ADDITONAL INFORMATION ITEMS

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-550-3-27-8
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: October 27, 2010
• Sequence Number: 27
• Publication Date: November 18, 1974
• Content Type: CABLE

r -rz _ M-#-r Ca?PrJ 17
No Objection to Declassification in Part 2010/10/27: LOC-HAK-550-3-27-8
DOS, NAVY, OSD, DIA,
Reviews Completed
IUP SECRET SEi~~!ilVE
NNNNVZCZCWHE125
00 WTE19
DE WTE 7308 3222014
0 1820232 NOV 74
FM THE SITUATION ROOM//TOHAK 11//
TO GENERAL SCOWCROFT
ZEM
T 0 P S E C R E T SENSITIVE CONTAINS CODEWORD
DELIVER AT OPENING OF BUSINESS WH43320
NOVEMBER 18, 1974
MEMORANDUM FOR SECRETARY KISSINGER
FROM: THE SITUATION ROOM
SUBJECT: ADDITIONAL INFORMATION ITEMS
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
TAXATION OF CONTRACTORS IN THAILAND: THE THAI SUPREME COMMAND
HAS INFORMED'AMBASSADOR KINTNER THAT ALL U.S. SERVICE CONTRACTS
MUST BE TRANSFERRED TO THAI COMPANIES BY DECEMBER 31, 1974.
THIS WOULD REQUIRE U.S. DEFENSE CONTRACT FIRMS TO REGISTER
IN THAILAND, PRESUMABLY THEN BECOMING SUBJECT TO THAI LAWS AND
TAXES. THE MAIN POINT AT ISSUE, HOWEVER, IS WHETHER U.S. FUNDS
APPROPRIATED FOR THE COMMON DEFENSE ARE SUBJECT TO TAXATION
BY GOVERNMENTS OF COUNTRIES WHICH BENEFIT FROM THIS EXPENDI-
TURE.
STATE AND DEFENSE STRONGLY OPPOSE ACCEDING TO THE THAI DEMAND
IN THAT EVERY COUNTRY IN WHICH SIGNIFICANT NUMBERS OF U.S.-
FORCES ARE STATIONED IN FURTHERANCE OF THE COMMON DEFENSE HAS
MADE SOME KIND OF PROVISION FOR TAX EXEMPTION FOR U.S. PRO-
CUREMENT OF GOODS AND SERVICES IN SUPPORT OF SUCH FORCES. AC-
CORDINGLY, DOD WILL SUGGEST THAT AMBASSADOR KINTNER INFORM THE
THAI THAT WE WOULD BE WILLING TO OBTAIN THE SERVICES PERFORMED
BY CURRENT U. S. CONTRACTORS FROM THAI-REGISTERED FIRMS. IF
THE THAI INSIST THAT TAXES BE PAID ON THESE CONTRACTS, WE WILL
DO SO UNDER PROTEST WITH THE FUNDS BEING DEPOSITED IN A SPECIAL
ACCOUNT UNTIL THE ISSUE IS RESOLVED. IF THE THAI REMAIN ADAMANT,
WE SHOULD INFORM THEM THAT THE U.S. WILL BE FORCED TO RECOUP
THE AMOUNT OF TAXES PAID FROM U.S. ASSISTANCE FUNDS THAT MIGHT
BE PROGRAMMED FOR THAILAND. (MCDONALD)
COMMANDER OF SOVIET BLACK SEA FLEET TO VISIT SYRIA: IN A
BROADCAST TO THE ARAB WORLD TODAY, MOSCOW ANNOUNCED THAT
VICE ADMIRAL KHOVRIN, COMMANDER OF THE SOVIET BLACK SEA FLEET,
WOULD PAY AN OFFICIAL VISIT TO THE SYRIAN PORT OF LATAKIA
FROM NOVEMBER 20 TO 25, A KYNDA-CLASS GUIDED MISSILE LIGHT
END OF PAGE 01
TOP S1 " "M SET'. WE
No Objection to Declassification in Part 2010/10/27: LOC-HAK-550-3-27-8
 No Objection to Declassification in Part 2010/10/27: LOC-HAK-550-3-27-8
TOP ~ CET TIE
CRUISER WITH THE ADMIRAL EMBARKED ENTERED THE MEDITERRANEAN.
FRIDAY. A KASHIN-CLASS GUIDED MISSILE FRIGATE-AND AN F-CLASS
DIESEL ATTACK SUBMARINE WILL LIKELY JOIN THE CRUISER FOR THE
VISIT. THE BLACK SEA CINC WAS LAST EMBARKED ON A DEPLOYED
SHIP IN SEPTEMBER AND OCTOBER, 1973 FOR A PORT CALL TO SPLIT,
YUGOSLAVIA. DIA COMMENTS THAT THE VISIT TO SYRIA WILL EFFEC-
TIVELY SHOW THE SOVIET FLAG DURING A TIME OF INCREASED TEN-
SION IN THE AREA AS WELL AS DEMONSTRATE CONTINUING SUPPORT
FOR THE ARAB WORLD IN GENERAL AND SYRIA IN PARTICULAR.
SECOND SOVIET MIG-23 HAS CRASHED: ON NOVEMBER 14 A MIG-23/
FLOGGER TRAINER DEVELOPED AN AFTERBURNER FIRE DURING TAKEOFF
FROM SAIULIAI AIRFIELD, LOCATED JUST NORTH OF THE.SOVIET-
POLISH BORDER. THE REGIONAL TACTICAL CONTROL AT SAIULIAI
INSTRUCTED THE CREW TO EJECT AND LATER-REPORTED SEEING TWO
PARACHUTES. THE CRASH REPRESENTS THE SECOND RECENT FLOGGER
LOSS. THE FIRST OCCURRED ON OCTOBER 31 AND ALSO INVOLVED A
FLOGGER FROM SAIULIAI. A STAND DOWN OF FLOGGERS AT SAIULIAI
AIRFIELD IS IN EFFECT BUT NO OVERALL GROUNDING OF FLOGGER,
WHICH WOULD BE ASSOCIATED WITH A MAJOR RELIABILITY PROBLEM,
HAS OCCURRED,
AFTERMATH OF QUITO CONFERENCE: FOLLOWING DEFEAT OF A PROPOSAL
TO LIFT OAS SANCTIONS AGAINST CUBA AT THE CONFERENCE IN QUITO
LAST WEEK, A NUMBER OF MEMBER NATIONS OF THE OAS ARE SEEKING
SOME MEANS TO DEFUSE THE CUBA QUESTION AND ENSURE THE CONTINUING
VITALITY OF THE OAS AND THE INTER-AMERICAN SYSTEM, THE CHILEAN
REPRESENTATIVE TO THE OAS IS RECOMMENDING TO HIS GOVERNMENT THAT
A PROPOSAL BE MADE TO THE NEXT MEETING OF THE OAS SPECIAL COM-
MITTEE ON REORGANIZATION OF THE SYSTEM TO PUT FORWARD A SPECIAL
PROTOCOL PROVIDING FOR TERMINATION OF SANCTIONS UNDER THE RIO
TREATY BY SIMPLE MAJORITY VOTE RATHER THAN THE TWO-THIRDS VOTE
NOW REQUIRED. THE CHILEAN BELIEVES SUCH A SPECIAL PROTOCOL
COULD GAIN PROMPT RATIFICATION BY MEMBER COUNTRIES AND THAT
THEREAFTER A DISCUSSION OF THE CUBA SANCTIONS WOULD RESULT
IN THEIR TERMINATION BY MAJORITY VOTE. THE CHILEAN'S PRO-
POSAL IS PROMPTED BY DEEP CONCERN OVER THE FUTURE EFFECTIVE-
NESS OF THE RIO TREATY, ON WHICH CHILE DEPENDS FOR ITS DEFENSE
FROM EXTERNAL ATTACK, AND BY A BELIEF IN THE DESIRABILITY OF
CREATING A LEGAL BASIS FOR FREEDOM OF ACTION WITH RESPECT TO
CUBA SANCTIONS. GIVEN ITS POSITION REGARDING CUBAN INTERVEN-
TION IN CHILE'S AFFAIRS, A.DECISION BY THE CHILEAN GOVERNMENT
TO SPONSOR (OR EVEN SUPPORT) SUCH A FORMULA WOULD BE SIGNIFICANT
AND COULD HAVE A BENEFICIAL EFFECT ON CHILE'S INTERNATIONAL
IMAGE. (LOW)
W H WAS DISCOVERED ON NOVEMBER 14, RUNS IN ATNORTHWESTrTO
SOUTHEAST DIRECTION FOLLOWING THE NATURAL CONTOURS OF THE
AREA.,' THE TUNNEL IS EQUIPPED WITH 220-VOLT LIGHTING. THE
END OF PAGE 02
iOr, SECRET SU."I'llEilE
_ No Objection to Declassification in Part 2010/10/27: LOC-HAK-550-3-27-8