351. Telegram From the Consulate General at Geneva to the Department of State1
380. From Dillon.2 Had good visit with McClintock in Istanbul. On premise that Lebanon successful in forming coalition government country team recommends total of $25 million budget support for period ending September 31, 1959. (This is $20 million in addition to $5 million already allotted.) McClintock feels that this should be one time operation and that thereafter Lebanon should be able take care of herself except for such concrete development projects as might meet standards of DLF. Funds presently programmed for Lebanon should be adequate until first of year when additional funds could be obtained through supplemental appropriation.
McClintock also recommends sharp reduction leading to early termination of technical assistance program in Lebanon. Lebanese neither want nor require assistance and do not appreciate such technical assistance as they have received. I recommend acceptance this recommendation but no action to withdraw personnel until Lebanese Government formed and we are in position talk to them about budgetary support.
McClintock emphasized importance of aid for AUB which he feels is our greatest asset in Middle East. I informed him that moderate sums were programmed for AUB in FY 59.
On military assistance McClintock informs me that Chehab and government primarily interested in equipment for ground forces. Here their appetite is large. I told McClintock that this might be more difficult than economic assistance as case for larger armed forces did not seem good and we are attempting cutback on military assistance wherever possible. McClintock then said he felt it might be desirable cancel scheduled deliveries Hawker Hunters since they would be of no use to Lebanon and since Lebanese did not seem particularly interested in them and preferred equipment for ground forces. He will look into matter further and send definite recommendation to Washington. I told him that reprogramming these funds might be only source for military assistance to Lebanon.