Foreign Relations of the United States, 1969–1976, Volume IV, Foreign Assistance, International Development, Trade Policies, 1969–1972

48. Action Memorandum From Richard T. Kennedy of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)¹

San Clemente, California, January 7, 1971.

SUBJECT

• MAP and FMS, 1972

Wayne Smith called to give you the latest status on the OMB budget recommendations. Referring to page 7 of his memorandum attached,² the revised figures are as shown:

	State/Defense MAP Request	Original OMB Recommendation	Revised OMB	HAK Recommendation3
Taiwan	$25	$15	$20	$25
Greece	25	15	15	25
Turkey	130	90	100	100
Jordan	50	30	45	45
Indonesia	13	13	25	25
Ethiopia	13	12	13	13

The rationale for the OMB recommendations (with which Smith agrees subject to your approval) is as follows:⁴

Taiwan. State urges the additional funds because of the possible foreign policy problems which may arise. OMB has raised its original recommendation by $5 million. The total of MAP and FMS is equal to the total of $65 million requested by State and Defense. OMB adds $5 million to FMS and reduces MAP by $5 million because Taiwan is flush with cash reserves and in a position to buy.⁵

Greece. Again the total MAP and FMS equals the $60 million requested by State and Defense. OMB however puts more in FMS and less in MAP because Greece is flush with cash reserves and can buy (they cite purchases of aircraft from France, for example).

Turkey. For the past five years MAP for Turkey has run between $90 and $95 million. OMB and Smith believe Turkey cannot absorb more than $100 million in MAP. There also is $10 million in FMS (for a total of $110 million).

Jordan. State and DOD originally requested $30 million. OMB agreed to this level. The latest State-Defense request is $50 million. There is no definitive estimate on which this is based. OMB is willing to increase from $30 to a total of $45 million.

Ethiopia. OMB agrees with State’s strong request for a total of $13 million.

Indonesia. OMB has put in $25 million per our request.

If you wish any changes we should get them to OMB today since Budget is going to press tonight. Smith believes the latest OMB proposals (the revised OMB column) will do the job. You might wish to talk to Mr. Packard about this to be sure that no wires are crossed.

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Agency Files, Box 196, AID 1/1/71-12/31/71. Top Secret; Sensitive; Urgent. This copy of Kennedy’s memorandum is on White House stationery, but Kissinger and Kennedy were both in San Clemente, as was OMB Director Shultz.
2. Document 46.
3. Kissinger wrote in the figures in this column. Above the column, Kennedy wrote on January 7: “Called to Wayne Smith.” See also footnote 5 below.
4. At the end of the memorandum Kennedy wrote on January 8: “I subsequently mentioned to HAK the fact that MAP contingency fund request had been raised from $15 to $100 million—thus the levels were not frozen should needs arise later in the year. HAK said he wants to hold firm on the $25 million for Taiwan and prefers $25 million for Greece though would not fight to the death on the Greece figure.”
5. At the bottom of the first page of the memorandum, Haig (presumably at some later date in Washington) wrote: “Haig/HAK Shultz 8 Jan phoncon,” drew a line to the Taiwan and Greece rows in the table, and wrote to the right of Kissinger’s “$25” entries, “Now 20.”