EA REGIONAL MEETING ON FY 1984 FOREIGN ASSISTANCE PROPOSAL FOR EAST ASIAN AND PACIFIC COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R002300060014-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: December 21, 2016
• Document Release Date: June 17, 2008
• Sequence Number: 14
• Publication Date: May 11, 1982
• Content Type: MEMO

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CONFIDENTIAL
May 11, 1982
NSC
- Michael 0. Wheeler ----
8213540
ACDA
- Joseph Presel ---------
821.3541
Agriculture
- Raymond Lett ---------
8213542
AID
- Gerald Pagano ---------
821.3543
CIA
Defense
Col. John Standord ----
8213545
JCS
Maj. Dennis Stanley ---
8213546
0MB
William Schneider -----
8213547
Treasury
David Pickford --------
821.3543
UNA
Harvey Feldman --------
8213549
USTR
Richard Heimlich ------
8213550
Peace Corps
Everett Alvarez --------
8213551
OPIC
Thomas Clegg ----------
8213552
T
.ohn Wolf ------- ----
8213553
PM/SAS
Richard Ogden ---------
8213554
PM/RSA
Richard Haass---------
8213555
SUBJECT: EA Regional Meeting on FY 1984 Foreign Assistance
Proposal for East Asian and Pacific Countries
Attached is a paper to serve as a vehicle for discussion at a
meeting to be held on May 17, 1982, at 1:30 pm at the
Department of State, Room 6205. The meeting will be chaired by
Deputy Assistant Secretary Daniel O'Donohue.- We suggest that
attendance be limited to principals plus one.
femer9 III
E,xee Live Secretary
Attachment :
As stated
State Dept. review completed.
CONFIDENTIAL
(De.clas upon removal
of CONFIDENTIAL Attachment)
GDS-5/11/88
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UNCLASSIFIED
(with CONFIDENTIAL Attachment)
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FOREIGN POLICY OBJECTIVES PAPER TO SUPPORT INTERAGENCY
MEETING ON FY-1984 FOREIGN ASSISTANCE PROPOSAL FOR
EAST ASIA AND PACIFIC COUNTRIES
The purpose of the interagency meeting scheduled for
May 17, 1982, at the Department of State, is to discuss the
integration of military and economic assistance for FY 1984
into a single strategic package - the Pacific Strategic
component of our global strategy. Once we have agreed on how
our regional priorities mesh with both the broad and specific
foreign policy objectives outlined by the Secretary, program
resources can be tailored logically to best support our
priorities.
Upon conclusion of the interagency meeting on May 17,. the
Bureau of East Asian and Pacific Affairs will submit a written
summary to the principals of the major points of consensus and
issues for bilateral and multilateral assistance.
Program resources for East Asian and Pacific countries
should be allocated to support the following regional foreign
policy objectives:
-- Direct protection of our treaty relationships with
recipient countries, i.e., the Philippines, Korea and
UNCLASSIFIED
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(with CONFIDENTIAL Attachment)
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Thailand. Assistance to these countries has the ancillary
effect of strengthening our relationships with such other
treaty allies as Japan; Australia and New Zealand which do not
--receive credit or grant assistance but do tend to view
indicator of our resolve to remain a Pacific power.
-- Strengthen the front-line states, Korea and Thailand, to
help deter North Korean or Vietnamese aggression.
-- Maintain unham Bred use of military facilities in the
Philippines.
-? Maintain and enhance defense relations with East Asian
countries with strategic proximity to key sea lanes of
communication in the region and those that link East Asia to
the Indian Ocean and the Middle East. These include Indonesia,
Malaysia, the Philippines, Singapore and Thailand. Aid to
Thailand specifically strengthens our relationship with all the
ASEAN countries.
-- Assure continued access to significant commercial
markets and basic raw materials. This includes all of the
ASEAN countries and Korea. East Asia?s rapidly growing
economies and their ties to the US are of increasing
importance. Indonesia is noteworthy as an OPEC country which
provides some six percent of US petroleum imports and generally
plays a moderate role in the Non-aligned Movement (NAM), the
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(with CONFIDENTIAL Attachment)
p3-
Islamic Conference, and OPEC. Singapore, although its relative
wealth obviates the need for FMS credits or development
assistance, provides access to excellent, strategically located
- t
air and seaport facilities for US forces operating in the
Indian Ocean.
-- insure that development assistance serves an overall
security/:Eo
eien nolic
-- Maintain and strengthen our ties in the South Pacific,
thus blocking Soviet attempts to gain influence. Encouragement
of Fiji's support of US peace initiatives in the Sinai and its
participation in United Nations Peacekeeping Forces in Lebanon
(UNIFIL) are cases in point. US assistance in improving the
agricultural and fishing techniques of Pacific Island nations
is a relatively low-cost investment in regional stability.
-- Strengthen ASEAN and US ties to ASEAN. ASEAN has
emerged as a major force for stability in Southeast Asia and. is
of central importance to US interests in the region. Although
US ties to ASEAN are strengthened primarily through our
bilateral relations with ASEAN's member nations, some economic
assistance to the region is an important signal of the
importance which the US attaches to ASEAN per se.
-- Control refugee flows through continued assistance to
and cooperation with Thailand and other countries of first
asylum.
UNCLASSIFIED
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-- Impede the flow of narcotics, through support for -
suppression efforts by Burma aQd Thailand.
Encourage gradual, improvement in relations with Burma;
strategically located and emerging from self-imposed isolation,
Burma has made clear it seeks closer ties with the US.
Although the many uncertainties prevailing so early in the
year make it difficult to predict final dollar amounts, we can
use the above stated objectives for rough rank ordering among
possible levels.
The attached tables for the PACIFIC STRATEGIC package.
illustrate the relationship of possible program levels to our
foreign policy objectives.
UNCLASSIFIED
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l UNr lVr IV'1'1NL
PACIFIC STRATEGIC
in millions)
BASE CUMULATIVE
Country FMSG FMSD ESF DA PL-480 FMSC FMSD ESF DA PL-480
Philippines 50 -- 50 40 14.0
Korea 220 -- -- --
Thailand 50 50 10 28 --
Indonesia 55 -- -- 65 29.0
Malaysia 13 -- -- --
Burma -- -- -- 12.5 --
TOTALS 388 50 60 145.5 43.0
Note: Excludes DA for South Pacific and ASEAN, plus centrally funded Asia Regional Programs.
Excludes IMET which is done separately.
REMARKS: With the exception of DA for the Philippines and PL-480.for Indonesia,.these are levels proposed for FY 1983
(with some adjustment for inflation). If these levels should prevail into FY 1984, the regional threats and needs
remain relatively the same. Therefore, the proportional shares would'remain the same.
If funds for the region were reduced below these minimum levels, the reductions would be spread proportionately. This
chart is not a reflection of estimated requirements which will surely be higher considering the increasing Soviet,
North Korean and Vietnamese threats. %
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PACIFIC STRATEGIC
($ in millions)
INCREMENT I
CUMULATIVE
Country
FM SG
FMSD
ESF
DA
PL-480
FMSG
FMSD
ESF
DA
PL-480
Philippines
--
--
--
--
--
50
--
.50
40.0
14.0
Korea
30
--
--
--
--
250
--
--
--
Thailand
10
2
3
--
60
50
12
31
Indonesia
5
--
--
7
--
60
--
--
72
Malaysia
2
-
--
--
-
15
--
--
Burma
--
3
--
2.5
--
--
3
--
15.0
TOTALS
47
3
2
12.5
--
435
53
62
158.0
43.0
These levels would permit Korea to begin to redress the persisting dangerous imbalance on the Korean Peninsula by
accelerating somewhat the lagging Force Improvement Prograir. (FIP); would strengthen Thai and other ASEAN leaders in
their attempt to achieve a long-term solution to the Kampuchean problem, help maintain the principle of first asylum for
Indochinese refugees and increase modestly US influence on direction of rapidly expanding Thai economy; and the credits
for Burma would be of some assistance in helping Burma with its modest military purchasing requirements.
The increased levels of development assistance will enhance military security by permitting more timely completion of
projects designed to improve living standards.
The ESF increment would enhance socio-economic development of the poorer areas along the Lao and Kampuchean borders.
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