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1552974
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March 4, 1975 - Ford, Kissinger
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1552974
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document
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March 4, 1975 - Ford, Kissinger
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collections
Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
subjects
Cambodia
Israel
Saudi Arabia
Syria
Thailand
Iran
Middle East conflicts
Petroleum
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1552974
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4
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1975-03-04
month
3
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1975
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day
4
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1975-03-04
month
3
year
1975
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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
DECLASSIFIED
SECRET/NODIS/XGDS
E.O. 12958 Sec. 3.6
MR 01-125 St. in 2/12/02
MEMORANDUM OF CONVERSATION
dal NARA, Date 3/11/02
PARTICIPANTS:
President Ford
Dr. Henry A. Kissinger, Secretary of State
and Assistant to the President for
National Security Affairs
Wells Stabler, Ambassador to Spain (briefly)
Lt. General Brent Scowcroft, Deputy Assistant
to the President for National Security Affairs
DATE AND TIME:
Tuesday, March 4, 1975
9:55 - 10:33 a. m.
PLACE:
The Oval Office
[Ambassador Stabler came in briefly. The President spoke of the
importance of Spain. Stabler left at 10:00 a. m. The conversation
continued on other subjects.
Kissinger: The Iranian stuff is going very well. We have agreed on a
$12. 5 billion program over five years -- this is non-military. There
will be military purchases as well. Six billion for nuclear development,
five billion for port facilities, 2.5 billion for agriculture. In addition,
they will sell 500, 000-750, 000 barrels per day below OPEC price and
tied to military purchases. The other program we can announce in
principle, to be signed while the Shah is here. The oil deal will bring
pressure on the price structure, because the purchasers will have to
find where else to make a cut of that size. In view of what the French
did on the invitation, it would be crazy for us not to go forward on things
like this.
The President: When can we announce this?
FORD
Kissinger: We can't. Th ey first want to sell a certain amount of oil
A
GERALD
LIBRARY
to us. We can then cut wherever we want and they can raise production.
CLASSIFIED BY Henry A. Kissinger
SEGRET/NODIS/XGDS
EXEMPT FROM GENERAL DECLASSIFICATION
SCHEDULE OF EXECUTIVE ORDER 11652
EXEMPTION CATEGORY 5(b)(3)
AUTOMATICALLY DECLASSIFIED ON Imp. to Det.
SEGREF/NODIS/XGDS
2
It must either produce price cuts or further cutbacks. But the $12. 5
billion can be announced today. What they want is to announce the oil
deal and further purchases together. I don't think they realize what
they are doing. Algeria has already cut production by two million
barrels. They can't cut further. Our joint commissions are pushing
the producers into big development programs, for which they will need
the additional oil production.
You should tell Ansary
We shouldn't haggle over the price
so long as it is below the OPEC price. The key thing is that the production
is coming out of someone else's hide. We may have broken OPEC, or
will have if we can make one more deal like this. Maybe it's too fast,
because we need to get our system in place first.
They will buy other things with the $1. 5-to-2 billion in receipts
for the oil deal. The money will never leave the United States.
The President: Congratulations. I think that is great.
Kissinger: If we can get the same with the Saudis, it will be great.
The President: The announcement today will have a good impact on
Congress.
Kissinger: The Saudis have reacted strongly to what they think is an
anti-Saudi campaign in the American press. Could we draft a letter
to Faisal to reassure him?
The President: Sure.
Kissinger: It is unconscionable what the pressure groups in this country
are doing.
I talked to Kennedy. I told him they are creating a disaster in
foreign policy. He doesn't think we have the votes on Turkish aid in the
Senate. We should check with Mansfield before we commit to vote.
[The President reads about our negotiating efforts in Cambodia
in 1973.]
The President: How much has been released?
FORD
a
GERALD
SECRET/NODIS/XGDS
SEGRET/NODIS/XGDS
3
Kissinger: None of the 1973 stuff. But we can give it to some of the
key Congressmen. Some of my people are opposed to putting it out --
it will embarrass some of the governments.
The President: I think we have to get the record out.
Speaking of Thailand, what is the significance of their withdrawal
announcement?
Kissinger: DOD is playing games. It is inevitable that once they saw
us pulling out they would want to get ahead of us. Also, they have
decided we have had it in Southeast Asia.
The President: I thought he was pro-American.
Kissinger: He may just be saying this, but the trend is inevitable. There
is too much tendency in the government to pay off Congress for short-
term gains at the expense of our long-term goals. But with Cambodia
falling, the Thais would be a shaky country in any case. As foreign
governments look at us and our decline in our world position, the process
will be accelerated. The Nutter article was good. It is a moral and
political disaster. We are talking only money - - people are urging a
disaster. What the Syrians have done is line up the Palestinians saying
now if Egypt moves alone, the Palestinians will attack Sadat. A letter
from you is essential, but if it surfaces, it will make a stink with the
Jews.
The President: How specific can we be? Does that contradict our
promise not to force them off the Golan?
Kissinger: No. Just promise a major effort. The promise is important -
but Nixon did promise the '67 borders to the Syrians. If Israel was smart,
they would talk with the Syrians, move it to Geneva and let it get screwed
up.
The President: I told Dinitz they shouldn't negotiate in public.
Kissinger: The Israelis are irresponsible. Anti-Semitism is bubbling.
The press campaign against the Saudis is disastrous.
The President: What about Church and Pearson?
FORD
SECRET/NODIS/XGDS
GERALD
SECRET/NODIS/XGDS
4
Kissinger: We have to tell them it has to be sufficient, that we shouldn't
discriminate against them for economic aid, and that they would have to
be eligible for FMS. Church will never agree.
The President: He is worried about wiretaps when we are piling up
information about where the oil companies are investing. He is signing
authorizations but I am worried about Church.
SECRET/NODIS/XGDS
GERACO ? LIBRARY FORD
P/K 4 mar 75
w/wells stable [DIablee left at 10:00 AM]
Stabler in P talks of importance of Spain
States out.
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DECLASSIFIED
GERALD
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