Office of the Historian

121. Telegram From the Department of State to the Embassy in the United Kingdom1

Washington, December 19, 1967, 2326Z.

86853. 1. British EmbOff December 18 asked DeptOff for his views re likelihood USG assistance to PRSY. Wondered whether USG might be considering something like “one or two well chosen impact projects.”

2. DeptOff replied recent foreign aid cuts such that funds simply not available for kind of programs EmbOff had in mind. Our Charge had been careful not to arouse hopes of members new government PRSY and we had similarly made our limitations in this regard clear to FonMin Dhalai in New York. DeptOff added we well aware opportunity which impoverished PRSY presents for Soviets and Chicoms should they offer attractive aid programs to new state. They might consider such aid cheap price for influence in what for them might be strategic location in Near East. Nevertheless, we not now in position compete in this field.

3. View foregoing, DeptOff stressed desirability British continuing make every effort sustain an effective level assistance to new state after present six-month stop-gap help completed in order obviate full PRSY [Page 256] dependence on Communists for essential needs. DeptOff noted PRSY reluctance accept British military mission but speculated new regime perfectly willing rely on HMG for financial help which could well give them fewer problems than major Communist support.

4. EmbOff reminded us of tight British financial position and said that he surmised in six weeks to two months Treasury would be taking close look at future aid for PRSY in light world-wide expenditures.

5. Comment: Our impression that EmbOff’s approach was prompted by Foreign Office desire elicit indications US support for continued UK aid in order strengthen its hand in later jousting with British Treasury.

Rusk
  1. Source: National Archives and Records Administration, RG 59, Central Files 1967-69, POL 16 S YEMEN. Confidential; Noforn. Drafted by Dinsmore, cleared by Deputy Director of AID’s Office of Near Eastern Affairs Ruth Fitzmaurice and Cheslaw, and approved by Brewer. Repeated to Aden and Jidda.↩