33. Letter From Secretary of the Treasury Kennedy to the Director of the Office of Management and Budget (Shultz)1
As you probably are aware, we have been working very closely with the Department of Defense concerning their grant military assistance (MAP), foreign military sales (FMS), and supporting assistance (SA) programs. Considerable difficulty is being encountered with Congress concerning the funding of these programs. We do believe that the Defense Department’s budgetary situation, coupled with the crucial developments occurring in those parts of the world related to these programs warrant immediate consideration. We, therefore, concur in the Defense Department’s request that we seek supplementary FY 1971 funds from Congress as soon as possible.2
Specifically, we believe action should be taken to obtain supplemental funds for MAP in the amount of $260 million; an amendment to the DOD procurement request to fund credit military sales to Israel amounting to $390 million. Additionally, we should seek a supporting assistance supplemental in the amount of $230 million.
There should also be a major effort given toward obtaining the basic appropriations for FY 71 covering military assistance and the foreign military credit sales appropriation for both FY 70 and 71.
In our opinion, these programs warrant a high priority in order to implement the foreign policy objectives as enunciated in the “Nixon doctrine” and the budgetary problems being encountered by the Department of Defense.
I would appreciate any assistance you can give this matter. If there is any additional specific help we can provide, please give me a call.
With best wishes.