Foreign Relations of the United States, 1981–1988, Volume XXIV, North Africa

119. Memorandum From Geoffrey Kemp of the National Security Council Staff to the President’s Assistant for National Security Affairs (Clark)¹

Washington, October 27, 1982

SUBJECT

• Proposed Sale of C–130s to Algeria

State is proposing that the export license permitting the Lockheed Corporation to sell an additional 8 C–130 aircraft to Algeria be approved. Commerce agrees but DoD has expressed some concerns.

Algeria bought 6 C–130s last year and they intend to purchase the 8 additional transport planes to replace obsolete Soviet transport aircraft now on hand. Discussion of the sale has been going on for six months now and by the end of this week a paper will go up to Secretary Shultz for his decision.²

The arguments can be broken down as follows:

FOR:

— We would be enabling Algeria to diversify its military equipment sources (moving away from Soviet purchases) and helping them to achieve a true non-aligned status.

— They have expressed to us their desire to develop improved relations with us and this would provide an opportunity to do so. The Algerians were very supportive of King Hassan during the visit of the Arab League to Washington.³

— The sale would indicate to the Algerians that we, too, are interested in a closer bilateral relationship.

— The Algerians did eventually modify their position on the Israeli credentials issue at the UN and a sale such as this may give us further leverage with them on such other issues as the Polisario and Sandinista movements.

— Despite some Moroccan unhappiness which the U.S.-Moroccan relationship can weather, the sale would enhance our interests and visibility in the North African region.

— The sale of these 8 C–130s would not shift the military balance in the area at all.

AGAINST:

— We should make explicit certain conditions Algeria must meet prior to the sale. For example, they must:

— take a more moderate position in the Middle East

— cease support for the Polisario

— not oppose U.S. on so many issues at the UN

— be more reasonable with the price of natural gas

— cut off their support for the Sandinista in Nicaragua

— be less tolerant of Libya

— They may use the C–130s in support of the Polisario.

— Algeria has continued to take a confrontational posture against Israel. Will we be fostering this attitude by approving the sale?

— We would be encouraging their oil-price hawkishness.

— We would be encouraging their failures to meet gas supply commitments to U.S. suppliers.

— We would be ignoring their attempts to harbor terrorists.

All arguments aside, the Lockheed C–130 sale to Algeria is much larger than it appears. It has now developed into the issue of how to go ahead with plans for improved relations with Algeria. On balance I support the sale. There is a downside but this is a golden opportunity to strengthen our relations with an important Arab country that has been closely associated with the Soviet Union.

1. Source: Reagan Library, Executive Secretariat, NSC Country File, Africa, Algeria (01/24/1982–09/26/1983). Secret. Sent for information. Drafted by Attardo. A stamp at the top of the memorandum reads: “WPC has seen.” A note from Poindexter attached to the memorandum reads: “Jeff Kemp, 11/5, Judge has agreed to sale of C–130’s. State has been notified. JP.”
2. See Document 118.
3. A memorandum of Reagan’s October 22, 1982 conversation with Hassan and other members of the Arab League is scheduled for publication in Foreign Relations 1981–1988, vol. XIX, Arab-Israeli Dispute.