144. Memorandum From Secretary of State Shultz to President Reagan1

SUBJECT

  • FMS Eligibility for Algeria

The Department requests you sign the attached determination that Algeria is eligible to purchase defense articles under the Foreign Military Sales Program. Section 3(a)(1) of the Arms Export Control Act2 requires that the President find that the furnishing of defense articles and defense services to a foreign government would “strengthen the security of the United States and promote world peace” and sign a determination to that effect. On April 8, 1983, you signed the determination making Algeria eligible for defense services (training).3

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Our military relationship with Algeria has been expanding slowly since President Chadli Bendjedid came to power in 1979. The exchange of defense attaches, USN ship visits, approval of selected commercial sales such as 17 C–130 aircraft, initiation of an IMET Program this year and the earlier determination of FMS eligibility for defense services have constituted our measured response in the military sphere to the Government of Algeria’s greater moderation in foreign and domestic policy and its avowed desire to improve bilateral relations. These acts have been intended also to advance our own long-term goals of expanding relations with the military as the most important institution in Algeria and of helping Algeria to diversify its sources of military supply at the expense of the Soviet Union.

Algeria is the most stable state in the region and the Algerian military is the guarantor of its stability. It no longer identifies primarily with the Arab radicals on Middle East issues in general and has played a mediating role in the Iraq-Iran conflict, as it did between Iran and the U.S. during the hostage crisis. Neighboring states as diverse as Niger, Mali, Tunisia and Mauritania now look to Algeria in some degree for protection against Libya.

Algeria’s more moderate posture clearly coincides far more with US interests than with those of the Soviets and their radical allies such as Libya. Over the past four years there have been a 50-percent reduction in the Soviet military presence in Algeria and no new orders for Soviet equipment. However, this process of reducing the Soviet military presence can go only so far until alternative sources of equipment, parts and expertise are available to the GOA on a reliable basis.

Several Algerian officials, including the de facto Minister of Defense, have recently requested that Algeria’s FMS eligibility be expanded to include defense articles. I believe this forthright request is indicative of a new inclination on the part of the Algerian military establishment to deal directly with ours and that a positive response would further both of our long term goals of helping Algeria decrease its military supply dependency on the Soviet Union and expanding relations with the Algerian armed forces.

FMS sales will be reviewed on a case-by-case basis, taking into account not only our objective to reduce Soviet influence in Algeria, but also US relationships with other states in the area and our interest in fostering a negotiated solution to the Western Sahara dispute.

Signature of the attached Determination would also constitute approval of the Justification that follows it. The Justification and the Determination would be provided to the Congress; only the latter would be published in the Federal Register.

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Attachment

Presidential Determination4

JUSTIFICATION FOR PRESIDENTIAL DETERMINATION OF THE ELIGIBILITY OF ALGERIA TO MAKE PURCHASES OF DEFENSE ARTICLES UNDER THE ARMS EXPORT CONTROL ACT

Section 3(a) of the Arms Export Control Act (the Act) requires, as a condition of eligibility for the purchase or lease of defense articles and defense services from the United States under the Act, that the President find that the furnishing of such articles and services to the country concerned “will strengthen the security of the United States and promote world peace”.

Presidential Determination No. 73–10, dated January 10, 1973, established a consolidated list of countries eligible to make purchases of defense articles and services on a Foreign Military Sales (FMS) basis from the United States Government. Because of changing international circumstances, new countries are added to this list from time to time. Algeria, which had served as intermediary between the U.S. and Iran during the hostage crisis, was made eligible to purchase defense services by Presidential Determination No. 83–6, dated April 8, 1983. It is my judgment that circumstances now warrant that Algeria also be made eligible to purchase defense articles.

Our military relationship with Algeria has been expanding slowly since President Bendjedid came to power in 1979. The exchange of defense attaches, USN ship visits, approval of selected commercial sales such as C–130 aircraft, initiation this year of an IMET Program, as well as the earlier Presidential Determination, have constituted our measured response in the military sphere to the Government of Algeria’s greater moderation in foreign and domestic policy and its avowed desire to improve bilateral relations.

Algeria’s more moderate posture clearly coincides far more with US interests than with those of the Soviet Union and its radical allies such as Libya. Neighboring states as diverse as Niger, Mali, Tunisia and Mauritania now look to Algeria in some degree for protection against Libya. There has been a major reduction in the Soviet military presence in Algeria. However, this process of reducing the Soviet military presence can go only so far until alternate sources of equipment, parts and expertise are available to the GOA on a reliable basis.

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I have therefore concluded that eligibility for Algeria to purchase defense articles as well as defense services under the Act will further both of our long-term goals of helping Algeria decrease its military supply dependency on the Soviet Union and of expanding relations with the Algerian military, and thereby will strengthen the security of the United States and promote world peace.

  1. Source: Reagan Library, George Shultz Papers, Official Memoranda (01/22/1985) (2). Confidential. Sent to Shultz under cover of a January 22 memorandum from Chain, in which Chain recommended Shultz sign the memorandum.
  2. Reference is to P.L. 94–329, the Arms Control Export Act, June 30, 1976.
  3. Not found.
  4. Confidential.