US Economic Statecraft for Survival 1933-1991 Part 11

105 Eisenhower Lib., Oral History interview, Denis Fitzgerald Deputy Director International Cooperation Administration, pp. 345.

106 FRUS, 195557, vol. x, pp. 4201, Kalijarvi to Secretary of State, 5 March 1957.

107 Ibid., pp. 4218, and 42832, 315th NSC meeting 6 March 1957, and NSC 5704/1, Statement of US Economic Defense Policy, 8 March 1957, the review of economic defence policy was finally completed on 16 September 1957 and took the form of NSC 5704/3.

108 Ibid.

109 Ibid., p. 425, 315th NSC meeting, 6 March 1957.

110 Randall Journal, box 4, folder: CFEP 1957, 15 May21 June, entry 15 May.

111 FRUS, 195557, vol. x, p. 467, Macmillan to Eisenhower, 29 May 1957.

112 Randall Journals, box 4, file: CFEP 1957, 15 May20 June 1957, entry 22 May.

113 Four years later Macmillan said of COCOM restrictions: 'The whole idea was ridiculous in itself and particularly so to the United Kingdom, 40 per cent of whose gross national product was accounted for by overseas trade.' Quoted from L.V. Scott, Macmillan, Kennedy and the Cuban Missile Crisis: Political, Military and Intelligence Aspects (Macmillan, Basingstoke, 1999), p. 26, citing source, PRO, PREM, 11/3689, Record of Conversation, 24 June 1962.

114 Randall Journals, box 5, file CFEP 1958, 12 June22 July, entry 12 June 1958; Fungiello, American-Soviet Trade, pp. 10912.

115 Randall Journals, box 5, file CFEP 195859 26 December3 February, entry 23 Jan. 1959.

116 Ibid., 14 April27 May, entry 1 May 1959.

7 Thinking about change: the Kennedy and Johnson Administrations 1 Gary Wills, The Kennedy Imprisonment: A Meditation on Power (Pocket Books, New York, 1983); James N.Giglio, The Presidency of John F.Kennedy (Kansas UP, Lawrence, 1991); R.E.Neustadt, Presidential Power: The Politics of Leaders.h.i.+p From Roosevelt to Reagan (Free Press, New York, 1990); Arthur Schlesinger jr., The Imperial Presidency (Popular Library, New York, 1974).

2 Walt W.Rostow, The Stages of Economic Growth: A Non-Communist Manifesto (Cambridge UP, London, 1969), p. 105.

3 Giglio, Presidency, p. 94; Thomas G.Patterson, (ed.) Kennedy's Quest for Victory: American Foreign Policy 196163 (Oxford UP, New York, 1989).

4 JFK Lib., NSF box 176, folder: USSR General: US Relations with the Soviet Bloc 5/25/61 Edwin Martin to McGeorge Bundy 25 May 1961, subject: review of US relations with the Soviet Bloc.

5 Ibid., box 310, folder: trade East-West 10/6311/63, action circular, Rusk, 14 Oct. 1963.

6 Dobson, 'Kennedy Administration'.

7 Lyndon B.Johnson Library (hereafter LBJ Lib.), NSF, NSC Meetings box 1, folder: vol. 1 tab 8, 4/16/64, McGeorge Bundy memo for Johnson, 14 April 1964; ibid., NSF Committee File box 16, folder: Miller Committee Meetings, 45, 1819, 2526 March 1965, a.s.sistant Secretary for International Affairs Dorothy Jacobson to Fried, 16 March 1965 re ECRB chairmans.h.i.+p and need to refer matters to Kennedy.

8 Some FRUS references in this chapter are taken from the on-line version at the Department of State website; instead of page numbers they are located by doc.u.ment number. FRUS 19613, vol. ix, doc. 298, memo by Bohlen to Bowles on meeting with Secretary Hodges, 7 April 1961.

9 Contrasting a.n.a.lyses of Kennedy's performance are in R.J.Williams and D.A. Kershaw, 'Kennedy and Congress: The Struggle for the New Frontier', Political Studies, 27, 1979; and J.Hart, 'Kennedy, Congress and Civil Rights', Journal of American Studies, 13, 1980, pp. 16578.

10 Thomas W.Zeiler, American Trade and Power in the 1960s (Columbia UP, New York, 1992), p. 48.

11 Ibid., p. 49; William S.Borden, 'Defending Hegemony: American Foreign Economic Policy', in Paterson, Kennedy's Quest, p. 63, describes Kennedy as being 'obsessed' with the balance of payments problem. George W.Ball, The Past Has Another Pattern: Memoirs (Norton, New York, 1982), p. 205 describes Kennedy as brooding over the problem and says that this was exacerbated by his father's pessimistic views.

12 LBJ Lib. NSF Intelligence Estimates boxes 15, folder: 1160 USSR. ME No. 11 460, 1 Dec. 1960; Frank Costigliola, The Failed Design: De Gaulle and the Struggle for Europe', Diplomatic History, 8 (3), (1984), pp. 227251. 13 David Halberstam, The Best and the Brightest (Random House, New York, 1973). 14 For details of Kennedy's problems with high-level Cold War strategy, see Michael Beschloss, The Crisis Tears: Kennedy and Krushchev 19601963 (Harper Collins, New York, 1991).

15 JFK Lib. NSF box 328, folder: NSAM 22, Kennedy to Rusk, 6 Feb. 1961; Adler-Karlsson, Western Economic Warfare, p. 101.

16 Rostow, Stages of Economic Growth.

17 LBJ Lib. Vice Presidential Papers, Security File box 7, 'Basic National Security Policy', 26 March 1962, quoted in Gaddis, Containment, p. 214.

18 Theodore C.Sorensen, Kennedy (Harper Row, New York, 1965), p. 678.

19 JFK Lib. NSF box 297, folder: Foreign Economic Policy Task Force Report 12/31/60, Report to Kennedy from George Ball.

20 Ibid.

21 Ibid.

22 Ibid.

23 Ibid., NSF box 328, folder NSAM 22, Kennedy to Rusk, 6 Feb. 1961.

24 Ibid., box 296, folder: Export Control policy 5/18/615/28/63, Rowland Burnstan, a.s.sistant Secretary for International Affairs to Secretary Hodges, 18 May 1961.

25 Ibid., box 176, folder: USSR General, US Economic Relations with the Soviet Bloc 5/25/61, 25 May 1961, Edwin Martin to McGeorge Bundy, subject 'Review of United States Economic Relations with the Soviet Bloc', paper prepared under authority of George Ball.

26 Ibid.

27 The Food for Peace Program was started in 1954 with the pa.s.sage of PL 480. For the struggle that Kennedy had with Congress to try to get MFN for Yugoslavia and Poland, see A. Paul Kubricht, 'Politics and Foreign Policy: A Brief Look at the Kennedy Administration's Eastern European Diplomacy', Diplomatic History, 11 (i), 1987, pp. 5565, which also clearly shows the continuity between some of the ambi-tions of the Kennedy Administration, and Johnson's later bridge-building strategy for Eastern Europe.

28 JFK Lib., NSF, box 176, folder: USSR General, US Economic Relations with the Soviet Bloc 5/25/61, 25 May 1961, Edwin Martin to McGeorge Bundy, subject 'Review of United States Economic Relations with the Soviet Bloc', paper prepared under authority of George Ball.

29 Dobson, 'Kennedy Administration'.

30 JFK Lib. NSF box 176, folder: USSR General: US Foreign Relations with the Soviet Bloc 5/25/61.

31 Ibid.

32 Ball, Past, p. 201.

33 Fungiello, American-Soviet Trade, ch. 6, has much detail on this. For different interpretations of congressional disposition see JFK Lib. NSF box 296, folder: Export Control Policy 5/18/615/28/63, Hodges memo for NSC 16 July 1962 and ibid., Rusk memo for NSC 10 July 1962.

34 FRUS 19613, vol. ix, doc. 302, memo Hodges to Rusk and McNamara, 18 Sept.

1961.

35 Ibid.

36 JFK Lib., Behrman Papers box 6, folder: East-West Trade Reports 1/6211/63, Behrman to Hodges, 24 Jan. 1962.

37 Ibid., summary minutes of meeting Interdepartmental Committee of Under Secretaries on Foreign Economic Policy, 10 Jan. 1962.

38 Ibid.

39 Ibid., Behrman to Hodges, 24Jan. 1962.

40 FRUS 19613, vol. ix, doc. 306, Hodges to Ball 14 February 1962.

41 Ibid., doc. 307, US-UK East-West trade talks, 27 Feb. 1962 The COCOM review was concluded on 13 July 1962 with results that in fact turned out to be 'highly satisfactory' from the US standpoint, see Ibid., doc. 315, 31 July 1962.

42 Ibid., NSF box 296, folder: Export Control Policy 5/18/615/28/63, Hodges to Kennedy 10 July 1962, paper presented to NSC meeting 503, 17 July 1962.

43 Ibid.

44 Ibid.

45 Ibid., and at same location, for problems on backlog awaiting licensing decisions, see memo Director Export Policy Staff Commerce Department to Chairman Advisory Committee on Export Policy, 11 July 1962.

46 Ibid., Rusk memo for NSC, 10 July 1962.

47 Ibid.

48 Ibid.

49 Thomas J.Shoenbaum, Waging Peace and War: Dean Rusk in the Truman, Kennedy and Johnson Years (Simon & Schuster, New York, 1988), p. 325.

50 JFK Lib. NSF box 296, folder: Export Control Policy 5/18/615/28/63, Hodges memo for NSC, 16 July 1962, and FRUS 19613, vol. ix, doc. 310, Hodges to JFK, 10 July 1962.

51 Ibid.

52 Ibid.

53 Ibid., Rusk memo for NSC, 16 July 1962, enclosure 2.

54 FRUS 19613, vol. ix, doc. 313, NSC meeting 17July 1962.

55 Ibid., doc. 317, Rusk to Hodges, 5 Sept. 1962.

56 Bruce W.Jentleson, Pipeline Politics: The Complex Political Economy of East-West Trade (Cornell UP, Ithaca, 1986), pp. 1045, comes to more or less the same conclusions about Hodges' victory, but he fails to note the subsequent rearguard action by Rusk.

57 Section 402 Foreign a.s.sistance Act, July 1963 allowed the President to continue MFN with Poland and Yugoslavia.

58 JFK Lib. POF box 88a, folder: State Department, 1/63, Kennedy to Rusk and his reply, 22 and 29 Jan. 1963.

59 Ibid., NSF box 310, folder: Trade East-West 8/639/63, Kennedy to ECRB, 16 May 1963.

60 Ibid., box 296, folder: Export Control Policy 5/18/615/28/63, Kennedy to Hodges, 16 May 1963; box 30510, folder: Trade East-West 8/639/63, Kennedy to ECRB, 16 May 1963.

61 Ibid.

62 JFK Lib., NSF, box 296, folder Export Control Policy 5/18/615/28/63, minutes of ECRB 15 Aug. 1963. McNamara said East-West trade was 'purely a foreign policy matter'-i.e., not significant in national security terms-and that: 'He had thought for years that we have been misjudging and grossly overestimating the impact of our trade controls on Soviet military power.'

63 Ibid., Rostow paper, 'US Policy on Trade with the European Soviet Bloc', Policy Planning Council, 26 July 1963.

64 Ibid.

65 Ibid.

66 Ibid.

67 Ibid.

68 Ibid.

69 Ibid., McNamara, Hodges, Rusk to Kennedy, 15 Aug. 1963, ECRB recommendations.

70 Ibid.

71 Ibid., Klein to McGeorge Bundy 12 Aug. 1963, subject, 'Relations with Hungary, Rumania and Bulgaria'.

72 Ibid., Klein memo 'East-West Trade' to McGeorge Bundy, 14 Aug. 1963.

73 Ibid., Klein memo NSC Standing Group Meeting-Discussions of East-West Trade Policy, 7 Sept. 1963, McGeorge Bundy copy.

74 Ibid., Kennedy memo to ECRB draft 12 Sept. 1963 and final copy 19 Sept. 1963.

75 Ibid., Kaysen to McGeorge Bundy, 11 Sept. 1963 who indicates Secretary of State has a 'strong personal interest in the matter'; ibid., folder: Trade East-West 10/63 11/63, McGeorge Bundy to ECRB.

76 LBJ Lib. NSF Committee File box 16, folder: Miller Committee Meetings, March 45, 1819, 2526, 1965, presentation by Thompson, 18 March 1965, 'The Political Framework: Opportunities and Obstacles; ibid., box 18, folder: Miller Committee Current Hearings of the Senate Foreign Relations Committee, statement by George Kennan, 26 Feb. 1965; Lyndon B.Johnson, The Vantage Point: Perspectives on the Presidency 19631969 (Holt Rinehart Winston, New York, 1971), p. 473.

77 LBJ Lib. Administrative History: State Department, vol. 1, ch. 3, section G, East-West Trade.

78 Kubricht, 'Politics and Foreign Policy', p. 64.

79 Ball, The Past Has Another Pattern, p, 203; LBJ Lib. William S.White oral history transcript, Arthur Schlesinger Jr., quoted in Waldo Heinrichs, 'Lyndon B.Johnson: Change and Continuity', in Warren I.Cohen and Nancy Berkopf Tucker (eds), Lyndon B.Johnson Confronts the World: American Foreign Policy 19631968 (Cambridge UP, New York, 1994), pp. 1516.

80 LBJ Lib., NSF NSC Meetings, box 1, folder vol. 1 tab 8, 4/16/64, McGeorge Bundy memo for Johnson, 14 April 1964, this line also received support from the CIA, and the State Department. It was opposed by Agriculture, Commerce and Defense.

81 Ibid., NSC record of actions, meeting 527, 16 April 1964.

82 Johnson, Vantage Point, p. 471.

83 FRUS 196468, vol. ix, doc. 159, Hodges to Johnson, 25 June 1964.

84 LBJ Lib. NSF Committee File box 17, folder: Miller Committee statements submitted by private organizations, East-West Trade Affairs Newsletter on Business and Economic Affairs vol. 1(3), 1 March 1965; Johnson, Vantage Point, p. 471; Fungiello, American-Soviet Trade, pp. 1534.

85 LBJ Lib., NSF boxes 18 and 19, memo meeting with Prime Minister Wilson, 7 Dec. 1964.

86 Frank Costigliola, 'Lyndon B.Johnson, Germany and "the End of the Cold War"', in Cohen and Tucker, Johnson Confronts the World', for a broader perspective on US relations with Western Europe and the German problem see Geir Lundestad, Empire by Integration: The United States and European Integration 19451997 (Oxford UP, Oxford, 1997).

87 Heinrichs, in Cohen and Tucker, Johnson Confronts the World, pp. 26 and 29; on Johnson and his foreign policy, see also Robert Dallek, Flawed Giant: Lyndon Johnson and His Times (Oxford UP, New York, 1998), and for his close a.s.sociation with and dependence on Secretary of State Dean Rusk, Thomas W.Zeiler, Dean Rusk: Defending the American Mission Abroad (Scholarly Resources, Wilmington, 2000).

88 Johnson set up a series of task forces following his speech at Ann Arbor, 22 May 1964, when he pledged to move towards a Great Society.

89 LBJ Lib., Task Force Reports box 1, folder: Outside 1964 Task Force on Foreign Economic Policy, memo for the president and the report, 25 Nov. 1964.