Office of the Historian

120. Memorandum from Secretary of Defense Brown to President Carter1

Washington, September 11, 1979

Cy and I have expressed our concerns to our FRG counterparts over Chancellor Schmidt’s recent action in holding the projected real growth in Bonn’s 1980 defense budget to only 1.6%.2 Aside from being inconsistent with the FRG pledges to 3%, it will seriously impede Bonn’s ability to carry out the NATO Long Term Defense Program (LTDP). Moreover, if NATO’s second biggest defense contributor does not meet its 3% pledge, it could very well become the signal for similar actions by less wealthy Allies, thus undermining your NATO initiatives package just when the need for them is becoming crystal clear.

When I raised this matter with Defense Minister Apel,3 he noted that there is a possibility of a later increase for 1980 which would bring the growth in FRG defense spending close to 3%. The increase would be for increased costs of fuel, exercises, etc.—as is the case for our own proposed amendment. There are signs that Schmidt is leaving room for this.

Since Schmidt himself will have to decide this issue, I suggest that at some early date you express to him your own concern over how such FRG action could undermine NATO’s defense buildup, including your own attempt to get 3% real growth from Congress. Instead of a special call devoted primarily to this subject, you might mention it when you are talking with Schmidt on some other matter.4

Of course, if you take the actions I have proposed with respect to our own 3% real defense growth, you’ll be in a strong position to urge the same on Schmidt. I might add that Paris has just announced its own proposed 1980 budget, which calls for 3.5% real growth, and that the new UK government is standing firm on 3% too.5

Harold Brown
  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Agency File, Box 12, NATO: 7–9/79. No classification marking. Carter initialed at the top of the page.↩
  2. Telegram 15779 from Bonn, September 6, reported that at a September 4 press conference, Apel stated “that the FRG would probably not meet the NATO-agreed goal of a three percent real increase in its 1980 defense budget; the real increase was likely to be between 1.5 and 1.6 percent. He said there would be no negative effect on Alliance defense, since in the area of hardware procurement there would be in 1980 a seven percent increase, which would be ‘clearly above a three percent real increase’ in the procurement area. Therefore, he said, there was ‘no central problem’ as regards the FRG defense budget.” (National Archives, RG 59, Central Foreign Policy File, D790407–0203) Telegram 236633 to Bonn, September 9, conveyed Vance’s message to Genscher, including the danger that reduced growth in the German defense budget might “have negative implications in the debate in the United States concerning ratification of the SALT II Treaty and our efforts to increase expenditures for defense modernization.” (National Archives, RG 59, Central Foreign Policy File, D790412–0706)↩
  3. According to telegram 236633 from Bonn, September 9 (see footnote 2, above), Brown telephoned Apel to discuss the FRG defense budget.↩
  4. On September 18, Carter wrote a handwritten letter to Schmidt based on a Department of Defense draft, that read: “We are striving mightily here to honor our 3% real growth commitment in the defense budget. With our higher inflation rate, it is very difficult for us but I believe we can prevail. I hope you can do the same. The maintenance of a firm resolve in NATO with the theater nuclear force and defense commitments will, in my opinion, be crucial to our future ability to preserve peace through a proper East-West balance of strength and its attendant mutual respect. Best personal wishes! Stay in touch with me as we address these most important issues. Jimmy.” Carter sent copies of the letter to Vance, Brown, and Brzezinski. (Memorandum from Brown to Carter, September 14; Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Box 14, Germany F R: 8–10/79; Letter from Carter to Schmidt, September 18; Department of Defense, Accession 82–0205, Box 10, Germany (Sep) 1979)↩
  5. Next to this sentence, Carter drew a vertical line.↩