Foreign Relations of the United States, 1981–1988, Volume XXXVIII, International Economic Development; International Debt; Foreign Assistance

282. Memorandum From Secretary of State Shultz to President Reagan¹

Washington, November 17, 1982

SUBJECT

• Resources for Foreign Policy

The failure of Congress to enact any of our regular FY–83 legislation on foreign assistance has created an intense squeeze on resources for security and economic assistance. Unless we obtain some improvement in our funding level during the lame duck session, we will be unable to carry out the foreign policy and national security initiatives to which you are committed.

We currently face a shortfall of $2.0 billion plus in the current Continuing Resolution from your FY–83 request. Operating with this level of funds: (1) jeopardizes the peace process in Israel and Egypt; (2) poses chronic problems for our relations in Portugal, Spain, Turkey and Pakistan; and (3) risks gutting the CBI program. If you were to receive an urgent appeal for additional aid from a key ally, the current level of resources would not allow you to respond positively.

State, working with Treasury, Defense and other agencies has developed a comprehensive legislative game plan to push for as much legislative action as the traffic will bear. This will involve consultations with the Senate Foreign Relations Committee and the House Foreign Affairs Committee to see whether the stalled FY–83 authorization bills could go to the floor. However, irrespective of the progress on the authorization track, we must give priority attention to the appropriations process with emphasis on the House Appropriations Subcommittee on Foreign Operations. Our hope is that we can use a markup by either the House or Senate Committee at least as a basis for enhancing foreign aid funding in the 2nd Continuing Resolution.

Without your direct and visible involvement, particularly in the appropriations process, we will have no chance of rectifying this grim situation—given current hostilities toward foreign aid. At this point, we are not even certain our supporters like Jack Kemp will press for a markup in the House. On the Democratic side, only Chairman Long is even mildly interested in a markup.

Your involvement is necessary to get some momentum and to help forge a coalition among Republican members who favor security assistance and those Democrats who prefer economic aid. A direct appeal from you would underscore the urgency of the situation and bring the two sides together.

I strongly recommend that you participate in two events: a meeting with key conservatives led by Jack Kemp for reassurance on our commitment to the multi-lateral development banks (and to fulfill a commitment made last year by Secretary Haig that such a meeting would occur). This meeting may have to await your return from South America.² Secondly, an appearance by you—no matter how brief—at the White House Situation Room briefing for the full House Subcommittee will pay significant dividends. This briefing is slated for November 30.³

I regret the necessity of intruding on your crowded schedule. In light of Congressional realities, however, I fear that without your personal participation our efforts to improve this difficult situation are unlikely to succeed.

Recommendation

That you agree to participate in our legislative game plan as outlined above.⁴

1. Source: Reagan Library, George Shultz Papers, Official Memoranda (08/13/1982); NLR–775–25A–54–2–1. Confidential.
2. Reagan traveled to Brazil, Colombia, Costa Rica, and Honduras from November 30 to December 4.
3. There is no record in the President’s Daily Diary of a meeting in the White House Situation Room on November 30. (Reagan Library)
4. Reagan did not indicate approval or disapproval of the recommendation.