DEVELOPMENT AND COORDINATION OF AID PROGRAMS

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-260-2-2-8
• Release Decision: RIPLIM
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: August 5, 2010
• Sequence Number: 2
• Publication Date: May 18, 1974
• Content Type: CABLE

No Objection to Declassification in Part 2012/04/02: LOC-HAK-260-2-2-8
0 IR
VJFV* * V WCU
02664 1380145
Z 180102Z MAY 74.ZFF-1 ZFF-4 ZYH
FM THE SITUATION ROOM
TO AMCONSUL JERUSALEM
C O N F I D E N T I A L
P*5 copy
TOHAK 231
PLEASE DELIVER TO BREMER/RODMAN FOR THE SECRETARY
MEMORANDUM FOR: SECRETARY KISSINGER
FROM: RICHARD KENNEDY
SUBJECT: DEVELOPMENT AND COORDINATION OF AID
PROGRAMS
AS BRENT HAS REPORTED EARLIER, WE HAVE EXPERIENCED SOME DIFFICULTY
IN THE INTERAGENCY PROCESS OF COORDINATING AID PROGRAMS IN RECENT
WEEKS- STATE HAS NOT ALWAYS CUT IN THE OTHER AFFECTED AGENCIES,
INCLUDING YOUR NSC STAFFS DURING THE PROCESS. AS A CONSEQUENCES
PROGRAMS HAVE BEEN INITIATED WITHOUT THE PROPER ASSESSMENT OF
THE SOURCE AND AVAILABILITY OF THE NECESSARY RESOURCES TO CARRY
THEM OUT. IN THIS CONNECTION. OMB HAS A VERY IMPORTANT ROLE
TO PLAY: MAKING SURE THAT THE RESOURCES ARE AVAILABLE AND ASSIS-
TING IN ACCOMPLISHING NECESSARY REPROGRAMMING OR SHIFTS IN
PROGRAMS IF THIS IS ESSENTIAL. THEY ALSO ARE HEAVILY INVOLVFD
IN THE PREPARATION AND SUBMISSION TO THE HILL OF ANY AUTHO.
RIZATION AND APPROPRIATION REQUESTS. THEY CAN BE AND ARE VERY
HELPFUL. IF THEY ARE BROUGHT INTO THE PROCESS PROPERLY, AS YOUR
NSC STAFF HAS ASSURED IN THE PAST.
ALL PROGRAMS ARE IN DIFFICULT STRAITS THIS YEAR BECAUSE OF LIMITED
FUND AVAILABILITIES.RESULTING FROM SIGNIFICANT' CONGRESSIONAL
CUTS. PL-480 FOOD AID PROGRAMS ARE PARTICULARLY TIGHT BECAUSE OF
THE UNCERTAINTIES AS TO AVAILABILITY OF THE COMMODITIES.
PARTICULARLY WHEAT.
IT IS VITALLY'IMPORTANT,. THEREFORs.THAT ALL,AID PROGRAMS, AND IN
PARTICULAR THE PL-480 PROGRAM, BE VERY CAREFULLY MANAGED IN ORDER
NO referral -- OMB on-file
release instructions apply
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No Objection to Declassification in Part 2012/04/02: LOC-HAK-260-2-2-8
 No Objection to Declassification in Part 2012/04/02: LOC-HAK-260-2-2-8
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THAT WE CAN GET THE MAXIMUM BENEFIT FROM THE LIMITED RESOURCES
THAT ARE AVAILABLE. AS YOU KNOW, THIS TAKES A GOOD DEAL OF,CARE-
FUL CALCULATION AND BALANCING OF OUR VARIOUS INTERESTSP PRIr7RI
TIES, AND RESOURCES. OVER THE PAST THREE YEARS WE HAVE ORCHES-
TRATED A CAREFUL MANAGEMENT OF THE PL-480 PROGRAM WITH THIS
IN MIND.
THE POTENTIAL EFFECTS ON DOMESTIC PRICES OF OUR COMMODITY EXPORTS
MAKES THE PL-480 PROGRAM THIS YEAR EVEN MORE DICEY THAN IT HAS
BEEN IN PREVIOUS YEARS.. WE BELIEVE THAT WE SHOULD CONTINUE TO
USE THE INTERAGENCY MECHANISM WHICH WAS SET UP AT OUR SPECIFIC
REQUEST THREE YEARS AGO TO MANAGE THE RESOURCE ALLOCATION FOR
PL-480 PROGRAMS. IT BRINGS TOGETHER STATE, NSCs OMB, TREASURY,
AGRICULTURE' C.EA, AND THE DOMESTIC COUNCIL.
ALL OF THE ECONOMIC AGENCIES HAVE BEEN HAMMERING ROY ASH ANl
EXPRESSING CONCERN THAT THEY HAVE NOT BEEN APPROPRIATELY CONSULTED
By STATE AS IT HAS BEEN DEVELOPING OR COMMITTING NEW PL-480
PROGRAMS. IN OUR JUDGMENTS THE BEST WAY TO ACCOMMODATE THEIR
LEGITIMATE INTERESTS AND STILL RETAIN THE ESSENTIAL MEASURE.
OF FLEXIBILITY AND CONTROL FROM A FOREIGN POLICY POINT OF VIEW IS
TO AGAIN USE THE INTERAGENCY GROUP.
BECAUSE OF THE HEAT WHICH BUILT UP QN ALL OF THIS, WE BELIEVE IT
WOULD BE HIGHLY DESIRABLE FOR YOU TO MEET BRIEFLY WITH ASH AS
SOON AS POSSIBLE AFTER YOUR RETURN. THIS NEED NOT TAKE MORE
THAN A FEW MINUTES. IT WOULD SIMPLY GIVE HIM THE OPPORTUNITY TO
EXPRESS CONCERNS, WHICH HAVE BEEN BROUGHT TO HIS ATTENTION BY
THE OTHER AGENCIES. YOU THEN COULD DEFUSE THE WHOLE ISSUE AND
GET THE PROPER BUREAUCRATIC HANDLE THAT.YOU NEED BY PROPOSING
THAT THE INTERAGENCY GROUP, INCLUDING HIS REPRESENTATIVE?
YOUR REPRESENTATIVE FROM THE.NSC STAFF' AND ENDERS? BE BROUGHT
INTO PLAY TO MANAGE THE PL-480 RESOURCE ALLOCATIONS.
RECOMMENDATION:
THAT YOU APPROVE SCHEDULING A BRIEF MEETING WITH ASH.
APPROVE......
DISAPPROVE..............
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No Objection to Declassification in Part 2012/04/02 : LOC-HAK-260-2-2-8