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1552959
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February 21, 1975 - Cabinet Meeting
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doc
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id
1552959
contentType
document
title
February 21, 1975 - Cabinet Meeting
collections
Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
subjects
Syria
Egypt
Soviet Union
General Agreement on Tariffs and Trade (1947)
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Middle East conflicts
Petroleum
Trade policy
United States-Soviet relations
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1552959
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21
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1975-02-21
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2
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1975
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day
21
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1975-02-21
month
2
year
1975
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nara-archive
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1
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cce61981b909e5a1
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File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library MEMORANDUM THE WHITE HOUSE WASHINGTON CONFIDENTIAL/XGDS MEMORANDUM OF CONVERSATION PARTICIPANTS: President Ford's Meeting with the Cabinet DATE AND TIME: Friday - February 21, 1975 11:00 a. m. - 12:30 p.m. PLACE: The Cabinet Room The White House [The President opened the meeting with a discussion of the Savings Bond Program, the organization of the White House, and the Domestic Council The Vice President described the organization and operation of the Domestic Council.] President: I want to discuss the import tariff vote, and emphasize how important it is. Every day that goes by makes us more vulnerable to outside pressure. We have seen no other plan offered. By the time they [the Democrats] get together, it probably won't have much substance. We will talk about compromise, but only if there is some real substance. Let me turn to the Middle East. Henry has just come back from STATE QUIDELINES 3/11/04 there. Henry? Kissinger: It is important to understand what we are trying to do in the Middle East. We hear a lot of criticisms. Most of them are two-fold: Why not do it with the Soviet Union? And why not go back to Geneva? NARA, DATE 5/13/04 Let me stress that we would be happy to work with the Soviet Union, but the only position they have ever offered is support of the radical Arab line -- the '67 borders, return of Jerusalem and rights of DECLARMED the Palestinians. If we were ready to do that, we could do it directly without the Soviet Union. Whenever the Soviet Union is willing to make a moderate proposition or put some pressure on their clients, we will be S. delighted to work with them. Until then, this is just a debating option. A CONFIDENTIAL/XGDS BY GERALD LISHAMY CONFIDENTIAL/XGDS -2- Secondly, we are happy to go to Geneva, but it depends under what conditions we go to Geneva. If we go there after a failure of step-by-step diplomacy, we can't even urge a moderate program since it will have been shown we couldn't deliver. The Soviet radical program will be supported by everyone there. If we go to Geneva after a success, every Arab state will know that only we have delivered. Then we have a chance to get either a moderate program or hold the Soviet Union up as the obstructionist. With a failure, we would face massive pressures from the Europeans and the Japanese to come up with something to avoid the economic problems and another oil embargo. This is strategically what is at issue. Tactically, the issue is whether we can get one more step before Geneva. If we could move simultaneously in the Sinai and Golan, we could really settle things down. But the Israeli domestic situation won't permit that now it would require that some of their settlements be moved. The problem now is to match specific territorial moves by Israel with some intangible political moves by the Egyptians. The Israeli Government has an extraordinarily difficult domestic situation. They have a very thin majority and a massive leaking problem. The problem is, can they do what is necessary, and can they present it in such a way as to present it acceptably to their people? That is a problem. Sadat is a statesman who understands the need for peace. Butz: He has implicit confidence in Kissinger. Kissinger: The problem is that Sadat can do more than he can say. The problem is working out some de facto arrangements with Egypt and Israel. The tragedy is that the less he says, the more he can do -- and Israel needs to demonstrate to its people that they got something. Then there is the Syrian complication. They have one way or another been behind every war that has occurred there. They are more of a problem now that they are more moderate than when they were so radical that they wouldn't even talk. There is almost no way we can move with them simultaneously. They are already lining up support to prevent Sadat from moving. Syria has a real prolem -- they lost 10, 000 men in the war and have nothing to show for it -- but we must keep Syria quiescent if we are to succeed. FORD CONFIDENTIAL/XGDS & GERALD LIBRARY CONFIDENTIAL/XGDS -3- Then the Soviet Union has only one play. Gromyko keeps saying go back to Geneva, but he has no idea what to do there. Geneva is partly a matter of prestige for them, but they don't understand the Syrians and they enshrine the extreme Syrian initial proposals as serious negotiating positions. The Arabs right now think that one way or another we are going to help. If we strike out, they will move massively to the Soviet Union and we will have a huge problem with them, the Soviet Union, the Europeans and the Japanese. We have a 50% chance. But we also have to help the Saudis in line. It is obvious that the President's talks in Vladivostok were a very positive development. We hear this not only from the Soviet Union, but from what they have told the Europeans. But there is a slight cooling -- everything is maybe 5% harder. Also they think we have added conditions, for in the 1972 economic discussions, none of these problems were brought up that were later added on. Secondly, they are moving massively to the Europeans. The Europeans have given about $7. 5 billion in credits to them now. The economic impact is obvious, but there is also a political cost. While detente was warm, we held the Europeans at bay. They were scared. Now the danger is they will go running to the Soviet Union and we have lost control. We should do something about reversing the trade decision. Our relations with the Europeans are better than they have ever been, except that they greatly fear a Middle East crisis. I get the impression that in energy, the bargaining perception is beginning to swing from the producers to the consumers. Our cooperation in energy is going well. President: Thank you, Henry. Our energy policy has foreign policy ramifications that are equal to the domestic ones. We have now a strong position at home and abroad and we have to stand together to achieve our program and confirm that perception. We have to insist on a guaranteed price and alternative sources. Morton: How can we ease the burden of the Trade Act? Kissinger: We should urge Congressional movement, but without any specific proposals right now. One solution may be to try to separate the Export-Import from the Trade Bill. FORD R CONFIDENTIAL/XGDS GERALD CONFIDENTIAL/XGDS -4- Lynn: We now will run into Hill opposition that if we have money to loan, we should loan it here. It is shortsighted, but it's a fact. It is an illus- trative problem and your argument will have to be supported with facts and figures. President: We should point out that the Europeans have loaned $7.5 billion to them already. CONFIDENTIAL/XGDS GERALD a LIBRARY FORD Ricess Train 25 enitition wort E,S, I 2 Cabint ZWT Comb air ald * on 21 Feb 75 P Samings Bends Pergram. Organin of WH Dormestic Comment VP (Describes organing of open of Domestric Camil P (Descrosed M tariff inti) E every day makes no more unleverable to antside presome. We have sun no other plan. By the time they get Together, it prot ant have hmeh pubstance We will Calls compromise, but only if there is trone real substince K Important to in would what and topic K do 'ME, mm an 2. fors: why int -b it w/su, & why not go back to Genera. we woul I he hoppy A wesh w/ SU hutchy shyport < rachiel areh this. If in realy the do that, we consident directly. whenlern so welling accupt minde perposation or pressure their lients, the h Time then this is print a debating ytim We hoppy to jo t bit abpends ender what militions. & are go w/a farture, are can't been mg & or inscheats prog - fine in conldn't deliver rc for rabial MA any will be my posted & we yourla that all will human that only me have chimical, Ese can get ithm instructs prop. 02 hold Surger distructional w/perhese, me world lace mazime persons from 5 E new & Jap to couse in as/ something A annil commine pobr embargo This is stratgirally what 20 at easine Touth c per insult is whither me can get more step hope Genera & me cauld mem in Simm t Golm an cauld unly swore things down. But I dringtic it writ DECLASSIFIED LO. 12956, SEC. 3.5 NBC MEMO, 11/24/98, STATE DEPT. GUIDELINES stateler cw 3/11/04 BY NARA. DATE 5/13/04 FORD LIBRANT persit that nmw and signise settlements to he mored. 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