Office of the Historian

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

Washington, April 7, 1973.

SUBJECT

  • Security Assistance, Taiwan

Our security assistance program for Taiwan has changed during the last few years as grant MAP decreased and FMS credits assumed more importance. At the end of FY 73, grants for MAP equipment will end, though we will continue to pay for training and supply operations costs on prior year MAP programs. In addition, in FY 73–74, there are sizable special grants resulting from our commitment to F–5E coassembly on Taiwan deriving from the GNP’s help during Enhance Plus. The table below reflects the changing nature of these programs and itemizes the major military credit sales programs.

[Page 240]
Fiscal Years ($ million)
72 73 74 75 76
Enhance Plus grant — 18 28 — —
MAP 11 10 5.8** 5.8** .5
FMS Credit 45 44 65 135 124
—F–5E coassembly — ( 5) (23) (69) (61)
—Helo coproduction ( 9) ( 7) ( 7) (11)* (10)*
—Trucks (12) ( 3) ( 6)* ( 5)* ( 5)*
—Patrol Boats — ( 4)* ( 8)* ( 6)* (12)*
—Hawk bns. — — — (17)* (14)*
Total Grants and FMS 56 72 99 141 125

* Not yet approved.

** 5.3 for supply operations, .5 for grant training.

You will note that though matériel grants are phasing out, total assistance has increased through FMS credits. This is consistent with Taiwan’s continually improving economy, our commitment to the GNP, and the self-sufficiency aspects of the Nixon Doctrine.

Fiscal Years ($ million)
72 73 74 75 76
Grant Matériel 3 1.5 0 0 0
Credit Sales 45 44 65 135 124
Cash Sales 46 49 * * *
Total 94 94.5 65* 135* 124*

* Cash sales unknown for FY 74–76

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Kissinger Office Files, Box 94, Country Files, Far East, China Exchanges, May 16-June 13, 1973. Secret. Sent for information.↩