292. Telegram From the Department of State to the Embassy in the Republic of China1
84908. 1. Chinese Ambassador Chow at his request called on Bundy December 14 to discuss grant MAP prospects. Bundy noted agreement [Page 622] of House/Senate conferees December 13 setting overall grant military assistance total at $400 million ($220 million below Administration request), and commented that, given relative fixity other MAP programs, this figure will mean major reduction in grant MAP for GRC. He also observed that in view overall Congressional climate on spending, it probably will be difficult to avoid similar lower grant levels in FY 69. Bundy noted, however, that Congressional action on military sales would not have significant impact this year on possibility such sales to GRC.
2. Chow indicated understanding of situation and special considerations involved in Korean MAP, but expressed hope that reduction in grant MAP for GRC would not be proportionately larger than cut in overall total. He also inquired as to possibility recent events in Greece might increase availability grant funds for GRC. Referring again to difficulty of making substantial reduction in a number of programs, Bundy stated that cut in China MAP probably will be greater than approximate 37 percent reduction in Administration’s original request. He acknowledged that Greek situation might release some funds, but stated that amount not likely be large.
3. Bundy emphasized urgent importance we and GRC together consider frankly how to weather these hard facts of life. He noted our concern to maintain GRC defense capabilities and suggested that GRC consider usefulness to visit by U.S. team to consult on how make best use of resources available for this purpose. Bundy indicated that we must first obtain clearer picture of FY 68 and FY 69 situation, but we should soon be in position work together with GRC on problem. Chow indicated agreement with this suggestion but offered no specific comment.
4. Chow did not appear under instructions to make specific representation on this subject. Throughout conversation, he evidenced realistic appreciation of situation and did not urge that GRC be given preferential treatment; nor did he refer to possible adverse political and economic impact of major reduction in grant MAP.
- Source: Department of State, Central Files, DEF 19 US–CHINAT. Secret Drafted by Shoesmith and approved by Bundy. Repeated to CINCPAC for POLAD, CHIEF MAAG CHINA, and COMUSTDC.↩