expand the existing program of cultural, educational, scientific, and other exchanges between the United States and Rumania.33

9. The Governments of the United States of America and of the Rumanian People's Republic today raised the level of their diplomatic missions in Washington and Bucharest from Legations to Embassies. Ambassadors will be exchanged at an early date.84

At the conclusion of the meetings, Under Secretary Harriman and Vice-Chairman Gaston-Marin expressed the hope on behalf of their Governments that progress in carrying out the understandings reached would furnish the basis for a further broadening and improvement in the relations between the United States and Rumania.

Document V-12

Issuance of Export-Import Bank Short- and Medium-Term Credit Guarantees for Rumanian Purchases of All Types of United States Products and Services: LETTER FROM THE PRESIDENT (JOHNSON) TO THE PRESIDENT PRO TEMPORE OF THE SENATE (HAYDEN), JUNE 15, 1964 35

DEAR MR. PRESIDENT: In compliance with Title III of the Foreign Aid and Related Agencies Appropriation Act, 1964,36 this is to inform you that I have determined that it is in the national interest for the Export-Import Bank to issue guarantees in connection with the sale of United States products and services to Rumania. This determination is in addition to the determination relating to agricultural products of which I informed you on February 4, 1964 and is intended to cover all types of United States products and services.37

These guarantees will be limited to sales on short and medium term credits.

The Export-Import Bank will report the individual guarantees to the Congress as they may be issued.

"See post, doc. V-13.

24

The newly appointed Rumanian Ambassador in Washington (Bălăceanu) presented his credentials to President Johnson, Aug. 14, 1964. The nomination of the U.S. Minister in Bucharest (Crawford) to be Ambassador to Rumania was confirmed by the Senate, Jan. 15, 1965.

Department of State Bulletin, July 6, 1964, pp. 26-27. An identical letter was sent on the same day to John W. McCormack, Speaker of the House of Representatives.

See post, doc. VI-2.

Post, doc. VI-4.

Document V-13

Rumanian-United States Cultural Exchange Agreement for the Years 1965 and 1966, EFFECTED BY NOTES EXCHANGED AT WASHINGTON BY THE ASSISTANT SECRETARY OF STATE FOR EUROPEAN AFFAIRS (TYLER) AND THE RUMANIAN AMBASSADOR (BĂLĂCEANU), DECEMBER 23, 1964 38

YUGOSLAVIA

[See also ante, docs. V-3, 6, and footnote 8 to doc. VI-4, post.]

Document V-14

Termination of Foreign Assistance to Certain Countries, Including Yugoslavia, for Shipping Goods to Cuba: STATEMENT READ TO CORRESPONDENTS BY THE DIRECTOR OF THE OFFICE OF NEWS (PHILLIPS), DEPARTMENT OF STATE, FEBRUARY 18, 1964 39

Document V-15

Yugoslav-United States Educational Exchange Agreement, SIGNED AT BELGRADE BY THE AMERICAN AMBASSADOR (ELBRICK) AND THE YUGOSLAV FEDERAL SECRETARY FOR EDUCATION AND CULTURE (VIPOTNIK), NOVEMBER 9, 1964 40

36 TIAS 5739; 15 UST 2460; the Department of State Bulletin, Jan. 18, 1965, pp. 88-90.

39

Ante, doc. III-19. U.S. "residual economie assistance" to Yugoslavia during fiscal year 1963 was $100,000.

40 TIAS 5689; 15 UST 2081.

Part VI

THE SOVIET UNION

Document VI-1

Agreement Concerning Multilateral Settlements in Transferable Rubles and the Establishment of an International Bank for Economic Cooperation, SIGNED AT MOSCOW, OCTOBER 22, 1963, ENTERED INTO FORCE, MAY 18, 1964 1

A. Developments Affecting Soviet-American Relations [See also ante, doc. I-7; post, docs. X-3, 5, 15, 17, 18.]

Document VI-2

Authority for Issuance of Export-Import Bank Guarantees of Payment for United States Products Sold to Communist Countries: TITLE III OF PUBLIC LAW 88-258, APPROVED JANUARY 6, 1964 (EXCERPT) la

None of the funds made available because of the provisions of this Title shall be used by the Export-Import Bank to either guarantee the payment of any obligation hereafter incurred by any Communist country (as defined in section 620 (f) of the Foreign Assistance Act of 1961, as amended)2 or any agency or national thereof, or in any other way to participate in the extension of credit to any such country, agency, or national, in connection with the purchase of any product by such country, agency, or national, except when the President deter

1506 UNTS 197; English translation (506 UNTS 216). The Charter of the International Bank for Economic Cooperation is printed as an annex to the Agreement (506 UNTS 205); English translation (506 UNTS 231). The Agreement was signed by Representatives of Bulgaria, Czechoslovakia, the German "Democratic Republic," Hungary, Mongolia, Poland, Rumania, and the U.S.S.R. The head office of the Bank is in Moscow.

Ja H.R. 9499; 77 Stat. 862.

222 U.S.C. § 2370 (f); also, American Foreign Policy: Current Documents, 1963, pp. 1231–1232.

mines that such guarantees would be in the national interest and reports each such determination to the House of Representatives and the Senate within 30 days after such determination.

Document VI-3

"We Must Develop With Our Allies New Means of Bridging the Gap Between the East and the West": ANNUAL MESSAGE ON THE STATE OF THE UNION READ BY THE PRESIDENT (JOHNSON) BEFORE A JOINT SESSION OF THE CONGRESS, JANUARY 8, 1964 (EXCERPT)*

Document VI-4

Issuance of Export-Import Bank Credit Guarantees for Soviet and Eastern European Purchases of United States Agricultural Products: LETTER FROM THE PRESIDENT (JOHNSON) TO THE PRESIDENT PRO TEMPORE OF THE SENATE (HAYDEN), JANUARY 28, 1964 5

DEAR MR. PRESIDENT: In compliance with Title III of the Foreign Aid and Related Agencies Appropriation Act of 1964, this is to inform you that I have determined that it is in the national interest for the Export-Import Bank to issue guarantees in connection with the sale of United States agricultural products to the Union of Soviet Socialist Republics, Bulgaria, Czechoslovakia, Hungary, Poland and Rumania. The Bank will report the individual guarantees to the Congress as they are issued.

* Department of State Bulletin, Feb. 24, 1964, p. 298. An identical letter was sent on the same day to John W. McCormack, Speaker of the House of Representatives. Both letters were released Feb. 4, 1964.

Ante, doc. VI-2.

7 See ante, doc. V-12. For the text of a similar letter of Jan. 28, 1964, in connection with the sale of U.S. "products and services" to Yugoslavia, see the Department of State Bulletin, Feb. 24, 1964, p. 299.

Document VI-5

United States Willingness To Explore the Possibility of a LongTerm Trade Agreement With the Soviet Union: REPLY MADE BY THE PRESIDENT (JOHNSON) TO A QUESTION ASKED AT A NEWS CONFERENCE, MARCH 7, 1964 8

We would be very happy to explore that possibility [-a long-term trade agreement-1 with them [-Soviet officials-1.10 We have already concluded a wheat sale to them," and if they need additional wheat or anything else we have, we would be glad to discuss it with the appropriate officials at the appropriate time. I know of few things that the Soviet Union has that we are in need of, but it is a matter that we would be glad to pursue.

Document VI-6

The Need To Limit Credit to Five Years in Connection With Sales to the Soviet Union: STATEMENT MADE BY THE SECRETARY OF STATE (RUSK) BEFORE THE SENATE COMMITTEE ON FOREIGN RELATIONS, MARCH 13, 1964 (EXCERPTS) 12

A fundamental fact conditions our approach to the restriction of trade with the U.S.S.R. It is that the Soviet Union has a largely selfsufficient economy with a broad industrial base and a well-developed technology. Its major lags and deficiencies are largely in agriculture and in the consumer goods field. They are a direct reflection of the historic Soviet preoccupation with the development of heavy industry to provide a powerful military-industrial base. This self-sufficiency is particularly apparent with respect to Soviet advanced weapons technology and military production capability.

In overall size Soviet industry is second only to our own, and the Soviet economy is closer to self-sufficiency than even the vast economy of the United States. Certainly it is only marginally dependent upon the products of the free world. Soviet imports from all free

Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1963-1964, vol. I, p. 341.

Later in the news conference, President Johnson was asked whether he was "opening the possibility of a trade agreement between the Soviet Union and the U.S. such as the Russians have with some of the Western countries." He replied in the negative. (Ibid., p. 343.)

1o At a meeting in Moscow, Mar. 6, 1964, Alexei N. Kosygin, First Deputy Chairman of the Council of Ministers of the U.S.S.R., told Clarence D. Martin, Jr., U.S. Under Secretary of Commerce for Transportation, who headed a sevenman U.S. delegation to the U.S.S.R. on shipping, that the U.S.S.R. wanted a long-term trade agreement with the United States. (See The New York Times, Mar. 7, 1964.)

11 As of Feb. 6, 1964, sales of U.S. wheat to the U.S.S.R. since the 1963 authorization of such sales totaled 1,700,000 metric tons; see American Foreign Policy: Current Documents, 1963, pp. 525-527, 528–529.

12 Department of State Bulletin, Mar. 30, 1964, pp. 474–484.

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