143. Memorandum From the President’s Deputy Assistant for National Security Affairs (Scowcroft) to President Ford1
- Assistance to Portugal
As a follow-up to your meetings with Portuguese President Costa Gomes in October, and as a result of the subsequent technical survey made of Portuguese economic requirements, Secretary Kissinger sent you the memorandum at Tab A which outlines the economic assistance that Embassy Lisbon has been instructed to offer to the Portuguese government.
Main elements of the plan are summarized as follows:
—The United States will guarantee up to $20 million in private American loans for housing construction in Portugal.
—The United States will make technical experts available to the Portuguese government in the fields of agriculture, transportation, public administration, education and health.
—With Portuguese concurrence, we will increase the number of Portuguese brought to the United States for training in a variety of fields.
—We will provide Export-Import Bank credits to finance U.S. goods and services needed for Portuguese development projects.
—If Portuguese monetary reserves fall to a dangerously low level, and if international financial support were unavailable, the United States would consider means to remedy the situation. (Note: This might include a U.S. Treasury loan.)
The Foreign Aid Authorization contains both grant and credit aid for Portugal ($25 million in credit and $2.5 million in grants for this fiscal year.) These funds will permit a specific demonstration of our interest in Portugal. Details of the program would be tailored to Portuguese requirements.
This memorandum is forwarded for your information. The Portuguese have not yet reacted to these proposals, and no action is required [Typeset Page 489] on your part at this time. The scope of this program is relatively modest and can be supported from current U.S. resources. However, the swiftness of our response should underline the sincerity of our interest and of our efforts to be of assistance.
Summary: Scowcroft summarized a memorandum from Kissinger concerning economic assistance to Portugal.
Source: Ford Library, National Security Adviser, Presidential Country Files for Europe and Canada, Box 10, Portugal (3). Confidential. Sent for information. Attached but not published is Tab A, a December 10 memorandum from Kissinger to Ford on assistance to Portugal. Ford initialed Scowcroft’s memorandum.↩