CABLE TO HENRY A. KISSINGER FROM BRENT SCOWCROFT

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-259-1-67-0
• Release Decision: RIPLIM
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: January 11, 2017
• Document Release Date: September 22, 2009
• Sequence Number: 67
• Publication Date: December 19, 1973
• Content Type: CABLE

No Objection To Declassification 2009/09/22: LOC-HAK-259-1-67-0
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FM THE SITUATION ROOM TOHAK. 138
TO AMEMBASSY MADRID
C 0 N F I D E N T I A L.
DECEMBER 18, 1973
TO: HENRY A. KISSINGER
FROM: BRENT SCOWCROFT
WH37701 TOHAK 138.
LARRY HAS EXPLAINED YOUR REACTION TO TOSEC 277 (WHICH WE DID
NOT SEE BEFORE IT WENT OUT, NOR YOUR TWO LETTERS TO ROY ASH ON
ECONOMIC AID). BEFORE WE Go) IN HARD TO ASH, HOWEVER, I THINK IT
WOULD BE USEFUL FOR YOU TO AT LEAST READ THE FOLLOWING COMMENTS
FROM CHUCK COOPER, WHO MET WITH THE OMB PEOPLE ON THE ECONOMIC
ASSISTANCE BUDGET,
QUOTE:
1. I HAVE SEEN STATE'S MESSAGE OBJECTING TO OMBIS $251 MILLION
REDUCTION IN THE FY-75 AID BUDGET REQUEST.
2. IN OUR BUDGET REVIEW WITH OMB WE ATTEMPTED TO PROTECT PROGRAMS
ESSENTIAL FOR OUR FOREIGN POLICY. WITH A TWO-YEAR AUTHORIZATION
FOR DEVELOPMENT ASSISTANCE ALREADY PASSED BY CONGRESS COVERING FY-75
AT LEVELS WELL BELOW THE OMB MARKS, WITH RECENT CONGRESSIONAL CUTS
OF APPROPRIATIONS EVEN BELOW THIS LEVEL, WITH THE MAJOR BUDGET PRES-
SURES BECAUSE OF INCREASES IN MILITARY ASSISTANCE FOR ISRAEL AND
CAMBODIA, WITH OUR SERIOUS PROBLEMS ON OMB'S MILITARY ASSISTANCE
MARKS (AND WITH SOME OF STATE'S LEVELS), AND WITH STRONG PRESIDENTIAL
GUIDANCE TO RESTRAIN THE BUDGET, WE DID NOT ARGUE THAT THIS WAS
THE YEAR FOR MAJOR NEW INITIATIVES IN AID. AT ANY RATE, AID DID NOT
PRESENT A NEW PROGRAM WHICH WOULD MAKE HIGHER MONEY LEVELS DEFENSIBLE.
AS A RESULT OF OUR INTERVENTION, OMB RAISED ITS OVERALL AID RECOM-
MENDATION BY NEARLY $200 MILLION. ALSO OMB AGREED TO AN ADDITIONAL
$70 MILLION IN PL 480 FOR CHILE.
3. THE MAIN DIFFERENCES BETWEEN THE OMB/NSC MARK AND THE STATE
REQUEST ARE:
* * * * * * * * * * * * * * * *WHSR COMMENT * * * * * * * * * * * * *
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ON-FILE NSC
RELEASE
INSTRUCTIONS
APPLY
No Objection To Declassification 2009/09/22 : LOC-HAK-259-1-67-0
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A. DEVELOPMENT LOANS, CUT $152 MILLION:
-- INDIA - MARK $75 MILLION LESS THAN STATE/AID REQUEST. THERE
IS GENERAL AGREEMENT THAT ANY NEW AID PROGRAM WOULD ONLY GET UNDER-
WAY THE MIDDLE OF,THE FISCAL YEAR, AND $75 MILLION WOULD FUND A
$150 MILLION PROGRAM. CONGRESS IS PARTICULARLY PRONE TO CUT INDIA
AID. LAST YEAR'S REQUEST WAS $75 MILLION.
PAKISTAN MARK $15 MILLION LESS--THIS HOLDS THE LEVEL AT
LAST YEAR'S REQUEST MARK.
-- INDONESIA - MARK $12 MILLION LESS BUT WITH PL--480 MEETS THE
HIGHER LEVEL YOU OFFERED SUHARTO.
THERE WERE ALSO SMALL Ci)TS FOR TURKEYS BANGLADESH, AND OTHER
COUNTRIES.
6, SUPPORTING ASSISTANCE:
ISRAEL - MARK OF ZERns $50 MILLION LESS, AS YOU INSTRUCTED.
-- JORDAN MARK OF $45 MILLION IS $20 MILLION LESS THAN RE
QUESTED. WE ARGUED HARD FOR THIS BUT ASH WAS ONLY WILLING TO SPLIT
BETWEEN THE OMB $25 MILLION AND OUR $65 MILLION.
-- INDOCHINA - MARK INCREASED BY $70 MILLION IN LIGHT OF MAJOR
NEW REQUIREMENTS IN CAMBODIA AND SOUTH VIETNAM SINCE STATE REQUEST
PREPARED.
C. TECHNICAL ASSISTANCE ANn OVERHEADS:
REQUEST REDUCED BY OMB BY ABOUT $30 MILLION--THIS WILL. REQU
SOME MINOR REDUCTION IN BLOATED AID STAFF AND OVERHEAD.
4. PRIVATELY AID TELLS US THAT THE DIFFERENCES BETWEEN THE OMB
MARKS AND THEIR REQUEST ARE EXPLAINED BY THREE FACTORS--AID''S
ALLOWANCE FOR DIVERSION OF DEVELOPMENT LOAN FUNDS TO INDOCHINA
AND CHILE, INSURANCE AGAINST CONGRESSIONAL CUTS, AND A GREATER
REQUIREMENT FOR DISASTER RELIEF.
5. ADDITIONAL INDOCHINA AND CHILE REQUIREMENTS--MINIMUM OF OVER
$100 MILLION. WE HAVE COVERED CHILE
THROUGH THE PL-460 PROGRAM AND WE BELIEVE THAT AFTER USING LARGE
AMOUNTS OF DEVELOPMENT LOAN FUNDS FOR SOUTH VIETNAM THIS YEAR WE MAY
LOSE THIS FLEXIBILITY NEXT YEAR. AT A MINIMUM CONGRESS IS ALERT
TO FINDING AND CUTTING THESE BURIED FUNDS. IN SHORT, WE BELIEVE
WE SHOULD ASK CONGRESS FOR AID FOR INDOCHINA RECONSTRUCTION IN A
STRAIGHT FORWARD WAY AND DEFEND IT THAT WAY--NOT BURY IT IN FUNDS
EARMARKED FOR OTHER COUNTRIES. DMB AGREES AND HAS UPPED ITS INDOCHINA
RECONSTRUCTION LEVEL ACCORoINGLY.
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6. CUT-INSURANCE. WE RELIEVE WE HAVE RESTORED SOME CUT INSURANCE.
WITH THE TWO-YEAR AUTHORIZATION AND CONGRESS' NEGATIVE STANCE ON
THE CURRENT ASSISTANCE PROGRAM, WE DOUBT THAT IT IS WORTH PUTTING
PRESSURES ON THE PRESIDENT'S BUDGET TOTAL FOR MORE. YOU C.QULO BE
EMBARRASSED ON THE HILL DEFENDING A PROGRAM WITH POORLY DISGUISED
CUT INSURANCE.
7. DISASTER RELIEF. THE STATE/AID REQUEST WAS PUT'TOGETHER ON
THE ASSUMPTION LITTLE FY-74 FUNDING WOULD BE FORTHCOMING. OMB
CUT THEIR REQUEST BY ABOUT 50 PERCENT AND RECOMMENDED NOT SHOWING
THE NECESSARY FUNDS AS A LINE ITEM IN THE BUDGET. WE INITIALLY AGREED
WITH OMB'S CUT ON THE ASSUMPTION CONGRESS WOULD VOTE SUBSTANTIAL
FUNDS FOR THIS PURPOSE THIS YEAR. THE SENATE HAS NOW REFUSED'TO DO
SO. OMB HAS AGREED TO REOPEN THE DISASTER RELIEF SECTION IF THE
CONFERENCE THIS WEEK DOES NOT PROVIDE DISASTER FUNDS IN FY-74 FOR THE
SAHEL, NICARAGUA, AND PAKISTAN. WE BELIEVE OMB WILL INCREASE THE FY--75
REQUEST FOR THESE PURPOSES IF WE 00 NOT GET FY-75 FUNDS.
8. WITH SOME POSSIBLE ADJUSTMENT FOR DISASTER RELIEFS THE FUNDS
IN THE OMB MARK ARE SUFFICIENT FOR FY-75. NSC COUNTRY STAFF HAVE ALL
BEEN CANVASSED AND BELIEVE THE REVISED OMB MARKS ARE SUFFICIENT TO
MEET ALL HIGH PRIORITY REQ-.UIREMENTS. BY FY-76, WHEN YOU HAVE A REAL
OPPORTUNITY TO PUT YOUR MARK ON THE ASSISTANCE PROGRAMS WE SHOULD
WORK FOR NOT ONLY MORE GENEROUS FUNDING BUT ALSO A SOUNDER AND MORE
DEFENSIBLE PROGRAM, PERHAPS EVOLVING FROM YOUR CONTACTS DURING THE
NEXT SEVERAL MONTHS WITH VARIOUS GROUPS OF DEVELOPING COUNTRIES.
9. THE BUDGET WILL NOT BE ABSOLUTELY FIRM FOR ANOTHER TEN DAYS.
WE WILL INFORM OMB YOU WILL PERSONALLY REVIEW BUDGET MARK IMMEDIATELY
AFTER YOUR RETURN. WE DO NOT RECOMMEND GENERAL RECLAMA ALONG LINE
PROPOSED IN STATE/AID MESSAGE To YOU. UNQUOTE.
WARM REGARDS.
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No Objection To Declassification 2009/09/22 : LOC-HAK-259-1-67-0