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E.O. 11652: N/A

TAGS: OVIP (Kissinger, Henry A.)

SUBJECT: Exchange of Dinner Toasts Between Prime Minister Zulfikar Ali Bhutto and Secretary of State at PM's Residence, Rawalpindi, October 31, 1974

NSCE FOR GENERAL SCOWCROFT AND NESSEN

1. Following is transcript of Prime Minister Bhutto's toast:

QUOTE Ladies and Gentlemen, I have a written text of a speech in my pocket and I can take it out and read it, but it would be a dull consolation to a very warm visit. So if you will bear with me, I would like to depart from the text and say a few words only which come sincerely from my heart. And since they come from my

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heart this toast and this speech is not for Dr. Kissinger,
the Secretary of State, but for Mrs. Kissinger. For
one of two reasons. Firstly because they have been
recently married and she can say: 'Well you cannot say
we have been recently married, we've been married for a
few weeks or a few months.' But a person like me,
having been married for 20 years, would say what are a
few weeks or a few months? Especially when you travel
so much. And Dr. Kissinger goes all over the world,
leaving you behind in Washington, drab and dreary
Washington. But you can read his books when he is gone.
So this is a toast for Mrs. Kissinger and not for the
Secretary of State. I remember fondly Waltzing Matilda
but we prefer Tilting Kissinger. But they say that Dr.
Kissinger doesn't tilt anymore -- but why did he get
married?

We welcome you to Pakistan Dr. Kissinger and Mrs. Kissinger.
Your visit here is too short, but I know how terribly
busy you are looking after your global responsibilities
and global responsibilities for a great power mean a
lot to all of us because it means a world of peace and
a world of stability, and we are all anxious to have

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peace and stability. We know the great contributions
your country has made and you have made as the exponent
of your country's foreign policy for the achievement of
a world equilibrium without an idealistic approach to
world affairs. But when I say that it has not been
idealistic, it does not mean that it has been devoid of
idealism. Idealism can never be forgotten in this
pragmatic world.

We who are your admirers would like you to be considered
as a modern Metternich. But the difference is that
Metternich's nation had lost the war and Metternich came
after a Napoleon. You are casting and evolving the
foreign policy of a great country without a war and as
a victorious nation. The economic and political situation
is saturated. In a saturated economic and political
situation profound changes are difficult to achieve.
After the first world war and the second world war it
was possible to have a new international order because
you had to build a new international order on the ashes
of war and on the debris of war. But when you have to
evolve a new international economic and social order
without war, without a clean slate, it is a more

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ingenious effort and it requires more patience and more
understanding of the whole international community.

What with the energy crisis, what with international
inflation, what with the situation in Europe and in the
Middle East and the situation evolving throughout the
world -- where are you going to pull the pulley and leave
the structure intact? The pullies have to be pulled and
yet the structure has to be kept intact. This is why
your job is unenvious. And that is why you will have
to devise new methods. You will have to bring to bear
your full imagination, imagination of your great people.
You have to have the forebearance of the pyramids.
You'll have to negotiate with different powers,
different countries, different peoples, with conflicting
interests, and with different positions. And you have
to waltz out of that situation like Waltzing Matilda.
Now that's why we feel sorry for you, that on the one
hand you represent the greatest power on earth; on the
other hand you are incapacitated by the very power that
you hold. We who come from smaller countries can express
our views. We can express our views more freely. But

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(M)

these views do not have an effect on the changes in the
international structure.

You have just come from India and Bangladesh. Believe me, we will be happy if your visit to India is successful and if your visit to Bangladesh is successful. You might say, is it not strange that Pakistan should say that, Pakistan with her differences with India, historical, way back God knows to when, time immemorial, thousands of years if not hundreds? But we say this is a new world, this is a different world. And we accept your position, we accept your big role in world affairs. You have come from Bangladesh which was a part of our country. It's no longer a part of our country. Otherwise three years ago you would have come from East Pakistan into West Pakistan. Now they are separate. We wish them well. We would like them to prosper; we would like them to be happy. Because in the subcontinent, the biggest task we have is to face poverty and misery. If we can find a just solution to our problems, and we know that you will be happy if we can find these solutions, we would be very happy.

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We have had very useful discussions today. I am happy with those discussions. I am very satisfied. Now the journalists, they will badger you tomorrow. I don't want the journalists to badger Dr. Kissinger. He has got enough problems as it is. And therefore I'd like to tell the journalists that why do you want to trouble him unnecessarily and ask him silly questions, pointed questions, "box items." Forget the box items, the small questions, forget the headlines. I say I am satisfied. And I speak now as a representative of Pakistan. And when I say I am satisfied, well then, that's enough. And why should we expect results instantaneously? Results don't come instantaneously. We are not going into a cafeteria to order a hamburger. The question is that we have had discussions and I am satisfied with these discussions. That's good enough. It's the tip of the ice berg, and you shouldn't expect immediate results, or spontaneous, instantaneous decisions. Those days are gone, those days no longer exist. So I would say don't bother about the journalists. You go to Kabul. Say hello to Daud for me and tell him that we'd like to be friends with them and when you go

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after that to Iran please give our warmest regards and affection and respects to His Majesty The Shah in Shah of Iran, with whom we have very close and cordial relations. And we wish you a very good journey to Rome, where we hope you will rest a little and if your speech is still unwritten we have an excellent man in the Ministry of Agriculture, Mr. Bucha, who can write a very good speech for you if you want him to write that speech. So go back to the United States feeling satisfied with what you have achieved. And you have achieved a great deal. The fact that you have gone to India, the fact that you have gone to all these countries and come to us, we feel satisfied. We feel happy with your visit here. We wish you and Mrs. Kissinger to come again and stay a little longer in our country. You are always welcome; your leaders are always welcome.

And finally, ladies and gentlemen, I would like you to join me in a toast to Dr. Kissinger and his charming wife Mrs. Kissinger, to our friendship with the United States of America -- which is not a new friendship; it's an old friendship, it is over a generation, and

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it is a constant friendship. It has not gone through
ups and downs. It has gone up and up. And there is no
question of its going through ups and downs because when
you have fundamental friendship it doesn't go down -- it
goes up or it stays steady. END QUOTE.

2. Following is response by Secretary Kissinger:

QUOTE: Mr. Prime Minister, Mrs. Bhutto, Excellencies,
Ladies and Gentlemen:

I wish Mr. Prime Minister you had pulled the speech from
your pocket and read something pedantic and bureaucratic
which is what is usually prepared for one -- because
then my difficulty in following one of the more eloquent
men of our times would not be so great. Of course,
the Prime Minister knows very well that his remarks
about the press were not designed to calm them down;
they were an incitement to riot. (Laughter.)

I appreciate the very warm remarks and coming to this
country is always returning to old friends. This is
my second visit here as Secretary of State and I met
the Prime Minister for the first time under circumstances
that were very difficult for Pakistan. I admired his

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wisdom in that difficult period, and I could see how
he had rebuilt a nation from a situation that could
not have been more complex. And having lived through
that period with him for a few days, I would like to
remarks on the generosity of spirit that was reflected
in what he said about the relationship of Pakistan to
India and to Bangladesh.

There is sometimes speculation of what I do when I go
on these trips. And there are some articles that claim
that I tell everybody what they would like to hear.
The fact is that I try to tell everybody exactly the
same thing. When I was in India, I pointed out that
the United States believed in the process of peaceful
accommodation in the subcontinent, that it welcomed the
negotiations that were going on, and that it strongly
favored a peaceful solution. But I also said there as
I say here that the United States has an interest in
a secure and unified and independent and sovereign
Pakistan. And on this basis I believe that peace on the
subcontinent can be achieved for the benefit of all
of its people.

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I appreciate very much, Mr. Prime Minister, your observations about the international scene. Because it is true that what the world faces today is how to build a peaceful international order for which there is no precedent. And in the absence of catastrophe for which there is no immediate impetus, it is moreover a peaceful order which cannot be based simply on the equilibrium of power, because that is too dangerous. But also without an equilibrium, life it too insecure. But it must also reflect a sense of justice, where all the nations feel that they have a stake in maintaining that new international system. Despite differences of ideology and despite differences in history, the United States is trying to do its bit in bringing about in this world conditions of a degree of interdependence which is unique in history. I have been speaking about the problem of interdependence for the last year. And I thought that I had been in the forefront of those who had coined this concept. But then I came across this speech of the Prime Minister, who as usual said the same thing more eloquently than I did. He said! 'The world today is very different than the world in

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which Pakistan emerged as an independent nation 26 years ago. The passage of time has witnessed a gradual but perceptible transformation in the minds of men and their vision of the world. Competing ideologies no longer cause the fear or inspire the fervor that characterized the era of the cold war. Above all, there is a greater perception of global unity and interdependence -- a concern for using the world's riches more beneficially and sharing them more equitably -- and a concept of justice and fairness transcending national frontiers.

Mr. Prime Minister, these views reflect exactly our attitude. And I have taken the liberty of quoting you because when the formal talks are over, and when one speaks of specific issues here and there, one tends to forget that the only reliable guarantee of nations' dealing with each other is whether they have the same perception of the world and the same general objective with respect to the nature of peace.

I have appreciated in our talks today, Mr. Prime Minister, that we did not get lost in trivialities and spoke about the essentials. I share your feeling that the talks

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AMEMDASSY TEHRAN

<table><tr><td>DISTRIBUTION</td><td>ACTION: SECSTATE NASHDC IMMEDIATE</td><td>9269</td></tr><tr><td></td><td>INFO: ISFAHAN IMMEDIATE</td><td rowspan="2">2 NOV 74 - 1700Z</td></tr><tr><td></td><td>Amembassy BUCHAREST IMMEDIATE</td></tr><tr><td></td><td>USIA NASHDC IMMEDIATE</td><td></td></tr><tr><td></td><td>UNCLASSIFIED TEHRAN 9269</td><td></td></tr><tr><td>USIS 5</td><td colspan="2">DEPARTMENT PASS WHITE HOUSE FOR GEN. SCONCROFT AND NESSEN</td></tr><tr><td>AMB</td><td colspan="2">BUCHAREST FOR SECRETARY'S PARTY</td></tr><tr><td>DCM</td><td colspan="2">USIA FOR IPS and IBS</td></tr><tr><td>S/S 15</td><td colspan="2">E.O. 11652: N/A</td></tr><tr><td>ECON 2</td><td colspan="2">TAGS: OVIP (KISSINGER, Henry A.)</td></tr><tr><td>POL 2</td><td colspan="2">SUBJECT: Press Conference of Shah of Iran</td></tr><tr><td>CRU</td><td colspan="2">The Shah invited reporters of the Kissinger party to a press conference at Saadabad Palace Tehran at 12:30 on November 2nd.</td></tr><tr><td>27/drm</td><td colspan="2">Following is a verbatim transcript of the Conference: Quote:</td></tr><tr><td></td><td colspan="2">Q. YOUR MAJESTY, may we begin?</td></tr><tr><td></td><td colspan="2">A. Certainly.</td></tr><tr><td></td><td colspan="2">Q. Can you tell us, please, if you have been approached by Saudi Arabia to join in lowering oil prices, and if you have, what the results of that approach is.</td></tr><tr><td colspan="3" style="text-align:center;">J</td></tr><tr><td>DRAFTED BY:</td><td>DRAFTING DATE</td><td>TEL. EXT.</td><td>APPROVED BY:</td></tr><tr><td>USIS: CAO: WDeliver:ms</td><td>11.2.74</td><td>2483</td><td>USIS: 7X0:MK111ea</td></tr></table>

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A. I think that if you wait until the next meeting of the OPEC countries in Vienna, you will see what Iran's proposals will be. I will just touch on the subject that we are going to propose for a single price of oil all over the world, except for geographical location and quality of oil. That single price of oil will be well below the actual posted price of the Persian Gulf. But it won't be long before we have that meeting in OPEC, and I don't want to steal the show from that meeting now.

Q. Your Majesty, did King Faisal send you a letter before the last OPEC meeting asking you for cooperation on the oil price question?

A. Well, we are in contact with Saudi Arabia, and our system might be different from theirs because they have a participation agreement with oil companies, when, in our case, oil has been completely nationalized, so the approach is different. But we are in very close contact, and if our methods are different, probably our aims are the same.

Q. Your Majesty, did Secretary Kissinger give you the impression that the United States would support a fixed price for oil?

A. Well, I can't speak for him but I think that a fixed price for oil has the advantage that nobody could manipulate it further. I mean, everybody will know there is one single

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price for oil; and how much profits the oil companies should
make, or would be allowed to make, on a barrel of oil; and how
much it will cost the consumer to use and to consume that oil;
and how much he is going to pay his own country in taxations.
There are cases, I'm not going to mention any names, of countries
in Europe which levy on one barrel of oil so much taxes that it
is more than the government take of, for instance, my country.
And this is true.

O. Your Majesty, when you refer to a single price for oil for the Persian Gulf, which you will propose, I assume that you also are still tying it to a link or basic commodities of elsewhere throughout the world?

A. Oh, yes. I think this is the basis of our proposal, to link it later to a basket of, a price of, say, 20 to 30 commodities. If they go up, why should we lose our purchasing power? If they go down, oil should go down along to help the world economy. But what is really interesting, is to hold our purchasing power intact, because we have been cheated so much in the past, that sense, that with inflation and erosion of the purchasing power of our money, the same old situation is not going to be repeated once more.

Q. If I may follow that up, sir--in other words, in order to
achieve this new relationship of oil prices and commodity prices,
will it not require a considerable, almost a revolutionary,

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change of concept by the major industrial countries for establishing this new relationship? And secondly, if you would comment on that, what do you regard as the prospects for achieving this kind of relationship in a short term?

A. No doubt that there must be contact between the OECD countries representing, if we can say, all the NX advanced industrial countries of the world and our organization or the representatives of our xa organization. They could discuss the whole aspect of world economy and how to establish the contacts, establish the relationships, between the prices of these 20-30 commodities and the world inflation: because if we cannot link the price of oil with the price of inflation, there won't be any pressure or incentive for the industrial world to check their inflation. If they do not check their inflation, we can defend ourselves with the pricing of our oil.

But who is going to suffer? The poor countries, or the developing countries--they will suffer on both fronts. So to keep our whole world together in one piece, we'll have to have a very comprehensive talk between the developed industrial countries of the world and we producers of energy in the immediate future.

Q. Your Majesty, the indexing system has been criticized as possibly institutionalizing inflation. You disagree with that.

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A. How could it institutionalize inflation?

Q. Well, I'm not one of the proponents of the criticism, but the way it's been explained to me is that it locks you into a system where you set minimums that, in effect, set an inflationary rate and keep it moving up and possibly a little down.

A. Well, we have been witnessing inflation in the world before the increase of the oil price. We have had inflation in the world when oil was so cheap. How do they respond to this? Or answer to this?

Q. Your Majesty, on indexing, would you be willing to take a previous price of Oil? The answer I think to that is that the price of the goods that you have listed have less than doubled in the last eleven years and the price of oil has more than tripled in the last eleven years.

A. Well this is simplifying things because, well, this is a once long story, but I have got to say it one more: in 1947 the posted price of a barrel of oil in the Persian Gulf was $2.17. In 1959 the posted price of a barrel of oil in the Persian Gulf was $1.79. That is a decrease of $.38. In that period of time, world commodities increased by between 300 and 400%. I'm giving you facts. What about that? And furthermore, the price of commodities has not increased twice: we are buying sugar for more than $1.000 now. We are buying vegetable oil for more than $1,000. You will tell me it's because of the

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increase in the price of oil, that agriculture has augmented:
I will say, why has the price of cotton dropped? Or coffee? So,
there must be a relation. Our pricing of oil at the beginning,
and again, I am going to go into detail--even if you don't
print it, it doesn't matter--in 1973, December 1973, when I
asked $7.00 government take for the light Arabian crude in the
Persian Gulf--please note this down--later on the oil companies
in their negotiation for participation agreement with other
countries of the Persian Gulf--the 60/40/60 participation
agreement rose the price of oil to what it is now, that is
9.74. I didn't do it; the oil companies did this. I don't
care if you call me the hawk, but the truth is what I just
told you. When I asked for $7.00, it was to have a comparison
between any other sources of energy, like shale oil, coal, or
other kind of energy. And today we know that you cannot get
shale oil or other sources of energy for even that price. So
when we go into discussion with the developed countries of the
world--and, I hope, a comprehensive and constructive discussion
--it must be about all these things. To think of the economy of
the whole world, not just the interest of a few countries, or
the interest of we, the producers. Because if the world
collapses, we shall collapse with it. We belong to that world.
We belong to the world that you call the so-called free world.

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And we don't want to see you collapse because we are going to
collapse along with you.

Q. Your Majesty, when you make your proposal at the OPEC meeting, could you give us an idea now of what the range of that price will be?

A. If it has been published so far, if the figures have been quoted, I can also say what the proposal will be. It is the present government take at a single price and that will bring the price of the posted in the Persian Gulf considerably down.

J. Can you estimate by how much?

A. About $1.60, of the posted.

Q. Your Majesty, as you know, there are many hundreds of millions of people who are bewildered by the oil pricing structure--well-head prices, posted prices, percentages, concessions, royalties--to all of those people all over the world, what does this mean?

Is it your educated guess that the price of oil will go up or
down in the next year?

A. It will--for the consumer?

Q. For the consumer

A. It will go down, because we want to limit the oil companies to only $.50 per barrel revenue... interest. If you think that this is too much, it will be your problem with the oil companies.

We think that 50% is fair. But why should they make $2.00 on

one barrel of oil? Why should some of them make 700% of INXEREX

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interest in one year? Is that fair?

Q. So you think that the price of a gallon of gasoline, say in the United States, will be less a year from now than it is today?

A. It should be less. It should be less, because there will be that much money less in the posted price and the profits of the oil companies would be limited. So, there should be less pressure on the consumer, unless every government is going to levy additional taxes on gasoline and these things in order to curb consumption. This will be beyond our responsibilities.

Q. Your Majesty, so we don't misunderstand you, are you saying, sir, that this is apart from your basic concept of linkage or that this will be part of what will go into effect at any rate at the OPEC meeting?

A. No, this will go into effect at any rate. For the fix future, there must be a link between the price of oil and the price of the commodities, because if not, somebody will say the inflation of the world is 12%; somebody will say it's 25%; somebody will say it's maybe 6%. But in order to safeguard our interests, we will have to say that we have got to increase the price of oil that much, in order to keep our purchasing power intact. That will make things so much complicated. But if it is an automatic link between the price of those commodities and the price of oil, say let's accept an

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International Chamber of Commerce of Zurich, could say what this index is--that world inflation is, really. And then relate this to the price of oil.

Q. Well, the reason I ask this for clarification for those who do not follow all of the intricacies of the oil-pricing system is that while you speak of a general consumers' price reduction, even without the linking, the oil experts here tell us that the OPEC meeting almost surely will result in an increase in the price of oil of some $.34 a barrel. Could you clarify that?

A. Oh, that is for the present inflation system. You'll have to wait for this until the OPEC meeting, because the price--I mean the inflation rate in the world today (I don't know how much it is--some people say about 20%, 27% in some European countries; some are less--Germany 7%, others are 15%; the U.S., you know better) so there is not a definite clear picture. We have always said that the price of oil and the purchasing power should remain intact. But nevertheless, we have not increased the price of oil as much as the rate of inflation: that was to show some goodwill gesture. But this doesn't mean that you can free will, let your inflation gallop and erode our purchasing power without us trying to defend our interests.

Q. I recognize that; therefore, then, are you agreeing, sir, that the price of oil actually will increase once the inflation rate is added to it at the next OPEC meeting?

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A. Again, all will depend on what initial single price we are going to propose. Let's wait until we have the meeting.

Q. Your Majesty, is it a fair statement that your indexing linkage concept between the price of oil and the price of 20 or 30 commodities can only work if the preponderant number of the oil producers and the majority of the major consumers all functioned within that system and who is going to carry the ball, so to speak, in order to get this system launched?

A. Well there should be some kind of agreement and understanding between the developed countries, the industrial countries of the world, because they consume, I think, about 35% of the whole oil production of the world. The rest of the countries, say third-world or developing countries, consume only 15%.

Q. Do the other countries that produce oil in OPEC share your enthusiasm for an indexing?

A. We have this impression, yes. I think so.

Q. Your Majesty, for those of us who might not follow the ax intricacies of this whole oil question, there might appear to be something of a contradiction here. Because on the one hand we are being told that a year from now an American buying gas probably will be paying less than he pays now; on the other hand, if I understood it right, at the next OPEC

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meeting there might be a 30-40¢ increase in the cost of a
barrel of export crude. What is going to happen: is it
going up, or is it going down?

A. Well, if the oil companies make only $.50 instead of $2.00, it will go down. If you let them do anything they want, it will go up.

Q. So that the responsibility, then, in your opinion, would
rest with the oil companies...

A. Surely, that's why I'm proposing a single price system
because if not, if it is a posted price, then you have
realization price, halfway price, buy-back price--God knows
what other pricing system--and you would never know what is
happening. It's really a question of manipulation. But if
you have a single pricing system, it still be crystal-clear for
everybody who is cheating.

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Q. And could there be a single price since there are so many countries involved in....

A. I said except for geographical location and quality of oil.

We can't expect to get as much money with selling oil to the United States as Venezuela can, because she's so much closer.

We cannot expect to get as much money as Algeria in selling our oil to Europe, because Algeria is so much closer.

Q. Your Majesty, do you think the oil companies have been gouging the public recently? Too much profit?

A. The published figures are about sometimes 700%, 400%, 300%, 150%--this is up to you to decide if they have been gouging or not.

Q. Your Majesty, what will happen to the revenues accruing to the producing countries? Are they going to increase or decrease?

A. To the producing countries?

Q. Yes.

A. No. They are not going to decrease. Certainly not. And I see no reason why(they should). But the oil companies will make less profits, for one; second is that this year of terrible world inflation has already eroded our purchasing power. So in matter of fact, the price of oil has come down, as far as we are concerned. Because we have not augmented in OPEC as much as we have lost. We have augmented $.33. When if we say an average of 20% inflation, we have lost about $2.00.

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Q. Your Majesty, I wonder if I could raise a question on another subject; namely, your perception of what the summit conference in Rabat will do to future Middle East negotiations.

A. Well, I was not in Rabat and I have not yet received any report from our friends there, but according to the news, if that will be a prevailing attitude of the Israeli state--if they don't want to talk with the PLO--that will make things a little more difficult, and we don't see how this west bank and Jordan problem tackled will be solved...I think that this gentleman tried to ask...

Q. Thank you, Your Majesty. Could you give us some idea of whether you and Dr. Kissinger last night reached a general agreement in how the Indian Ocean should develop in the next decade; in the short run, for instance, do you agree that the United States should have a presence in the Ocean to counter the Soviet presence? And what are the prospects for your long-range application of the big powers not staying out of the area?

A. Well, I ask have already answered this question during my Australian visit I said we have the presence of the Soviet Union warships in the Indian Ocean. I don't see why one nation could be represented so forcefully and not another. How could we ask the Americans not to come into the Indian Ocean if we have the presence of the other super power? But the aim is that if the countries of the Indian Ocean region could have some closer contact and relationship, the day will come that we might be

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able to tell the two super powers that you can have all the trade influence, political relationship that you want in that region--but really, there is no need for your military presence. That's the whole idea.

Q. If I may pursue that, sir, where does that leave your position vis-a-vis the United States' current plan to expand the naval facilities on Diego Garcia? Does this mean that from your standpoint you regard that as an inevitable offset to the Soviet presence, or do you object to it, sir?

A. How I have already, again, answered this question. Not only do we not object, we see this as a natural follow-up.

Q. Your Majesty, a moment ago you mentioned you did not see how the problem of the west bank could be tackled. Do you have any initiative of your own or suggestion as to what should be the next step in the next few months in the Middle East in trying to settle, or take another step toward peace between the Arabs and Israelis?

A. I don't want to really mix myself into that very difficult question, but offhand, I would say to start again the Geneva peace talks.

Q. Your Majesty, do you see Iran as sort of a policeman for the Indian Ocean region in the long term?

A. For peace--if you would please say peacekeeper, I would say, we will try to contribute to the peacekeeping of the region. But, I must add, we can't take any chances. We have got to defend our national interests anyway--if possible, and hopefully with the

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collaboration of others. If we can't get that collaboration--and that is always possible--then, if necessary, we will do it alone.

Q. Your Majesty, you suggested a moment ago a return to the Geneva peace conference. I wonder what makes you believe that that will not stalemate the entire situation even further than it's stalemated right now.

A. Well, it might, but still it is a contact; it's better than nothing.

Q. Your Majesty, on the subject of oil again, if the pricing structure can't be worked out, if the western industrialized world is not satisfied with the price of oil, how serious do you regard the threat of some kind of military intervention?

A. That seems really a little remote--military intervention in how many places? In all the oil-producing countries of the world? Are you going to occupy Venezuela? Is America going to do all these occupation jobs? Do you have enough troops? Can you occupy Venezuela, Mexico, Saudi Arabia, Iran and the rest of the OPEC countries? Or will you gang up; will you, with the Europeans, do this job? Do you think that the Communists will stay silent? No, I really think this question of military confrontation is just a little loose talk: it's not very serious. The only thing that could be achieved will be through meaningful negotiations, and constructive, I hope.

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Q. Your Majesty, I'm still somewhat confused on your position and Dr. Kissinger's...at his news conference, just before this, he left the very strong impression that the views of the two nations had narrowed somewhat, that, in fact, at the OPEC meeting the oil price might be stabilized or possibly even come down, although he did not say that specifically. From your comments, I'm getting the impression that unless the oil companies are willing to accept profits of--as you say--$.50 or less, we can look forward to an increase in the posted price.

A. But the oil companies have no choice. They have to accept. It's not for the oil companies to decide. They have no choice in that matter, unless you people want the oil companies to make more benefit than $.50, which is a very handsome figure. Do you want them to make more money? I don't think so.

Q. As you see, your Majesty...

A. Unless you are a big shareholder in the oil companies.

Q. As you see, your Majesty, some of us are not clear on the technicalities there on that one point. Is the situation that the reduced profits of $.50 for the oil companies is automatically imposed, ordered by OPEC at the forthcoming meeting?

single

A. Well, we can do that--having it one single price, we can tell the world: this is the single pricing system that the OPEC countries have decided. With the exception of geographical location and quality of oil, and this is accepted by all. Now,

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anything that the oil companies will sell you more than this
single price plus, say, $.50, will concern only you and the
oil companies.

Q. Your Majesty, we've been talking a great deal about the oil producers and the industrialized world, but what contact have you been having with the developing states--particularly some in Africa, who have been very much concerned by drought and predictions of insufficient fertilizer for crops and so forth? Do you have any additional initiatives other than loans as to how these countries can get through some of their economic difficulties?

A. Well, we have made the proposal to the United Nations for the setting up of a special fund where we oil producers will contribute--and even we mentioned the figure of $150 million dollars each--and the developed countries of the world will also contribute, and twelve of them will be represented in that Board with us (we were twelve in those days, now we might be thirteen or fourteen). And also the same number of twelve representing the developing countries of the world, sitting on a Board, which will study projects presented by these developing countries. And each project that would be approved would get a soft loan--say 25 years' term or period, 2-1/2% interest rate --through this institution, which will be serviced by the existing International Bank and the International Monetary Fund.

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Instead of creating a new bank and wasting money on that institution, we shall use the good offices and services of the two existing banks. This would give about three billion dollars every year, which could be lent on those terms to the developing countries--just not the money, but for definite projects.

Q. Your Majesty, you referred to the Geneva Conference on the Middle East. Did you get the impression that Dr. Kissinger shared this view, or is he still leaving all the options open, including what he calls step-by-step negotiations between Israelis and the Arabs?

A. Obviously, everything is open. You ask my opinion what should be done, I just said the reconvening of the Geneva Conference.

Q. Your Majesty, if I may pursue that, you also said it's better than nothing, and frankly, that would imply, with your own considerable perception of the area, that you would anticipate there is strong likelihood of a rather sobering stalemate here. I would like to ask you, sir, if you believe there is a rising danger of maxixix war over the Arab-Israeli conflict, and if so, what that does, in your judgment, to the future flow of oil to the rest of the world?

A. Well, we have been living with this question for a number of years now. Now, let's see what effect the Rabat conference will have on that issue. It's a little, maybe too soon to speculate. Will this jeopardize completely the peace talks, or it might in

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<table><thead><tr><th>DISTRIBUTION</th><th></th></tr></thead><tbody><tr><td>ACTION: SECSTATE WASHDC</td><td>IMMEDIATE</td></tr><tr><td>UNCLASSIFIED BUCHAREST</td><td>5098</td></tr><tr><td>SECTO 428</td><td></td></tr><tr><td>FOR: DEPARTMENT PASS TO WHITE HOUSE FOR GENERAL SNOWCRAFT AND NESSEN</td><td></td></tr><tr><td>E.O. 11652 N/A</td><td></td></tr><tr><td>TAGS: OVIP (Kissinger, Henry A.)</td><td></td></tr><tr><td>SUBJECT: Secretary Kissinger's Meeting with the Romanian Press, November 3, 1974, Bucharest</td><td></td></tr><tr><td colspan="2">1. Transcript of subject press meeting follows:</td></tr><tr><td colspan="2">QUOTE: Q. Your visit in Romania - the talks you have had and the contacts you made. Maybe you'll comment on them?</td></tr><tr><td colspan="2">Secretary -- The United States attaches considerable importance to its friendly relations with Romania. We have exchanged ideas over the years on a variety of subjects, and this is a continuation of the dialogue about international affairs and possibilities of the economic cooperation between Romania and the United States.</td></tr><tr><td colspan="2">Q. How do you characterize the talks you have had</td></tr><tr><td>DRAFTED BY:</td><td>DRAFTING DATE</td><td>TEL. EXT.</td><td>APPROVED BY:</td></tr><tr><td>S/PRS:AmbAnderson/bjm</td><td>11/3</td><td></td><td>S/PRS:AmbAnderson</td></tr><tr><td>CLEARANCES:</td><td colspan="3">S/S-S:AMKee</td></tr><tr><td colspan="4">Mr. Bremen (in draft)</td></tr></tbody></table>

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<table><thead><tr><th>DISTRIBUTION</th><th>ACTION:</th><th></th></tr></thead><tbody><tr><td></td><td>with the President?</td><td>-2-</td></tr><tr><td></td><td>Secretary - I consider the talks I have had with the President constructive, wide-ranging and friendly.</td><td></td></tr><tr><td></td><td>Q. How do you see the development of American-Romanian relations?</td><td></td></tr><tr><td></td><td>/Secretary - - Well, I am hopeful that with the passage of the Trade Bill in the next month or so that we will be able to extend most favored nation status to Romania which would give new impetus to our economic relations. Our political relations have already been good, and we will maintain the close contact that has characterized them so I think we are in a period which will show even more improvement in our relations.</td><td></td></tr><tr><td></td><td>Q. Mr. Secretary, what is in your opinion the most controversial issue of the world which it resolved quickly would insure lasting peace in the world?</td><td></td></tr><tr><td></td><td>Secretary -- There are several issues, but the</td><td></td></tr><tr><td>DRAFTED BY:</td><td>DRAFTING DATE:</td><td>TEL. EXT.:</td><td>APPROVED BY:</td></tr></tbody></table>

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Middle East problem is certainly one of the most difficult ones.

Q. How precise could you be about your scheduled trip to the Middle East. How do you see the continued prospects for negotiations after the Arab summit?

Secretary -- Well we have announced today that I will be visiting Cairo, Riyadh, Amman, Damascus, and Jerusalem starting Tuesday and the purpose of the trip is to assess the significance of the Arab summit for peace negotiations in the Middle East. As far as the United States is concerned our position is clear. We will do our utmost to promote a just and lasting peace in the Middle East within the framework of the relevant Security Council resolutions and we will work with the parties that are interested to bring about such a peace.

Q. What is the United States position for the European Security Conference.

<table><tr><td>DRAFTED BY:</td><td>DRAFTING DATE</td><td>TEL. EXT.</td><td>APPROVED BY:</td></tr><tr><td>CLEARANCES:</td><td colspan="3"></td></tr></table>

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<table><thead><tr><th>DISTRIBUTION</th><th>ACTION:</th></tr></thead><tbody><tr><td></td><td>Secretary -- The United States favors the completion of the European Security <u>CONFERENCE</u> Conference as expeditiously as it can be arranged, and we support the negotiations that are going on and take an active part in them.<br/><br/>Q. There is much talk lately about new economic order in the world. How would you comment on that?<br/><br/>Secretary -- Well, I have to comment favorably because I made some of these speeches. I believe that the combination of the energy crisis, the food crisis and inflation in <u>many</u> countries produces the need for global solutions in a number of fields. I'm going to the World Food Conference in Rome on Tuesday, and I plan to make some statements of the American position with respect to world-wide <u>agriculture</u> agricultural problems and I think there is a necessity to organize ourselves to meet these needs.<br/><br/>Q. Your Excellency, what are the roles of the small and middle sized countries in solving the</td></tr><tr><td>DRAFTED BY:</td><td>DRAFTING DATE</td><td>TEL. EXT.</td><td>APPROVED BY:</td></tr><tr><td>CLEARANCES:</td><td colspan="3"></td></tr></tbody></table>

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NOV 4, 1974

0 040548Z NOV 74
FM RUDKAR/AMEMBASSY BUCHAREST
TO RUDKRB/AMEMBASSY BELGRADE IMMEDIATE 2642 2643
INFO RUEHC/SECSTATE WASHDC IMMEDIATE 762
RUEHIA/USIA WASHDC IMMEDIATE 3845
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STATE DEPT PASS TO WHITE HOUSE FOR GENERAL SCOWCROFT
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E.O. 11652: N/A
TAGS: OVIP (KISSINGER, HENRY A.)
SUBJECT: SEC VISIT: TRANSCRIPT OF PRESIDENT
CEAUSESCU'S PRESS CONFERENCE WITH TRAVELING U.S.
PRESS

1. PRESIDENT CEAUSESCU MET WITH MEMBERS OF THE U.S. TRAVELLING PRESS AT THE COUNCIL OF STATE FOLLOWING TALKS WITH THE SECRETARY ON THE EVENING OF NOVEMBER 3. FOLLOWING IS VERBATIM TRANSCRIPT OF THE CONFERENCE (OFFICIAL ROMANIAN INTERPRETER'S RENDITION):

QUOTE LADIES AND GENTLEMEN, PRESIDENT NICOLAE CEAUSESCU OF THE SOCIALIST REPUBLIC OF ROMANIA HAS KINDLY RESPONDED TO YOUR DESIRE TO MEET HIM; HE'S ALL YOURS...

Q. MR. PRESIDENT: WHAT WERE THE MAIN SUBJECTS OF YOUR CONVERSATION WITH SECRETARY KISSINGER?

A. THE VISIT NOW BEING PAID BY THE SECRETARY OF STATE OF THE UNITED STATES, MR KISSINGER, TO ROMANIA IS A PART OF THE GENERAL FRAMEWORK OF THE FRIENDLY RELATIONS AND COOPERATION EXISTING BETWEEN OUR TWO COUNTRIES. DURING OUR TALKS WE HAVE DISCUSSED SO FAR PROBLEMS PERTAINING TO THE DEVELOPMENT OF RELATIONS AND COOPERATION BETWEEN ROMANIA AND THE

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UNITED STATES INCLUDING THE PROSPECTS FOR THE FUTURE DEVELOPMENT AND, NO DOUBT, WE HAVE ALSO TACKLED SOME PROBLEMS PERTAINING TO THE INTERNATIONAL SITUATION, PROBLEMS WHICH ARE NOW A SOURCE OF CONCERN TO MANKIND. WITH REGARD TO THE RELATIONS BETWEEN ROMANIA AND THE UNITED STATES WE HAVE BOTH NOTED WITH SATISFACTION THE PROGRESS BEING MADE AND WE AGREED TO START SOLVING IN THE FUTURE SOME OF THE PROBLEMS IN THIS SPHERE INCLUDING THE GRANTING OF THE MOST FAVORED NATION TREATMENT TO ROMANIA IN ORDER TO CREATE THE NECESSARY PREREQUISITES FOR THE FUTURE EXPANSION OF OUR COOPERATION IN VARIOUS FIELDS.

Q. MR. PRESIDENT, DID THE SECRETARY GIVE YOU ANY ASSURANCES THAT ROMANIA WOULD RECEIVE MOST FAVORED NATION STATUS IN THE NEAR FUTURE?

A. YES, SECRETARY OF STATE KISSINGER GAVE SUCH ASSURANCES THAT THE PROBLEM IS GOING TO BE SOLVED IN ADEQUATE MANNER IN THE NEAR FUTURE. THAT IS WHY WE ALSO AGREED TO START NEGOTIATIONS ON NEW AGREEMENTS IN THE ECONOMIC FIELD.

Q. MR PRESIDENT, IN THAT SAME REGARD, AS YOU KNOW, THE TRADE BILL IN THE UNITED STATES WHICH WILL PRESUMABLE BE PASSED REQUIRES PROVISIONS THAT WOULD REQUIRE YOUR COUNTRY TO CERTIFY THAT EMIGRATION COULD TAKE PLACE WITHOUT RESTRICTIONS. WERE YOU ABLE TO GIVE ASSURANCES TO DR. KISSINGER THAT THIS IN FACT TAKES PLACE?

A. AT PRESENT THERE IS NO PROBLEM OF EMIGRATION IN ROMANIA AS SUCH. THE HUMANITARIAN PROBLEMS THAT CAN ARISE IN SOME WAY OR ANOTHER ARE BEING SOLVED IN AN ADEQUATE MANNER AND THEY POSE NO PROBLEM TO US.

Q. MR. PRESIDENT, AMONG THE INTERNATIONAL QUESTIONS THAT YOU DISCUSSED WITH THE SECRETARY OF STATE DID THE QUESTION OF THE MIDDLE EAST COME UP AND WOULD YOU SHARE WITH US YOUR PERCEPTIONS ON THAT PROBLEM AS YOU EXPRESSED THEM TO HIM?

A. TRUE, AMONG THE INTERNATIONAL PROBLEMS WE HAVE DISCUSSED ABOUT THERE ARE SOME CONNECTED WITH THE SITUATION IN THE MIDDLE EAST AS WELL. ROMANIA BELIEVES THAT THE SITUATION THERE CONTINUES TO CONTAIN SERIOUS DANGERS THAT IS WHY WE BELIEVE THAT FURTHER EFFORTS SHOULD BE MADE TOWARDS THE POLITICAL SOLUTION. IN THAT REGARD, WE BELIEVE THAT NEGOTIATIONS AT THE CONFERENCE IN GENEVA SHOULD BE RESUMED AS QUICKLY AS POSSIBLE -- THAT IT IS NECESSARY TO SOLVE -- TO TAKE RESOLUTE ACTION IN ORDER TO BRING ABOUT THE WITHDRAWAL

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OF ISRAEL FROM THE TERRITORIES OCCUPIED IN 1967 AND TO REACH AN ADEQUATE AGREEMENT THAT SHOULD BE LIKELY TO GUARANTEE THE INTEGRITY AND SOVEREIGNTY OF ALL STATES IN THE AREA AND AT THE SAME TIME ACHIEVE AN ADEQUATE SETTLEMENT OF THE PROOEMS OF THE PALESTINIAN PEOPLE INCLUDING A SETTLEMENT CONCERNING THE ESTABLISH- MENT OF AN INDEPENDENT PALESTINIAN STATE.

Q. DO YOU THINK THEN, MR. PRESIDENT, THAT THERE IS NO POINT IN SECRETARY KISSINGER GOING TO THE MIDDLE EAST AS LONG AS YOU BELIEVE THE NEGOTIATIONS SHOULD BE MOVED TO GENEVA?

A. I DIDN'T SAY THAT.

Q. WELL I ASKED YOU THAT.

A. THE RESUMPTION OF NGOTIATIONS IN GENEVA WOULD CERTAINLY NOT EXCLUDE SECRETARY OF STATE KI INGER'S VISIT TO THE MIDDLE EAST. ONE CAN EVEN SAY THAT IN A CERTAIN SENSE, IT EVEN MAKES IT NECESSARY.

Q. WHY WOULD YOU SAY THAT?

A. WELL, FOR INSTANCE, ROMANIA DID NOT PARTICIPATE IN THE GENEVA CONFERENCE, AND STILL BE BELIEVED IT NECESSARY, AND WE STILL DO, THAT WE SHOULD CONDUCT TALKS WITH ALL THE COUNTRIES CONCERNED WITH REGARDS TO THE SOLUTIONS THAT CAN POSSIBLE BE DEVISED IN THIS VERY COMPLICATED ISSUE. IT IS - IT STANDS TO REASON THAT THIS IS EVEN MORE VALID IN THE CASE OF ALL -- BOTH COUNTRIES THAT ARE DIRECTLY COMMITTED IN THAT REGARD. THEREFORE, INTERNATIONAL CONFERENCES WILL NEVER EXCLUDE THE CONTINUED BILATERAL CONTACTS, ON THE CONTRARY, THEY REQUIRE THEM AND SOMETIMES MAKE IT NECESSARY TO CONTINUE THEM.

Q. MR. PRESIDENT, DID SECRETARY KISSINGER GIVE YOU THE IMPRESSION THAT HE FAVORED A RETURN TO THE GENEVA CONFERENCE?

A. WE HAVE DISCUSSED THAT MATTER AND WE NOTED IN THAT REGARD THAT THERE IS A COMMON POINT OF VIEW WITH REFERENCE TO THE NEED TO RESUME THAT CONFERENCE.

Q. WHEN WOULD YOU LIKE TO SEE THE CONFERENCE RESUMED?

A. HERE ONE CAN NEVER DISCUSS THE DESIRE EVINCED BY SOME OR OTHER PEOPLE BUT THE REAL OPPORTUNITIES TO DO SO. IN THIS RESPECT, THE DECISION SHOULD BE TAKEN

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OF COURSE BY THE COUNTRIES DIRECTLY CONCERNED. WHAT CAN I TELL YOU AT THIS JUNCTURE IS ROMANIA -- IS THAT ROMANIA WOULD WISH TO SEE THAT IN THE FUTURE OTHER STATES INTERESTED TO DO SO COULD ALSO PARTICIPATE IN THE CONFERENCE. IN MY OPINION THE QUICKER NEGOTIATIONS IN GENEVA ARE RESUMED THE BETTER FOR ALL OF US.

Q. MR. PRESIDENT, AS YOU KNOW THERE IS CONSIDERABLE TALK OF (INAUDIBLE) AN INCREASED DANGER OF MILITARY CONFRONTATION IN THE MIDDLE EAST OVER THE ARAB-ISRAELI CRISIS? FIRST, WHAT IS YOUR OPINION ON THAT, AND SECOND, ROMANIA HAS CONSIDERABLE INTEREST IN THE MATTER OF OIL; IF THERE IS ANY NEW CONFLICT WHAT DO YOU THINK IT WILL DO TO THE SUPPLY OF ARAB OIL?

A. AS I SAID AT THE START WE BELIEVE THAT THE SITUATION THERE IS SERIOUS AND THAT LEADS UP TO SUPPOSE THAT THERE IS INDEED A PERMANENT DANGER FOR THE OUTBREAK OF THE CONFLICT. THAT IS PRECISELY WHY ROMANIA BELIEVES THAT SUSTAINED EFFORTS ARE CALLED FOR AND IT IS NECESSARY TO CONVENE. TO RESUME THE WORK OF THE GENEVA CONFERENCE AS QUICKLY AS POSSIBLE JUST IN ORDER TO PREVENT THE DANGER OF A NEW WAR. THERE IS LITTLE DOUBT THAT A NEW WAR WOULD LEAD TO VERY GREAT DIFFICULTIES WITH REGARD TO OIL SUPPLIES AS WELL AS SUPPLIES OF OTHER RAW MATERIALS AND WILL CERTAINLY AGGRAVATE EVEN MORE THE PRESENT INTERNATIONAL CRISIS.

Q. MR. PRESIDENT: CAN WE EXPECT A VISIT TO ROMANIA OF PRESIDENT FORD?

A. IT IS ALREADY SOME TIME SINCE I ADDRESSED AN INVITATION TO PRESIDENT FORD TO VISIT WITH US IN ROMANIA AND HE ACCEPTED IT. IN THE TALKS I HAD TODAY, --WE-- I HAVE TAKEN UP THIS MATTER AGAIN AND WE AGREED TO TAKE ACTION ON BOTH SIDES IN ORDER TO -- IN ORDER THAT THIS VISIT TAKES PLACE AT THE APPROPRIATE TIME. WHAT I CAN TELL YOU NOW IS THAT WE ARE LOOKING FORWARD WITH GREAT PLEASURE TO THAT VISIT AND WE HOPE THAT IT WILL TAKE PLACE BEFORE LONG AND WILL MARK A NEW IMPORTANT STEP IN THE RELATIONS BETWEEN OUR TWO COUNTRIES.

Q. MR. PRESIDENT: WHAT WERE YOU ABLE TO TELL DR. KISSINGER ABOUT THE STATE OF SOVIET-ROMANIAN RELATIONS TODAY?

A. THE RELATIONS BETWEEN ROMANIA AND THE SOVIET UNION ARE DEVELOPING WELL. WE ARE NEIGHBORS, BOTH

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COUNTRIES ARE SOCIALIST COUNTRIES, BOTH OUR RELATIONS DEVELOP IN AN ADEQUATE MANNER.

Q. MR. PRESIDENT: THERE WERE MANY STORIES IN THE WEST AT THE TIME OF THE THIRTIETH ANNIVERSARY OF YOUR NATION RECENTLY THAT ROMANIA WAS TRYING TO ARRANGE A MEETING BETWEEN SOVIET PREMIER ALEKSEY KOSYGIN AND THE CHINESE VICE PREMIER WHO WAS VISITING HERE. DID ROMANIA HAVE IN FACT SUCH AN INTENTION AND WOULD ROMANIA LIKE TO SERVE IN ANY WAY AS AN INTERMEDIARY TO TRY AND RESOLVE THIS DISPUTE?

A. OF COURSE, THE PRESS MAY BE WRITING A LOT, BUT IT MAY WELL HAPPEN THAT NOT ALWAYS WHATEVER IS BEING WRITTEN FULLY CORRESPONDS WITH THE TRUTH. I HAVE NO INTENTION TO CRITICIZE THE PRESS. IT APPEARS THAT WE, THE POLITICIANS, ARE TO BLAME BECAUSE WE DO NOT INFORM THE PRESS ADEQUATELY. THE SOVIET UNION HAS DIPLOMATIC RELATIONS WITH CHINA AND AN AMBASSADOR IN PEKING. CHINA HAS AN AMBASSADOR IN MOSCOW AND THEY ARE ACTUALLY CONDUCTING NEGOTIATIONS, SO IT IS NOT REALLY NECESSARY FOR ANYONE TO INTERVENE. ROMANIA, AS FOR ROMANIA, SHE NEVER PROPOSED TO ASSUME SUCH A ROLE.

Q. MR. PRESIDENT: THE RECENT MEETING OF THE COMMUNIST PARTIES IN WARSAW REACHED SOME -- REACHED DECISIONS TO LIMIT THE PROPOSED CONGRESS TO EUROPEAN PARTIES. DOES THAT, IN YOUR JUDGMENT, REDUCE THE LIKELIHOOD OF DIVISIVE ACTION WHICH MIGHT OTHERWISE HAVE TAKEN PLACE AT THE PARTY CONGRESS?

A. THE CONFERENCE IN WARSAW WAS ACTUALLY CONVENED FROM THE START TO DISCUSS THE PROBLEMS REGARDING THE ORGANIZATION OF A CONFERENCE OF THE COMMUNIST AND WORKERS PARTIES IN EUROPE AND IT NEVER HAD INTENDED THE CONVENING OF A LARGER INTERNATIONAL CONFERENCE.

Q. MR. PRESIDENT: AS YOU KNOW, MANY OF US WERE RECENTLY IN THE SOVIET UNION WITH SECRETARY KISSINGER. THE SOVIETS SEEMED SOMEWHAT CONCERNED ABOUT THE COMMITMENT OF THE FORD ADMINISTRATION TO THE POLICY OF DETENTE. DO YOU HAVE SIMILAR CONCERNS ABOUT THE COMMITMENTS OF THIS ADMINISTRATION, OF THIS NEW ADMINISTRATION, OR THE ABILITY OF THE AMERICAN CONGRESS TO DELIVER ON THIS FOREIGN POLICY PROMISE?

A. I WOULD WISH TO SAY THAT THE PRESENT DAY INTERNATIONAL PROBLEMS CONTINUE TO BE RATHER COMPLICATED.

THE BEGINNING OF DETENTE IS STILL RATHER FRAGILE AND

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THEREFORE SUSTAINED EFFORTS ARE REQUIRED BY ALL STATES,
BY INTERNATIONAL OPINION, BY ALL THE PEOPLE'S IN ORDER
TO MAKE DETENTE ADVANCE FURTHER.

Q. MR. PRESIDENT: YOU'VE BEEN REALLY GENEROUS
WITH YOUR TIME HERE AND YOUR TALKS WITH THE SECRETARY
OF STATE WERE CONSIDERABLY LONG, AS JOURNALISTS WE
HAVE TAKEN MUCH OF YOUR TIME ALSO, I WOULD LIKE TO
THANK YOU VERY MUCH FOR THE OPPORTUNITY WE HAVE HAD
IN MEETING YOU. I WOULD ALSO MAKE A REQUEST AND THAT
IS THAT WE COULD BE CONSIDERABLY HELPED PARTICULARLY
(BEGIN PARAPHRASE) WITH OUR NEED TO TRANSMIT OUR TEXTS
TO OUR NEWSPAPERS IF YOU WOULD ARRANGE WITH THE TELEPHONE
COMPANY TO GIVE US PRIORITY FOR OUR CALLS TO THE UNITED
STATES.

A. THAT'S THE EASIEST THING TO DO! I AM
VERY PLEASED TO HAVE THIS OCCASION TO MEET WITH THE
PRESS. (END PARAPHRASE) UNQUOTE.

2. DEPARTMENT MAY DISTRIBUTE AS DESIRED.

KISSINGER

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Visit of Henry A. Kissinger, Secretary of State,
United States of America, to the Socialist
Republic of Romania

At the invitation of the Minister of Foreign Affairs of the
Socialist Republic of Romania George Macovescu, Secretary of State
of the United States of America Henry A. Kissinger, with Mrs.
Kissinger, paid an official visit to Romania on November 3-4, 1974.
The President of the Socialist Republic of Romania Nicolae Ceausescu
received Secretary Kissinger. Minister of Foreign Affairs of the
Socialist Republic of Romania George Macovescu also held talks
with Secretary of State Kissinger. They had cordial and constructive
exchanges of view both on bilateral relations as well as on various
international issues of mutual interest. It was determined with
satisfaction that a high degree of agreement exists on these matters,
reflected in the continuing good and mutually beneficial relations
between the two countries.

Both sides reaffirmed the importance attached by the two
governments to the principles set forth in the joint declaration
of the Presidents of the two states on December 5, 1973. Noting
the favorable prospects for further development of relations between
the two countries, they agreed that those principles -- together
with the joint declaration on economic, industrial and technical
cooperation -- provide a sound basis for implementing and expanding
long-term cooperation between the two countries in all areas.

The two sides noted with satisfaction the recent growth in trade between the two countries and resolved to act to promote widened economic cooperation. The two sides agreed that introducing most-favored-nation status into bilateral economic relations as soon as possible is an important factor for developing cooperation between the U.S. and Romania in this field. The two sides agreed to the early opening of negotiations on a trade agreement. They also agreed to negotiate an agreement on long-term economic cooperation.

Previous experience in cultural exchanges and scientific and technical cooperation was evaluated and prospects for further expansion were deemed favorable. A new long-term agreement on cultural, scientific and technical cooperation is soon to be negotiated.

In accordance with the Joint Declaration of December 5, 1973, the two sides reaffirmed their intention to contribute to the solution of problems of a humanitarian nature.

In discussions marked by an open and friendly spirit on the main international problems of common interest, both sides underlined that solutions to the problems currently facing the world community must be pursued by peaceful means and negotiation without use of force or threat of force on the basis of respect for the independence, sovereignty, and juridical equality of all states, whatever their size or social, political and economic system. They also emphasized the need for efforts to move toward a world in which each nation can freely choose and develop its own political, social, economic and cultural life.

3

Special attention was paid to European security and cooperation.
Both sides reaffirmed their determination to work constructively for
an early and successful conclusion of the Conference on Security
and Cooperation in Europe, as an important stage in the process
of building better understanding and cooperation between participating
countries, in order to assure conditions where each is able to live
in peace and security.

Both sides underlined their continued determination to strive
for effective disarmament measures which strengthen the peace and
security of all peoples.

In connection with the Middle East situation, both sides
favorably noted the accords already reached. However, the need
was underlined for continuing efforts to reach a just and lasting
peace in this region.

The two sides underlined the need for a lasting political
settlement of the Cyprus problem in keeping with the interests
of the Cypriot people and all sides concerned, and with international
peace and understanding.

Current problems of the world economic situation were examined
in the context of growing international interdependence. Stress
was put on the need for finding solutions to the problems affecting
the countries of the world, particularly those involving food,
energy, population, and development. In this connection, emphasis
was placed on the importance of conducting economic relations on an
equitable basis.

Both sides agreed on the need to give effective support to
the United Nations in strengthening world peace and developing
international cooperation.

Both sides affirmed the importance of intensifying the
contacts and consultations at all levels which characterize
relations between the two countries, noting that these contribute
both to increased mutual understanding between the Socialist Republic
of Romania and the United States of America, and to the strengthening
of the cause of world peace. In this connection, President Nicolae
Ceausescu renewed his invitation to President Ford to visit Romania.
Secretary Kissinger stated that President Ford accepts the invitation
with pleasure. It was agreed that the visit will take place at
the earliest possible date.

Secretary Kissinger expressed appreciation for the cordial
reception he was accorded in Romania as well as for the full
exchange of views during his visit in Bucharest.

Bucharest, Romania

November 4, 1974

UNCLASSIFIED

Department of State

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Amembassy BELGRADE

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INFO: Amembassy ROME IMMEDIATE

UNCLASSIFIED BELGRADE 5500

SECTO 437

E.O. 11652: N/A

SUBJECT: SecVisit: Secretary Kissinger's Arrival Statement
in Belgrade on November 4, 1974

REF: STATE 230784, Oct. 21

THIS IS IN LIEU OF SECTO 436 WHICH IS TO BE CANCELED.

1. Following is transcript of subject statement:

"Mr. Foreign Minister, Ladies and Gentlemen:

This is my first visit to Yugoslavia in four years.

A country with which we have had friendly and cordial
relations for almost the entire post war period.

Yugoslavia with its fierce spirit of independence and
its independent policy has made a significant contri-
bution to world peace. I look forward to exchanging

S/S 10
CHRON

DRAFTED BY:

VOA:LFreud:rec/kg - 11/4/74

CLEARANCES:

S/PRI: Amb. Anderson

APPROVED BY:

S/S: REHecklinger

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0364

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E.O. 11652: N/A
TAGS: OVIP (KISSINGER, HENRY A.)
SUBJECT: STATEMENT ISSUED BY PRESIDENT TITO AND
SECRETARY KISSINGER AT CONCLUSION OF THEIR MEETING,
BELGRADE, NOVEMBER '74, 1974
REF: STATE 230784, OCT 21

1. TRANSLATION TITO REMARKS FOLLOW:

"WE HAD TODAY VERY GOOD TALKS WITH THE SECRETARY OF STATE MR. KISSINGER. THE SECRETARY OF STATE HAD TALKS BEFORE THAT WITH OUR PRIME MINISTER AND FOREIGN MINISTER. THE TALKS WERE CONCERNED WITH BILATERAL RELATIONS AND ALSO INTERNATIONAL PROBLEMS, MOSTLY THE MIDDLE EAST. AS REGARDS BILATERAL RELATIONS WE OF COURSE AGREED TO CONTINUE TO DEVELOP AND EXPAND THEM. CURRENT RELATIONS SO FAR ALSO ARE NOT BAD. AS REGARDS INTERNATIONAL PROBLEMS ESPECIALLY THE MIDDLE EAST CONCERN WAS EXPRESSED ON BOTH SIDES BECAUSE OF THE STAGNATION THAT IS THERE. MUCH DEPENDS ON THE GOVERNMENT OF THE UNITED STATES WHICH SO FAR WAS THE MAIN INFLUENCE IN THE CARRYING OUT OF THE DISENGAGEMENT AND FOR A PEACEFUL SOLUTION OF THE CONFLICT BETWEEN THE ARAB STATES AND ISRAEL. THE SECRETARY OF STATE WILL SOON VISIT AGAIN THIS REGION AND HE WILL KNOW BEST WHAT THIS SITUATION IS AND WHAT THERE IS TO DO. THE DISCUSSIONS WE HAD WERE VERY USEFUL AND I AM VERY GLAD SECRETARY KISSINGER VISITED YUGOSLAVIA AND ON MANY THINGS WE DISCUSSED OUR POSITIONS WERE SIMILAR."

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SECTO 437

E.O. 11652: N/A
TAGS: OVIP (KISSINGER, HENRY A.)
SUBJECT: SECVISIT: SECRETARY KISSINGER'S ARRIVAL STATEMENT
IN BELGRADE ON NOVEMBER 4, 1974

REF: STATE 230784, OCT 21

THIS IS IN LIEU OF SECTO 436 WHICH IS TO BE CANCELLED,

1. FOLLOWING IS TRANSCRIPT OF SUBJECT STATEMENT:

"MR. FOREIGN MINISTER, LADIES AND GENTLEMEN:

THIS IS MY FIRST VISIT TO YUGOSLAVIA IN FOUR YEARS.
A COUNTRY WITH WHICH WE HAVE HAD FRIENDLY AND CORDIAL
RELATIONS FOR ALMOST THE ENTIRE POST WAR PERIOD.
YUGOSLAVIA WITH ITS FIERCE SPIRIT OF INDEPENDENCE AND
ITS INDEPENDENT POLICY HAS MADE A SIGNIFICANT CONTRI-
BUTION TO WORLD PEACE. I LOOK FORWARD TO EXCHANGING
IDEAS WITH THE FOREIGN MINISTER, WITH PRESIDENT
TITO AND WITH ALL OF THEIR COLLEAGUES IN THE SPIRIT
OF FRANKNESS AND CORDIALITY THAT HAS ALWAYS MARKED
OUR RELATIONSHIP. THANK YOU VERY MUCH."

2. DEPARTMENT REPEAT AS DESIRED.KISSINGER
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E.O. 11652: N/A

TAGS: OVIP (KISSINGER, HENRY A)

SUBJECT: SECVISIT: RELEASE OF JOINT STATEMENT AT CONCLUSION OF
SECRETARY KISSINGER'S NOVEMBER 4, 1974 VISIT TO BELGRADE

1. FOLLOWING TEXT OF JOINT STATEMENT WILL BE RELEASED TO PRESS
AT 1800 GMT ON MONDAY, NOVEMBER 4, 1974: QUOTE

AT THE INVITATION OF THE VICE PRESIDENT OF THE FEDERAL
EXECUTIVE COUNCIL AND FEDERAL SECRETARY FOR FOREIGN AFFAIRS
MILOS MINIC, THE SECRETARY OF STATE OF THE UNITED STATES OF
AMERICA HENRY A. KISSINGER, TOGETHER WITH HIS WIFE, PAID AN
OFFICIAL VISIT TO YUGOSLAVIA ON NOVEMBER 4, 1974.

THE PRESIDENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA
JOSIP BROZ TITO RECEIVED SECRETARY OF STATE HENRY KISSINGER WHO,
ON THAT OCCASION, CONVEYED TO THE PRESIDENT OF THE SFRY
A MESSAGE FROM THE PRESIDENT OF THE USA GERALD FORD. THE
PRESIDENT OF THE REPUBLIC ENTERTAINED HENRY KISSINGER, TOGETHER
WITH HIS WIFE AND ASSOCIATES, AT LUNCH.

MR. KISSINGER WAS ALSO RECEIVED BY THE PRESIDENT OF THE
FEDERAL EXECUTIVE COUNCIL DZEMAL BIJEDIC.

VICE PRESIDENT AND FEDERAL SECRETARY MINIC AND SECRETARY OF
STATE KISSINGER HELD TALKS CONCERNING ALL QUESTIONS OF INTEREST
TO THE TWO COUNTRIES.

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THE TALKS HELD DURING THESE MEETINGS IN AN ATMOSPHERE OF FRIENDSHIP AND OPENNESS, COVERED THE MOST IMPORTANT INTERNATIONAL QUESTIONS AND BILATERAL RELATIONS BETWEEN THE TWO COUNTRIES. SPECIAL ATTENTION WAS DEVOTED TO CRISIS AREAS IN THE WORLD, SUCH AS THE NEAR EAST AND CYPRUS. THE TWO SIDES PUT FORTH THEIR VIEWS ABOUT THE PATHS TOWARDS A SETTLEMENT OF THESE AND OTHER OUTSTANDING WORLD PROBLEMS, AFFIRMED THE IMPORTANCE OF CONTINUED REGULAR CONTACTS AND CONSULATIONS AT ALL LEVELS IN VARIOUS FIELDS OF MUTUAL INTEREST, AND STRESSED THE BENEFIT THESE PROVIDE TO INCREASED UNDERSTANDING AND MUTUAL RESPECT FOR ONE ANOTHER'S VIEWPOINTS AND POSITIONS.

ON THE BASIS OF THE PROGRESS ACHIEVED AT THE CONFERENCE ON EUROPEAN SECURITY AND COOPERATION FOR PRESERVING AND CONSOLIDATING PEACE IN EUROPE AND FOR FURTHER ADVANCEMENT OF ALL-ROUND CONSTRUCTIVE COOPERATION AMONG EUROPEAN STATES, THE TWO SIDES STRESSED THEIR MUTUAL INTEREST IN CONTINUED COORDINATION OF EFFORTS TO ATTAIN ACCEPTANCE OF BASIC PRINCIPLES FOR INTER-EUROPEAN COOPERATION AND SECURITY, AND AN EARLY AND SUCCESSFUL CONCLUSION OF THAT CONFERENCE.

THE TWO SIDES GAVE SPECIAL ATTENTION TO CURRENT PROBLEMS IN THE SPHERE OF INTERNATIONAL ECONOMIC DEVELOPMENTS AND RELATIONS. RECOGNIZING THE FUNDAMENTAL INTERDEPENDENCE OF ALL NATIONS AND PEOPLE, THE TWO SIDES AGREED THAT REAL PEACE, AND STABILITY IN THE WORLD COULD COME ONLY WITH SIGNIFICANT PROGRESS TOWARD SOLUTION OF THE PRESSING PROBLEMS FACING MANKIND IN THE FIELDS OF INTERNATIONAL ECONOMIC RELATIONS, WORLD ECONOMY, AND ECONOMIC DEVELOPMENT. THEY AGREED FURTHER THAT LASTING SOLUTIONS TO THESE PROBLEMS COULD BE FOUND ONLY ON THE BASIS OF RESPECT FOR INDEPENDENCE, SOVEREIGNTY, EQUALITY AND NON-INTERFERENCE AMONG ALL STATES REGARDLESS OF WHETHER THEY HAVE SIMILAR OR DIFFERENT SOCIAL, ECONOMIC OR POLITICAL SYSTEMS.

REAFFIRMING THE NECESSITY FOR WIDESPREAD COOPERATION BASED ON EQUALITY OF ALL MEMBERS OF THE INTERNATIONAL COMMUNITY ON THE BASIS OF THE PRINCIPLES OF THE CHARTER OF THE UNITED NATIONS IN SETTLING OUTSTANDING INTERNATIONAL PROBLEMS, IT WAS RECOGNIZED THAT YUGOSLAVIA'S POLICY OF NONALIGNMENT MAKES AN ACTIVE CONTRIBUTION TO GREATER UNDERSTANDING AMONG PEOPLE AND THE SEARCH FOR PEACEFUL SOLUTION TO INTERNATIONAL PROBLEMS AND CONFLICTS.

BOTH SIDES ASSESSED THAT BILATERAL COOPERATION BETWEEN THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA AND THE UNITED STATES OF AMERICA IS DEVELOPING FAVORABLY, AND STRESSED THE INTEREST AND READINESS FOR ITS FURTHER ADVANCEMENT AND EXPANSION, ESPECIALLY IN THE SPHERES OF ECONOMIC, FINANCIAL AND SCIENTIFIC-TECHNOLOGICAL COOPERATION, AS WELL AS IN JOINT INVESTMENTS. THEY EMPHASIZED PARTICULARLY THE IMPORTANCE OF THE AGREEMENT UNDER WHICH UNITED STATES AND YUGOSLAV FIRMS ARE COOPERATING IN CONSTRUCTION OF YUGOSLAVIA'S FIRST NUCLEAR POWER PLANT.

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THEY ALSO CONFIRMED THEIR READINESS TO ACTIVELY ENCOURAGE FURTHER EXPANSION OF CULTURAL COOPERATION AND EXPRESSED THEIR EXPECTATION THAT THE PARTICIPATION OF YUGOSLAVIA AT THE FORTHCOMING BICENTENNIAL OF THE UNITED STATES OF AMERICA WILL CONTRIBUTE TO THE DEEPENING OF UNDERSTANDING BETWEEN THE PEOPLES OF THE TWO COUNTRIES. THEY ALSO EMPHASIZED THE SIGNIFICANCE OF THE CONTRIBUTION TO THE DEVELOPMENT OF THE UNITED STATES OF AMERICA BY US CITIZENS OF YUGOSLAV EXTRACTION WHO REPRESENT A STRONG LINK OF LASTING FRIENDSHIP BETWEEN THE PEOPLES OF THE TWO COUNTRIES.

ATTACHING EXTRAORDINARY IMPORTANCE TO THE PRINCIPLES CONTAINED IN THE JOINT STATEMENT SIGNED OCTOBER 30, 1971 DURING PRESIDENT TITO'S VISIT TO THE UNITED STATES ON WHICH MUTUAL RELATIONS OF THE TWO COUNTRIES ARE BASED, AS WELL AS TO THE MESSAGES EXCHANGED BETWEEN PRESIDENTS TITO AND FORD REAFFIRMING THESE PRINCIPLES, THE VICE PRESIDENT OF THE FEDERAL EXECUTIVE COUNCIL AND FEDERAL SECRETARY FOR FOREIGN AFFAIRS MILOS MINIC AND THE SECRETARY OF STATE HENRY KISSINGER NOTED THAT THESE ARE THE DOCUMENTS WHICH, FOR YUGOSLAV-AMERICAN RELATIONS, CONSTITUTE A LSTING BASIS OF STABLE FRIENDLY RELATIONS AND BROAD, MUTUALLY ADVANTAGEOUS COOPERATION BETWEEN THE TWO COUNTRIES. UNQUOTE

2. DEPARTMENT REPEAT AS DESIRED. TOON
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<table><tr><td>FROM</td><td>Amembassy ROME</td><td>CLASSIFICATION</td><td>UNCLASSIFIED</td></tr><tr><td>E.O.</td><td>11652</td><td>TAGS:</td><td>N/A</td></tr><tr><td>SUBJECT:</td><td colspan="3">OVIP (Kissinger, Henry A.)<br/>Exchange of Dinner Toasts Between President Leone and Secretary Kissinger at Quirinale Palace, Rome, on November 4, 1974<br/>SecState WASHDC IMMEDIATE</td></tr><tr><td>ACTION:</td><td colspan="3"></td></tr><tr><td>USIS</td><td>EU</td><td>UNCLASSIFIED ROME</td><td>15239</td></tr><tr><td>AMB</td><td>DCM</td><td>SECTO</td><td>470</td></tr><tr><td>THT</td><td>ADM</td><td colspan="2">NSCE FOR GENERAL SCOWCROFT AND NESSEN</td></tr><tr><td>POL-2</td><td>POLMAR</td><td colspan="2">1. Following is translation of toast by Italian President Leone:</td></tr><tr><td>ECOM</td><td>TAT</td><td colspan="2">QUOTE: Since this is the third time I have had the pleasure of meeting Mr. Kissinger, I would like to say that the cards between us are on the table, there is no bluffing, so it is useless to prepare speeches which won't be read and then thrown in the waste basket -- one speaks extemporaneously. Mr. Kissinger played the last trick upon me when he gave me and Foreign Minister Moro a wonderful lunch. He had sent in a draft of his speech, but later he dropped it and spoke also of other things not on the draft. But, thank God, having some experience as a lawyer, I succeeded in answering him on the same plane. So this time we haven't even tried to play the traditional</td></tr><tr><td>TU</td><td>15/5-20</td><td colspan="2"></td></tr></table>

DRAFTED BY:

USIS:GKennedy/RAmerson:mae:ka

DRAFTING DATE
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TEL. EXT.
--

CONTENTS AND CLASSIFICATION APPROVED BY:
S/PRS: Ambassador Anderson

CLEARANCES:

S/S:REHcheckinger S/S:Mr. Bremer (in substance)

S/S:REWqods

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respectable diplomatic practice of exchanging speeches, refining
the adjectives, changing the commas and modifying the phrases.
And then, how could one follow the rule, even such a noble rule,
when the subject of the meeting is Mr. Kissinger who revolutionized
diplomacy and travels so generously, with dedication, with
sacrifice, as a messenger of peace, as we welcome him once more
here at the Quirinale Palace?

This is the third time we meet. Exactly five months ago,
Mr. Kissinger, July 5, and tomorrow is November 5, two meetings
in Rome -- one of which is this one -- and, in between, my official
visit to the United States, accompanied by Foreign Minister Moro.
And today's meeting -- a meeting which we requested and which you
have so kindly accepted and welcomed -- is a meeting which is due
to the World Food Conference, which will open tomorrow and to which
you will contribute your thought and the vigor and strength of the
nation you represent. Well, that Conference will make clear to the
minds of all, the responsible leaders of all countries, how dramatic
their commitment is, at a truly significant and interesting moment
in the evolution of history. For years now studies have been made --
and Italy gave its contribution with the Club of Rome, Peccei and
others -- and also in recent conferences as the one in Romania --
for a very long time the dramatic plight forecast for human-kind
at the eve of next Century has been studied the world over. This
Conference must therefore realize what are the responsibilites of
the more developed countries and which country in this regard has

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a major responsibility -- and that is your country, but also my
country, although to a lesser extent -- in supplying political will,
moral strength, determination, tools, structures and means to over-
come the world's hunger.

Before receiving you, Mr. Kissinger, I met with [the] Argentina's
Foreign Minister and we remarked, with great regret, that Argentina
is not able to export its meat while there is a meat shortage in
other world areas, which means that there is lack of organization.
I also met Mr. Waldheim who called attention to the importance of
this Conference -- saying what I will take the liberty of saying
tomorrow in bringing my country's welcome to the Conference --
that is, that this is a matter of political decision and will,
therefore cooperation, coordination, collaboration among all the
people of the world. President Ford and you, Mr. Kissinger, have
launched that word, cooperation, you have asserted and spread the
word of cooperation and coordination, and you are its herald in
your trips throughout all the world's regions. And indeed the two
pillars of Italian foreign policy respond to this purpose, to this
aim of cooperation: The Atlantic Alliance, whose role you, we,
and all the member nations have always thought of as a defensive
one, as well as one of evolution, progress and detente; and Europe,
where we are struggling -- with unfortunately, moments of arrest
which sadden and worry us -- to shape in this old and great
Continent -- which still has something to say and has to work in
the light of its great tradition -- in order to shape a united

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political institution which would go against no one, and specially not against America, but instead would pose itself ahead of and at the side of America to work together for detente, for peace, for the progress of the world's people.

Mr. Secretary, Mr. Kissinger, in your trip you have travelled over three continents: Europe, Asia and Africa, a trip which was to end here in Italy (as we were saying earlier in private) and you were longing for perhaps a day of rest in Italy or in the U.S., while this is only a pause because international developments still require the vigorous contribution of the U.S., a contribution of poise, of strength, of loyalty, of vigor and will. And tomorrow, after a tiring day, you will resume your journey, a very noble pilgrimage for peace and for the construction of world solidarity. You will be accompanied by our heartfelt best wishes as well as by the reaffirmation from me personally -- and tomorrow you will hear this repeated by our Foreign Minister and our Prime Minister when you meet but who now here join me in welcoming you -- of the renewed statement of Italy's loyalty to its friendship, the statement that, in the difficult fabric of international detente, Italy is at the side of the U.S., of course in the minor position that her possibilities, her capacity, and her international weight permit. These statements will accompany you in your mission for detente. And, whatever you do for detente on the world level among the major powers, whatever you do in the Middle East to pick up again the threads of peace -- that peace which we were following with great

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interest, which we thought was forthcoming and which kindles so much trepidation in spirits the world over -- you will be accompanied by our trust and our sympathy.

With these feelings we welcome you in warmth and friendship to this palace. And we have the pleasure to welcome Mrs. Kissinger whom you, her husband, when we met in Washington promised to take to see the seven-hundred-room palace. And I answered: "I haven't counted them yet, and I don't believe that the years that God will allow me, if he will let me complete my turn, will be enough to count them." But I also added: "My bedroom is very small; these rooms are for the guests only. And especially when the guests are as charming as you, Mr. and Mrs. Kissinger, these doors are wide open, these lights recapture their old splendor, these halls relive the great moments of Italy's life in order to say to you that we, as friends and allies, as a people proud of their freedom, their independence and their history, we look at your country with sympathy, with great trust, with confident expectation. With these feelings, I ask you, gentlemen, to join me in raising our glasses to the health of the U.S. President, Mr. Ford, and his gracious wife to whom we send a special greeting of best wishes, as well as to the health, of Mr. Kissinger to the success of his mission, to the gracious Mrs. Kissinger to the friendship of our two peoples. END QUOTE.

2. Following is response by Secretary:

QUOTE: Mr. President, Mrs. Leone, Mr. Prime Minister, Mr. Prime Minister-designate, Excellencies, Ladies and Gentlemen:

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in a foreign country, that I am with friends who share a common
destiny. We face in the West right now a profound crisis. And the
crisis is not energy or inflation, it is whether the nations with
similar traditions and common values can work together to master
their destiny. If the nations of the West work together as they
have for the past generation, then the problems that we now face
can be turned into opportunities and we can begin a whole new
period of creativity. And that is what the United States is trying
to do together with its friends in Europe at this moment. So
occasionally I am asked whether the United States will help Italy
in its difficulties. But that is the wrong way of putting the
question. Of course we will work together to solve our difficulties.
But we are not helping Italy, we are helping ourselves. There is
no part of the Western community that can have setbacks without
affecting every other part. And that is the attitude with which
we will work together.

The President spoke of the World Food Conference and it is
again my destiny that I have to follow him on this biggest platform.
And it will turn out that he is saying very much what I am trying
to express less eloquently, that is, I will express it less
eloquently. He is absolutely right: the problem of food is not
a technical problem. It is ridiculous that there should be sur-
pluses in some areas, shortages in some other areas. It is there-
fore entirely a question of political will and political imagination.
This is the opportunity we have at the World Food Conference: and

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it is appropriate that it should meet in Rome, which throughout
its long and glorious history has had to look at the relationship
among nations. And in Italy with its tradition of humanity and
compassion. And, selfishly, I am glad it is in Italy because it
gives me an opportunity to see my friends with whom it is always
a pleasure to exchange ideas, and from whom we always profit. So
I would like to propose a toast to the President of Italy and to
the permanent friendship between Italy and the United States, and
to Mrs. Leone. END QUOTE.

3. Department repeat as desired.

KISSINGER

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<table><tr><td>FROM</td><td>AMEMBASSY ROME</td><td>CLASSIFICATION</td><td>UNCLASSIFIED</td></tr><tr><td>E.O. 11652:</td><td>N/A</td><td></td><td></td></tr><tr><td>TAGS:</td><td>OVIP (KISSINGER, HENRY A.)</td><td></td><td></td></tr><tr><td>SUBJECT:</td><td>STATEMENT ISSUED BY THE QUIRINALE PRESS OFFICE, ROME, ON NOVEMBER 4, 1974</td><td></td><td></td></tr><tr><td>ACTION:</td><td>SecState WASHDC</td><td>IMMEDIATE</td><td></td></tr><tr><td>S/S-20</td><td>UNCLASSIFIED</td><td>ROME XXXXXX 15232</td><td></td></tr><tr><td></td><td>TOSEC 466</td><td></td><td></td></tr><tr><td></td><td>NSC FOR GENERAL SCOCROFT AND NESSEN</td><td></td><td></td></tr><tr><td></td><td colspan="3">1. Following is translation of subject statement:</td></tr><tr><td></td><td colspan="3">QUOTE: President Leone received Secretary of State Henry Kissinger at the Quirinale Palace today.</td></tr><tr><td></td><td colspan="3">Italian Foreign Minister Aldo Moro also participated in the talks, which were described as particularly cordial.</td></tr><tr><td></td><td colspan="3">In the spirit of the recent talks in Washington and in the context of the close rapport which unites the two nations as friends and allies, it was again re-emphasized that the principal objective which inspires the policies of the countries is the consolidation of peace, the settling of the causes of conflict and tension, and the just and lasting solution to the problems which upset the world's balance and impede the progress of peoples.</td></tr><tr><td>DRAFTED BY:</td><td>S/PRS:RAnderson mae</td><td>DRAFTING DATE</td><td>11/5/74</td><td>TEL. EXT.</td><td>CONTENTS AND CLASSIFICATION APPROVED BY:</td><td>S/S:REWoods</td></tr></table>

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The American side reaffirmed the importance of the contribution Italy can make toward these ends and noted that Italy constitutes an essential factor for stability and equilibrium in Europe and in the Mediterranean regions, and further reaffirmed America's determination to lend Italy maximum support for its economic recovery.

The Secretary of State reported on the results of his recent travels.

Mutual interest was expressed that the process of detente and East-West cooperation in Europe and in the world continue to develop and be consolidated. It was hoped that upcoming events, including the winter session of the Atlantic Council and the European summit, would respectively give further impetus to Atlantic solidarity and to the process of the integration of Western Europe in the interest of peace, security and economic and social progress.

Particular attention was also devoted to the Middle East situation which continues to be a matter of concern and requires therefore the greatest efforts of all until the region finds a just and lasting settlement. The problem of Cyprus was then briefly examined. The energy problem and the most suitable ways to reach positive solutions agreeable to the fundamental interests of our countries were also discussed.

Finally it was hoped that efforts for better distribution in the world of natural resources, through technology and financial means, would meet with success. In this regard both parties under-scored the World Food Conference which opens tomorrow under the

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<table><thead><tr><th></th><th>FROM</th><th>CLASSIFICATION</th><th></th></tr></thead><tbody><tr><td></td><td>AMEMBASSY ROME</td><td>aUNCLASSIFIED</td><td></td></tr><tr><td>E.O. 11652: TAGS: SUBJECT: ACTION:</td><td>N/A<br>OVIP (KISSINGER, HENRY A.)<br>STATEMENT ISSUED BY THE OFFICE OF THE PRIME MINISTER, ROME, ON<br>November 5, 1974<br>SecState WASHDC<br>CAIRO for Secretary's Party</td><td>IMMEDIATE<br>IMMEDIATE<br>UNCLASSIFIED<br>ROME 15259</td><td>7</td></tr><tr><td>S/S-20</td><td>TOSEC<br>NSC FOR GENERAL SCOCROFT AND NESSEN</td><td></td><td></td></tr><tr><td>1. Following is translation of subject statement:<br>QUOTE: Prime Minister Rumor met this morning, at Villa Madama, Secretary of State of the United States Henry Kissinger who is in Rome to participate in the World Food Conference.<br>The conversation, which was conducted in an atmosphere of cordiality and friendship, consisted of an exchange of views on relations between the two countries as well as on major topics of international affairs of mutual interest to Italy and the United States.<br>Also present at the meeting from the American side were Ambassador Volpe, Counsellor of the Department of State Sonnenfeldt, and Assistant Secretary of State for European Affairs Hartman, and from the Italian</td><td></td><td></td><td></td></tr><tr><td>DRAFTED BY: C.Chikes/R.R. Amerson</td><td>DRAFTING DATE 11-05-74</td><td>TEL. EXT.</td><td>CONTENTS AND CLASSIFICATION APPROVED BY: USIS/ R. Amerson</td></tr><tr><td>CLEARANCES: Ambassador Anderson (in Substance)</td><td></td><td></td><td></td></tr><tr><td></td><td>unclassified</td><td>UNCLASSIFIED</td><td></td></tr></tbody></table>

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Q. How will the oil producers receive this speech - including the theme that they should help?

A. The Shah of Iran seemed receptive but I have not discussed this yet with the other oil producers and therefore do not know what their reactions will be.

Q. Isn't there any linkage at all between food contribution and oil?

A. There is not except as I have just mentioned in the previous question.

Q. How revolutionary is the speech in terms of our traditional approach?

A. I believe the overall approach is fairly revolutionary.

We have never had such a global conception of the problem.

from

Q. Mr. Butz said that US food aid would go/fax nine hundred million dollars to one billion dollars. Doesn't inflation eat up this increase?

A. The phrasing of the speech was carefully thought out. We will provide the maximum aid possible. Given the inflationary spiral that exists we have to make allocations on a quarterly basis because of the price impact. Therefore, it is difficult to give the precise figure. Our intention is to try to increase not only the dollar amount of food aid but the absolute quantity of food.

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Q. Why then did Butz use those figures?

A. It may have been technically what is actually appropriated;
but this issue has been fully discussed with the President and
the speech states what the US policy is.

Q. Aren't prices the key point and the line has been that the higher prices there are the more will be planted. This is the Agriculture position, with national reserves to protect against price fluctuation.

A. We are trying to develop a comprehensive program - I don't wish to debate pricing policy per se.

Q. What is the attitude of the industrialized countries and the LDC's to this speech?

A. We have just begun consultations today so I am not sure what their attitude will be. We are talking to the members of the Export Planning Group. I think there should be a positive response.

Q. Does the reference to nationally held reserves mean government involvement?

A. This reference meant that reserves should be held within each country rather than being held internationally. Frankly, we are still divided within the government whether it will be necessary in the US to have government reserves as well as private ones. The first task is to get an inter-

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national agreement with a quota that we are to hold and then we
will see what is necessary to get our commitment. If we can meet
our commitments entirely through private means, there is no
religion on this issue.

Q. Will you need to have greater focus on agricultural matters in the State Department?

A. State will be playing a much more active xáxx role in this field. I will be looking to a new Under Secretary for Economic Affairs as well as my Special Assistant in these matters.

Q. Is the Food Production and Investment Group just another organization? What happened to the World Food Authority?

A. (He outlined the three new groups.) As for the authority we indicate that we would go along with this if that is what is wanted. We leave this decision to the conference.

We have noticed some opposition to the idea recently. We are proposing these three groups; we leave open the question whether they should be unified in a World Food Authority.

Q. Have you taken soundings on the impact of the speech on the Communist Bloc and the Allied nations?

A. I don't know the results of any soundings taken here.

The food deficit developing nations should be quite receptive.

I don't want to predict the first reaction of the exporters.

The Communist nations will probably be negative especially on reserves. Yugoslavia and Romania on the whole favored

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the approach of the speech. It discussed it at each of the stops of my trip.

Q. Did you discuss this with Soviet Union?

A. Only in the most general way. I think the Soviet Union was most worried about being the spot with a specific proposal.

Q. What about Canada?

A. They will probably be in the Joint Planning Group.

There must be a cooperative effort. The problem is one of new ideas coming up against existing patterns.

Q. Will you discuss this with me?

A. I believe the developing countries will favor our approach.

I will discuss this with Secretary Butz. It is possible. As you know, Secretary Butz is going to Syria.

Q. Does the new group in power mean a pool for food aid?

A. Yes, it gets at the heart of how to control the distribution of food. There are both bilateral and multilateral programs. We suggest negotiation of a minimum three-year program for the countries by traditional donors and new financial partners. With respect to our control of the group our influence is reflected in our voting.

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power which should be considerable. In addition we will continue
our own PL-480 program. The thrust of the speech is both on
bilateral and multilateral efforts.

Q. What will be the Congressional reaction?

A. It should go well with Senators like Humphrey. On the whole
it should be treated on a bi-partisan basis. I don't know how
much soundings with Congress have yet been taken in Washington.

Q. Isn't this primarily a program for the Western world?

A. No, just the opposite. It is basically for the poor
countries. Most of the exporters are in the Western world
us and we want to increase their cooperation. We have a
broad approach -- to increase production in the developed
world and in developing countries and to involve the new
financial powers as well as the Western world in helping out.
Also, we emphasize food quality, and reserves which are a
global problem affecting all.

Q. Doesn't the speech stress general approaches and maybe
lose specificity?

A. It depends on how these things are done. Our attitude has been
that we need a coherent program treating all the issues of
food on a global basis. We have set forth a statement
on how to organize comprehensively to do this and then we

us

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say what the US is prepared to do nationally and internationally.
Food can't be treated just as a matter of dollars. This speech
tries to create an organizing framework and a conceptual framework
on how to approach these issues and in each category there is a
statement about what the US is prepared to do.

Q. What about getting more food production?

A. We believe that developing countries have to increase their production. For example, they have 35 percent more land under cultivation and produce 20 percent less than the developed countries. Our attitude indicates the magnitude of the problem, the scale of the effort needed and how to approach it.

Q. What can one expect a conference of this size to do practically?

A. There are two dimensions. What can any one conference achieve. And what is the overall effort which is required.
We are trying to articulate a statement of the problem, indicate the right answers and try to organize an international effort.
This conference won't set up all the institutions we suggest, but we think that some groups along these lines must be set up. We set forth a program reflecting US responsibility and our perception of a program. We will attempt to get this implemented over a period of time. We would hope that over

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a year there will be progress made if the US does its part as it is pledged to do.

Q: We do not think the Communist bloc will cooperate and yet how can you have a global solution realistically without them?

A. What is needed is for countries to indicate their need for some global system. We need this analysis for reserves. We have the ironic situation where we are arguing for planning while the Communists operate in a free market. If they do not join the reserves group, we will give priority on distributing reserves to other nations.

Q. Isn't all of this going to take place outside the United Nations?

A. We do not preclude these groups being related to an overall group of United Nations.

Q. If there is more food aid when you could have exported it for money, isn't this a burden on the taxpayers?

A. This is one of the national decisions we will have to make. The exporters must have a sense of responsibility. There is a limit to the concessions of food that we can ship. There are differences of opinion.

Q. Shouldn't we help developing countries rather than the Communist Bloc?

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A. Yes, and that is precisely what we are proposing. If the Communists join the reserve group, there is no problem. If they don't join, the countries in the system get preferential treatment.

Q. Will there be a net increase in untied food aid?

A. We are allocating aid on a quarterly basis in order to minimize the impact on prices. Therefore, at each quarter we have to make a decision. We will give a maximum amount of concessional aid. Obviously there are differences of opinion. We will do the maximum amount that we can do. There will certainly be more in terms of value. I am confident that we will also do more in terms of quantity. But this is subject to the impact on x prices and therefore there has to be some qualifier. I would be surprised if by the end of the fiscal year there were not an increase in the amount. There will certainly be an increase in dollars and we are aiming strongly for an increase in quantity. Inflation is a factor. If oil prices are not raised, y obviously the US will be in a better position. If inflation is under control, the value will increase. The index scheme depends on what level you start it. If there is a prior cut in prices, then we will look at indexes.

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PRESS
DEPARTMENT OF STATE

[L.C.J.]

November 5, 1974

No. 477

As Prepared For Delivery

ADDRESS BY
THE HONORABLE HENRY A. KISSINGER
SECRETARY OF STATE
BEFORE THE WORLD FOOD CONFERENCE
ROME, ITALY
NOVEMBER 5, 1974

Secretary Kissinger:

We meet to address man's most fundamental need. The threat of famine, the fact of hunger have haunted men and nations throughout history. Our presence here is recognition that this eternal problem has now taken on unprecedented scale and urgency and that it can only be dealt with by concerted worldwide action.

Our challenge goes far deeper than one area of human endeavor or one international conference. We are faced not just with the problem of food but with the accelerating momentum of our interdependence. The world is midway between the end of the Second World War and the beginning of the twenty-first century. We are stranded between old conceptions of political conduct and a wholly new environment, between the inadequacy of the nation-state and the emerging imperative of global community. In the past thirty years the world came to assume that a stable economic system and spreading prosperity would continue indefinitely. New nations launched themselves confidently on the path of economic and social development; technical innovation and industrial expansion promised steady improvement in the standard of living of all nations; surpluses of fuel, food and raw materials were considered a burden rather than a blessing. While poverty and misery still afflicted many parts of the globe, over the long run there was universal hope; the period was fairly characterized as a "revolution of rising expectations." That time has ended. Now there are fundamental questions about our capacity to meet even our most basic needs. In 1972, partly due to bad weather around the globe, world grain production declined for the first time in two decades. We were made ominously conscious of the thin edge between hope and hunger, and of the world's dependence on the surplus production of a few nations. In 1973 first a political embargo and then abruptly raised prices for oil curbed production in the world's factories and farms, and sharply accelerated a global inflation that was already at the margin of government's ability to control. In 1974, the international monetary and trading system continues under mounting stress, not yet able to absorb the accumulated weight of repeated shocks. Its institutions still struggling to respond. The same interdependence that brought common advance now threatens us with common decline.

We must act now and we must act together to regain control over our shared destiny. Catastrophe when it cannot be foreseen can be blamed on a failure of vision or on forces beyond our control. But the current trend is obvious and the remedy is within our power. If we do not

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