Office of the Historian

69. National Security Decision Memorandum 2931

Washington, May 3, 1975.

TO

  • The Secretary of the Treasury
  • The Secretary of Defense
  • The Secretary of Commerce
  • The Deputy Secretary of State

SUBJECT

  • US Approach toward Enhancing the Allied Contribution to the Defense of NATO

The President has reviewed our past efforts to encourage our NATO Allies to enhance their contribution to the defense of Europe and to obtain offsets for US budgetary and balance of payments costs in Europe. He has decided to seek another offset agreement with the FRG, [Page 271] provided that the FRG does not strongly object in principle to a new agreement. But in general, given the recent change in the world monetary system and in economic conditions, greater emphasis should be given to encouraging our NATO Allies to increase the quality and effectiveness of their own forces than to efforts to offset US balance of payments and budgetary costs.

Our Allies should be encouraged to increase their defense expenditures, to undertake force improvement programs to upgrade their military hardware, and, most importantly, to make more effective use of existing defense resources by reducing the overlap and duplication that exists in many areas of NATO activity.

Representatives of the US Government should emphasize to our NATO Allies that their efforts to strengthen their own forces, particularly through measures increasing the cost-effectiveness of NATO’s overall defense capability, will be viewed by the US Government as their most significant contribution to the sharing of the burden of NATO defense. In discussing this issue with Congress, members of the Executive Branch should stress that such efforts by our NATO Allies both increase the Allies’ share of the common defense and add to the protection of our own security interests in Europe. Finally, the analysis contained in the 24 March 1975 DPRC paper on Burdensharing in the Atlantic Alliance should be used in explaining the reduced relative importance of budgetary and balance of payments offset.

Henry A. Kissinger
  1. Summary: The President specified the U.S. approach toward enhancing the Allied contribution to the defense of NATO.

    Source: Ford Library, NSC Institutional Files (H-Files), Box 59, NSDM 293—U.S. Approach Toward Enhancing the Allied Contribution to the Defense of NATO (1). Confidential. Copies were sent to the Director of the OMB, the Chairman of the CEA, the Chairman of the JCS, the DCI, and the Director of the CIEP.

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