United States-Romania Trade Agreement Message to the Congress.

To the Congress of the United States:

In accordance with section 402 (d) (5), of the Trade Act of 1974, I transmit herewith my recommendation that the authority to waive subsections (a) and (b) of section 402 be extended for a further period of twelve months.

This recommendation sets forth the reasons for extending waiver authority and for my determination relating to continuation of the waiver applicable to the Socialist Republic of Romania, as called for by subsections (d) (5) (b) and (d) (5) (c) of section 402.

I include, as part of this recommendation, my determinations that further extension of the waiver authority, and continuation of the waiver applicable to the Socialist Republic of Romania, will substantially promote the objectives of this section.

JIMMY CARTER

The White House,

June 2, 1977.

RECOMMENDATION FOR EXTENSION OF

WAIVER AUTHORITY

Pursuant to section 402(d) (5) of the Trade Act of 1974, (hereinafter referred to as "the Act") I have today determined that further extension of the waiver authority granted by section 402(c) of the Act, and continuation of the waiver extended by Executive Order 11854 of April 24, 1975 currently applicable to the Socialist Republic of Romania pursuant to section 402(c)(1) of the Act, will substantially promote the objectives of section 402 of the Act.

Further extension of the waiver authority conferred by Section 402 (c) of the Act will enable us to continue to expand and improve bilateral relations with countries subject to subsection 402(b) of the Act, which I believe to be in the national interest. In the case of Romania, the extension would permit continuation of the U.S.-Romanian Trade Agreement of 1975.

I am convinced that continuation of the U.S.-Romanian Trade Agreement will serve to further promote mutually beneficial growth in two-way trade between the United States and Romania and will buttress the favorable political relations between our countries.

The reasons for retaining good commercial and political relations with Romania remain as valid as in the past. Such relations have contributed to a continuation and strengthening of Romania's independent policies, many of which have proven beneficial to U.S. foreign policy interests. Romania has continued to pursue friendly relations with countries of differing political and economic systems-with the United States, the People's Republic of China, the developing world, and with Israel as well as Arab countries. Romania's participation in international organizations, including the IMF and World Bank, shows a high degree of independence in economic matters that parallels its relative political independence. More than half of Romania's trade is with noncommunist countries, and it is taking part in the Multilateral Trade Negotiations as a GATT Contracting Party.

I believe that a further expansion of U.S.-Romanian economic relations can help to promote a continuation of such independent policies and that the Trade Agreement, nondiscriminatory tariff treatment and authority to extend Commodity Credit Corporation and Export-Import Bank credits are essential to maintain and expand our present overall bilateral relationship with Romania.

Such an expanded bilateral relationship will also improve the prospects for continued American access to Romanian leaders and will enhance our ability to discuss frankly and, judging from past contacts, fruitfully, such important and sensitive subjects as emigration, divided families and marriage cases.

Emigration from Romania to the U.S. has kept up this past year at about the same pace as during the preceding year on which the previous favorable Presidential recommendation was based. Romanian performance with regard to emigration to Israel has been somewhat inconsistent and uneven, 'but overall emigration has risen markedly since implementation of the U.S.-Romanian Trade Agreement. Extending the waiver authority for Romania should provide an incentive to 'bring about a more consistent and forthcoming performance on emigration by Romania. For my Administration's part, we intend to monitor closely compliance with the objectives of section 402, and should performance not accord with the intent of this provision, I would want to reconsider my recommendation; moreover, we will bring to the attention of the Romanian Government any actions or emigration trends which do not seem to conform to the assurances which they have provided in the past to treat emigration matters in a humanitarian manner.

Taking account of all factors, however, I recommend to the Congress, pursuant to subsection 402 (d) (5) of the Act, that the waiver authority granted by subsection (c) of section 402 of the Act be further extended for a period of twelve months.