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Jack F. Matlock, Jr.'s Union of Soviet Socialist Republics (U.S.S.R.) Subject Files
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Matlock, Jack F.: Files Folder Title: Fisheries - USSR (2) Box: 25 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ WITHDRAWAL SHEET Ronald Reagan Library Collection Name MATLOCK, JACK: FILES Withdrawer JET 5/9/2005 File Folder USSR-FISHERIES 2/2 FOIA F06-114/7 YARHI-MILO Box Number 25 2518 ID Doc Type Document Description No of Doc Date Restrictions Pages 9823 MEMO MATLOCK TO MCFARLANE RE REVIEW 2 5/21/1984 B1 OF U.S.-USSR FISHING RELATIONSHIP [1 -2 ] R 6/25/2009 F2006-114/7 9824 MEMO KIMMITT TO HILL RE REVIEW OF U.S.- 1 ND B1 USSR FISHING RELATIONSHIP [3 -3 ] R 7/7/2008 NLRRF06-114/7 9831 MEMO HILL TO MCFARLANE RE REVIEW OF 3 4/28/1984 B1 US-USSR FISHING RELATIONSHIP [4 -6 - ] R 11/24/2009 F06-114/7 9825 MEMO MATLOCK TO MCFARLANE RE U.S.- 1 6/26/1984 B1 USSR FISHING RELATIONSHIP [7 -7 ] R 6/25/2009 F2006-114/7 Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. WITHDRAWAL SHEET Ronald Reagan Library Collection Name MATLOCK, JACK: FILES Withdrawer JET 5/9/2005 File Folder USSR-FISHERIES 2/2 FOIA F06-114/7 YARHI-MILO Box Number 25 2518 ID Doc Type Document Description No of Doc Date Restrictions Pages 9826 MEMO KIMMITT TO HILL RE U.S.-USSR 1 ND B1 FISHING RELATIONSHIP [8 - -8 ] R 7/7/2008 NLRRF06-114/7 9827 MEMO SAME TEXT AS DOC #9826 1 ND B1 [9 -9 ] R 7/7/2008 NLRRF06-114/7 9832 MEMO HILL TO MCFARLANE RE VIEW OF US- 2 6/18/1984 B1 USSR FISHING RELATIONSHIP [10 - 11 ] R 11/24/2009 F06-114/7 9828 MEMO SAME TEXT AS DOC #9823 2 5/21/1984 B1 [12 13 ] R 6/25/2009 F2006-114/7 Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. WITHDRAWAL SHEET Ronald Reagan Library Collection Name MATLOCK, JACK: FILES Withdrawer JET 5/9/2005 File Folder USSR-FISHERIES 2/2 FOIA F06-114/7 YARHI-MILO Box Number 25 2518 ID Doc Type Document Description No of Doc Date Restrictions Pages 9829 MEMO SAME TEXT AS DOC #9824 1 ND B1 [14 - 14 ] R 7/7/2008 NLRRF06-114/7 9833 MEMO SAME TEXT AS DOC #9831 3 4/28/1984 B1 [15 - 17 ] R 11/24/2009 F06-114/7 9830 MEMO KIMMITT TO HILL RE U.S.-USSR 1 7/3/1984 B1 FISHING RELATIONSHIP [25 25 ] R 7/7/2008 NLRRF06-114/7 Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. USSR 3447 Fishing MEMORANDUM NATIONAL SECURITY COUNCIL CONFIDENTIAL May21 1984 DECLASSIFIED ACTION NLRR F06-114/7 #9823 MEMORANDUM FOR ROBERT C. MCHARLANE JACK MATLOCK Jam BY as NARADATE 6/25/09 FROM: SUBJECT: Review of U.S.-USSR Fishing Relationship The interagency review of measures proposed last year by Congressman Breaux regarding the fisheries relationship with the USSR has been completed. You will recall that Breaux had proposed removing the Afghanistan sanction and restoring our bilateral fisheries relationship with the Soviets. Recently, we agreed with the Soviets to extend the existing fisheries agreement to December 31, 1985, but no allocation of fish was made to the USSR. Following the interagency review, State and Commerce recommend that two steps be taken: -- restore a directed allocation of 50,000 metric tons, conditioned on a Soviet commitment to increase the existing joint venture with an American firm commensurately; and -- permit further joint ventures providing there are no over- riding security problems. The IG considered a third step -- to seek renegotiation of the bilateral fisheries agreement at this time -- but concluded that this step should not be taken now, but should be kept under review with regard to the future development of political conditions. Discussion: The reasons given by the IG for restoring a small fisheries allocation to the Soviets (50,000 metric tons would be one tenth of the allocation they had before Afghanistan) and allowing further joint ventures are based on a judgment that these moves would be of benefit to the American fishing industry, which is currently depressed. Given the strong Congressional interest (from the Pacific Northwest and Alaska) in restoring the bilateral fisheries relationship and the desirability of maintaining a minimal framework for non-strategic economic interaction with the Soviets, I believe that the IG's recommendations should be approved eventually. CONFIDENTIAL Declassify on: OADR 2 CONF IDENTIAL 2 However, I believe that at the moment the timing is bad. The Soviets are still engaged in a major offensive in Afghanistan, and we face a possible tragedy in the Soviet handling of the Sakharov's hunger strike. I recommend, therefore, that State be requested to review its recommendation in light of the present political situation, and provide its views on whether a decision on this issue should be made now, or should be deferred in light of current additional strains in the U.S.-Soviet relationship. & SRS Lenczowski, Levine and Sestanovich concur. Recommendation: That you authorize transmittal of the attached Kimmitt-Hill memorandum, which requests State to review its recommendation in respect to timing. Approve Disapprove Attachments: Tab I Proposed Kimmitt to Hill memorandum Tab II Hill to McFarlane memorandum, April 28, 1984 CONF IDENTIAL CONFIDENTIAL 3447 NATIONAL SECURITY COUNCIL WASHINGTON. D.C. 20506 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: Review of U.S.-USSR Fishing Relationship (e) Since your memorandum of April 28, 1984, on this subject was sent, a number of additional strains have developed in the U.S.-Soviet relationship. These include the Soviet boycott of the Olympics, the intensification of the war in Afghanistan, and the steps taken against Mrs. Bonner and Academician Sakharov. (C) In view of the above, the Department's views are requested on the question of timing the President's decision on the fisheries matter. Specifically, should such a step be taken now, and if so, how should we explain a favorable decision on this matter in light of present circumstances? (C) Upon receipt of the Department's views on the timing question, the matter will be forwarded to the President for decision. (c) Robert M. Kimmitt Executive Secretary CONFIDENTIAL Declassify on: OADR DECLASSIFIED NLRR Fob-114/7 #9824 DV Gs NARA DATE 7/7/08 CONFIDENTIAL 3447 8412440 XR 8412439 United States Department of State 4 Washington, D.C. 20520 April 28, 1984 MEMORANDUM FOR MR. ROBERT C. McFARLANE THE WHITE HOUSE SUBJECT: Review of US - USSR Fishing Relationship The NSC on March 21, 1983, requested an interagency review of measures proposed by Congressman Breaux regarding the fisheries relationship with the USSR. Breaux's proposals would remove an Afghanistan sanction and restore our bilateral fisheries relationship. They are strongly supported by the fishing industry and other Senators and Congressmen from the Pacific Northwest and Alaska. We and the Soviets just agreed to extend the existing fisheries agreement for eighteen months, through December 31, 1985. The interagency review, interrupted by the KAL incident, has been completed. The concerned agencies (State and Commerce; NSC unable to attend) considered the following three steps: --granting the Soviets a directed fish allocation of approximately 50,000 metric tons to permit expansion of the existing joint venture based in Seattle. Prior to the Afghanistan invasion, the Soviets had a 500,000-ton allocation. A directed allocation would permit Soviet vessels to remain on station fishing when weather conditions require the smaller U.S. fishing boats to seek shelter. This would permit an expanded Soviet processing capability to remain in place for longer periods of time, which would benefit the joint venture. At present, Soviet vessels can only process U.S.-caught fish; --allow further joint ventures in other areas of the U.S. fishing zone as they are proposed, assuming there are no overriding security problems; --inform the Soviets we are prepared to renegotiate the US-Soviet fisheries agreement, with the possibility of negotiating an agreement to allow US fishermen access to Soviet fisheries. This would almost certainly require a large directed allocation to the Soviets in return. The IG determined that there are strong economic reasons to restore the fisheries relationship and that the current sanctions are imposing economic hardships on the U.S. fishing industry: -- The US firm currently involved in the existing joint DECLASSIFIED CONFIDENTIAL NLRR F06-114/7#9831 DECL: OADR BY RW NARA DATE 11/24/09 CONFIDENTIAL venture has stated that it expects to increase the joint venture operations by the amount of the direct allocation given to the USSR. The joint venture currently processes about 160,000 MT of US-caught fish annually, valued at $30 million, and involving 40 US vessels which otherwise would not be employed. An additional 50,000 MT caught by the joint venture would result in an estimated $8 million increase in proceeds to participating US fishermen. -- Establishment of new joint ventures with the Soviets in US waters would increase our leverage with other countries now fishing off the US coast (Japan and Korea) to expand cooperation with the US fishing industry. -- The US fishing industry is depressed and the impact from the joint ventures is substantial; the multiplier effect on local fish-related industries from each dollar earned by the present joint venture is estimated at four to one. -- There has been a significant reverse flow of technology and expertise to the US fishing industry from the Soviets as the result of the joint venture and our cooperative fisheries research programs. Restoration of Soviet fishing privileges would enhance our opportunities to take greater advantage of these benefits. The IG also concluded that forward movement would be consistent with the President's January 16 speech calling for a constructive dialogue with the Soviets. The fishing sanction on Poland has been removed and the restoration of Soviet privileges would underscore our commitment to review sanctions to ensure that US business interests are not unfairly penalized. Finally this action parallels negotiation of the the new LTA. The Departments of State and Commerce have concluded that we should now take the first two steps: restoring a directed allocation of 50,000 MT, conditioned on a Soviet commitment to increase the existing joint venture commensurately; and, permitting further joint ventures providing there are no overriding security problems. We would not publicly encourage new joint ventures, however. The allocation would be granted in at least two stages to permit observation of Soviet performance. It was deemed inappropriate to seek renegotiation of the bilateral fisheries agreement at this time. We will keep this step under review should political conditions permit our moving in that direction in the future. CONF IDENTIAL CONFIDENTIAL We now request NSC concurrence with the recommendations of the interagency review and that the matter be forwarded to the President for his review of all the options and decision. bor Executive Secretary USSR/72019 4877 MEMORANDUM NATIONAL SECURITY COUNCIL CONFIDENTIAL June 26, 1984 ACTION MEMORANDUM FOR ROBERT C. MCFARLANE FROM: JACK MATLOCK As SUBJECT: U.S. -USSR Fishing Relationship You will recall that State and Commerce recommended in April that the Soviets be granted a directed fishing allocation in the range of 50,000 tons and that expanded joint ventures be permitted if there are no overriding security problems. State was requested to examine the question of timing in view of the current overall U.S.-Soviet relationship (TAB III). On the timing question, State now recommends that we proceed at this time since the steps recommended are beneficial to U.S. firms and have strong Congressional support (TAB II). Since this is a very limited step, is responsive to domestic interests and consistent with our policy of trying to establish a better working relationship with the USSR, I believe the State/ Commerce recommendation is justified. It is, however, a close call. concless for Don Fortier Chris Lehman, Richard RZ Levine and John Lenczowski Steve Sestananch JL does not concur concur Telthough I agree with John L. This is yet another it th Recommendation: signals of weakness to but not the Krem/in for which with state's That you approve the Kimmitt-Hill Memorandum at Tab I approving we will the State/Commerce recommendation. press have to pay hich guidance, should not Approve Disapprove dearly at Som. be so forward point. we Attachments: eaning would enghange ) condition that Tab I Proposed Kimmitt to Hill memorandum joint venture be Tab II State's memorandum, June 18, 1984 expanded, 2) that Tab III Memorandum on this subject, May 21, 1984 held estoration Afghan only bach 10%, allocation from of and pre- Declassify 3) is we have DECLASSIFIED CONFIDENTIAL OADR NLRR F06-114/7 1*9825 on: because conditions prohibit. BY CN NARADATE 13/25/09 8 4877 NATIONAL SECURITY COUNCIL WASHINGTON. D.C. 20506 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: U.S.-USSR Fishing Relationship (c) The recommendations of the Departments of State and Commerce in the memorandum from Mr. Hill to Mr. McFarlane of April 28, 1984, have been approved. These steps are: 1. Restoration of a directed allocation of 50,000 metric tons, conditioned on a Soviet commitment to increase the existing joint venture with an American firm commensurately; and 2. Permission for further joint ventures providing there are no overriding security problems. ter Any steps taken should be coordinated in normal fashion with the appropriate internal security agencies. (c) (C) The proposed press release should be submitted to the NSC for approval. (c) (C) Robert M. Kimmitt Executive Secretary CONFIDENTIAL Declassify on: OADR DECLASSIFIED NLRR Fob 714/7 #9826 BY Cir NARA DATE 7/7/08 9 4877 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: U.S.-USSR Fishing Relationship (C) The recommendations of the Departments of State and Commerce in the memorandum from Mr. Hill to Mr. McFarlane of April 28, 1984, have been approved. These steps are: 1. Restoration of a directed allocation of 50,000 metric tons, conditioned on a Soviet commitment to increase the existing joint venture with an American firm commensurately; and 2. Permission for further joint ventures providing there are no overriding security problems. (C) Any steps taken should be coordinated in normal fashion with the appropriate internal security agencies. (C) Recommendations for public handling of the issue contained in Mr. Hill's Memorandum of June 18, 1984, are also approved. let (C) Robert M. Kimmitt Executive Secretary CONFIDENTIAL Declassify on: OADR DECLASSIFIED NLRR F06-114/7 #9827 BY Cir NARA not- 7/7/08 10 4877 S/S 8417472 XR 8417471 United States Department of State Washington, D.C. 20520 June 18, 1984 CONFIDENTIAL 55 MEMORANDUM FOR MR. ROBERT C. McFARLANE THE WHITE HOUSE SUBJECT: Review of US-USSR Fishing Relationship On May 23, the NSC requested the views of the Department of State on the question of the timing of the President's decision on partial restoration of the bilateral fisheries relationship with the USSR and, if such a step is to be taken now, on how we would explain a favorable decision in light of current strains on the bilateral relationship. The Department of State recommends that the President decide now on whether to grant the Soviets a directed fishing allocation in the range of 50,000 tons and permit expanded joint ventures, if requested, provided there are no overriding security problems. We do not believe that the President's decision should be delayed by the factors mentioned in your memo of May 23 because: 1) The war in Afghanistan will continue for years and our sanctions have made their point. While our sanctions policy as such remains in place, therefore, we should be willing to make specific exceptions that are in our interest, such as these. 2) The Olympic boycott is largely an example of the Soviet tendency to retreat into self-isolation and our policy purpose is to encourage the Soviets to constructive engagement with us through steps that are mutually advantageous, like these. 3) We are attempting to persuade the Soviets to take action in the Sakharov case through quiet diplomacy and international pressure rather than through bilateral economic sanctions. Implementation of steps to activate four bilateral agreements will be affected by developments in the Sakharov case. But in our view this logic does not extend to the whole agenda of relations such as arms control and economic relations. In particular, it does not extend to economic steps of clear benefit to us, like these. DECLASSIFIED CONFIDENTIAL NLRR FOR-114/7#9832 BY RW NARA DATE 11/24/09 CONFIDENTIAL - 2 - In their original recommendation of April 28, State and Commerce noted that this would be a carefully modulated step, which excluded renegotiation of a bilateral fisheries agreement at this time. Our recommendation was based on the fact that the proposed steps would be of direct economic benefit to the currently depressed US fishing industry and were strongly supported by relevant Congressional delegations. This continues to be the case as we recently confirmed with contacts on the Hill. In addition, our recommendation was based on our belief that we should maintain the structure of economic relations between the United States and the Soviet Union, expanding it those areas in which it is appropriate from a security and economic standpoint to do so. If the President decides to go forward, we recommend that we inform the Soviets here and in Moscow and do a low key public announcement. We believe that this course would enable us to present this action publicly as an example of the US policy of taking steps to increase exchanges of non-strategic goods as enunciated by the President in his June 4 speech. Our press guidance would underscore the benefits to the US fishing industry, noting US willingness to build upon existing structure in the US-USSR economic relationship where appropriate. for Charles Brickmley Hill Executive Secretary CONFIDENTIAL 12 3447 J MEMORANDUM NATIONAL SECURITY COUNCIL CONFIDENTIAL May21, 1984 DECLASSIFIED ACTION NLRR F06-114/7 #9828 MEMORANDUM FOR ROBERT C. MCHARLANE FROM: JACK MATLOCK 4am BY Ces NARADATE 6/25/09 SUBJECT: Review of U.S.-USSR Fishing Relationship The interagency review of measures proposed last year by Congressman Breaux regarding the fisheries relationship with the USSR has been completed. You will recall that Breaux had proposed removing the Afghanistan sanction and restoring our bilateral fisheries relationship with the Soviets. Recently, we agreed with the Soviets to extend the existing fisheries agreement to December 31, 1985, but no allocation of fish was made to the USSR. Following the interagency review, State and Commerce recommend that two steps be taken: -- restore a directed allocation of 50,000 metric tons, conditioned on a Soviet commitment to increase the existing joint venture with an American firm commensurately; and -- permit further joint ventures providing there are no over- riding security problems. The IG considered a third step -- to seek renegotiation of the bilateral fisheries agreement at this time -- but concluded that this step should not be taken now, but should be kept under review with regard to the future development of political conditions. Discussion: The reasons given by the IG for restoring a small fisheries allocation to the Soviets (50,000 metric tons would be one tenth of the allocation they had before Afghanistan) and allowing further joint ventures are based on a judgment that these moves would be of benefit to the American fishing industry, which is currently depressed. Given the strong Congressional interest (from the Pacific Northwest and Alaska) in restoring the bilateral fisheries relationship and the desirability of maintaining a minimal framework for non-strategic economic interaction with the Soviets, I believe that the IG's recommendations should be approved eventually. CONFIDENTIAL 2 However, I believe that at the moment the timing is bad. The Soviets are still engaged in a major offensive in Afghanistan, and we face a possible tragedy in the Soviet handling of the Sakharov's hunger strike. I recommend, therefore, that State be requested to review its recommendation in light of the present political situation, and provide its views on whether a decision on this issue should be made now, or should be deferred in light of current additional strains in the U.S.-Soviet relationship. SRS Lenczowski, Levine and Sestanovich concur. Recommendation: That you authorize transmittal of the attached Kimmitt-Hill memorandum, which requests State to review its recommendation in respect to timing. Approve Disapprove Attachments: Tab I Proposed Kimmitt to Hill memorandum Tab II Hill to McFarlane memorandum, April 28, 1984 CONFIDENTIAL CONFIDENTIAL 14 3447 NATIONAL SECURITY COUNCIL WASHINGTON. D.C. 20506 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: Review of U.S.-USSR Fishing Relationship (C) Since your memorandum of April 28, 1984, on this subject was sent, a number of additional strains have developed in the U.S.-Soviet relationship. These include the Soviet boycott of the Olympics, the intensification of the war in Afghanistan, and the steps taken against Mrs. Bonner and Academician Sakharov. (C) In view of the above, the Department's views are requested on the question of timing the President's decision on the fisheries matter. Specifically, should such a step be taken now, and if so, how should we explain a favorable decision on this matter in light of present circumstances? (C) Upon receipt of the Department's views on the timing question, the matter will be forwarded to the President for decision. (C) Robert M. Kimmitt Executive Secretary DECLASSIFIED CONFIDENTIAL NLRR F06-114/7 #9829 Declassify on: OADR BY Gs NARADATE 7/9/08 CONFINENTIAL 3447 8412440 XR 8412439 United States Department of State Washington, D.C. 20520 April 28, 1984 MEMORANDUM FOR MR. ROBERT C. McFARLANE THE WHITE HOUSE SUBJECT: Review of US - USSR Fishing Relationship The NSC on March 21, 1983, requested an interagency review of measures proposed by Congressman Breaux regarding the fisheries relationship with the USSR. Breaux's proposals would remove an Afghanistan sanction and restore our bilateral fisheries relationship. They are strongly supported by the fishing industry and other Senators and Congressmen from the Pacific Northwest and Alaska. We and the Soviets just agreed to extend the existing fisheries agreement for eighteen months, through December 31, 1985. The interagency review, interrupted by the KAL incident, has been completed. The concerned agencies (State and Commerce; NSC unable to attend) considered the following three steps: --granting the Soviets a directed fish allocation of approximately 50,000 metric tons to permit expansion of the existing joint venture based in Seattle. Prior to the Afghanistan invasion, the Soviets had a 500,000-ton allocation. A directed allocation would permit Soviet vessels to remain on station fishing when weather conditions require the smaller U.S. fishing boats to seek shelter. This would permit an expanded Soviet processing capability to remain in place for longer periods of time, which would benefit the joint venture. At present, Soviet vessels can only process U.S.-caught fish; --allow further joint ventures in other areas of the U.S. fishing zone as they are proposed, assuming there are no overriding security problems; --inform the Soviets we are prepared to renegotiate the US-Soviet fisheries agreement, with the possibility of negotiating an agreement to allow US fishermen access to Soviet fisheries. This would almost certainly require a large directed allocation to the Soviets in return. The IG determined that there are strong economic reasons to restore the fisheries relationship and that the current sanctions are imposing economic hardships on the U.S. fishing industry: -- The US firm currently involved in the existing joint DECLASSIFIED CONFIDENTIAL NLRRF06-114/7#9833 DECL: OADR BY RW NARA DATE 11/24/09 CONFIDENTIAL venture has stated that it expects to increase the joint venture operations by the amount of the direct allocation given to the USSR. The joint venture currently processes about 160,000 MT of US-caught fish annually, valued at $30 million, and involving 40 US vessels which otherwise would not be employed. An additional 50,000 MT caught by the joint venture would result in an estimated $8 million increase in proceeds to participating US fishermen. -- Establishment of new joint ventures with the Soviets in US waters would increase our leverage with other countries now fishing off the US coast (Japan and Korea) to expand cooperation with the US fishing industry. -- The US fishing industry is depressed and the impact from the joint ventures is substantial; the multiplier effect on local fish-related industries from each dollar earned by the present joint venture is estimated at four to one. -- There has been a significant reverse flow of technology and expertise to the US fishing industry from the Soviets as the result of the joint venture and our cooperative fisheries research programs. Restoration of Soviet fishing privileges would enhance our opportunities to take greater advantage of these benefits. The IG also concluded that forward movement would be consistent with the President's January 16 speech calling for a constructive dialogue with the Soviets. The fishing sanction on Poland has been removed and the restoration of Soviet privileges would underscore our commitment to review sanctions to ensure that US business interests are not unfairly penalized. Finally this action parallels negotiation of the the new LTA. The Departments of State and Commerce have concluded that we should now take the first two steps: restoring a directed allocation of 50,000 MT, conditioned on a Soviet commitment to increase the existing joint venture commensurately; and, permitting further joint ventures providing there are no overriding security problems. We would not publicly encourage new joint ventures, however. The allocation would be granted in at least two stages to permit observation of Soviet performance. It was deemed inappropriate to seek renegotiation of the bilateral fisheries agreement at this time. We will keep this step under review should political conditions permit our moving in that direction in the future. CONFIDENTIAL 17 CONFIDENTIAL We now request NSC concurrence with the recommendations of the interagency review and that the matter be forwarded to the President for his review of all the options and decision. Charles Executive Secretary U.S.-U.S.S.R. BCS Marine Resources Co., Inc. JAMES G. TALBOT CHAIRMAN OF THE BOARD JAMES G. TALBOT President Bellingham Cold Storage Co. Canal Place Office Park P.O. Box 895 192 Nickerson, Suite 307 Squalicum Waterway Seattle (206) 285-2701 Seattle, Washington 98109 U.S.A. Tel: (206) 285-6424 Bellingham, Washington 98227 (206) 733-1640 Telex: 277115 MRC UR or 328041 MRC SEA 20 WILLIAM N. MYHRE ATTORNEY AT LAW SUITE 500 1735 NEW YORK AVENUE. N.W. PRESTON, THORGRIMSON, WASHINGTON, D. C. 20006 ELLIS & HOLMAN (202) 628-1700 PHOTO POST CARD Kodak PLACE STAMP HERE ADDRESS Paper- Storage Capacity 138,000,000 Lbs. Freezing Capacity 2,000,000 Lbs. per day BELLINGHAM COLD STORAGE CO. PRODUCTS: BERRIES, VEGETABLES, Squalicum Waterway P.O. Box 895 FISH PRODUCTS. Bellingham, Washington 98227 CUSTOM PACKING OF KING CRAB, SHRIMP, HALIBUT AND SALMON Telephone: 206 733-1640 Ronald Reagan Presidential Library Digital Collections This is not a presidential record. This marker is used as an administrative marker by the Ronald W. Reagan Presidential Library Staff. This marker identifies that there was an object in this folder that could not be scanned due to its size. FILE 23 Gov. PISHERIES STATE DEPARTMENT PERMISSION TO ALLOW A SECOND SOVIET CITIZEN IN THE U.S. IS CRITICAL TO THE CONTINUED SUCCESS OF U.S./SOVIET JOINT VENTURE FISHING 1. The Continued Growth of Joint Venture Fishing with the USSR Requires an Increase in Soviet Management Personnel in the U.S. - Marine Resources Company International (MRCI) is a partner- ship between Bellingham Cold Storage (BCS), and Sovrybflot, a fishing enterprise of the Soviet Ministry of Fisheries. MRCI has one U.S. manager located in Nakhodka and Sovrybflot has one Soviet manager residing in Seattle. - The joint venture has grown dramatically: in 1978 two U.S. vessels caught and delivered to MRC less than 1,000 metric tons (MT) from the EEZ; last year 45 U.S. vessels delivered more than 160,000 MT (with ex-vessel payments to U.S. fisher- men valued at more than $25 million). - With the authorization of a 50,000 MT directed allocation to the Soviet Union last month, joint venture harvests are expected to increase by an equal amount bringing the 1984 levels to more than 200,000 MT, creating additional ex-vessel proceeds to U.S. fishermen of more than $8 million, and providing markets for at least 5 additional trawlers. - This dramatic increase in activity within the U.S. EEZ necessitates substantial additional management support on the part of both BCS and Sovrybflot; BCS is free to add personnel in the U.S., yet all of Sovrybflot's U.S. activities must be managed by a single person. - MRC knows of no other fishing joint venture of any size which has such an artificial limitation on management personnel in the jurisdiction in which the venture is operating; if MRC is to continue its growth it will be necessary to increase the number of Soviets in the Seattle office from one to at least two. - MRC is prepared to add another American in Nakhodka in recognition of the desired reciprocity between the two countries. - MRC anticipates that the second American will spend some time in Moscow where, in the highly-centralized Soviet system, all decisions are made. Fishing ventures from other countries which deal with the Soviet have offices there, to MRC's competitive disadvantage. 2. The State Department Has Been Reluctant to Grant Necessary Permission for Reasons Which are Unclear - MRC first explored possible staff expansion in its second season (1979) at which time the State Department advised 24 -2- MRC in writing that such a request would be justified if MRC's business doubled that year; State also required written assurances that the Soviets would authorize a second American to work in Nakhodka and that MRC would in fact employ an additional person there. - Even though the business increased nine-fold during 1979, for reasons of cost control MRC decided against adding two additional personnel at that time. - Now with product purchases having increased by a factor of 160 times over 1978 levels and anticipated to increase by a factor of more than 200 this year with the new allocation, MRC has again raised the request for a second Soviet citizen in Seattle. - On July 3, 1984 the State Department turned down MRC's request for a second Soviet citizen in Seattle in exchange for a second American in Moscow "for reasons of national interest" without further explanation; MRC now proposes to modify its request to locate the American in Nakhodka. 3. Allowing a Second Soviet in Seattle Will Further President Reagan's Recently Announced Objective of Encouraging Increased Contacts with the Soviet People - In speaking to the Smithsonian Conference on U.S.-Soviet Exchanges on June 27, 1984 President Reagan urged the broadening of opportunities for Americans and Soviet citizens to know each other better; in his words: The way governments can best promote contacts among people is by not standing in the way. Our administration will do all we can to stay out of the way and to persuade the Soviet government to do likewise. Now we know this won't happen overnight, but if we're to succeed, you must stay involved and get more Americans into wider and more meaningful contact with many more Soviet citizens. - With more than 3,000 American and Soviet fishermen working closely during much of the year in the North Pacific, MRC has probably taken a larger step toward this goal than any other company or organization in this country. - Permission for a second Soviet to reside in Seattle and the addition of a second American in Nakhodka would provide significant benefits to the fishing industry while furthering the stated goals of the administration. LUNT IDENTIAL filidish 4877 file assR-True assR- Trust 25 NATIONAL SECURITY COUNCIL WASHINGTON. D.C. 20506 VIA LDX July 3, 1984 CONFIDENTIAL Pin- chron MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: U.S. -USSR Fishing Relationship (C) The recommendations of the Departments of State and Commerce in the memorandum from Mr. Hill to Mr. McFarlane of April 28, 1984, have been approved. These steps are: 1. Restoration of a directed allocation of 50,000 metric tons, conditioned on a Soviet commitment to increase the existing joint venture with an American firm commensurately; and 2. Permission for further joint ventures providing there are no overriding security problems. (C) Any steps taken should be coordinated in normal fashion with the appropriate internal security agencies. (c) The proposed press release should be submitted to the NSC for approval. (C) Robut M. Kimmitt Robert M. Kimmitt Executive Secretary DECLASSIFIED CONFIDENTIAL Declassify on: OADR F06714/7 #9830 BY Cir NARA DATE 7/7/08 CONFIDENTINI 24 CONFIDENTIAL Press Release on US-USSR Fishing Relationship The President has decided to grant the USSR a directed fishing allocation in the U.S. exclusive economic zone of approximately 50,000 tons and we have so informed the Soviets. This decision is taken in the framework of continuing cooperation between the two countries in the fisheries area, and will directly benefit U.S. fishermen involved in an existing joint fishing venture. It will also provide them with enhanced opportunities to benefit from Soviet technology and expertise in fishing. This decision is consistent with the President's policy of promoting a constructive dialogue with the Soviet Union and facilitating non-strategic trade exchanges. CONF IDENTIAL DECL: OADR DECLASSIFIED Department of State Guidelines, July 21, 1997 By (vs NARA, Date 7/16/02 USSR Johng 27 5497 MEMORANDUM NATIONAL SECURITY COUNCIL CONFIDENTIAL July 18, 1984 ACTION MEMORANDUM FOR ROBERT C. McFARLANE FROM: JACK MATLOCK As SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship I have reviewed and revised the proposed press release prepared by the Department of State (Tab I). If you have no objection, Bob Kimmitt should forward the memorandum and amended release to State (Tab II). KS 20 SRS notavailable Karna Small, Phil Dur, Steve Sestanovich and Richard Levine concur. RECOMMENDATION That you approve the revised press release at Tab II. Approve Disapprove Attachments: Tab I Proposed press release and State's memorandum, dated July 16, 1984 Tab II Revised release and memorandum to State Department DECLASSIFIED CONFIDENTIAL Declassify on: OADR By White as House Guidelines, NARA, Date August 7/15/02 1997 S/S 8420025 XR8420024 28 United States Department of State 5497 Washington, D.C. 20520 July 16, 1984 CONEIDENTIAL MEMORANDUM FOR MR. ROBERT C. McFARLANE THE WHITE HOUSE SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship Attached is a proposed press release on the US-USSR fishing relationship for your clearance as requested in the Kimmitt-Hill memorandum of July 3, 1984. Barring any unforeseen developments, we now plan to inform the Soviets towards the end of this month and make our public announcement a day later. Charles For Hill Executive Secretary Attachment: As stated. DECLASSIFIED CONFIDENTIAL Department of State Guidelines, July 21, 1997 DECL: OADR By Cas NARA, Date 7/16/02 29 CONFIDENTIAL Press Release on US-USSR Fishing Relationship The President has decided to grant the USSR a directed fishing allocation in the U.S. exclusive economic zone of approximately 50,000 tons and we have so informed the Soviets. This decision is taken in the framework of continuing cooperation between the two countries in the fisheries area, and will directly benefit U.S. fishermen involved in an existing joint fishing venture. It will also provide them with enhanced opportunities to benefit from Soviet technology and expertise in fishing. This decision is consistent with the President's policy of promoting a constructive dialogue with the Soviet Union and facilitating non-strategic trade exchanges. CONFIDENTIAL DECL: OADR DECLASSIFIED Department of State Guidelines, By Cvs NARA, Date 7/16/02 30 CONFIDENTIAL 5497 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship (S/S 8420025 XR8420024) The attached press release on the U.S.-USSR fishing relationship and plans for its release have been approved. Robert M. Kimmitt Executive Secretary Attachment CONFIDENTIAL Declassify on: OADR DECLASSIFIED By White House as Guidelines, August NARA, Date 7/16/02 1997 CONFIRENTIAL CONFIDENTIAL Press Release on US-USSR Fishing Relationship The President has decided to grant the USSR a directed fishing allocation of approximately 50,000 tons in the U.S. exclusive economic zone, effective [date]. We have so informed the Soviet government. This decision is taken in the framework of the Governing International Fisheries Agreement and will result in the expansion of an existing joint venture, thereby directly benefiting the U.S. fishermen involved in it. It will also provide them enhanced opportunities to benefit from Soviet technology and expertise in fishing. The President's decision reflects his policy on non-strategic trade and his long-standing interest in a dialogue with the Soviet Union. This dialogue must address the full agenda of issues that concern us, including arms control and security, regional conflicts, human rights, trade and other matters. CONFIDENTIAL DECL: OADR DECLASSIFIED Department of State Guidelines, July By CVS NARA, Date 7/16/82 Matlock CONFIDUITIAL File 5497 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 July 23, 1984 CONFIDENTIAL MEMORANDUM FOR MR. CHARLES HILL Executive Secretary Department of State SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship (S/S 8420025 XR8420024) The attached press release on the U.S.-USSR fishing relationship and plans for its release have been approved. Raul Robert B M. Thompson Kimmitt Executive Secretary Attachment CONFIDENTIAL Declassify on: OADR DECLASSIFIED By Cs House Guidelines, August 28, 1997 NARA, Date 7/16/02 CONFIRMITIAL 33 CONFIDENTIAL Press Release on U.S.-USSR Fishing Relationship The President has decided to grant the USSR a directed fishing allocation of approximately 50,000 tons in the U.S. exclusive economic zone, effective [date]. We have so informed the Soviet government. This decision is taken in the framework of the Governing International Fisheries Agreement and will result in the expansion of an existing joint venture, thereby directly benefiting the U.S. fishermen involved in it. It will also provide them enhanced opportunities to benefit from Soviet technology and expertise in fishing. This decision is consistent with the President's policy of promoting a constructive dialogue with the Soviet Union and facilitating non-strategic trade exchanges. CONFIDENTIAL DECLASSIFIED Declassify on: OADR Department of State Guidelines, By CAS NARA, Date 7/16/02 1997 34 5497 MEMORANDUM NATIONAL SECURITY COUNCIL CONFIDENTIAL July 18, 1984 ACTION MEMORANDUM FOR ROBERT C. McFARLANE FROM: JACK MATLOCK SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship I have reviewed and revised the proposed press release prepared by the Department of State (Tab I). If you have no objection, Bob Kimmitt should forward the memorandum and amended release to State (Tab II). Karna Small, KS Phil Dur, Steve Sestanovich and Richard Levine 20 SRS notavailable concur. RECOMMENDATION That you approve the revised press release at Tab II. Approve pcm Disapprove Let's use States para 2 Attachments: Tab I Proposed press release and State's memorandum, dated July 16, 1984 Tab II Revised release and memorandum to State Department CONFIDENTIAL Declassify on: OADR By White CA House DECLASSIFIED Guidelines, August 28. 1997 NARA, Date 7/16/02 39 S/S 8420025 XR8420024 United States Department of State 5497 Washington, D.C. 20520 July 16, 1984 CONFIDENTIAL MEMORANDUM FOR MR. ROBERT C. McFARLANE THE WHITE HOUSE SUBJECT: Proposed Press Release on U.S.-USSR Fishing Relationship Attached is a proposed press release on the US-USSR fishing relationship for your clearance as requested in the Kimmitt-Hill memorandum of July 3, 1984. Barring any unforeseen developments, we now plan to inform the Soviets towards the end of this month and make our public announcement a day later. Bricking Hill Executive Sectétary Attachment: As stated. DECLASSIFIED Department of State Guidelines, July 21, 1997 By as NARA, Date 7/14/02 CONFIDENTIAL DECL: OADR CONFIDENTIAL Press Release on US-USSR Fishing Relationship The President has decided to grant the USSR a directed fishing allocation in the U.S. exclusive economic zone of approximately 50,000 tons and we have so informed the Soviets. This decision is taken in the framework of continuing cooperation between the two countries in the fisheries area, and will directly benefit U.S. fishermen involved in an existing joint fishing venture. It will also provide them with enhanced opportunities to benefit from Soviet technology and expertise in fishing. This decision is consistent with the President's policy of promoting a constructive dialogue with the Soviet Union and facilitating non-strategic trade exchanges. CONFIDENTIAL DECL: OADR DECLASSIFIED Department Crs of State Guidelines, July 21, 1997 NARA. Date 7/16/02 2sh File 37 PRESS RELEASE ON U.S.-USSR FISHING RELATIONSHIP The President has decided to grant the USSR a directed fishing allocation of approximately 50 thousand tons in the U.S. exclusive economic zone, effective in the near future. We have so informed the Soviet Government. This decision is taken in the framework of the Governing International Fisheries Agreement and will result in the expansion of joint fishing ventures with the U.S. fishing industry. This measure will provide greater employment opportunities and other benefits for U.S. fishermen. It will also give them enhanced opportunities to benefit from Soviet technology and expertise in fishing. Our approach is governed by our desire to promote the U.S. fishing industry. Additional cooperation on the U.S. part will require additional steps on the Soviet side to meet the needs of U.S. fishermen. This decision is consistent with the President's policy of promoting a constructive dialogue with the Soviet Union and facilitating nonstrategic trade exchanges.