The last meeting of Ceausescu with Richard Nixon

The debate for commercial law was interrupted by the war of Yom Kippur, however,
the conflict has had positive effects on the Romanian-American relations. Romania, unlike other
countries of the Warsaw Pact, said he was neutral with regard to this conflict. So in early
November, Nixon invited him to Washington on Ceausescu December 4, 1973. The main
objective of the Romanian President was to support getting the clause.
In the meantime, the Working Group of the Board for East-West trade policy
(Department of State) had to request discussion on Romania's problem on the long-term
commercial agreement. Signing these treaties was necessary to compensate for the absence of the
clause and to attract more investment by American companies in the industry. The last meeting
between Nicolae Ceauescu and Richard Nixon takes place in early December, 1973, day 4. As
for Nixon's visit in Romania, in 1969, the two Presidents also exchanged gifts. Ceausescu gave
Nixon a spouses service Chinese tea produced in Romania, receiving in return a set of Golden
Spoon from Tiffany.
After meeting with Nixon, Ceausescu met with representatives of the Chamber of
Commerce, where they confess the respect towards the manner in which helps them to secure
Romania as soon as the clause. Then Ceausescu will meet at Blair House, a residence in which
he was held, with Senator Jackson, to discuss the problem of visas. First day of Ceauescu's visit
will conclude with an official dinner at the White House. Here are present, Henry Kissinger, the
Secretary of Commerce, and several senators and members of the House of representatives. At
the end of the gala dinner, Nixon gave a speech about the close relationship between him and
Ceauescu, praising him the Romanian leader for the firmness with which supports the principle
of freedom of each country. Yet Nixon knew to avoid any reference to the most-favored-nation
clause or any long-term agreement.
During the late 1960s it had met with US officials, members of the Romanian
delegation had prepared to be signed four trade agreements. The first refers to the income tax and
eliminate the possibility that citizens or companies from one country to be subjected to
discriminatory taxes in the other country. A second agreement regulate the right of fishing in the

region of the Western Atlantic and gave Romanian the right for its vessels to stop at ports in
Baltimore, Philadelphia and New York to make calls and to perform repairs. The third bilateral
agreement provide for the continuation and possible enlargement of the services rendered by the
company Pan American World Airways for Bucharest, and for the first time, allowed the
Romanian Airlines begin to offer services to New York, using newly acquired Boeing 707. The
final agreement had been signed between the Chamber of Commerce of the United States
Chamber of Commerce and industry of Romania. The agreement foresaw the establishment of
Romanian-American Economic Council, to solve the problems posed by commercial
transactions between the two countries. This Council was to meet annually either in Romania,
either in the United States.
The morning of the next day at 11:00, Ceausescu and Nixon met in the White House
Cabinet, to sign a joint declaration of principle. The statement said that relations between the two
countries had to rely on the causes and principles of the Charter of the United Nations. Also the
signatory countries committed themselves to encourage the widening trade and industrial
cooperation, scientific and technical collaboration, especially in the form of joint ventures and
joint research centers. Both Presidents also signed and a joint statement of cooperation on
economic, industrial and technical aspects.
After the end of Ceausescu's breakfast, he went in front of Congress and requested its
support for Romania to get that Clause, which would have given the Romanian products a
support base equal to the U.S. market. The Romanian leader highlights the fact that Romania
imports are increasingly more American products, and they should and as many exports. The rest
of the day Ceauescu met with representatives of major US companies, such as General Electric,
Singer Sewing Machine, International Telephone and Telegraph, Pratt Whitney and
Manufactureres Hanover Trust. In the evening the same day is marked by reception offered by
Ceauescu for husbands Nixon, at the headquarters of the Romanian Embassy. At this dinner
party, Ceauescu speaks in flattering terms about Nixon's role in International Affairs and about
the friendship and cooperation that will follow.
Ceausescu spent the last two days in the United States by visiting business people from
North Carolina, Ohio, Connecticut and New York. He returns to Bucharest on 7 December with

the hope of obtaining in the shortest time to most-favored-nation Clause. Trade Law Reform
passed by the House of Representatives, having in its composition in paragraph 402, known as
Jackson-Vanik Amendment. Here you stipulate that they cannot benefit from duty-free
preferential government loans, credit guarantees or guarantees the investment if the President
determines that such a State violates its citizens or the chance to immigrate if you claim more
than a nominal fee, a tax or a fee to any citizen who wants to leave to another country.
Henry Kissinger was categorically against this amendment. He understood the problem
of respect for human rights, but considered that US foreign policy should not interfere in the
internal affairs of other states.

1974
Romanian-American relations have continued to be released, but have not progressed
much. After being appointed as Ambassador of the United States in Romania, in December 1973,
Harry Barnes occupies their post on March 14, 1974, three days after the Bank had decided to
suspend temporarily the appropriations for Romania. Everything started from the desire of the
Bank to grant loans of more than $250 million, to the Soviet Union, to develop networks of
natural gas extraction. The paradox, the fact that the USSR could now produce more energy, to
sell and then 4 times more expensive in the United States, was noticed by a senator this
demanding Accounting Office (G.A.O.) to investigate the granting of loans.
The next day, the G.A.O. concluded that the Eximbank could not grant loans without
the President approve each project individually. The Bank is obliged to suspend loans to
Communist countries, pending the decision of the Attorney general. The latter cancels the
suspension, and thus two firms wishing to do business with Romania to benefit from the release
of new credits.
Meanwhile, Ceausescu continued to reorganize the party leadership, acting in such a
permanent abolition of the Presidency and his replacement with a permanent Office. This
permanent Office is not subject to the Central Committee and included only 5 members:
Ceausescu, Prime Minister Manea Mnescu, Deputy Prime Minister Gheorghe Oprea, Foreign
Trade Minister, Ion Pan and Foreign Minister Andrei, Stefan. Ceausescu was well aware of the

fact that the United States were becoming increasingly concerned about human rights, so that in
his speeches kept in different countries highlight the freedom and rights of religious cult
minorities from Romania.
Meanwhile, on 12 April, the Secretary of Commerce has arrived in Bucharest
accompanied by an American delegation at the first meeting of the American Economic
Commission. Representatives of the Romanian and American decide setting up an Executive
Committee consisting of 6 members and led by Gabriel Hauge, President of the Manufacturers
Hanover Trust. In Washington, the Senate Finance Committee, said hearings on the draft law on
the reform of the trade. G. w. Fincher, General Tire, representatives of the League of free
Romanians argued the cause.
During the summer of 1974, the Watergate affair exploded all over America. On 9
august, Richard Nixon and resigned from the post of President of the United States. Then, former
Vice President, Gerald Ford is sworn in, becoming the President of 38. Woke up to the reality of
the Gerald Ford vs. Romania, Ceausescu sends his advisor, Deia, which was to clarify how the
go relations between the two countries. In addition, the Romanian President launches an
invitation to visit Romania. Ford accepts the invitation and I assure Romanians that he wishes to
develop and improve relations between the two countries.
On December 13, the Senate voted on the draft law on the reform of the commercial
with a majority of 77 4. On 20 December the Congress, after a long discussion adopts the Bill,
along with Jackson, named Commercial Law since 1974. The effect was not the right one,
because the Soviet-American relations were not immediately relaxed. In Exchange, Romania
makes an important step towards obtaining the clause. But first you have to negotiate a bilateral
agreement with Washington and meet all the conditions of the Jackson-Vanik Amendment.
The 1974 trade law allowed the U.S. Administration to expand its Generalized scheme
of preferences of S.U.A. (G.S.) developing countries, as well as the Communist countries, which
were members of the F.M.I. and General Agreement on tariffs and trade, which were not
controlled by international communism.

Getting The Clause

On January 28, 1975, the East-West trade policy approved a plan for the signing of a
trade agreement granting the status of Romanian products clause. The Committee accepts that
the Eximbank to wait for the trade agreement to be first approved by Congress before granting
other loans. However, Ceauescu manages to damage the good image that now Romania. Due to
the unclear situation from Portugal, the U.S. has stopped during the winter of 1974-1975 all grain
exports to this country. However, Romania exported 175.000 tons of wheat, which had been
purchased earlier from United States. This situation gets mad the people in the State Department.
1

But a more pressing issue was that of emigration. This also emerges from the meeting
two hours that Ceausescu with Gerald Ford in America. The latter asks the Romanian leader to
show more gracious toward the emigration of Jews from Romania. After protracted negotiations,
Romania and United States have agreed on a formula whereby Ceausescu gave verbal assurances
to President Ford, that he will abide by the Joint Declaration signed in 1973, President Nixon.
The Declaration highlight the desire of both countries to contribute to uniform solving based on
mutual trust and goodwill.2

The American side has interpreted this indirect reference, as

assurances regarding free emigration, as it was provided by the Jackson-Vanik Amendment.

Hereunder, shall submit to Congress a recommendation from Gerald Ford for the granting of
most-favored-nation clause, Romania.
On July 25, the American Senate, and then over 3 days, the House of representatives
gave their agreement much desired by Nicolae Ceausescu, Romania and received within the EC
countries tariff exemptions in the case of exports to the United States.
However the law encompassed and paragraph 402, i.e. why the Jackson-Vanik
Amendment forbidding extension of most-favored-nation clause for that country that does not
have a market economy, as was the case, why refuse its citizens the right to emigrate. Section
mention that President D.w. has may waive this requirement if it considers that such a waiver to
promote emigration freedom goals considerably and if they receive assurances that procedures
1 Kirk, Roger, Rceanu, Mircea, Romania United States: diplomacy of the absurd: 1985-1989,
Silex, Bucharest, 1995, p. 319;
2Joint Declaration on cooperation in economic, industrial and technical, of the Socialist Republic of Romania and
the United States of America, Annex 3;

for emigration from that country will take in the future, significantly to the achievement of the
aim of freedom of emigration. The initial 18-month waiver may be renewed for another period of
12 months, but any of the two houses of Congress could cancel the judgment.
New tariffs entered into force on 3 January 1976; due to their Romanian exports in
USA had an increase, from $133 million to $233 million in just two years. 3
The significance of most-favored-nation clause was both symbolic and practical.
Romania enters into a special category of Communist countries, regarding their relations with the
U.S. A. Largely on the annual renewal of the clause has become the primary means of the US
Administration to influence international behavior. Jackson-Vanik Amendment, explicitly linking
the granting clause of free emigration. The only way Romania was persuaded to allow the
emigration of over 180.000 people during the period 1975-1988.

3Romania-trade D.w. of 1975-1990, Annex 1;