Foreign Relations of the United States, 1981–1988, Volume XIII, Conflict in the South Atlantic, 1981–1984

263. National Security Decision Directive 34¹

Washington, May 14, 1982

U.S. ACTIONS IN THE SOUTH ATLANTIC CRISIS

Pursuant to the decisions reached at the meeting of the National Security Council of April 30, 1982,² we are taking, effective immediately, the following actions in connection with the dispute between the United Kingdom and Argentina over the Falkland Islands in the South Atlantic:

—Issuance of an NSC-approved press statement which summarizes the U.S. position in the South Atlantic crisis, is supportive of the UK position and includes the announcement of concrete steps underscoring U.S. determination not to condone the use of unlawful force to resolve disputes.

—The suspension of all military exports to Argentina. This action covers deliveries of all items remaining in the FMS pipeline, primarily affecting spare parts in the amount of $3.9 million; it also covers the suspension of existing licenses for export of Munitions List items to Argentina and the withholding of further export licenses for such items. This suspension will affect non-government as well as government end-uses in Argentina, thereby reaching a category not covered by the Humphrey-Kennedy Amendment or the subsequent legislation.

—The withholding of certification of Argentine eligibility for military sales and export licenses under section 725(b) of the International Security and Development Cooperation Act of 1981.³

—The withholding of non-Munitions List export license requests for dual-use and related COCOM-type items.

—The withholding of new Export-Import Bank credits, insurance and guarantees.

—The withholding of new Commodity Credit Corporation guarantees (which affects agricultural products worth approximately $2 million).

—A private warning to Argentina that the measures announced do not encompass the full range of economic sanctions which the U.S. has at its disposal and which could be applied depending on circumstances.

—The withholding of any required U.S. consent for third-country transfers of U.S. origin items the export of which from the U.S. would not be approved under the above decisions. (Note: Withholding of consent for transfer of FMS origin items sold to third countries is compelled by existing law).

1. Source: Reagan Library, Executive Secretariat, NSC National Security Decision Directives (NSDD), NSDD 34 [South Atlantic Crisis]. Top Secret. Clark sent the NSDD to Haig, Regan, Weinberger, Baldrige, Stockman, Casey, Kirkpatrick, and Jones under a May 14 memorandum. (Ibid.) The NSDD was also sent to Bush.
2. See Document 195.
3. The International Security and Development Cooperation Act (S 1196—P.L. 97–113), signed into law on December 29, 1981, provided foreign aid authorizations for FY 1982 and FY 1983 and reduced congressional involvement in reviewing overseas arms sales by doubling the thresholds for reporting individual arms sales to Congress and reduced from 30 to 15 days the time Congress had to review and veto U.S. arms sales to NATO member countries, Japan, New Zealand, and Australia. Prior to the law’s passage, the Reagan administration was forced to abandon its request for the repeal of a law banning covert aid to warring factions in Angola in order to get congressional Democrats to agree to lift arms sales bans on Argentina and Chile. (Congress and the Nation, vol. VI, 1981–84, p. 132) For Reagan’s statement upon signing the legislation into law, see Public Papers: Reagan, 1981, pp. 1202–1204.