Foreign Relations of the United States, 1977–1980, Volume XXVII, Western Europe

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

Washington, March 29, 1978

SUBJECT

• Assistance to Iceland

I strongly agree with the attached recommendation by Cy and Harold that we stand ready to provide up to $30 million in assistance—half in Military Construction (MILCON) funds and half in Security Supporting Assistance (SSA)—to building the terminal at Keflavik.² Several factors have changed since your earlier recommendation not to provide assistance:

— the Icelanders have presented a new proposal for building the terminal as a dual-use facility, with exclusive use by the U.S. in time of crisis. Our military finds utility in that proposal.

— Icelandic politics are again at a critical juncture, with Prime Minister Hallgrimsson’s essentially pro-U.S. government facing elections in June. Of course, no particular action on our part is likely to be decisive, especially not over any long term. But I believe providing assistance would be worth doing as insurance with regard to a facility that is critical to our security, especially in a time of Soviet buildup in the Northern Fleet.

With your assent, we would tell the Icelanders we were prepared to provide assistance with exact amount and term to be negotiated, and of course contingent on eventual Congressional approval. Preliminary soundings on the Hill about MILCON funding were reasonably promising, if vague because any actual request would still be several budgets away. You should note AID Director Gilligan’s dissent from using SSA funds (attached to the Vance–Brown memorandum).

Recommendation:

That you authorize us to seek up to $30 million in assistance to the terminal—$15 million each in MILCON and SSA funds.³

1. Source: Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Box 17, Iceland. Confidential. Sent for action. Aaron initialed the memorandum on Brzezinski’s behalf. At the top of the page, Carter wrote: “I see no way that AID funds should go to so rich a country as Iceland. Also, $300 per vote is exorbitant! J.”
2. See Document 266.
3. Carter indicated that he disapproved the recommendation. At the bottom of the page, he wrote: “JC.” In an April 13 memorandum to Vance and Brown, Brzezinski wrote: “The President disapproved the recommendation in your memorandum of March 23, 1978. We will, of course, continue to stand ready to provide the assistance agreed in the 1974 Memorandum of Understanding and other assistance consistent with the President’s guidelines set forth in my memorandum of March 10, 1977.” (Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Box 17, Iceland)