Foreign Relations of the United States, 1981–1988, Volume X, Eastern Europe

146. Telegram From Secretary of State Shultz to the Department of State and the Embassy in Romania¹

Secto 18070.

New York, October 3, 1986, 0424Z

SUBJECT

• Secretary’s Bilateral With Romanian Foreign Minister Totu, 10/1/85.

1. Secret—Entire text

2. Summary. The Secretary met for fifteen minutes October 1 with Romanian Foreign Minister Ioan Totu. The Secretary congratulated Totu on his recent appointment.² Both agreed that bilateral relations are healthy. The Secretary took note of recent Romanian commitments on human rights issues of interest to the U.S. The Foreign Minister conveyed a message from President Ceausescu to President Reagan, noted the importance of economic component of the bilateral relationship, and described the progress Romania is making in reducing its external debt. End summary.

3. The Secretary congratulated the recently appointed Foreign Minister on the assumption of his new portfolio. He said that he had had good relations with Totu’s two immediate predecessors with whom he had had a number of productive meetings. The Secretary described bilateral relations as healthy which makes it possible to develop them in a productive manner despite strains on individual issues. Noting that MFN and human rights issues had been the subject of a number of recent discussions between Romanian and U.S. officials, the Secretary stated he had been happy to learn of recent Romanian decisions to permit the printing of Protestant Bibles and to preserve three buildings of the Jewish community in Bucharest. He expressed the hope that the Romanians would adhere to these commitments because they are important to our bilateral relationship. The Secretary stressed that he made this point not to interfere in Romania’s internal affairs but to take note of positive developments which are occurring.

4. Responding to the Secretary, Totu expressed his appreciation for the opportunity to have a meeting and observed that he had the honor to bring personal greetings from President Ceausescu to President Reagan and best wishes for success to the American people. He stated that while he is new to the foreign affairs area, he has had the opportunity in the past to follow certain aspects of our bilateral relationship. Totu described bilateral relations as good, and he noted prospects for the future are even better. Totu observed that Romania gives priority to the economic aspect of the bilateral relationship, and expressed appreciation for administration efforts designed to ensure the continuation of MFN treatment for Romania.

5. Regarding MFN, the Minister pointed out that the need for renewal of MFN on an annual basis is a source of dissatisfaction for Romania. This process, he noted, leads to unhelpful and artificial discussions. In this context, the Minister stressed that Romania will remain faithful to commitments it has undertaken.

6. Totu observed that President Ceausescu had recently sent a message to President Reagan describing disarmament steps which Romania is taking.³ He said he was confident that in time Ceausescu would receive an answer. The Secretary replied that the contents of the letter are being carefully studied.

7. Turning to Romania’s economic problems, Totu said the country’s hard currency debt has been reduced to dollars 5.8 million through the efforts of the entire population. Debt obligations will peak in 1987, and Romania will need to make a major export effort to meet them. Totu regretted that many people are minimizing the efforts the GOR is making to control the level of its hard currency debt.

8. In the context of the debt question, Totu said the GOR has a good relationship with the commercial banks which approach their dealings with Romania in a flexible manner. He noted that the GOR has found a better understanding for its debt problems from the banks than from the IMF, which has been quite rigid. According to the Minister, the irony of the situation is that Romania is a member of the IMF.

9. Totu described Romania’s relations with the USSR as normal. He said that the GOR will continue to pursue its independent policies, since there is no need to change. He stressed that Romania will continue to be an active participant in international affairs, a course which is dictated by the country’s prestige.

Shultz

1. Source: Reagan Library, Secretary George Shultz Papers, Memoranda of Conversations of Secretary Shultz (1986) (09/05/1986–11/26/1986). Secret; Immediate; Exdis. Also sent to the Mission to the United Nations. Shultz was in New York for the UN General Assembly.
2. Totu became Romanian Foreign Minister in August 1986.
3. See Document 145.