261. Memorandum From the President’s Assistant for National Security Affairs (Brzezinski) to President Carter1

SUBJECT

  • U.S. Assistance to Iceland

The United States has a continuing stake in the NATO facility at Keflavik. At issue is how to respond to periodic Icelandic requests for financial assistance so that we may protect that stake. That issue was the subject of an inter-agency review during the previous administration, a copy of which is attached, covered by a summary memorandum from the Acting Secretary of State.2

That review recommended, as a general policy guideline, that the United States stand ready to provide only that assistance which can be directly tied to the Keflavik military base and related defense functions. That guideline would be consistent with a 1974 Memorandum of Understanding between the two governments.3

As you know, during the Vice President’s stop-over in Iceland, the Prime Minister asked us for a financial contribution to the construction of a new civilian air terminal at Keflavik. The request raises a somewhat different issue. It would not fall within the guideline recommended by the inter-agency group and is being studied separately.

RECOMMENDATION:

That you approve the above guideline. With your assent, I will convey the appropriate instruction to the Secretaries of State and Defense. Individual Icelandic requests will then be examined against that guideline.4

  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Box 17, Iceland. Secret. Hyland initialed the memorandum on Brzezinski’s behalf. Carter initialed the top of the page.
  2. See Document 260.
  3. See footnote 4, Document 259.
  4. Carter approved the recommendation, and wrote “but we might interpret liberally on non-costly items like Coast Guard boats, cadets, etc.” Brzezinski reported the President’s decision to Vance and Brown on March 10. (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Box 17, Iceland)