Foreign Relations of the United States 1977–1980; Volume XV; Central America, 1977–1980

484. Memorandum From the President’s Special Representative for Economic Summits (Owen) to the President’s Assistant for National Security Affairs (Brzezinski)¹

Washington, October 10, 1979

SUBJECT

• Central America (U)

On late Friday morning² Jim McIntyre told me that the President had just asked him for his and my views about two questions:

1. Should we have a package of $75 million Nicaragua supplemental and $15 million reprogramming for other countries? I said that this was what I had advocated all along: a one-shot $75 million for Nicaragua and relying on modest reprogramming for other countries, and that we could also throw in about $10 million FMS, since this would require only a $1 million appropriation. (C)

2. Should the $75 million for Nicaragua be reduced to allow a supplemental request for other countries? I said no, since Nicaragua needed the money and the other countries’ needs could be met as per (1) above. (C)

I then briefed Bob Pastor on the above. (U)

That evening Jim said that the President had asked whether his and my proposed $15 million reprogramming could be accomplished without difficulty. At my suggestion, OMB sent the President a message at about 8:00 p.m., pointing out that the reprogramming was not difficult; $10 million of it had already been accomplished, as a result of the formation of the Afghan aid program. (C)³

As per the President’s note to you and Jim, I am now consulting State about how to spend the $5 million reprogramming that has not yet been completed and the $5 million new money that the President added.⁴ Pastor and I agree that it would probably be $7 million for Honduras and $3 million for El Salvador (conditional on political reforms). The $10 million already reprogrammed is going to the Caribbean for public works. I will also follow up on Congressional consultation and presentation re what we will describe as a $105 million package (though only an $80 million supplemental). (C)

1. Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 35, Nicaragua, 7–12/79. Confidential. Sent for information. Brzezinski added a checkmark and wrote at the top of the page: “RP,” indicating Pastor. In an October 4 memorandum to Carter, Vance requested that Carter “reconsider” his decision to seek supplemental assistance for Nicaragua only and not other Central American and Caribbean nations. (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron File, Box 28, Latin America, 10/79)
2. October 5.
3. Not found.
4. In an October 5 note to Carter, Wise wrote: “Jim McIntyre reports that it is possible to re-program the $15 million for Central America and the Caribbean without difficulty because it will come from collapsed programs mainly Afghanistan or other programs where the needs have lessened—Jordan.) In fact, 10 of the 15 have already been re-programmed by State. In addition, we can provide $10 million in FMS credits if desired.” Carter wrote to McIntyre and Brzezinski at the bottom of the note: “To: Jim & Zbig—Re: Carib/C. America aid—Put $75 mil already approved, $15 mil reprogramming, $10 mil in FMS credits, plus $5 mil in new funds. Let Henry & State recommend how to use these ’80 funds. JC.” (Carter Library, National Security Affairs, Staff Material, North/ South, Pastor Files, Country Files, Box 7, Central America: CACAR: 11/1/78–11/6/79)