot 85D308, Personal Notes of Deputy Secretary—Kenneth W. Dam—Oct. 1982–Sept. 1983. Secret. Dictated on April 22.↩
- In a statement released on April 22, the President announced: “we have proposed to the Soviet Union the negotiation of a new long-term grain agreement (LTA). We are taking this step to reaffirm our reliability as a supplier of grain. The present U.S.-Soviet long-term agreement, which originally covered the 1976–1981 period, was extended last September for a single year, through September 30, 1983. Negotiation of a new long-term agreement is consistent with United States agricultural export policy and reflects our commitment to reestablish the U.S. as a reliable supplier. Assuming the Soviets accept this proposal, these negotiations will be conducted by the U.S. Trade Representative in close coordination with the Secretary of Agriculture and the Secretary of State.” (Public Papers: Reagan, 1983, Book I, pp. 575–576) See also Foreign Relations, 1981–1988, vol. I, Foundations of Foreign Policy, Document 147, footnote 3.↩
- See Document 38. In an April 15 memorandum, Burt provided Dam with a full report on LTA actions and outstanding decisions. (Department of State, Executive Secretariat, S/S, Special Handling Restrictions Memos, 1979–1983, Lot 96D262, Super Sensitive April 1–17)↩
- See Documents 32 and 35.↩