TALKING POINTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88B00443R000301300001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: May 11, 2010
• Sequence Number: 1
• Publication Date: January 30, 1985
• Content Type: MISC

Sanitized Copy Approved for Release 2010/05/11: CIA-RDP88B00443R000301300001-7
Jtl.Kt I Ul.l
30 Jan 85
Talking Points
- The Soviets with their partners have gobbled up or are threatening
a huge slice of Asia, Africa and Latin America. (see map)
- In the mid-sixties, there were 16 countries getting military support
from the Soviets; in the mid-seventies, 33 and none occupied by Soviets or
their proxies. Today 40 countries get military support, 9 are occupied by
Soviet, Cuban or Libyan troops, and 6 are facing insurgencies supported by
Soviets, Cubans or Libyans.
- North Africa from Tunisia to Sudan and Somalia, Central Africa from
Chad to Zaire, are under pressure from Libya with its well financed terrorism
and Ethiopia with the largest army in Africa. Southern Africa is under Cuban
and Soviet pressure.
- All of Central America and Peru and Bolivia in South America, together
with islands in the Caribbean, are under Cuban, Libyan and Soviet pressure.
- Asia from the southern border of China and its sea lanes to Thailand
and Pakistan is under pressure from Vietnam with the fourth largest army in
the world and from 170,000 occupying Vietnamese troops in Cambodia and
120,000 occupying Soviet troops in Afghanistan.
- The Soviets are spending $8 billion a year to wage this worldwide war
from Cam Ranh Bay in Vietnam to Afghanistan, from the Horn of Africa to the
South Atlantic to the Pacific coast of Nicaragua.
- In 1981, most of these positions faced opposition from less than 100,000
freedom fighters. Today in Afghanistan, Cambodia, Angola, Ethiopia and Nicaragua
more than 300,000 ordinary people have taken up arms against Communist imposed
regimes. This has checked the advance of Soviet power around the world.
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- But we have yet to bring into play our strongest asset - our economic
strength and skills, our technology, our marketing power and capital.
- In 1981, at Cancun in Mexico, you called for development in Asia,
Africa and Latin America through private capital and market forces.
- This is happening. As undeveloped countries see that Marxist economics
and Soviet trade does not deliver the progress they want, they are turning
state industries over to private ownership, getting rid of price ceilings
and subsidies, seeking foreign capital, skills and technology for their land
and local industries. Second free economies are developing alongside of and
faster than state regulated ones. In Peru a second economy took root, without
any external aid, through the initiative of people who couldn't wait to get
all the permits needed to go into business. It has become larger than the
legal economy. All U.S. aid goes to the government and its stagnant over
regulated economy.
- A El analysis details this worldwide trend, as yet slowly emerging.
Yet, the instrumentalities of the American government have done far little
to foster this process.
- The momentum we have achieved in checking Soviet expansion can be
greatly accelerated by weighing in with the economic instruments the Soviets
can't match. We have a historic opportunity to bring progress around the
world and win the battle for the Third World by demonstrating that Western
capital, technology and managerial skills can accomplish what Soviet military
and economic assistance have failed to deliver.
- AID is the instrument to mobilize the economic initiative you called
for at Cancan and further catalyze the forces of choice and initiative already
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manifesting themselves out there. It has $7 billion a year to work with,
$2 billion of it discretionary. Of this, only $20 million (1% of the funds
freely available) has been put into the fostering of private enterprise.
The remainder of $7 billion goes into state projects and a worldwide welfare
program, some of it no doubt needed and worthwhile. Some legislative
changes would help but there is enough flexibility to do a great deal now.
- With a new message and a new approach, AID, along with OPIC and the
ExIm Bank guarantee authority, can and should quickly become the vehicle to
carry out the mission you enunciated at Cancun. Ambassador Kirkpatrick is
superbly equipped and positioned to carry the message of the superiority of
Western economics and political capabilities over Marxist military and
totalitarian offerings. This would continue and build on the work she did
with those now less hostile Third World countries at the UN.
- To help both friendly governments which are and may be threatened and
those resisting oppressive Communist imposed governments, Ambassador Kirkpatrick
or someone must provide the leadership in AID capable of articulating and
strongly implementing the call you made at Cancun in Mexico in 1981.
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Sanitized Copy Approved for Release 2010/05/11: CIA-RDP88B00443R000301300001-7