80. Memorandum for the Files1

I visited with Senator Fulbright alone for about an hour this morning.2 The talk opened with a discussion of the recent Party and governmental changes in Moscow during which I replied to the Senator’s questions along the lines of the analyses in the Embassy’s reports.3

Senator Fulbright expressed hope that we would find ways to continue the forward movement in Soviet-American relations of the past couple of years. He felt that the first six months of the new Congress would be a particularly favorable period for a forward movement including pertinent legislative action, saying that some of the more difficult elements had been eliminated during the recent elections and that the Republican membership is in a somewhat chastened mood.

We discussed the possibilities of increased trade relations. I found that the Senator was very favorably inclined toward legislation which would give the Executive Branch more flexibility in conducting trade negotiations with Eastern Europe, including the Soviet Union. He said there would be some flak from people like Senators Mundt and Lausche but did not rule out legislation to give to the President authority to extend MFN treatment. In this connection we exchanged observations with respect to visits both of us had had with the President of [Page 203] Business International, Mr. Eldridge Haynes, who had recently led a group of outstanding American business figures to the Soviet Union. He felt that the members of this group could be very helpful in improving the climate in this country with respect to increased trade with the U.S.S.R. and other Eastern European countries. He felt that a lend-lease settlement would be a very important step in clearing the atmosphere and suggested that if a compromise figure of approximately $500,000,000 could be reached, we might be able to find means of making it easy for the Soviets to pay over a long period. He had one specific suggestion arising out of his conversation with Mr. Haynes, namely that a large part of the lend-lease settlement could be made available in rubles for investment by American business enterprises in joint projects with the Russians. He was referring in this connection to the interest which had been shown on both sides during the Business International seminars in joint research projects and joint licensing and world-wide distribution arrangements. Senator Fulbright said he had in mind particularly the example of the method used by the Brazilians in compensating American companies for sequestered properties; as in the Brazilian case, American firms could reimburse the government for rubles advanced after the ventures had become operative and profitable. I undertook to ask the Department to staff out the possibilities of this idea and to keep him informed about their conclusions.

Senator Fulbright indicated that he planned to proceed with the ratification of the Consular Convention in a normal way shortly after the inauguration. I informed him that the Executive Branch was prepared to go ahead with the signature and implementation of the long postponed Civil Air Agreement after consulting with him, particularly as to whether any problems might be created with respect to the ratification process of the Consular Convention. He did not appear to see any real problems though I told him I was not myself specifically consulting him on this matter and was not asking for his answer at this time. (I assume this will be followed up.)

When the conversation touched on our respective plans to play a bit of golf over the holidays the Senator deplored the lack of golf courses in the Soviet Union and expressed the view that it would do much to calm down the Soviet leadership if we could get them interested in playing the game. I told him of my efforts to persuade Deputy Prime Minister Novikov to build a golf course in the vicinity of Moscow. The Senator suggested that the Department might interest the U.S. Golf Association in this venture. He was sure that the Association would be interested in doing some kind of joint project under which it might design and lay out a golf course and provide some of the necessary equipment while the Russians would provide the land and do the grading and other construction. I told him we would look into this [Page 204] and that this suggestion would give me new material for continuing my efforts with Novikov.

The Senator inquired about my own plans for being back in this country, indicating that he was thinking in terms of possible usefulness of my testimony in connection with legislative proposals, including the ratification of the Consular Convention and a possible East-West trade legislation. I replied that I had no specific plans though normally I got back at least twice a year. I assured him, however, that I could be available on short notice to return if this were considered desirable. During the conversation the Senator referred several times to his recent visit to Yugoslavia and his talk with Tito and other Yugoslav leaders on that occasion. He was impressed by the fact that Tito had been informed of his recent speech in Dallas (December 8) and had commented favorably upon it in his (Tito’s) remarks to the Yugoslav Party Congress.

Foy D. Kohler 4
  1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, POL USUSSR. Confidential. Copies were sent to S/S, EUR, H, SOV, E, EE, and the Embassy in Moscow. A note from Assistant Secretary Tyler to Secretary Rusk transmitting Kohler’s memorandum is marked with the notation “Sec saw.”
  2. Kohler was in Washington for consultations.
  3. See Documents 52, 57, 60, 65, and 74.
  4. Printed from a copy that bears this typed signature.