Trade With Hungary and Romania Message to the Congress.

To the Congress of the United States:

In accordance with subsection 402(d) (5) of the Trade Act of 1974, I transmit herewith my recommendation for a further 12-month extension of the authority to waive subsections (a) and (b) of section 402.

In accordance with subsections 402 (d) (5) (B) and (c), this recommendation gives my reasons for recommending the extension of waiver authority and for my determination that continuation of the waivers applicable to the Socialist Republic of Romania and to the Hungarian People's Republic will substantially promote the objectives of section 402.

I include as part of my recommendation, my determination that further extension of the waiver authority, and continuation of the waivers applicable to the Socialist Republic of Romania and to the Hungarian People's Republic, will substantially promote the objectives of section 402.

For the information of the Congress, I also include my finding and determination that the requirements for renewal of the United States-Romanian Agreement on Trade Relations under section 405 (b) of the Trade Act have been satisfied.

JIMMY CARTER

The White House,

June 2, 1978.

RECOMMENDATION FOR EXTENSION OF WAIVER AUTHORITY

I recommend to the Congress that the waiver authority granted by subsection 402(c) of the Trade Act of 1974 (hereinafter referred to as "the Act") be further extended for twelve months. Pursuant to subsection 402(d) (5) of 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 waivers currently applicable to the Socialist Republic of Romania and to the Hungarian People's Republic will substantially promote the objectives of section 402 of the Act. My determinations are attached to this recommendation, and are incorporated herein.

The general waiver authority conferred by section 402 (c) of the Act has proved to be a useful instrument in permitting the expansion of relations between the United States and East European countries. It permitted us to sign bilateral trade agreements with Romania and Hungary in April 1975 and March 1978, respectively, which have laid a foundation for increased trade and closer relations. The extension of general waiver authority is necessary to permit continuation of the U.S. Romanian Trade Agreement for another three-year period. The recently-negotiated Trade Agreement with Hungary, a significant development in the favorable evolution of our relations with that country, is before the Congress for approval. Moreover, continuation of this authority will provide a basis for future steps to expand and improve our bilateral relations with other countries subject to subsection 402 (a) and (b) of the Act, should circumstances permit. I believe that all of these considerations make it in the national interest to extend the general waiver authority.

Extension of the waiver for Romania will permit us to continue to promote the objectives of section 402 of the Trade Act of 1974. Emigration from Romania to the United States has continued to increase during the period in which the waiver has been in effect, and 1977 saw a marked increase in overall emigration from Romania, led by a large increase in emigration to the Federal Republic of Germany. Emigration to Israel, however, has declined somewhat. The Administration has continued to advise Romanian officials periodically of our high interest in emigration both to the United States and to Israel. At my request, the Department of State conducted a detailed review of Romanian emigration trends and practices this winter, and a report was sent to the Congress on February 9. I also expressed our interest in greater emigration to Romanian President Ceausescu during his recent visit. The questions of emigration to Israel and the United States and of binational marriages were also discussed in detail during a meeting between Secretary of State Vance and Romanian Foreign Minister Stefan Andrei on April 13. This close dialogue with Romanian officials has led to the favorable resolution of many emigration and humanitarian problems. It is my intention to continue to bring to the attention of the Romanian government matters relating to emigration which do not seem to be consistent with the assurances which have been given in the past. Failure to extend the waiver authority would remove the major incentive to encourage Romania to be more forthcoming on emigration. In view of continuing progress in this respect, I therefore, strongly recommend continuation of the waiver for Romania.

On April 7, 1978, when I issued a waiver of the application of subsections (a) and (c) of section 402 with respect to Hungary, I noted that the Hungarian Government has stressed to us that it intends to continue dealing with emigration matters in a responsive and humanitarian way. Since that time Hungary's actions have remained consistent with this policy. I have therefore determined that a continuation of this waiver will substantially promote the objectives of section 402 of the Trade Act.