Trade With Romania and Hungary Message to the Congress.

In accordance with subsection 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.

In accordance with subsections 402 (d) (5) (B) and (c), this recommendation sets forth 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.

JIMMY CARTER

The White House,

June 1, 1979.

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 Eastern European countries. It permitted us to sign bilateral trade agreements with Romania and Hungary in April 1975 and March 1978, respectively, thereby laying the basis for growing trade and closer relations. Moreover, continuation of this authority will provide a basis for future steps to expand and improve our bilateral relations with other countries subject to subsections 402(a) and (b) of the Act, should circumstances permit. I believe that all of these considerations make extension of the general waiver authority in the national interest.

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 1978 saw a dramatic increase in overall emigration from Romania. The Administration has continued to advise Romanian officials periodically of our high interest in emigration both to the United States and to Israel. Most recently, we expressed our interest in improved emigration to the Government of Romania during high-level bilateral consultations held in Bucharest within the framework of the Final Act of the Conference on Security and Cooperation in Europe. Emigration to Israel and binational marriages were also discussed in detail during these consultations. This close dialogue with Romanian officials has led to the favorable resolution of many emigration and other humanitarian problems. In view of continuing progress in this respect, I recommend continuation of the waiver for Romania.

On April 7, 1978, when I issued a determination waiving the application of subsections (a) and (b) of section 402 of the Act with respect to Hungary, I noted that the Hungarian Government had stressed to the U.S. Government that it intended to continue dealing with emigration matters in a responsive and humanitarian way. Since that time the actions of the Hungarian authorities have remained consistent with this policy. The majority of Hungarians seeking to 'emigrate may do so without undue difficulty. Very few problem cases arise,' and U.S. officials can discuss these constructively with the Hungarian Government. Most problem cases ultimately are favorably resolved. In view of the Hungarian record, I have determined that a continuation of the waiver for Hungary will substantially promote the objectives of section 402 of the Act.