112. Telegram From the Embassy in the Soviet Union to the Department of State1

3599. At Spaso luncheon yesterday honor visiting MIT management professors, Gvishiani (Kosygin’s son-in-law and Deputy Chief powerful State Coordinating Committee) expressed disappointment lack progress U.S.-Soviet trade relations. Admitting temporary lull in Soviet foreign procurement activities due reassessment priorities, he nevertheless complained American companies with few exceptions did not follow through despite fine talk business international round table conference and numerous visits by businessmen to Moscow.

I replied international situation undoubtedly affecting business decisions but expressed confidence many large American companies prepared do business; licensing policy offered ample opportunities for purchases.

Gvishiani then expressed disappointment that U.S. Govt, despite earlier statements on improving economic relations, was not taking action in trade field. He criticized what he described as greater U.S. interest in political aspects of trade than in actually increasing trade.

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I replied the President was moving our trade policy forward despite the tense international situation.

He had appointed Miller committee to help pave way for Congressional action. At this point, Kuznetsov (member State Coordinating Committee) interjected Miller committee’s report not helpful.2 Gvishiani nodded agreement. I said I understood they might not like certain aspects report, and I have my own reservations about certain parts, but report was part of process which would enable USG eventually negotiate on economic matters. I stressed our policy on improving relations with USSR had not changed; present tension not of our making but decision of Soviet Govt which cited Vietnam situation as incompatible good relations.

After brief recital Soviet Govt position, Gvishiani said this was matter outside his field, for politicians and diplomats to settle, but expressed hope business contacts would continue. This interest, he said, was demonstrated by his very presence at Spaso.

Kohler
  1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, FT USUSSR. Confidential. No time of transmission appears on the telegram.
  2. On April 4 the White House announced the formation of a Special Presidential Committee on U.S. Trade Relations with Eastern European Countries and the USSR, headed by J. Irwin Miller; see Document 25.