293. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon 1

SUBJECT

  • Determination to Permit Continuation of the Grant Military Assistance Program to Indonesia

Under Secretary Richardson (Tab B)2 requests that you sign a determination authorizing the use of FY 1970 military assistance funds in excess of $3 million to provide defense articles to Indonesia. Similar determinations were made in 1968 and 1969.

Section 505(b)(2) of the Foreign Assistance Act limits the provision of grant defense articles to any country to $3 million per fiscal year if the articles are not to be utilized for the maintenance of the defensive strength of the free world. Military assistance to Indonesia is not considered to do so.

However, Section 614(a) of the Act permits a waiver of Section 505(6)(2) when the President determines that such assistance is important to the security of the U.S. State feels that it is, and Budget concurs (Tab C).3

The proposed $5.8 million program for Indonesia for FY 1970 is a continuation of our prior civic action-type programs in substance, amount, and purpose. It helps the Indonesian military focus on constructive economic rehabilitation work, thereby bringing it closer to the people, and improves our working relationship with the Government.

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Congress has been informed of the justifications for the proposed grant assistance.

Recommendation

That you sign the determination at Tab A.4

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 370, Subject Files, Presidential Determinations, 71–10. Secret. Sent for action.
  2. Attached at Tab B, but not printed, was Richardson’s April 3 memorandum requesting $5.8 million in grant military assistance to Indonesia.
  3. Attached but not printed.
  4. Attached at Tab A, but not printed, was Presidential Determination No. 70–8, May 18, authorizing the grant assistance Richardson had requested.