TALKING POINTS FOR YOUR MEETING WITH MR. PETERSON ON FRIDAY, MAY 21

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-14-1-3-1
• Release Decision: RIFLIM
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: January 11, 2017
• Document Release Date: October 8, 2009
• Sequence Number: 3
• Publication Date: May 20, 1971
• Content Type: MEMO

No ObjectionDeclassification 2009/10/08 : LOC-HA11-3-1 , /d-# dt~
MLMUK1 NUUM IWr
NATIONAL SECURITY COUNCIL
SECRET]
May 20, -1971
MEMOR
NDUM FOR:
MR. KISSINGER I ORIGINAL_ Al
FROM:
ERNEST JOHNSTON sa:'k
RIC HARD T. KENNEDYI .
Talking Points for your Meeting with
Mr. Peterson on Friday, May 21
1. Generalized Tariff Preferences for Developing Countries
Mr. Peterson now holds an Operations Group memorandum for the
President on further preference decisions. (See Johnston's memorandum
of May 20 for NSC recommendations on the substance -Tab A.) (ou
should strongly encourage Peterson to forward the'niemorandurn to the
President soon so that legislation can be submitted promptly. (The EC
inaugura es its scheme on July 1.) Discourage as discreetly as possible
any CIE SRG meeting as unlikely to reach agency agreement and as a
cause for delay. Emphasize that we must go ahead with legislation
incorpor ting the President's decisions on a broad open scheme. This
is the on substantial chance we have to match the President's promises
to Latin merica. The Administration cannot back down on its commit-
ments. ( tans is counselling Peterson to delay and to meet Congressional
.criticism's by falling to a much more restrictive preference scheme. )
2.` China Trade Proposals
Pete son's reaction to the China trade package was to write directly
to the Pr sident (Tab 13) saying that if the President makes a generous
decision n China, which Peterson supports, the announcement should be
held up u til the President and Chuck Colson gain political mileage by
consultin with domestic interest groups. This is a very foggy proposal
and, of c arse, opens a strong possibility of leaks that would scoop the
White House announcement. The political credit will come anyhow. The
best domestic and international results will come from a strong dramatic
White House announcement. All the recommendations are for a generous
package. You now have the package for forwarding. Suggest to Peterson
that he and Colson consult now with the groups and find out what they want.
Then whe the announcement is made, immediately after the President's
decision, it will look that the President has heeded their suggestions.
ON-FILE NSC RELEASE INSTRUCTIONS APPLY
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3. Sugar Legislation
The House Agriculture Committee is causing serious foreign policy
damage with its sugar proposals. (See Nachmanoff's memorandum of
May 19 - Tab C.) The Committee adopted amendments :
-- Deducting $20 a ton penalties on sugar imports from countries
nationalizing U. S. properties or tuna boats (an amplified Grace
amendment);
-- Reallocating 2.00 to 250 thousand tons of sugar from the principal
sugar suppliers to several other sugar suppliers;
-- Reducing the Cuban reserve and removing its preference allocation
to OAS countries.
Explain to Peterson the necessity for a strong Administration effort to
reverse these actions. (He will have already talked with Rogers.) If
necessary we may have to withdraw Administration support for the sugar
bill if it alienates our sugar suppliers. (Both Peterson and Hardin would
resist this strongly. )
4. Clearances and Peterson Participation
Al Haig has assured Peterson that the NSC will send him documents
bearing on his responsibility. He also needs assurances on being brought
in on NSC issues that affect his work. He feels bypassed. (We have assured
his staff that we will work closely together, but because his staff is very
small, it will be difficult for operators to get quick response.) On the other
hand, his clearance record is also not perfect. (The Presidential instruction
concerning Ambassador Kennedy's textile mission is an example - Tab D;
and there also have been cables cleared without our knowledge.) Encourage
him to work closely with your staff and assure him that the NSC staff will
seek his views on economic issues.
5. Japan NSSM
Do not raise this subject. It is sore. Peterson has swallowed your
decision not to issue a new NSSM directing that the economic section of the
Japan study be submitted to the" CIEP before it goes to the NSC. He had
thought he had your promise to issue an amended NSSM. His staff, however,
is now participating in the work, and Al Haig has assured him that we will
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meet the substance of his request (making sure that the CIEP Review Group
can look at the economic issues before the SRG considers the paper in its
entirety), even if we do not issue the amendment (Tab E).
6. Your Representation at the CIEP Review Group
Peterson's Review is at Under Secretary level and he wishes to keep it
"Principals only" to the extent he can. This means General Haig would be
the NSC member. This could put an unreasonable burden on General Haig
both substantively and because of the demands on his time. Either the
appropriate geographic operator or your economic staff officer (depending
on the issue) should handle this for you. You might indicate that this is
the way you would like to be represented.
7. David Kennedy's Trip to the Far East and Europe
Kennedy returned from the Far East ten days ago and has now gone to
Europe. Ask Peterson's judgment on the prospects for successful textile
negotiations in the Far East as a result of the Kennedy trip. Peterson
wants to give the details directly to you.
8. Peterson's Inventory of Consultants and Studies
Peterson has asked for an inventory of all consultants and studies in
the economic area. Helms expressed concern to you at the possibility of
disclosing confidential relationships with the Agency (Tab F ). You might
explain to Peterson the nature of problems from CIA's viewpoint and
suggest he withdraw the request to CIA for their consultants. (You said
you would take Helms' problem up with Peterson. )
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