S S 7710681 _ Z - THE SECRETARY OF STATE 2415 WASHINGTON April 23 1977 ONFIDEN'f'IAL MEMORANDUM FOR THE PRESIDENT From Cyrus Vance Subject Sena -L or McGovern's Memorandum on Cuba I agree with the April 19 memo There U S in moving toward Cuba That is why we uJ basic thrust of Senator McGovern's are to be sure gains for the hOrmalization of relations with began the process I also agree that tactically a partial lifting of the embargo might help move the process along But so far all the steps--lif ting the travel restrictions agreeing to negotiate a Governing International Fishery Agreement GIFA and standing-down the reconnaissance overflights--have been on our side If only to demonstrate the serioU sness of their own interest in improving relations there should be some reciprocal steps on the part of the Cubans Hence during the talks next week in Havana Ambassador Todman will tell the Cubans that the U S Government would be prepared to give favorable consideration to lifting the embargo on shipments of U S foods and medicines if Cuba were ready to take some steps to contribute to the process of improving relations--such as reinstituting the hijacking agreement releasing American political prisoners repatriating U S citizens who wish to leave and increasing visits of divided families Finally a partial lifting of the embargo should not include Cuban sugar imports to the U S This represents a key elements in the embargo and at present is one of Castro's primary objectives in his relations with the U S To give him access to the U S sugar market at the beginning of the process would be to give away most of our bargaining position It would open j eeJNEIDENTIAL J N _ 1 GDS CONF IBENTIAI -- - 2 the Administration to criticism for having made major concessions to Castro without having secured his commitment to negotiate a satisfactory settlement of compensation claims for nationalized U S goods and properties and it would reduce our leverage to secure other objectives such as repatriation of U S citizens release of political prisoners etc Likewise abrupt reentry of Cuban sugar in the U S market would be a blow to other sugar producers in the Caribbean-countries which have been friendly with us through thick and thin g NFIOEMT' AL