Foreign Relations of the United States, 1969–1976, Volume E–11, Part 2, Documents on South America, 1973–1976

290. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon¹

Washington, September 19, 1973.

SUBJECT

• Presidential Determination to Authorize Credit for F–5 Sales to Peru

Acting Secretary Rush has recommended, with Defense concurrence, that you determine it important to U.S. security to authorize credit for the sale of F–5E aircraft to Peru (Tab B). The Foreign Military Sales Act requires such a determination before credit can be extended to underdeveloped countries for the purchase of sophisticated weapons systems.

Peru is interested in purchasing up to 24 F–5s and is about to make a final choice between the F–5 and the French Mirage. An extension of credit to finance Peru’s purchase under the Foreign Military Sales Act will most likely be required.

Due to the foreign military sales credit ceiling of $550 million contained in the Continuing Resolution Authority (with $300 million earmarked for Israel) and the need to fund existing contractual commitments, there may not be adequate credits to finance this F–5 purchase beginning in FY 74. However, we believe that the Peruvians would accept delaying procurement of the F–5s beyond FY 74. Peru’s purchase of 27 A–37B aircraft should satisfy the immediate needs of their Air Force. A favorable finding regarding the F–5 aircraft is expected to have a sufficient positive political impact on the Peruvians to insure the choice of the F–5 over the Mirage.

In May 1973, you determined that it was important to the security of the United States to extend credit to Argentina, Brazil, Chile, Colombia, and Venezuela in connection with the sale of F–5 aircraft. This determination would do the same for Peru.

We anticipate significant, but not overriding, adverse Congressional reaction to this waiver. The criticism will probably focus on expropriations and seizures of U.S. fishing boats. In addition, the small group which opposes arms sales in general will be critical.

Bill Timmons and Roy Ash concur (Tab C).

Recommendation

That you sign the Determination at Tab A.

1. Summary: Kissinger recommended that Nixon sign a Presidential Determination to authorize credit for Peru’s purchase of F–5 aircraft.

   Source: Library of Congress, Manuscript Division, Kissinger Papers, Box CL 298, Memoranda to the President, 1973, August–December, Folder 3, 1973, September. Secret. Nixon signed the Determination. Attached but not published at Tab A is a September 20 memorandum from Nixon to Rogers issuing Presidential Determination 74–4; at Tab B is a July 20 memorandum from Rush to the President; and at Tab C is a September 10 memorandum from Ash to the President.