378. Telegram From the Department of State to the Embassy in Spain0

1006. Based on uncleared MemCon1 there follows highlights Rusk-Castiella meeting in New York September 23, which subject amendment upon review and FYI only. Garrigues and Tyler among those present. FonMin expressed pleasure with manner in which negotiations progressing. Stated Spain had originally planned cancel 1953 Agreement and renegotiate, however new formula permitting new kind of relationship between two countries had achieved principal object of negotiations. Castiella stressed key importance making clear US-Spanish 1025 [Page 1029]“cooperation.” Spain desired act with full knowledge of factors affecting Spain. Minister said in extending Agreement GOS must “satisfy” military and Spanish public opinion regarding economic development.

With regard to military assistance, Secretary said US considered it prime importance avoid any possible misunderstanding at any level. GOS must understand that US had severe limitation on what US can do re MAP. Secretary gave Castiella informal draft of secret memorandum indicating level of US military assistance to Spain as presently contemplated and subject to Congressional action at total $100 million. Of this $50 million contingent upon equal purchases in US by Spain.

Spaniards commented on low level MAP. They were told in fact Spain receiving prefered treatment over NATO countries. Garrigues inquired re US possibilities assisting Spain by granting favorable terms and prices in purchases US equipment. We said we would explore these possibilities.

Secretary and Castiella expected to meet in New York September 25 to review latest revisions various documents pertaining to extension Agreement.

FYI Only. In event agreement on extension reached, time has been set aside September 26 for signing ceremony at 1800 New York time.2 End FYI Only.

Ball
  1. Source: Department of State, Conference Files: Lot 66 D110, CF 2315. Secret; Immediate; Limit Distribution. Drafted by Ortiz (WE) cleared by Melot, approved by Tyler, and repeated to USUN for the Secretary, who was there for the meeting of the U.N. General Assembly.
  2. SecDel/MC/5, not printed. (Ibid., Central Files, Pol Sp-US)
  3. Following a further meeting between Garrigues and Tyler in Washington on September 24 (memorandum of conversation; ibid., Def 15–4 Sp-US) and between Rusk and Castiella in New York on September 25 (SecDel /MC/37; ibid., Pol Sp-US), both devoted to suggested drafting changes, the Secretary of State and the Spanish Foreign Minister on September 26 signed the Joint Declaration and exchanged letters and notes on military assistance and the Consultative Committee. For texts of these documents, see Department of State Bulletin, October 28, 1963, pp. 686–688.