271. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to Secretary of State Kissinger, Secretary of the Treasury Shultz, and Secretary of Defense Schlesinger1


  • Balance of Payments Offset and Burdensharing Negotiations with NATO

The President has directed that a study be conducted on the unresolved issues which have arisen since the issuance of NSDM 214 covering negotiations of bilateral offset and burdensharing arrangements with the NATO Allies.

The study should be based on the existing guidance given in NSDM 214 and result in a paper for the President describing alternative decisions on the key issues which have arisen since NSDM 214 was issued; e.g., to what extent and on what terms financial arrangements will be accepted. The study should take into account (1) the results of the first rounds of bilateral negotiations with the FRG, (2) the status of efforts to develop a multilateral offset arrangement with the remainder of the NATO Allies, and (3) developments in Congress.

The study should be conducted by the existing DPRC Working Group on offset and burdensharing which comprises representatives of the addressees and is chaired by a representative of the NSC staff. A first draft of the study should be submitted by November 1, 1973.

Henry A. Kissinger
  1. Summary: The President requested a study on the unresolved issues arising from NSDM 214, Balance of Payments Offset and Burden-sharing Negotiations with NATO.

    Source: National Archives, Nixon Presidential Materials, NSC Files, Box 265, Agency Files, NATO Oct 73–Dec 73, Vol. XVI (3 of 3). Secret. Copies were sent to the DCI, the Director of OMB, and the Chairman of the JCS.