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66328747
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Grain Embargo
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66328747
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Grain Embargo
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Records of the Office of the Chief of Staff (Reagan Administration)
James Cicconi's Subject Files
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1985-12-31
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1985
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1981
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WITHDRAWAL SHEET
Ronald Reagan Library
Collection: Cicconi, James W.: Files
Archivist: kdb
OA/Box:
Box 9
FOIA ID: F1997-066/6, D. Cohen
File Folder: Grain Embargo
Date: 08/11/2004
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
& TYPE
1. memo
Donald Regan to William Clark re 7/26/82 meeting of Senior
7/26/82
B1
Interagency Group on International Economic Policy [w/notations],
B3
1p PAr 10/23/07 NLRRF97 -066/9 # 18
2. note
to Jim Baker, 1p [Item is still under review under the provisions of EO
7/27/82
13233]
3. draft
re John Block preferred guidance, 1p [Item is still under review under
7/27/82
the provisions of EO 13233]
RESTRICTIONS
B-1 National security classified information [(b)(1) of the FOIA].
B-2 Release could 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 commercial 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-7a Release could reasonably be expected to interfere with enforcement proceedings [(b)(7)(A) of the FOIA].
B-7b Release would deprive an individual of the right to a fair trial or impartial adjudication [(b)(7)(B) of the FOIA]
B-7c Release could reasonably be expected to cause unwarranted invasion or privacy [(b)(7)(C) of the FOIA].
B-7d Release could reasonably be expected to disclose the identity of a confidential source [(b)(7)(D) of the FOIA].
B-7e Release would disclose techniques or procedures for law enforcement investigations or prosecutions or would disclose guidelines which could reasonably be
expected to risk circumvention of the law [(b)(7)(E) of the FOIA].
B-7f Release could reasonably be expected to endanger the life or physical safety of any individual [(b)(7)(F) 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.
CHINA
GRAIN
1
/ year extrusion
2
Rain - minimum (from - to
there consultation
process with Loviets -
up to 15mm metric tons,
subject to Pres' OK.
(#2)
Letter not announced
until after initial critact
so we don't get a turndorm Soviet from
GRAIN STATEMENT OPTIONS:
1.
I have authorized the Secretary of Agriculture to
propose an extension for one year of the existing
no
NSC/State
grain agreement with the Soviet Union. I have
reference
further authorized the Secretary of Agriculture to
to "limits"
consult with the Soviet Union, as normally con-
ducted under the agreement, with respect to
purchasing additional amounts of grain beyond
those specified in the agreement.
2.
I have authorized the Secretary of Agriculture to
USDA4
propose an extension for one year of the existing
authorizes
others, plus
grain agreement with the Soviet Union. I have
raising the
further authorized the Secretary of Agriculture to
limits in
WH Political
consult with the Soviet Union, as normally con-
the
& legislative
ducted under the agreement, with respect to
agreement
offices
raising the current minimum level for grain
608"
purchases beyond that which is specified in the
agreement.
3.
I have authorized the Secretary of Agriculture to
reference
Compromise
propose an extension for one year of the existing
to higher
grain agreement with the Soviet Union. I have
(inits, but
further authorized the Secretary of Agriculture to
only on
consult with the Soviet Union, as normally conducted
"addi "additional tional
under the agreement, with respect to higher limits
purchases
on purchases of additional amounts of grain beyond
those specified in the agreement.
beyond the
"648"
limits in
the
agreement
No DIS
DEPARTMENT
1
AMERICANT
THE SECRETARY OF THE
TREASURY
B3
1111
RT
WASHINGTON
1744
July 26, 1982
MEMORANDUM FOR: WILLIAM P. CLARK
ASSISTANT TO THE PRESIDENT FOR
NATIONAL SECURITY AFFAIRS
SUBJECT:
Meeting of the Senior Interagency Group
on International Economic Policy (SIG-IEP),
July 26, 1982
At the meeting of the SIG-IEP today, the group decided
as follows:
-- The majority recommended that the Secretary of
Agriculture be authorized to propose a simple extension of the
Grain Agreement for one year.
-- The majority further recommended that after the
Agreement is extended, the Secretary of Agriculture will be
Raisew/
authorized, pursuant to the Agreement, to consult with the
Soviets as to possible purchase of higher amounts than those
Societ
provided for in the Agreement. While all participants could
possibility
accept this result, the Secretary of Agriculture would have
OF
preferred attempting to get from the Soviets agreement to
auth
higher minimums as part of the one-year extension of the
Agreement, and the Secretary of Defense would have preferred
letting the Agreement lapse.
-- The group also recommended that, before announcement
J
high
of any decision, discussion with allies should take place and,
ands.
therefore, if possible, the announcement should be delayed until
at least August 2.
Voting for their agencies were the following:
Secretary Regan
Treasury
Gradia
Secretary Weinberger
Defense
Under Secretary Buckley
State
Secretary Block
Agriculture
Bapalis
Secretary Baldrige
Commerce
Director Stockman
OMB
Dimean
Jerry Jordan
CEA
David Macdonald
USTR
DECLASSIFIED IN PART
Roger Porter
OPD
NLRR 197-066/9 #18
CIA
BY CH NARA DATE 18/23/17
[(int.) DTR
Donald T. Regan
Classified by MELeland
SECRET
Review for declassification
26. 1988.
National Security Decision
Directive Number
U.S. -USSR GRAIN AGREEMENT
I have authorized the Secretary of Agriculture to propose an
simple extension for one year of the existing grain agreement
with the Soviet Union. I have further authorized the Secretary
of Agriculture to consult with the Soviet Union, as normally
(raspecting limits and and
conducted under the agreement, as to possible purchases of
higher amounts of grain boyond the 8-m. 8 motric ton levels
bryond there specificied in the agreement. The Suntary is not authorized to :
myotiate a new long term grain agreemen with the fouid Union
MARTY
C-8mm
FELOSIEIN
00000000000000
ALAN
GREENSBAN
Min. R 15
wriston for
VOLKER
(15- - 20mmt) mmt)
THE WHITE HOUSE
WASHINGTON
I have authorized the Secretary of Agriculture to propose an
extension for one year of the existing grain agreement with
the Soviet Union. I have further authorized the Secretary of
Agriculture to consult with the Soviet Union, as normally
with
sespect
TO
conducted under additional the agreement, respecting limits and possible
purchases of higher amounts of grain beyond those specified
in the agreement. The Secretary is not authorized to negotiate
a new long-term grain agreement with the Soviet Union.
THE WHITE HOUSE
WASHINGTON
I have authorized the Secretary of Agriculture to propose an
extension for one year of the existing grain agreement with
the Soviet Union. I have further authorized the Secretary of
Agriculture to consult with the Soviet Union, as normally
conducted under the agreement, rospecting limits and possible
purchases of higher amounts of grain beyond those specified
in the agreement. The Secretary is not authorized to negotiate
a new long-term grain agreement with the Soviet Union.
THE WHITE HOUSE
WASHINGTON
I have authorized the Secretary of Agriculture to propose an
extension for one year of the existing grain agreement with
the Soviet Union. I have further authorized the Secretary of
Agriculture to consult with the Soviet Union, as normally
conducted under the agreement, respecting limits and possible
purchases of higher amounts of grain beyond those specified
in the agreement. The Secretary is not authorized to negotiate
a new long-term grain agreement with the Soviet Union.
July 27, 1982
NOTE FOR JIM BAKER:
The result of a few quick calls with respect to grain
suggests that no one has seen the SIG-IEP memo. The
following people believe that the Administration
position should be a one year extention of the grain
agreement and an authorization for the Secretary of
Agriculture to consult with respect to limits and
higher purchases of grain. "
Baldrige/DOC
Brock/USTR
Donovan/DOL
Edwards/DOE
Lewis/DOT
Harper/OPD
Duberstein
Rollins
Note: Baldrige, MacDonald (USTR) and Harper all
indicated that they had "fought" for "higher limits"
during the meeting.
DRAFT ANNOUNCEMENT OF DECISION ON U.S.-USSR GRAIN AGREEMENT
The U.S. -Soviet grain agreement, which has governed our grain
trade with the Soviet Union since 1976, is due to expire
September 30. After discussion in the Cabinet, I have authorized
the Secretary of Agriculture to propose to the Soviet Union a
simple one-year extension of the existing grain agreement. I have
further authorized the Secretary of Agriculture to consult with
the Soviet Union, as normally conducted under the agreement as
Snain
to possible purchases of higher amounts than the 8 m. metric
tons
specified in the agreement.
In this decision, I have ruled out any negotiation of a new
long-term agreement. On December 29th, I postponed such nego-
tiations until the Soviet Union indicates that it is prepared to
permit the process of reconciliation in Poland to go forward and
demonstrates this desire with deeds and not just words. My
decision reinforces this objective. The Soviets should not be
afforded the security of a new long-term grain agreement as long
as repression continues in Poland.
I lifted the grain embargo, imposed by the previous
Administration, in spring of 1981 because it was not having the
desired effect of seriously penalizing the USSR for its brutal
invasion and occupation of Afghanistan. Instead, alternative
suppliers of this widely available commodity stepped in to make
up for the grain which would have been normally supplied by U.S.
farmers. These developments substantially undercut the tremen-
dous sacrifices of our farmers and I vowed at that time not to
impose a grain embargo unilaterally unless it was part of a
general cut-off of trade between the U.S. and the Soviet Union.
- 2 -
Our farmers therefore can be assured that they will continue
to have a fair opportunity to export grain to the USSR on a
cash or cash-equivalent basis. This decision today preserves
the framework in which this trade occurs.
Press Conference (if asked) July 28, 1982
Q:
Have you decided to review the grain agreement and
if so, does this conflict with your sanctions policy
toward Poland?
A:
-- On December 29th, along with the other sanctions
imposed against the Soviet Union, I postponed
negotiations of a new long-term grain agreement.
-- There has been no change in the situation in Poland
that would warrant any change in this particular
sanction.
-- The existing grain agreement with the Soviet Union
will therefore continue in place for another year.
White House Statement
August 2, 1982
77 see Robinson draft
Suty agri. with
Sovide as a pun. higher must
1 / Ger mty 7 facture going
nan- write up the grain disin
USDA
Consultations vs. Negotiations
7127
Consultations are provided for under terms of existing agreement.
The Secretary of Agriculture has authority to call for these
consultations. Consultations were held last spring and last
fall with the Soviets.
According to my memorandum of July 23, 1981, the lead roll for
negotiations is entrusted to the United States Trade Represent-
ative. If these were negotiations, the United States Trade
Representative would conduct them. We would be entering a very
extensive and time-consuming process possibly working for
additional commodities such as soybeans, flour or soybean meal.
The term of the agreement would be multi-year. The current
agreement covers only feed grains and wheat.
There is a substantial distinction between a simple extension
for one year with realistic limits and negotiating a whole new
long-term agreement.
Block
negotiating
regarding the
the I
The Secretary is directed to contact the Soviets under terms
of the existing trade agreement for consultation. He is given
authority to discuss our future trade relationship, to
explore the possibility for an extension of the current agree-
ment for another year, and consideration of amending the
minimum and maximum sales to reflect more realistic updated
levels. It would be reasonable to discuss the possibility
of increasing the minimum level to somewhere between
12 and 15 MMT. The Secretary is authorized to consummate
an extension with the appropriate amendment if mutually
agreed.
From: J. Block
prefered guidance - 7/27/82
The Secretary is directed to contact the Soviets under terms
of the existing trade agreement for consultation. He is given
authority to discuss our future trade relationship, to
explore the possibility for an extension of the current agree-
ment for another year, and consideration of amending the
minimum and maximum sales to reflect more realistic updated
levels. It would be reasonable to discuss the possibility
of increasing the minimum level to somewhere between
12 and 15 MMT. The Secretary is authorized to consummate
an extension with the appropriate amendment if mutually
agreed.
CAll Block AT 11:00 A.M
Fuller hAs COPY -