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Japan - State Department Telegrams: From SECSTATE - NODIS (1)

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The original documents are located in Box 8, folder "Japan - State Department Telegrams: From SECSTATE - NODIS (1)" of the National Security Adviser Files: Presidential Country Files for East Asia and the Pacific at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 8 of the National Security Adviser Files: Presidential Country Files for East Asia and the Pacific at the Gerald R. Ford Presidential Library COP 15 OF 15 COPIES DEPARTMENT of STATE Department of State CHITED STATES OF AMERICA TELEGRAM GEODET CLUIMI 0 1100152 AUG 74 ZFF4 FM SECSTATE WASHDC TO AMEMBASSY TOXYO IMMEDIATE 5979 CONTROL: 2886Q BT 6 E e R E T STATE 175376 RECD: 10 AUGUST 74 - 9 26 PM NODIS E.O. 11652: GDS TAGS: PFOR, JA SUBJECT: YASUKAWA MEETING WITH PRESIDENT FORD AND SECRETARY 1. SECRETARY MET WITH AMB. YASUKAWA AT WHITE HOUSE FOR APPROXIMATELY 30 MINUTES AT 2:45 P.M. AUG. 9. DURING THAT TIME, SECRETARY ESCORTED YASUKAWA TO OVAL OFFICE FOR TEN- MINUTE PRIVATE MEETING WITH THE PRESIDENT. 2. SECRETARY BEGAN BY EXPRESSING APPRECIATION FOR "WARM WORDS" CONTAINED IN AUG. 9 STATEMENT BY CHIEF CADINET SECRETARY NIKAIDO. SECRETARY SAID THAT MAIN PURPOSE OF THIS MEETING WAS TO EMPHASIZE THAT FOREIGN POLICY OF PRE- VIOUS ADMINISTRATION WILL CONTINUE AND THAT FRIENDSHIP WITH JAPAN IS ONE OF ESSENTIAL ELEMENTS OF THAT POLICY. HE NOTED THAT MEETING WITH YASUKAWA WOULD BE FIRST MEETING OF NEW PRESIDENT WITH AN INDIVIDUAL FOREIGN AMBASSADOR-- PRESIDENT HAD MET SHORTLY BEFORE WITH NATO AMBASSADORS AS A GROUP--AND EMPHASIZED THAT THIS WAS INTENDED TO SYMBOLIZE IMPORTANCE THE ADMINISTRATION ATTACHES TO RELATIONS WITH OUR ALLIES, INCLUDING JAPAN. IN RESPONSE, YASUKAWA STATED THAT HIS GOVERNMENT APPRECIATES--AND FULLY RECIPROCATES-- OUR CONTINUED EMPHASIS ON IMPORTANCE OF US-JAPAN RELATIONS. 3. SECRETARY SAID THAT PRESIDENT HAD TOLD HIM IN DIS- CUSSIONS DURING THE LAST DAY AND A HALF THAT HE WOULD BE WILLING TO VISIT JAPAN IN LATE NOVEMBER OR EARLY DECEMBER IF THE GOJ WERE PREPARED TO RECEIVE HIM AT THAT TIME. HE SAID THAT THIS WOULD BE AMONG THE PRESIDENT'S FIRST VISITS ABROAD AND THAT IT WOULD SYMBOLIZE THE PRESIDENT'S INTENTION TO FURTHER STRENGTHEN US-JAPAN RELATIONSHIP. s POLIBRARY YASUKAWA SAID HE WAS CERTAIN THAT GOJ WOULD WELCOME IBRARY PRESIDENTIAL VISIT, PROVIDED APPROPRIATE TIMING COULD BE GERALD WORKED OUT. SECRETARY SAID PRESIDENT COULD PROBABLY VISIT JAPAN NEXT SPRING IF GOJ SO PREFERRED. THEY AGREED REPORT NOT TO BE REPRODUCED WIT HE AUTHORIZATION OF THE EXECUTIVE SECRETAR GG 8/30/01 DEPARTMENT OF STATE Department of State CAITED STATES OF AMERICA TELEGRAM PEODET -2- - STATE 175376 NOT TO INFORM PRESS OF POSSIBLE PRESIDENTIAL VISIT UNTIL YASUKAWA REPORTED TO AND RECEIVED GUIDANCE FROM TOKYO. 4. ON OTHER VISITS, SECRETARY SAID HE LOOKED FORWARD TO EXTENSIVE MEETING WITH FONMIN KIMURA WHEN ME ATTENDS UNGA IN SEPTEMBER. IN RESPONSE TO YASUKAWA'S STATEMENT THAT KIMURA WOULD LIKE TO PAY COURTESY CALL ON PRESIDENT, SECRETARY STATED THAT HE WOULD "DO UTMOST" TO ARRANGE A MEETING BUT NOTED THAT OUR PAST PRACTICE HAS BEEN FOR PRESIDENT NOT TO RECEIVE FOREIGN MINISTERS DURING UNGA, SINCE HE WOULD BE UNDER PRESSURE TO SEE A NUMBER OF FOREIGN MINISTERS IF HE AGREED TO SEE ONE. S. YASUKAWA NOTED THAT AMBASSADOR HODGSON HAD INFORMED PRIME MINISTER TANAXA THAT SECRETARY WOULD LIKE TO VISIT JAPAN IN CONJUNCTION WITH HIS CHINA VISIT. HE STATED THAT WE WOULD HAVE TO CONSULT CLOSELY ON TIMING, NOTING THAT GOJ WILL BE OCCUPIED WITH MINISTERIAL CONSULTATIONS $ WITH GERMANS OCT 8-9. SECRETARY INDICATED THAT PLANNING FOR CHINA VISIT IS NOT YET COMPLETED BUT THAT HE WOULD & FORD PROBABLY GO TO CHINA EITHER BETWEEN SEPTEMBER 3-15 OR OCTOBER 20-NOVEMBER 5. GERALD LIBRANY S. YASUKAWA STATED THAT FINMIN OHIRA WOULD VISIT WASHINGTON AROUND SEPTEMBER 30 FOR IMF/IBRD MEETING. N SECRETARY SAID HE WOULD WISH TO MEET WITH AND HOST LUNCH FOR OHIRA, STATING THAT HE FEELS GREAT AFFECTION FOR OHIRA. 7. ONLY OTHER SUBSTANTIVE ISSUES DISCUSSED WERE TRADE BILL AND ECG ACTIVITIES. YASUKAWA REITERATED GOJ'S STRONG HOPE FOR EARLY PASSAGE OF TRADE BILL. SECRETARY SAID THAT WE WILL CONTINUE OUR EFFORTS WITH CONGRESS TO MOVE THE TRADE BILL AND THAT HE WAS HOPEFUL WE WOULD BE SUCCESSFUL. 8. SECRETARY SAID THAT HE WAS PLEASED THAT GOOD PROGRESS HAD BEEN MADE AT LAST E OG MEETING IN BRUSSELS. YASUKAWA AGREED, STATING THAT HIS GOVERNMENT WAS PREPARED TO GO ALONG WITH IEP PROPOSAL. SECRETARY SAID HE WAS CONSIDER- ING POSSIBILITY OF INFORMAL TALKS ON ENERGY AMONG SMALLER GROUP OF COUNTRIES. HE NOTED THAT A NUMBER OF COUNTRIES, SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR DEPARTMENT OF STATE Department of State 0 UNITED OFFICE STATES OF AMERICA TELEGRAM SEGRET -3 - STATE 175376 SR INCLUDING JAPAN, WOULD BE UNABLE TO BEAR BALANCE OF TRADE DEFICITS ARISING FROM OIL PRICES. HE SAID HE WOULD CONSULT WITH GOJ AS HIS THINKING BECAME FIRMER. KISSINGER EA/J: THUBBARD/SE 08/09/74 X23152 S/S - WHLUERS EA - MR. HUMMEL Is - MR. EAGLEBURGER S- S N S : 0 GERALD FORD LIBRARY & SECRET DEVIDED NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETA COPY OF 15 COPIES OF STATE Department of State UNITED STATES OF TELEGRAM SECRET Provided 0 110016Z AUC 74 ZFF4 FM SECSTATE WASHOC TO AMEMBASSY TOKYO IMMEDIATE 5980 BT CONTROL: 2887Q SE CRET STATE 175377 RECD: 10 AUGUST 74 - NODIS 9 28 PM E.O. 11652: GOS TAGS: APOR, JA SUBJECT: GOJ RESPONSE TO SUGGESTED PRESIDENTIAL VISIT 1. AMBASSADOR YASUKAWA CALLED ON ACTING ASSISTANT SECRETARY HUMMEL DURING MORNING OF AUGUST 10 UNDER INSYRUC- TIONS TO RESPOND URGENTLY TO SECRETARY'S SUGGESTION, MADE PREVIOUS DAY TO YASUKAWA, THAT PRESIDENT WOULD LIKE TO VISIT JAPAN IN LATE NOVEMBER OR EARLY DECEMBER (SEPTEL). YASUKAWA SAID HIS GOVERNMENT VERY MUCH APPRECIATED THE PRESIDENT'S OFFER AND HOPED THAT PRESIDENT, PERHAPS ACCOMPANIED BY MRS. FORD, WOULD VISIT JAPAN AT EARLIEST POSSIBLE DATE, IF POSSIBLE BY END OF THE YEAR. HE SUGGESTED THAT AGREEMENT OF BOTH GOVERNMENTS TO SUCH A VISIT SHOULD BE ANNOUNCED AS SOON AS POSSIBLE, LEAVING TIMING FOR LATER DISCUSSION THROUGH DIPLOMATIC CHANNELS. HE SAID GOJ HOPEO THAT ANNOUNCEMENT COULD BE AGREED UPON FOR JOINT RELEASE ON WEDNESDAY, AUGUST 14, OR EARLIER. 2. YASUKAWA ALSO SAID THAT PM TANAKA WOULD LIKE TO VISIT WASHINGTON FOR BRIEF WORKING MEETING WITH PRESIDENT DURING HIS SEPTEMBER VISIT TO LATIN AMERICA AND CANADA. HE SAID THAT AFTERNOON OF SEPT 21 WOULD BE MOST CONVENIENT TIME FOR TANAKA, WHO WOULD BE ENROUTE BETWEEN A VISIT TO BRAZIL AND A REST STOP IN BERMUDA. HE COULD ARRIVE IN WASHINGTON IN TIME FOR MORNING M-ETING WITH PRESIDENT IF THAT WERE MORE CONVENIENT. HE EMPHASIZED THAT TANAKA WOULD EXPECT NO CEREMONIAL OR SOCIAL EVENTS, THAT HE WOULD BE IN WASHINGTON ONLY A FEW HOURS, AND THAT HE WOULD NOT PLAN TO SPEND A NIGHT IN WASHINGTON. S 3. HUMMEL AGREED TO CONVEY BOTH OF THESE SUGGESTIONS TO SECRETARY AS QUICKLY AS POSSIBLE. KISSINGER FORD & EA/J:THUBBARD:CB 8/10/74 EXT: 23152 GERALD LIBRARY EA - MR. HUMMEL S/S - MR. LUERS NOT TO BE REPRODUCED DECORT AUTHORIZATION OF THE EXECUTIVE SECRETAI 44 8/30/01 3 COPY 8 OF 15 800,722 N OF STATE Dt 0 Department of State D UNITED STATES OF AMERICA TELEGRAM SEGRET CONTROL: 7285Q $ RECD: 27 AUG '74 5:11P 02, 20922 AUG 74 ZFF4 FM SECSTATE WASHDC TO AMEMBASSY TOKVO HEACT IMMEDIATE 6247 DT $ E G R E 1 STATE 100049 N NODIS - E.O. 11652: GDS TAGS: OVIP JA SUBJECT: VISIT OF PRIME MINISTER TANAKA EYES ONLY FOR AMBASSADOR 1. PRESIDENT FORD HAS AGREED RECEIVE PRIME MINISTER TANAXA SEPTEMBER 21. JAPANESE EMBASSY HAS BEEN INFORMED HERE. S 2. WE PLAN ISSUE AT 5000 Pollo FOLLOWING PRESS ANNOUNCE- MENT, EMBARGOED FOR JOINT RELEASE IN TOKYO AND WASHINGTON AT 10:00 P.M. P. AUGUST 27 UACHINGTON TIME: "PRIME MINISTER TANAKA OF JAPAN, AFTER HIS OFFICIAL VISITS TO MEXICO AND BRAZIL, WILL STOP OVER IN WASHINGTON, D.C. ON SEPTEMBER 21 TO MEET WITH PRESIDENT FORD." 11 A 3. WE PLAN ISSUE TRAVEL ORDERS AUTHORIZING YOUR RETURN TO PARTICIPATE IN MEETING. KISSINGER CD BT 03049 DRAFTED BY: EA/J: WCSHERMAN APPROVED BY: EA: MR. HUMMEL CLEARANCES: EA/P: MR. ROSEN WH: MR. SMYSER (PHONE) S: MR. BREMER S/S: JEMOFFAT S FORD LIBRARY s GG 8/30/01 NOT TO BE REPRODUCED WITHOHL THE AUTHORIZATION OF THE EXECUTIVE SECRETA N SECORT COPY 15 OF LDX 15 COE DEPARTMENT OF STATE SECRET DDo Department of State 03-22-2017 UNITED AMERICA TELEGRA D STATES OF P 102142Z OCT 74 ZFF6 FM SECSTATE WASHDC CONTROL: 3 0 9 3Q S TO RUEHKO/AMEMBASSY TOKYO PRIORITY 7026 RUEHDT/USMISSION USUN NEW YORK 9376 INFO RUMJSL/AMEMBASSY SEOUL PRIORITY 4860 RUESNG/USLO PEKING 3786 BT SECRET STATE 223926 A / NODIS 8 E.O. 11652:XGDS-1 TAGS: PFOR, MARR, KS, KN, us, CH SUBJECT: PRC VIEWS ON UN COMMAND I FOR AMBASSADOR REF: STATE 220134 S us 1. EMBASSY TOKYO SHOULD NOT TAKE ACTION AS INSTRUCTED PARA 4 REFTEL. DISCUSSIONS ON THIS MATTER WITH JAPANESE HAVE TAXEN PLACE HERETOFORE AT USUN AND WE WILL CONTINUE TO FOLLOW UP THERE. 2. FOR USUN: YOU ARE AUTHORIZED TO INFORM JAPANESE OF SUBSTANCE REFIEL, AND SEEK THEIR CONTINUED COOPERATION AS 14 y INDICATED PARA 4 REFTEL. INGERSOLL EA/J/WCSHERMAN/EA/K:DLRANARD:LM 0 10/10/74 EXT 23152 EA:AWHUMMEL I Io: WBUFFUM S/S:JPMOFFAT DECLASSIFIED S E.O. 12958, SEC. 3.5 FORD STATE DEPT, GUIDELINES BY Hn 9 NARA, DATE 1/27/03 State Review TD 9/23/02 NOT TO BE REPRODUCED WITHOUT THAUTHORIZATION OF THE EXECUTIVE SEC PY OF I5 COPIES Corrected copy: Para 3 line 3&4. line added. 200-0 OF STATE * Department of State 11/4/74 UNITED AMERICA SEORET TELEGRAM STATES OF SEONE! CONTROL: 0680Q RECD: 2 NOV 74 P 0300297 NOV 74 ZFF4 6:40PM FM SECSTATE WASHDC TO RUEHKO/AMEMBASSY TOKYO PRIORITY 0000 RUFHOL/AMEMBASSY BONN PRIORITY 0000 BT SECRET STATE 241954 NODIS ZOPIU E.O. 11652: XGDS 3 TAGS: ENRG SUBJECT: CAMP DAVID FOLLOWUP 1. FOLLOWING IS TEXT OF AN INFORMAL PAPER FOR ENDERS AND COOPER DISCUSSIONS NEXT WEEK. REQUEST THAT TOKYO PASS TO MIYAZAKI AND YOSHIDA AND BONN TO POEHL AND HERMES. PLEASE STRESS TO RECIPIENTS THAT THIS PAPER IS OF THE HIGHEST SENSITIVITY AND IS FOR THEIR EYES ONLY. REQUEST THAT NO DISTRIBUTION BE MADE IN EMBASSY. 2. BEGIN TEXT. A PROPOSAL FOR MORE COMPREHENSIVE COLLABORATION AMONG THE INDUSTRIALIZED COUNTRIES. 3. IN LIGHT OF THE DANGEROUS SITUATION FACING THEM, PARTICULARLY AS A RESULT OF THE OIL PRICE INCREASES, THE INDUSTRIALIZED COUNTRIES SHOULD UNDERTAKE A MORE COMPRE- HENSIVE COLLABORATION WITH THE OBJECTIVESOF: BRINGING ABOUT LOWER COSTS FOR THEIR OIL SUPPLIES: REDUCING THE ZODIU DAMAGE TO THEIR ECONOMIES CAUSED BY THE HIGHER COSTS OF THEIR IMPORTS: PREVENTING DISRUPTION OF THE BASIC COHESION OF THE COUNTRIES OF THE FREE WORLD: AND CREATING PRO- CEDURES TO IMPROVE THEIR CAPACITY TO RESPOND TO UNFORE - SEEN FUTURE EVENTS. A. IN UNDERTAKING THIS MORE COMPREHENSIVE COLLABORATION, THE INDUSTRIALIZED COUNTRIES MUST BUILD UPON WHAT HAS ALREADY BEEN ACCOMPLISHED AND IS ALREADY BEING UNDERTAKEN IN VARIOUS EXISTING INTERNATIONAL BODIES, INCLUDING THE FORD IMF. THE OECD, AND THE IEA. DECLASSIFIED E.O. 12956, SEC. 3.5 GERALD ? LIBRARY STATE DEPT, GUIDELINES SECRET BY 66 NARA, DATE 8/30/01 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY ZODIU OF STATE Department of State UNITED STATES OF AMERICA SECRET TELEGRAM SEORET PAGE -2- STATE 241954, NOV3 5. AS THE NEXT STEP TOWARD THIS DESIRED COLLABORATION, FURTHER DISCUSSIONS SHOULD BE HELD AMONG THE FOREIGN AND FINANCE MINISTERS OF THE FIVE MAJOR NATIONS IN AN EFFORT TO REDUCE DIFFERENCES IN THEIR PERCEPTIONS OF PROBLEMS AND OPPORTUNITIES BEFORE FORMAL DISCUSSIONS OF CLOSER COOPERATION ARE UNDERTAKEN WITH A WIDER GROUP OF INDUS- TRIALIZED COUNTRIES. N 6. A PROGRAM OF ADDITIONAL COOPERATION IS DESIRABLE! ONE IN WHICH THE DIFFERENT PARTS REINFORCE ONE ANOTHER BOTH POLITICALLY AND ECONOMICALLY. 7. INCLUDED IN THE PROGRAM SHOULD BE: (A) AN INTER- NATIONALLY AGREED SET OF ADDITIONAL MEASURES INTENDED TO REDUCE RELIANCE BY THE INDUSTRIAL COUNTRIES ON IMPORTS OF OIL FROM OUTSIDE THE GROUP, TO BE REFERRED TO BELOW AS "CONSERVATION MEASURES": (B) A NEW SET OF COMMITMENTS AND PROCEDURES BY WHICH THE GROUP COULD PROVIDE ECONOMIC SUPPORT, AS NEEDED, IN THE FORM OF LOANS TO THOSE MEMBERS S OF THE GROUP WHICH WOULD OTHERWISE SUFFER ACUTE ECONOMIC DAMAGE AS A RESULT OF INTERNATIONAL ECONOMIC DEVELOP- MENTS, TO BE REFERRED TO BELOW AS "FINANCIAL SOLIDARITY MEASURES": AND (C) AN UNDERTAKING TO ATTEMPT TO DEVELOP VARIOUS OTHER FORMS OF COLLABORATION ON MEASURES SUPPORTIVE OF THE ACTIVITIES INCLUDED IN A AND B, REFERRED TO BELOW AS "OTHER SUPPORTIVE MEASURES". 8. CONSERVATION MEASURES. ADDITIONAL MEASURES BY THE MAJOR INDUSTRIALIZED COUNTRIES TO REDUCE THEIR RELIANCE ZODIU ON HIGH COST OIL IMPORTS ARE DESIRABLE: TO REDUCE VULNERABILITY TO FUTURE INTERRUPTIONS IN SUPPLY: TO LIMIT THE REAL BURDEN BEING PLACED ON THEIR ECONOMIES BY THE NECESSITY OF PAYING EITHER CURRENTLY FOR THE COSTLY IMPORTS OR ULTIMATELY FOR AMORTIZATION OF DEBT BEING UNDERTAKEN TO FINANCE THE CURRENT CONSUMPTION OF ENERGY: TO REDUCE THE DANGER OF POTENTIAL DISRUPTION TO THE WORLD'S FINANCING SYSTEM AS A RESULT OF CONCENTRATION OF LARGE HOLDINGS OF FINANCING ASSETS IN THE HANDS OF A SMALL NUMBER OF PRODUCING COUNTRY GOVERNMENTS: AND TO DEMON- STRATE TO THE PRODUCERS MORE PROMPTLY THE DAMAGE WHICH FORD WILL BE DONE TO THEIR ECONOMIC WELFARE, AS WELL AS THAT & OF THE CONSUMING NATIONS, BY ATTEMPTS TO PROLONG CURRENT HIGH OIL PRICES. GERALD LIBRARY PEODET OLOIILI NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY 200-0 OF STATE Department of State UNITED AMERICA SECRET TELEGRAM STATES OF BEONET PAGE -3- STATE 241954, NOV 3 9. THE MOST APPROPRIATE MIX OF ADDITIONAL CONSERVATION MEASURES WILL VARY FROM COUNTRY TO COUNTRY. AMONG THE IMPORTANT TYPES OF MEASURES ARE LIKELY TO BE REMOVAL OF OFFICIAL RESTRAINTS ON THE COST OF ENERGY TO CONSUMERS, IMPOSITION OF ADDITIONAL TAXATION ON CONSUMPTION OF IMPORTED ENERGY, AND INDUCEMENTS TO SWITCH FROM OIL TO OTHER SOURCES OF ENERGY. 10. THE HIGHER PRICES WHICH HAVE BEEN ALLOWED TO TAKE N EFFECT IN THE MARKET PLACE HAVE ALREADY REDUCED OIL CONSUMPTION. NOT ONLY HAVE THE 5# TO 10# INCREASES FORE- CAST EARLIER FOR CONSUMPTION GROWTH IN 1974 NOT TAKEN PLACE, BUT RECENT CONSUMPTION LEVELS IN THE MAJOR INDUS- TRIAL COUNTRIES HAVE BEEN RUNNING 5# TO 10# BELOW THE LEVELS BEFORE THE OUTBREAK OF THE MID-EAST WAR IN OCTOBER D 1973. SOME OF THE REDUCTIONS IN CONSUMPTION ARE ATTRI- BUTABLE, HOWEVER, TO THE SLOWER OVERALL RATES OF ECONOMIC GROWTH BEING EXPERIENCED IN THE INDUSTRIALIZED COUNTRIES, AND THERE IS NO ASSURANCE THAT IN THE ABSENCE OF NEW GOVERNMENT MEASURES THERE WILL BE NO RESURGENCE OF DEMAND S IN 1975 WHEN HIGHER RATES OF ECONOMIC GROWTH RESUME AND WHEN THE SHOCK OF THE SUDDEN MOVE TO HIGHER PRICES IS FURTHER IN THE PAST. UNDER THE CIRCUMSTANCES, ADDITIONAL CONSERVATION AND PRODUCTION-ENCOURAGING MEASURES ARE DESIRABLE IN ALL COUNTRIES, AND PROBABLY IN EVERY COUNTRY IT WILL BE EASIER TO GAIN LEGISLATIVE AND POPULAR ACCEPT- ANCE OF ADDITIONAL MEASURES IF THEY ARE TAKEN IN THE N CONTEXT OF AN EQUITABLY SHARED COMPREHENSIVE PROGRAM OF INTERNATIONAL COOPERATION. (#READ AS PERCENT) 11. IT IS PROBABLY NEITHER PRACTICAL NOR DESIRABLE TO EXPECT GOVERNMENTS TO COMMIT THEIR COUNTRIES TO SPECIFIC MAXIMUM AMOUNTS OF OIL IMPORTS IN 1975 OR TO ADOPT D IDENTICAL PROGRAMS OR STANDARDS OF CONSERVATION MEASURES. BUT INDIVIDUAL COUNTRY PROGRAMS FOR 1975 SHOULD BE COL- LATED INTO A TOTAL INTERNATIONAL PROGRAM, WHICH WOULD THEN BE REVIEWED FOR THE ADEQUACY OF ITS TOTAL IMPACT AND FOR THE EQUITY OF DISTRIBUTION OF NATIONAL CONTRIBUTIONS, AND ADJUSTED AS NECESSARY. IT SHOULD BE USEFUL TO ESTAB- S LISH AN AGREED TIMETABLE FOR THE DEVELOPMENT OF NATIONAL PROGRAMS AND THEIR INTERNATIONAL REVIEW AND ADJUSTMENT. R. FORD BASED ON EXPERIENCE, IN THE COURSE OF 1975 ADDITIONAL MEASURES COULD BE CONSIDERED, IF NECESSARY, FOR IMPLEMEN- TATION LATER IN 1975 OR IN 1976. GERALD LIBRARY SECRET SEORLI NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY ZOPIU OF STATE Department SECRET of State UNITED STATES OF AMERICA SECRET TELEGRAM PAGE -4- STATE 241954, NOV 3 12. AS A FIRST APPROXIMATION, IT IS SUGGESTED THAT MEASURES BE SOUGHT WHICH WOULD RESULT IN TOTAL MEMBER OUN- TRY IMPORTS IN THE THIRD QUARTER OF 1975 OF AT LEAST 20 ,CT, - ABOUT 5 1/2 MILLION BARRELS A DAY, BELOW THEIR IMPORTS OF ABOUT 27 1/2 MILLION BARRELS A DAY IN THE THIRD QUAR- N TER OF 1973. ALREADY, BY THE THIRD QUARTER OF 1974, THEIR IMPORTS HAD BEEN REDUCED TO ALMOST HALF THE AMOUNT PROPOSED FOR THE THIRD QUARTER OF 1975. THE CUTBACK IN CONSUMPTION COULD ALTERNATIVELY BE EXPRESSED IN TERMS IN REDUCTION IN CONSUMPTION BELOW LEVELS WHICH WOULD HAVE PREVAILED IN THE ABSENCE OF NEW CONSERVATION D MEASURES. 13. FINANCIAL SOLIDARITY. DESPITE THE REDUCTION IN OIL IMPORT COSTS WHICH CAN BE ACHIEVED BY ADDITIONAL CONSERVATION MEASURES, AND DESPITE THE DESIRABLE IMPACT WHICH SUCH CONSERVATION MAY HAVE IN PREVENTING FURTHER S INCREASES IN OIL PRICES AND POSSIBLY IN BRINGING ABOUT SOME PRICE REDUCTIONS, THE INDUSTRIALIZED COUNTRIES ARE LIKELY TO BE FACED, IN 1975 AND LATER YEARS, WITH ENORMOUS OIL IMPORT BILLS. VAST CHANGES IN THE PATTERN OF INTERNATIONAL TRADE AND INVESTMENT FLOWS WILL RESULT. ADJUSTMENT OF THESE FLOWS IS LIKELY TO TAKE PLACE IN MANY DIFFERENT WAYS, BOTH THROUGH THE MANY EXISTING N CHANNELS OF CONTACT BETWEEN THE OIL-PRODUCING COUNTRIES AND THE INDUSTRIALIZED COUNTRIES AND THROUGH VARIOUS NEW CHANNELS. 14. IN THIS PROCESS, HOWEVER, THERE IS THE DANGER THAT - IN THE ABSENCE OF NEW MEASURES OF INTERNATIONAL COOPERA- D TION on PARTICULAR INDUSTRIALIZED COUNTRIES MIGHT BE FACED WITH ACUTE ECONOMIC HARDSHIP OR WITH THE NECESSITY TO RELY ON FINANCIAL HELP FROM PRODUCING COUNTRIES ON TERMS WHICH SHOULD BE CONSIDERED POLITICALLY OR ECON- OMICALLY UNACCEPTABLE TO THE COMMUNITY OF INDUSTRIALIZED NATIONS. TO COUNTER THIS DANGER, IT WOULD SEEM HIGHLY S DESIRABLE THAT THE INDUSTRIALIZED COUNTRIES DEVELOP AMONG THEMSELVES A NEW SET OF COMMITMENTS AND PROCEDURES BY A. FORD WHICH THE GROUP COULD PROVIDE ECONOMIC SUPPORT IN THE FORM OF LOANS, WHEN APPROPRIATE, TO INDIVIDUAL MEMBER COUNTRIES OF THE GROUP. WHAT IS NEEDED IS MORE LIKELY GERALD LIBRARY TO PROVE A SAFETY NET THAN AN ARTIFICIAL LIMB, BUT THE SECRET JLUIILI NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY ZOPIU OF STATE UNITED STATES OF Departmentof State TELEGRAM PAGE -5- STATE 241954, NOV 3 SAFETY NET WOULD NEED TO BE DESIGNED FOR USE IN ANY EMERGENCY WHICH MIGHT ARISE IN ORDER TO PROVIDE COUNTRIES IN ADVANCE WITH A CONFIDENCE WHICH WOULD ALLOW THEM TO AVOID INTERNATIONALLY DISRUPTIVE ECONOMIC POLICIES WHICH MIGHT OTHERWISE BE UNDERTAKEN OUT OF EXTREME FEAR OF THE FUTURE. 15. TO BE EFFECTIVE IN COMBATTING FEAR, THE POTENTIALLY AVAILABLE LOANS WOULD HAVE TO BE VERY LARGE. ON THE N OTHER HAND, SUCH LOANS COULD NOT BE PROMISED TO ANY MEMBER OF THE GROUP AUTOMATICALLY. THE AVAILABILITY OF O THE LOANS WOULD HAVE TO BE CONDITIONED UPON JUDGMENT ON BEHALF OF THE GROUP THAT A PROSPECTIVE BORROWING NATION WAS FOLLOWING REASONABLE POLICIES OF SELF-HELP. 16. AS A PRELIMINARY PROPOSAL TO MEET THE NEED FOR A SAFETY NET, IT IS SUGGESTED THAT CONSIDERATION BE GIVEN TO AN ACREEMENT AMONG INDUSTRIALIZED COUNTRIES THAT THEY WOULD - IN THE CONTEXT OF A LARGER PROGRAM OF COLLABORA- S TION ON CONSERVATION AND OTHER ENERGY MATTERS - AGREE TO UNDERTAKE LOAN COMMITMENTS CALLABLE ON DEMAND BY A COMMON- FUND WHEN LOAN ASSISTANCE WAS NEEDED AND APPROVED FOR A PARTICULAR MEMBER COUNTRY. 17. THE PRINCIPLES ON WHICH THE FUND WOULD BE BASED COULD BE AS FOLLOWS: (A) THE TOTAL SIZE OF THE FUND WOULD BE RELATED TO THE ESTIMATED ANNUAL COMBINED DEFICIT ON CURRENT ACCOUNT OF PARTICIPATING COUNTRIES VIS-A-VIS OUTSIDE OIL SUPPLIERS CAN APPROPRIATE NUMBER FOR THE ZOPIN FIRST YEAR MIGHT BE ONE HALF, WHICH WOULD PROVIDE A FUND ON THE ORDER OF $20 OR $25 BILLION). (B) EACH COUNTRY'S MAXIMUM LENDING OBLIGATION AND MAXIMUM BORROW- ING LIMIT WOULD BE IDENTICAL. (C) THESE LIMITS WOULD BE DETERMINED BASICALLY BY REFERENCE TO AN APPROPRIATE FORMULA INCORPORATING RELEVANT CONSIDERATIONS: AN APPROPRIATE FORMULA MIGHT BE BASED ON OIL IMPORTS FROM OUTSIDE THE GROUP, PARTICIPATION IN FOREIGN TRADE, AND GNP. (D) PARTICIPANTS WOULD SHARE IN FINANCING LOANS FORD ON THE BASIS OF THEIR SHARES IN THE FUND. & GERALD LIBRARY croner NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY ZODIU OF STATE Department of State UNITED STATES OF AMERICA TELEGRAM SEGRET PAGE -6- STATE 241954, NOV 3 18. ADDITIONAL COMMITMENTS WOULD BE ANTICIPATED FOR 1976. EACH LOAN FROM THE COMMON FUND WOULD BE APPROVED BY A BOARD OF TRUSTEES ACTING ON A QUALIFIED WEIGHTED VOTING BASIS ON BEHALF OF THE MEMBER NATIONS IN THE GROUP. THE DISCRETION OF THE BOARD SHOULD PROBABLY BE LIMITED BY AGREED GUIDELINES. THE BOARD MIGHT WELL BE ASSOCIATED WITH THE OECD. PRESUMABLY, THE LOANS TO N AND FROM THE COMMON FUND WOULD BE ON COMMERCIAL TERMS. LOAN ASSISTANCE FROM THE COMMON FUND SHOULD PROBABLY BE MADE CONDITIONAL ON THE BORROWER MAKING APPROPRIATE USE OF OTHER ASSETS AVAILABLE TOIT AND MAKING EFFORTS TO OBTAIN CAPITAL FROM OTHER SOURCES ON REASONABLE TERMS. BORROWERS WOULD ALSO BE EXPECTED NOT TO TAKE D TRADE OR OTHER RESTRICTIVE MEASURES INCONSISTENT WITH THEIR GATT, IMF, AND OECD OBLIGATIONS. 19. AN IMPORTANT FEATURE OF THE FINANCIAL SAFETY NET, AS DESCRIBED ABOVE, WOULD BE THAT THE ASSISTANCE TO ANY S PARTICULAR NATION WOULD NEITHER BE, NOR APPEAR TO BE, DEPENDENT ON THE APPROVAL OF ONE OR MORE OF THE OIL- PRODUCING COUNTRIES. THE ASSISTANCE WOULD BE ON A MUTUAL SELF-HELP BASIS AMONG THE INDUSTRIALIZED COUNTRIES. EACH OF THOSE COUNTRIES COULD RAISE THE FUNDS FOR ITS CON- TRIBUTION AS IT SAW FIT: FROM CASH ON HAND, FROM TAXATION, N OR FROM NEW BORROWING. SUCH NEW BORROWING COULD, IN EFFECT, BE FROM AN OIL-PRODUCING GOVERNMENT IF AN OIL PRODUCER HAPPENED TO PURCHASE THE DEBT OBLIGATIONS SOLD BY THE BORROWING GOVERNMENT ON THE MARKET, OR IF A LOAN WERE ARRANGED DIRECTLY BY THE BORROWING COUNTRY GOVERN- MENT FROM AN OIL PRODUCERS. BUT, IN THE USUAL - AND D PREFERABLE - CASE, LENDING TO THE COMMON FUND WOULD BE BUT ONE OF THE MANY WAYS IN WHICH AN INDUSTRIALIZED COUNTRY GOVERNMENT WERE DISBURSING FUNDS, AND IT WOULD NOT BE POSSIBLE TO MAKE AN UNAMBIGUOUS CONNECTION BETWEEN ONE SOURCE OF FUNDS FOR THE GOVERNMENT AND ONE USE OF FUNDS BY THAT GOVERNMENT. S 20. IT WOULD ALSO BE POSSIBLE TO PROVIDE THAT THE TRUSTEES FORD OF THE COMMON FUND WOULD BE EMPOWERED TO MAKE INVESTMENTS & IN PROMISING INTERNATIONALLY SIGNIFICANT RESEARCH AND DEVELOPMENT PROJECTS WHEN APPROPRIATE. GERALD LIBRARY CEODET 040161 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY ZOPIU OF STATE Department of State UNITED STATES OF MEMBER TELEGRAM SECRET PAGE -7- STATE 241954, NOV 3 21. AS AN ALTERNATIVE TO LOANS TO THE COMMON FUND, CON- SIDERATION COULD BE GIVEN TO BORROWING BY THE FUND ON THE STRENGTH OF GUARANTIES PROVIDED BY THE COOPERATING GOVERNMENTS, PRESUMABLY IN ABOUT THE SAME PROPORTIONS AS LOANS MIGHT BE MADE TO THE COMMON FUND. IN SOME COUNTRIES, IT MIGHT BE THAT SUCH GUARANTIES WOULD APPEAR LESS ONEROUS TO LEGISLATURES THAN DIRECT LOANS TO A COMMON FUND, EVEN THOUGH THE RISK EXPOSURE TO THE N GOVERNMENTS WOULD BE THE SAME BY EITHER METHOD. ON THE OTHER HAND, THE GUARANTY METHOD WOULD HAVE A SIGNIFICANT POLITICAL DISADVANTAGE IN THAT THE POLITICAL CREDIT FOR THE ASSISTANCE MIGHT TEND TO ACCRUE IN LARGE MEASURE, TO THE PROVIDER OF THE LOAN FUNDS, QUITE POSSIBLY AN OIL PRODUCER, RATHER THAN TO THE PROVIDERS OF THE GUARANTIES D WHO WOULD BE THE REAL BEARERS OF THE RISK. THE GUARANTY ROUTE WOULD ALSO HAVE THE DISADVANTAGE THAT THE RATE OF INTEREST PAID ON THE GUARANTEED BORROWINGS WOULD PROBABLY BE HIGHER THAN THAT PAID ON AVERAGE BY GOVERN- MENTS BORROWING THEIR SEPARATE SHARES OF THE NEEDED FUNDS DIRECTLY ON THEIR OWN SEPARATE FULL LEGAL OBLIGATIONS. S IN VIEW OF FREQUENT PUBLIC FAILURE TO UNDERSTAND THE NATURE OF GUARANTIES, THERE WOULD ALSO BE SOME DANGER THAT THE GUARANTY ROUTE WOULD BE TREATED AS A "SOMETHING FOR NOTHING" METHOD AND WOULD THUS LEAD TO LESS CAREFUL MONITORING OF THE ASSISTANCE INVOLVED. N 22. IT WOULD ALSO BE POSSIBLE, AS AN ALTERNATIVE TO THE COMMON FUND OUTLINED ABOVE, TO CONSIDER ATTEMPTING TO USE THE INTERNATIONAL MONETARY FUND AS THE PROVIDER OF THE DESIRED SAFETY NET FOR THE INDUSTRIALIZED COUNTRIES. THAT ALTERNATIVE WOULD HAVE THE ADVANTAGE OF MAKING USE D OF AN EXISTING INSTITUTION WITHOUT REQUIRING ESTABLISH- MENT OF A NEW COMMON FUND. ON THE OTHER HAND, THERE WOULD BE A NUMBER OF DISADVANTAGES OF ATTEMPTING TO USE THE IMF. ESTABLISHMENT WITHIN THE IMF OF A SAFETY NET OF THE LARGE SIZE NECESSARY TO ACCOMPLISH THE DESIRED OB- S JECTIVE FOR THE MAJOR INDUSTRIALIZED COUNTRIES WOULD LEAD FORD TO BXTREME PRESSURES WITHIN THE IMF FOR LARGE, COMPARABLE & FACILITIES FOR THE LESS-DEVELOPED COUNTRIES, EVEN THOUGH SUCH FACILITIES WOULD NOT BE APPROPRIATE TO THE NEEDS OF GERALD LIBRARY RECRET SEURES, NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY N OF STATE O Department of State UNITED STATES OF AMERICA TELEGRAM D SECRET PAGE -8- STATE 241954, NOV 3 MOST SUCH COUNTRIES. FOR MANY OF THEM, CONCESSIONAL LENDING IN SMALLER AMOUNTS WOULD BE APPROPRIATE. IT WOULD S ALSO BE MORE DIFFICULT TO DEVELOP IN AN INTEGRATED PRO- GRAM OF CONSERVATION, FINANCIAL SOLIDARITY, AND OTHER SUPPORTIVE MEASURES, IF THE SAFETY NET WERE ATTEMPTED IN THE IMF, WHICH INCLUDES IN ITS MEMBERSHIP BOTH THE OIL- PRODUCING COUNTRIES AND MANY OTHER COUNTRIES WHICH WOULD NOT BE LIKELY PARTICIPANTS IN THE PROPOSED INTEGRATED PROGRAM. N 23. IN ANY EVENT, WHATEVER METHOD OF FINANCIAL SUPPORT IS CHOSEN FOR INDUSTRIAL COUNTRIES, THE NEED TO PROVIDE O ADDITIONAL CONCESSIONAL ASSISTANCE TO DEVELOPING COUNTRIES WILL NEED TO BE CONSIDERED. TO THE EXTENT THAT FINANCIAL SOLIDARITY LEADS TO IMPROVED ECONOMIC D PERFORMANCE IN INDUSTRIAL COUNTRIES, LESSER AMOUNTS OF DIRECT FINANCIAL ASSISTANCE TO DEVELOPING NATIONS WILL BE REQUIRED HOWEVER. 24. OTHER SUPPORTIVE MEASURES. ALTHOUGH CONSERVATION EFFORTS AND FINANCIAL SOLIDARITY WOULD BE THE TWO MOST S IMPORTANT INDIVIDUAL COMPONENTS OF A COMPREHENSIVE PROGRAM OF COOPERATION, THERE ARE LIKELY TO BE MANY OTHER INDIVIDUAL FORMS OF COOPERATION WHICH, IN COMBINA- TION, COULD BE SIGNIFICANTLY SUPPORTIVE OF THE TWO MAIN MEASURES. A COMPREHENSIVE PROGRAM SHOULD, THEREFORE, INCLUDE AN UNDERTAKING BY THE GOVERNMENTS INVOLVED TO N ATTEMPT COOPERATION IN OTHER WAYS CONTRIBUTING TO THE SAME OBJECTIVES. O 25. FOR THIS PURPOSE ECONOMIC RELATIONS WITH PRODUCERS WOULD BE REVIEWED IN AN EFFORT TO IDENTIFY WAYS AND MEANS IN WHICH OIL COMPANY POLICIES ON PRICING AND THE DIS- D TRIBUTION OF LIFTINGS, CONSUMING COUNTRY IMPORT AND EXPORT POLICIES, EXPORT CREDITS, AND LOANS AND POLICIES OF INTERNATIONAL FINANCIAL INSTITUTIONS COULD BE MANAGED TO YIELD A BETTER BALANCE OF BARGAINING POWER WITH THE PRODUCERS. TIMING AND CONTEXT OF BILATERAL AND EVENTUAL S MULTILATERAL PRODUCER/CONSUMER CONTACTS SHOULD ALSO BE STUDIED. INGERSOLL FORD & EB:TOENDERS 11/2/74 X20396 GERALD LIBRARY ASSISTANT SECRETARY ENDERS SECRET S/S-0:RELTZ NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY COPY is OF 15 COPIES. 6 DEPARTMENT OF STATE Department of State UNITED STATES OF 2 COME CONTROL: 1077Q RECD : NOV 4, 1974 0 0503412 NOV 74 ZFF4 10:41 P.M. FM SECSTATE WASHDC TO AMEMBASSY TOKYO IMMEDIATE 7522 BI C 0 N F I D E N T I A L STATE 243162 NODIS E.O. 11652: GDS TAGS: ENRG, EFIN SUBJECT: G-5 FINANCE DEPUTY'S LUNCHEON FOR ENDERS AND COOPER FROM BENNETT POEHL CALLED TODAY TO REPORT THAT DE LAROSIERE WOULD NOT AGREE TO HOST G-5 FINANCE DEPUTY'S LUNCHEON ON NOVEMBER 19 OR 26. IT WAS NOT CLEAR WHETHER FRENCH WOULD ATTEND MEETING HOSTED BY ANOTHER. I INFORMED POEHL I WOULD COME BACK WITH ADVICE NEXT WEEK. INGERSOLL X CO TREASURY: BENNETT 11/4/74 EB: JLKATZ S/S-0: GWETWOHIE Un FORD CONFIDENTIAL LIBRARY & OERALD GG 8/30/01 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET CDX 7 COPY OF 15 COPIES DEPARTMENT OF STATE . Department of State UNITED STATES of TELEGRAN SECRET 0 1020327 NOV 74 ZFF4 CONTROL: 2836Q S FM SECSTATE WASHOC TO AMEMBASSY TOKYO NIACT IMMEDIATE 7677 BT $ E ORE T STATE 247821 NODIS N E.O. 11652: GDS TAGS: OVIP CKISSINGER, HENRY) SUBJECT: VISIT OF SECRETARY KISSINGER TO PRC FOR AMBASSADOR HODGSON FROM THE SECRETARY 1. AT 12 NOON, NOVEMBER 11 (1:00 A.M. TUESDAY, PEKING TIME) THE FOLLOWING ANNOUNCEMENT WILL BE ISSUED JOINTLY IN WASHINGTON AND PEKING: BEGIN TEXT IT HAS BEEN AGREED UPON THROUGH CONSULTATIONS THAT THE UNITED STATES S SECRETARY OF STATE AND ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS, DR. HENRY A. KISSINGER, WILL VISIT THE PEOPLE'S REPUBLIC OF CHINA FROM NOVEMBER 25 TO NOVEMBER 29, 1974. END TEXT 2. YOU ARE INSTRUCTED TO INFORM PM TANAXA AT 2:00 P.M. TOKYO TIME NOVEMBER 11 OF THIS ANNOUNCEMENT, TELL HIM N WE WANTED JAPAN TO BE INFORMED IN ADVANCE, AND ASK THAT STRICTEST SECRECY BE MAINTAINED UNTIL ANNOUNCEMENT IS MADE PUBLIC. YOU SHOULD ALSO EMPHASIZE TO HOST GOVERNMENT THAT "THIS VISIT IS IN ACCORDANCE WITH THE SHANGHAI COMMUNIQUE WHICH CALLED FOR PERIODIC HIGH LEVEL CONTACTS BETWEEN THE TWO GOVERNMENTS. " B 3. WHEN YOU DELIVER ABOVE MESSAGE, YOU SHOULD ALSO REQUEST GOJ AGREEMENT TO PERMIT ME AND MY, PARTY TO OVERNIGHT IN JAPAN NOVEMBER 24, EN ROUTE FROM VLADIVOSTOK TO PEKING. KISSIN S EA:JJHELBLE/SB FORD 11/06/74 X22146 R EA - MR. HABIB S - MR. EAGLEBURGER S/S - 0: GTWOHIE GERALD Creamy 46 8/30/01- NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET. NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 013781 REASON FOR WITHDRAWAL .... National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME SECSTATE WASHDC RECEIVER'S NAME AMEMBASSY TOKYO TITLE GOJ Views Re Nuclear Controversy CREATION DATE 11/11/1974 VOLUME 2 pages COLLECTION/SERIES/FOLDER ID 032400276 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 8 FOLDER TITLE Japan - State Department Telegrams: From SECSTATE - NODIS (1) DATE WITHDRAWN 09/05/2001 WITHDRAWING ARCHIVIST GG EXEMPTED 8/13/07 2/8/11 6/30/2015 9 SECRET Ldr -WH DEPARTMENT 23. OF STATE # Department of State UNITED STATES OF AMERICA TELEGRAM CONTROL: 32080 S 0 1213522 NOV 74 ZFF4 RECD: 12 NOV'74, 904A FM SECSTATE WASHDC TO AMEMBASSY TOKYO IMMEDIATE 7724 BT & E CRET STATE 248883 NOOIS E.O. 11652: GOS TAGS: PFOR, JA SUBJECT:TANAKA GOVERNMENT CRISIS 1. DURING CONVERSATION WITH HABIS REPORTED SEPTEL, YASUKAWA DISCUSSED CRISIS OF TANAKA CABINET AND SAID HIS RECENT CONTACTS IN JAPAN WITH KIMURA, OHIRA, SHIINA AND OTHERS HAD LED HIM TO CONCLUDE THAT, TANAKA WOULD RESIGN FOLLOWING PRESIDENT FORD'S VISIT. HE SAID SUCCESSOR GOVERNMENT WOULD BE FORMED BY LDP UNDER LEADERSHIP OF SHITNA, FUKUDA OR OHIRA. 2. YASUKAWA EMPHASIZED THAT VISIT SHOULD PROCEED AS SCHEDULED AND WOULD NOT BE SIGNIFICANTLY AFFECTED BY TANAKA'S POLITICAL DIFFICULTIES. vl. KISSINGER BT #8883 EA/J:UCSHERMAN:RD 11/11/74 EXT 23152 EA - MR. GLEYSTEEN S/S - MR. NOFFAT FORD & GERALD LIBRARY SECRET GG 8/30/01 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR' NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 013782 REASON FOR WITHDRAWAL .... National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME SECSTATE WASHDC RECEIVER'S NAME AMEMBASSY TOKYO TITLE GOJ Views Re Nuclear Controversy CREATION DATE 11/13/1974 VOLUME 1 page COLLECTION/SERIES/FOLDER ID 032400276 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 8 FOLDER TITLE Japan - State Department Telegrams: From SECSTATE - NODIS (1) DATE WITHDRAWN 09/05/2001 WITHDRAWING ARCHIVIST GG REDACTED 8/13/07 2/8/11 WT 10 COPY 9 OF 15 COPIES ZOPIN OF STATE Department of State UNITED STATES OF AMERICA TELEGRAM 0 1322297 NOV 74 ZFF4 FM SECSTATE WASHDC T.O AMEMBASSY TOKYO IMMEDIATE 7760 CONTROL: 3758Q BT T ORSECRET STATE 250522 NODIS CAP STADIS E.O. 11652: XGDS TAGS: PFOR, MARR, JA NODIU SUBJECT: GOJ VIEWS RE NUCLEAR CONTROVERSY 1. YASUKAWA CALLED ON HABIB EVENING NOV 12 TO DISCUSS NUCLEAR QUESTION PRIOR TO HIS RETURN TO JAPAN TO WELCOME PRESIDENT FORD. ACCORDING YASUKAWA, BOTH TANAKA AND OHIRA REMAIN CONVINCED THAT RESOLUTE ACTION TO RESOLVE ISSUE AND TAKE PUBLIC POSITION IS NECESSARY. HOWEVER, FONMIN KIMURA MAY BE WAVERING. YASUKAWA SAID HE WOULD TAKE NEW READING ON HIS RETURN TO JAPAN AND WOULD RELAY ANY NEW IMPRESSIONS TO DEPT THROUGH AMB HODGSON. NONE OF HIS STAFF AT JAPANESE EMBASSY HERE IS AWARE OF DETAILS HE HAS BEEN DISCUSSING AND HE THEREFORE DOES NOT RPT NOT WISH USE FONOFF CHANNELS FOR COMMUNICATION. KISSINGER THEREY GERALD RORD EA/J WCSHERMAN:RD 200-0 11/13/74 EXT 23152 EA - - MR. HABIB S/S - MR. MOFFAT I EA - MR. GLEYSTEEN DECLASSIFIED w/ portions exampted E.O. 12958 (no amendati) SEC 3.3 MR# 10-094,1619 state dept etr 2/8/11 By dal NARA, Date 6/3/11 TOP SECRET FAB SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY N COPY /'-OF 15 COPIES 141 OF STATE Department of State UNITED TELEGRAM STATES OF PEODET SEGALI S CONTROL: 3832Q 0 1405542 NOV 74 ZFF4 FM SECSTATE WASHOC RECD : NOV 15, 1974 TO RUEHKO/ AMEMBASSY TOKYO NIACT IMMEDIATE 0000 1:03 A.M. RUDTC/ AMEMBASSY LONDON NIACT IMVEDIATE 0000 RUFNPS/ AMEMBASSY PARIS NIACT IMMEDIATE 0000 N BT SECRET STATE 250994 NODIS E.O. 11652: XGDS TAGS: PFOR, ENRG SUBJECT: LETTER FROM SECRETARY TO FOREIGN MINISTER 1. PLEASE DELIVER THE FOLLOWING LETTER TO THE FOREIGN MINISTER NOT BEFORE 5:00 PM LOCAL TIME THURSDAY, NOVEMBER S 14 IN EUROPE, AND AS- EARLY AS POSSIBLE DURING THE BUSINESS DAY IN JAPAN, FRIDAY, NOVEMBER 15. THE SECRETARY'S SPEECH REFERRED TO IN THIS LETTER WILL BE DELIVERED THURSDAY, NOVEMBER 14 IN CHICAGO AT 9:25 PM LOCAL TIME. YOU SHOULD ASK THAT THE SECRETARY'S LETTER BE HELD IN STRICTEST CONFIDENCE UNTIL HE DELIVERS THE SPEECH. N 2. DEAR MR. MINISTER: THE EFFECTS OF THE ENERGY CRISIS HAVE NOW BECOME MANIFEST -- IN MORE RAPID INFLATION, ARRESTED GROWTH, INCREASING STRAINS ON THE INTERNATIONAL FINANCIAL SYSTEM AND NARROWING OPPORTUNITIES FOR GOVERN- MENTS TO CONTROL THEIR COUNTRIES' 0 7 N POLITICAL AND ECONOMIC DESTINY. THIS RELENTLESS COURSE OF EVENTS LENDS TD State Dept 9/23/02 Review NEW URGENCY TO OUR JOINT EFFORTS TO DESIGN AND CARRY OUT AN EFFECTIVE STRATEGY TO OVERCOME THE PROBLEMS EMANATING FROM THE ENERGY CRISIS. 3. THE USG RELIEVES THAT THE CONCLUSION IS INESCAPABLE THAT COOPERATION AMONG THE MAJOR OIL CONSUMING AREAS OF S EUROPE, NORTH AMERICA AND JAPAN IS THE FUNDAMENTAL PRE- DECLASSIFIED E.O. 12958, SEC. 3.5 STATE DEPT, GUIDELINES HR, NARA, DATE 1/27/03 REQUISITE FOR AN EFFECTIVE PROGRAM OF ACTION. THE CRISIS ITSELF DEFIES NATIONAL SOLUTIONS. BUT YORKING TOCETHER WE UO HAVE OPTIONS WHICH WE 00 NOT HAVE SEPARATELY. THEREAS NO COUNTRY ALONE, EXCEPT POSSIBLY THE UNITED FORD is GENALD LIBRARY BY. SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY OP a. STATE Department of State UNITED THESHAN STATES of PEODET SEORE! -2- STATE 250994 S STATES, CAN PROTECT ITSELF IN A SELECTIVE EMBARGO, TOGETHER WE CAN DO SO. 4. WE NOW NEED TO MOVE FURTHER IN THE COOPERATIVE ENDEAVORS BEGUN THIS YEAR AT THE WASHINGTON ENERGY CON- FERENCE AND CARRIED FORWARD IN SUBSEQUENT DELIBERATIONS. OUR WORK HAS NOW PROGRESSED TO THE STAGE WHERE WE N SHOULD ADVANCE SOME OF THE PROPOSALS WE HAVE BEEN COM- SIDERING AMONG THE FIVE TO THE BROADER GROUP OF COUNTRIES THAT WILL NEED TO ACT ON THEM. AS A PART OF THIS PROCESS, I INTEND TO PRESENT SOME U.S. PROPOSALS IN A SPEECH ON THE EVENING OF NOVEMBER 14 IN CHICAGO. I WANT TO SHARE WITH YOU SOME OF THE REASONING BEHIND THESE PROPOSALS, AS WELL AS THE NATURE OF THE PROPOSALS THEMSELVES, ALTHOUGH OUR GENERAL THOUGHTS ARE ALREADY FAMILIAR TO YOU. 5. ON THE IMPORTANT QUESTION OF OIL PRICE, THE PRODUCERS HAVE "ADE IT CLEAR THAT POLITICAL PERSUASION OP NEGOTIA- TION IS NOT NOW GOING TO RESULT IN ANY NOTABLE PRICE S DECREASE. THE ALTERNATIVE LEFT US is, THEREFORE. THE DIFFICULT BUT WORKABLE ONE OF ACTION ON THE CONSUMER SIDE (1) TO CREATE THE OBJECTIVE CONDITIONS FOR A N EVENTUAL PRICE REDUCTION, AND (2) TO PROTECT THE VITALITY OF OUR ECONOMIES IN THE INTERIM PERIOD OF HIGH OIL PRICES. TO ACHIEVE THE FIRST OBJECTIVE CONSUMING COUNTRIES NEED MAJOR NEW EFFORTS BOTH TO REDUCE DEMAND FOR OIL THROUGH N CONSERVATION AND TO DEVELOP NEW SOURCES OF ENERGY SUPPLY. IN THE PERIOD UNTIL THESE ACTIONS REACH FULL EFFECTIVENESS CONSUMING COUNTRIES, AS WE HAVE RECOGNIZED, NEED TO COMPLETE TWO SAFETY NETS, ONE TO DEAL WITH ANY NEW OIL SUPPLY EMERGENCY AND THE OTHER TO DEAL WITH ANY POTENTIAL INABILITY OF THE FINANCIAL SYSTEM TO RECYCLE THE HUGE FLO# OF OIL FUNDS. 6. ENERGY CONSERVATION OFFERS US THE MOST IMMEDIATE PROSPECT OF RELIEF FROM HIGH OIL PRICES. FOR POLITICAL AS WELL AS ECONOMIC REASONS EFFECTIVE CONSERVATION MUST S BE A COLLECTIVE EFFORT. AT A MINIMUM WE SHOULD COL- LATE OUR INDIVIDUAL COUNTRY PROGRAMS FOR 1975 TO MAKE SURE THAT ,VF ART DOING ENOUGH. THE U.S. "ILL PROPOSE THAT THE INDUSTRIALIZED COUNTRIES SET THE GOAL OF REDUCING : FORD THEIR CONSUMPTION FROM WHAT IT OTHER#ISE WOULD HAVE BEEN BY THREE MILLION BARRELS PER DAY (150 MILLION TONS AT GERALD Crease NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR N OF STATE Department of State UNITED OFFICE STATES OF TELEGRAM SEDDET -3- STATE 250994 AN ANNUAL RATE) BY THE END OF 1975. THE UNITED STATES HAS ALREADY ANNOUNCED A PROGRAM TO REDUCE OUR CONSUMP- S TION OF IMPORTED OIL BY ONE MILLION BARRELS PER DAY IN 1975. IN THE CONTEXT OF A COMMON GOAL OF CONSUMING COUNTRIES, THE UNITED STATES IS PREPARED TO ACHIEVE FURTHER SAVINGS. 7. IN DEALING WITH RECYCLING OF OIL FUNDS, WE NEED TO N CONSIDER THREE BASIC OBJECTIVES: TO PROTECT THE INTEGRITY OF OUR FINANCIAL INSTITUTIONS, TO ENSURE THAT NO NATION FEELS FORCED TO PURSUE DISRUPTIVE POLICIES FOR LACK OF ADEQUATE FINANCE AND TO MAKE SURE NO CONSUM- ING COUNTRY IS COMPELLED TO ACCEPT FINANCING ON INTOLER- ABLE POLITICAL AND ECONOMIC TERMS. THE TASK FOR GOVERNMENTS IS TO PROVIDE A BACK-UP, INTERGOVERNMENTAL FACILITY THAT CAN AUGMENT PRIVATE RECYCLING PHENEVER NECESSARY. SUCH A SAFETY NET WOULD HELP ASSURE THE STABILITY OF THE ENTIRE SYSTEM AND THE CREDITWORTHINESS OF PARLICIPATING GOVERNMENTS. S 8. WITH THESE CONSIDERATIONS IN MIND THE UNITED STATES IS PROPOSING THAT THE INDUSTRIALIZED COUNTRIES CREATE A COMMON LOAN AND GUARANTY FACILITY TO PROVIDE A MEANS FOR RECYCLING UP TO DOLS 25 BILLION IN 1975. GOVERNMENTS WOULD INDIVIDUALLY CHOOSE HOW TO MEET THEIR COMMITMENTS TO SUCH A FACILITY, BUT PRESUMABLY MOST WOULD CHOOSE TO N 00 SO BY BORROWING. CALLS ON GOVERNMENTS' COMMITMENTS TO PROVIDE FUNDS TO THE FACILITY WOULD BE MADE IN CONNECTION WITH SPECIFIC DECISIONS OF PARTICIPATING GOVERNMENTS ON SUPPORT TO COUNTRIES IN NEED OF FINANCING, AFTER FULL RESORT TO PRIVATE OPPORTUNITIES AND REASONABLE SELF-HELP MEASURES. 9. WE ARE ALREADY CONSIDERING NE" WAYS OF ASSISTING DEVELOPING COUNTRIES IN THEIR ACUTE FINANCIAL PROBLEMS. WE NEED TO CONSIDER NEW POSSIBILITIES OF PROVIDING HIGHLY CONCESSIONAL FINANCING TO THE DEVELOPING COUNTRIES MOST SERIOUSLY HURT BY THE CURRENT CRISIS. IN PARTICULAR, S SPECIAL FINANCING OF THE IMF NEEDS TO BE PROVIDED ON TERMS MORE SUITABLE TO THESE COUNTRIES' NEEDS. = FORD 10. AS YOU KNOW. THE US HAS ALWAYS BEEN IN FAVOR OF s CONSTRUCTIVE DIALOGUE WITH 21L PRODUCING COUNTRIES. GERALD OTHER NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY DEPARTMENT OF STATE Department of State GRING TELESHAN STATES OF SECRET -4- STATE 250994 CONSUMER COUNTRY COOPERATION IS NOT ANTAGONISTIC TO $ CONSUMER-PRODUCER COOPERATION, BUT AN ESSENTIAL PREPAR- ATION FOR THIS BROADER DIALOGUE. 11. THE USG HOPES THAT CONSUMING COUNTRIES CAN MOVE PROMPTLY TO BROADEN OUR COOPERATIVE EFFORT. THE NEW INTERNATIONAL ENERGY AGENCY is BES1 PLACED TO DEVELOP A PROCRAM OF ACTION ON CONSERVATION, NF # SUPPLIES AND N PREPARATION OF CONSUMER POSITIONS FOR THE EVENTUAL CONSUMER-PRODUCER DIALOGUE. NE SUGGEST THAT THE GROUP OF 10 FINANCE MINISTERS DEVELOP A PROPOSAL FOR FINANCIAL COOPERATION LOOKING TO ENACTMENT WITHIN THE OECD FRAME- WORK. 12. THE ISSUES AND TASKS BEFORE US COMPRISE A PROGRAM OF CONSIDERABLE MAGNITUDE, REQUIRING DIFFICULT POLITICAL DECISIONS. BUT JUST AS THE TURADIL OF THE IMMEDIATE POST- AR PERIOD BECAME A MOMENT OF GREAT CREATION 15: S INTERNATIONAL COOPERATION, SO CAN THE ENERGY CRISIS OF TODAY BE ONE LEADING TO HISTORIC ACHIEVEMENT THROUGH COOPERATION. THE ECONOMIC FACTS OF TODAY ARE STARK, AS THEY WERE IN 1947-1948. THE STRUCTURE EMERGING FROM THAT CHALLENGE HAS SECURED OUR DEMOCRATIC INSTITUTIONS, ECONOMIC PROGRESS AND SECURITY FOR A GENERATION. THESE ACHIEVEMENTS ARE NOW THREATENED. BUT SITH THE SAME POLITICAL VISION, COURAGE, AND ABOVE ALL, COOPERATION THAT SUSTAINED US IN THE EARLIER YEARS, WE CAN MEET THE NEW ENERGY CHALLENGE. 13. I LOOK FORWARD TO WORKING WITH YOU ON THESE TASKS IN THE PERIOD IMMEDIATELY AHEAD, AND HOPE THAT WE CAN an COUNT ON YOUR SUPPORT AND THAT OF YOUR GOVERNMENT FOR THE PROPOSALS WE HAVE MADE. SIGNED HENRY A. KISSINGER. 14. FOR PARIS: FINAL SENTENCE OF LETTER SHOULD FND WITH S "ORUS QUOTE IMMEDIATELY AHEAD UNQUOTE, ELIMINATING ALL THEREAFTER FROM QUOTE AND HOPE UNQUOTE THROUGH QUOTE "E HAVE MADE. UNQUOTE. KISSINGER EB/IFD:PHBVEKER:CU EUR: AHARTMAN GERALD FORD LIBRARY 11/13/74 EXT. 29496 EB:MR. ENDERS S: LSEAGLEDURGER EA:HABIB CEDRET S/S-O: RELT NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY CDX 12 11 Copy 15 copies & STATE DF Department of State UNITED STATES OF CEPORT SECTION TELEGRAM R 1506052 NOV 74 ZFF4 Control: 4235Q FM SECSTATE WASHDC Recd: Nov 15, 1974 TO AMEMBASSY TOKYO 7815 1:16 AM BY SECRETSTATE 252073 NODIS ZOP TAGS: ENRG E.O. 11652: XGOS FOR THE AMBASSADOR FROM ENDERS SUBJECT: CAMP DAVID FOLLOW-UP REF: TOKYO 14778 1. MANY THA" KS FOR YOUR REPORT ON JAPANESE MEDIA COVERAGE VISIT, OF MY VISIT AND FOR YOUR HELPFUL ROLE IN HANDLING THIS S 2. YOU WILL HAVE SEEN BY NOW FROM THE SECRETARY'S CHICAGO SPEECH THAT WE ARE PRESENTING THE ESSENCE OF OUR PROPOSALS TO A BROAD GROUP OF GOVERNMENTS AND TO THE PUBLIC. THIS COURSE SHOULD BOTH ADVANCE OUR ENERGY STRATEGY AND FACILITATE OUR TASK IN PROJECTING A COHERENT PUBLIC IMAGE OF WHAT WE ARE ABOUT. THANKS N FOR YOUR HELP IN A VERY DELICATE STAGE OF THESE INTERNATIONAL DISCUSSIONS. INGERSOLL EB/IFD: PHBOEKER 0 11/14/74 29496 EH:TOENDERS S/S-0: R. ELTZ S DECLASSIFIED E.O. 12956, SEC. 3.5 STATE DEPT, GUIDELINES FORD BY 66 , NARA, DATE 8/30/01 ? PEOPLE GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY 13 COPY 10 OF 10 COPIES 17 NOV. 742 2219 4850 11 DEPARTMENT OF STATE 707 - Department of State UNITED OF SECRET NOD028 TELEGRA STATES PAGE 01 STATE 253571 00 ORIGIN NODS-00 S INFO OCT-01 1001 R ORAFTED BY Pl JJSTSCO:WES APPROVED BY P.I J SISCO S/S-0: R. ELTZ 088589 N 0 1722062 NOV 74 ZFF0 FM SECSTATE WASHDC TO WHITE HOUSE IMMEDIATE INFO AMEMBASSY CAIRO IMMEDIATE USHISSION USUN NEW YORK IMMEDIATE AMEMBASSY TOKYO IMMEDIATE & C a the 7 STATE 253571 NODIS CHEROKEE, TOSEC 003, WHITE HOUSE PLS PASS TO SAM 27000 S E.O. 116521 GDS TAGS: DVIP, TKISSINGER, HENRY A.) SUBJECTICONVERSATION BETWEEN SISCO AND WALDHEIM N FOR RECRETARY FROM SISCO -- WHITE HOUSE PLS PASS MESSAGE TO SAM 27000 0 1. Y REACHED WALDHEIM THIS AFTERNOON TO CONVEY TO HIM ESSENCE OF PARAS TWO AND THREE OF CAIRO 9273, K $ 2. I TOLD WALDHEIM BOTH WE AND EGYPTIANS WERE WEIGHING IN WITH ASAD AND URGED A DIRECT MESSAGE FROM HIM. HE SAID HE SENT SUCH A MESSAGE TO ASAD LAST NIGHT MAKING ESSENTIALLY SAME, ARGUMENT SUGGESTED BY FAHMI. HE IS AWAITING A REPLY. S 3. AS TO HIS REPORT, HE NORMALLY PUTS ONE OUT ONE WEEK BEFORE THE SECURITY COUNCIL MEETING, MEETING NOT SCHEDULED FORD & SECRET GERALD LIBRARY GG 8/30/01 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECR OF STATE UNITED AMERICA Department of State SECRET TELEGRA STATES OF PAGE 02 STATE 253571 YET BUT WILL OBVIOUSLY BE HELD TOWARD END OF MONTH WHEN UNDOF MANDATE EXPIRES. I URGED, AND HE AGREED, THAT HE S WOULD HOLD UP ISSUANCE OF REPORT UNTIL VERY LATEST POSSIBLE TIME. IN SHORT IN HIS OWN WORDS RATHER THAN A WEEK BEFORE SECURITY COUNCIL MEETING, HE WILL HOLD "IT TO THE LAST MINUTE". 4. I DID NOT, HOWEVER, CONVINCE HIM. TO KEEP KHADDAM NON-RENEWAL REQUEST OUT OF THE SECRETARY GENERAL'S REPORT / IF WE GET TO THAT POINT. I NOTED HE WAS NOT UNDER ANY OBLIGATION TO INCLUDE SYRIAN POSITION, THAT HE SHOULD CONFINE HIS REPORT TO THE FACTS OF SITUATION, EXPLAINING WHAT UNDOF HAS DONE IN APPEALING TO PARTIES AND SECURITY COUNCIL THAT UNDOF BE CONTINUED. WALDHEIM MAINTAINED THAT KHADDAM HAD ASKED HIM TO REFLECT SYRIAN POSITION IN HIS REPORT, AND IF THEY HOLD TO, THIS POSITION, HE WILL HAVE TO INCLUDE IT IN RECORT. I ASKED HIM NOT TO MAKE ANY FINAL JUDGEMENT ON THIS. I ASKED WHETHER HE HAD SYRIAN POSITION IN WRITING. HE SAID ORALLY ONLY. THE REASON I ASKED IS THAT IF THE SYRIANS HOLD S TO THEIR POSITION WE CAN GO BACK TO WALDHEIM IN A FEW DAYS AND INSIST THAT HE INSIST WITH THE SYRIANS THAT LATTER PUT IT IN WRITING. 5. WE AGREED WE WOULD BE IN TOUCH ON THIS AGAIN EARLY IN THE week. 6. SECRETARY MAY WANT TO AUTHORIZE FILTS TO COMMUNICATE ESSENCE OF AROVE TO FAMHI. INGERSOLL S FORD SECRET & BERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRE 14 COPY 100F OF 10 COPIES DEPARTMENT OF STATE HGV 00405 708 Department of State UNITED STATES OF BECRET N00034 TELEGR PAGE 01 STATE 253577 00 ORIGIN NODS-00 S INFO OCT-01 /001 R DRAFTED BY PIARAPHEL APPROVED BY P:MR. SISCO S/S-O:PKJOHNSONIRAM 009262 X 0 1802032 NOV 74 ZFF4 FM SECSTATE WASHOC TO WHITE HOUSE IMMEDIATE 0 AMEMBASSY TOKYO IMMEDIATE IMMEDIATE S E e RE 7 STATE 253577 NODIS CHEROKEE, TOSEC 008 E.O. 11652: S TAGS:PFOR, UN. IS, OVIP CKISSINGER, HENRY An" SUBJECT:EXCHANGE OF LETTERS BETWEEN WALDHEIM AND RABIN WHITE HOUSE PASS SAM 27000 FOR THE SECRETARY FROM SISCO I. 1. THE TEXTS OF THE FOLLOWING LETTERS FROM SYG WALDHEIM TO PM RABIN ON NOVEMBER 16 AND THE RESPONSE FROM RABIN TO WALDHEIM ON NOVEMBER 17 WERE GIVEN ME BY MINISTER SHALEV WHO ASKED THAT THEY BE PASSED TO YOU. TEXTS FOLLOW: 2. FROM WALDHEIM TO RABIN: QUOTE DEAR PRIME MINISTER. I HAVE BEEN FOLLOWING WITH GROWING ANXIETY THE MOST RECENT DEVELOPMENTS IN THE MIDDLE EAST. I AM DEEPLY CONCERNED THAT THE PRESENT INCREASE IN TENSION MAY LEAD TO A BREAKDOWN OF THE CFASE FIRE WHICH I FIRMLY S BELIEVE NONE OF THE PARTIES DESIRE AND WHICH WILL CERTAINLY FORD & LIBRARY DÉCLASSIFIED GERALD SECRET E.O. 12956, SEC. 3.5 H STATE DEPT, GUIDELINES BY GG NARA, DATE 8/30/01 NOT TO BE REPRODUCED WITHOUT DEPARTMENT Op STATE UNITED Department of State SECRET TELEGR STATES of PAGE 02 STATE 253577 BE IN THE LONG TERM INTERESTS OF NO ONE. S SUCH A DEVELOPMENT WOULD REMOVE ANY IMMEDIATE POSSIBILITY OF MAKING REAL PROGRESS TOWARD A PEACEFUL AND JUST SETTLE- MENT IN THE MIDDLE EAST. Y FOR MY PART HAVE BEEN DDING AND WILL CONTINUE TO DO ALL THAT I CAN TO CONTRIBUTE TO A SOLUTION OF THIS CRUCIAL PROBLEM. AS AMBASSADOR TEKOAH WILL HAVE INFORMED YOU I HAVE BEEN AD- VISED BY THE FOREIGN MINISTER OF SYRIA OF THE INTENTION OF HIS GOVERNMENT NOT TO AGREE TO THE RENEWAL OF THE MANDATE OF UNDOF WHEN ITS CURRENT SIX-MONTH MANDATE EXPIRES. ALTHOUGH THIS IS A MATTER WHICH HAS TO 88 DECIDED BY THE SECURITY COUNCIL I AM NATURALLY DEEPLY CONCERNED AT THE POSSIBLE CONSEQUENCES OF SUCH A DEVELOPMENT. I SHOULD ADD THAT THE ADOVE-MENTIONED TALKS DEALT ONLY WITH THE QUESTION OF UNDOF'S RENEWAL AND DID NOT COVER THE DISENGAGEMENT AGREEMENT AS A WHOLE, S I WISH TO ASSURE YOU THAT WE ARE MAKING EVERY POSSIBLE EFFORT TO AVERT ANY DEVELOPMENT WHICH MIGHT LEAD TO A NEW OUTBREAK OF FIGHTING IN THE MIDDLE EAST. I AM SURE THAT WE CAN COUNT ON THE COOPERATION OF YOUR GOVERNMENT IN THIS EFFORT WHICH TS VITAL NOT ONLY TO THE COUNTRIES OF THE REGION BUT ALSO TO WORLD PEACE. I SHALL OF COURSE KEEP AMBA3SADOR TEKOAH FULLY INFORMED OF DEVELOPMENTS. PLEASE ACCEPT MR', PRIME MINISTER. THE, ASSURANCES OF MY HIGHEST CONSIDERATION. KURT WALDHEIM. UNQUOTE. 3. FROM RABIN TO WALDHEIM: QUOTE DEAR SECRETARY GENERAL. I AGREE WITH YOU THAT IT WOULD BE MOST REGRETTABLE TF THE S PRESENT TENSION CONTINUED ENDANGERING THE DISENGAGEMENT AGREEMENT AND THE CEASEFIRE. I CAN ASSURE YOU THAT ISRAEL BECRET GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET DEPARTMENT OF By state UNITED Department of State SECRET TELEGR STATES OF PAGE 03 STATE 253577 ATTACHES IMPORTANCE TO THE MAINTENANCE OF THE TERMS OF THE DISENGAGEMENT AGREEMENT AND THE CEASEFIRE AS A PREREQUISITE S FOR PROGRESS TOWARDS PEACE. I WOULD LIKE TO CLARIFY THAT ISRAEL HAS NOT BEEN THE INITIATOR OF THIS TENSION. ISRAEL WAS OBLIGED TO TAKE CERTAIN LIMITED PRECAUTIONARY STFPS ONLY AFTER IT BECAME CLEAR THAT SYRIAN ARMED FORCES HAD BEEN PUT IN A STATE OF ALERT, N YOUR MESSAGE REFERRED TO THE INTENTION OF THE SYRIAN GOVERNMENT NOT TO AGREE TO THE RENEWAL OF THE MANDATE OF UNDOF WHEN ITS CURRENT SIX MONTH MANDATE EXPIRES. THIS DEVELOPMENT IS CERTAINLY DAMAGING TO THE PROSPECTS OF PEACE. I MUST MAKE IT CLEAR THAT ISRAEL CONSIDERS THE UNDOF'S ROLE AN INTEGRAL PART OF THE DISENGAGEMENT AGREE- MENT. THE COMMITMENTS OF SYRIA AND ISRAEL, AS SET OUT IN THE AGREEMENT AND PROTOCOL, BOTH. CONSTITUTING ONE INDIVIS** IBLE WHOLE, ARE CLEAR AND SPECIFIC. S THE ESTABLISHMENT AND STATIONING OF UNDOF IN THE AREA DESIGNATED IN THE AGREEMENT IS ONE OF THE PRINCIPLES OF THE AGREEMENT. UNDOF'S ROLE IS, INTER ALIA, TO SUPERVISE THE AGREEMENT AND PROTOCOL WITH REGARD TO THE AREA. OF SEP- ARATION AND LIMITATION. PARAGRAPH E OF THE AGREEMENT SPECIFICALLY STATES THAT THE PROVISIONS CONCERNING THE CEASEFIRE, THE DISENGAGEMENT AND THE DEMILITARIZATION N WOULD BE INSPECTED BY UN PERSONNEL, WHO, UNDER THIS AGREE- MENT, WOULD COMPRISE THE UNDOF: THERE IS NO TIME LIMIT ON THE VALIDITY OF THE AGREEMENT AND THE FUNCTIONS OF THE UNDOF THEREUNDER. I WISH TO EMPHASIZE THE SERIOUSNESS WITH WHICH WE WOULD VIEW A BREACH OF AGREEMENT. I AM GLAD TO HAVE YOUR ASSUR- ANCE THAT YOU ARE MAKING EVERY EFFORT TO AVERT UNDESTRABLE developments. I CAN ASSURE you OF THE COOPERATION OF THE GOVERNMENT OF ISRAEL IN YOUR EFFORTS. UNQUOTE. INGERSOLL S SECRET FORD & GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRE

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    "ocrText": "The original documents are located in Box 8, folder \"Japan - State Department\nTelegrams: From SECSTATE - NODIS (1)\" of the National Security Adviser Files:\nPresidential Country Files for East Asia and the Pacific at the Gerald R. Ford\nPresidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 8 of the National Security Adviser Files: Presidential Country Files for East Asia and the Pacific at the Gerald R. Ford Presidential Library\nCOP 15 OF 15 COPIES\nDEPARTMENT of STATE\nDepartment of State\nCHITED STATES OF AMERICA\nTELEGRAM\nGEODET\nCLUIMI\n0 1100152 AUG 74 ZFF4\nFM SECSTATE WASHDC\nTO AMEMBASSY TOXYO IMMEDIATE 5979\nCONTROL: 2886Q\nBT\n6 E e R E T STATE 175376\nRECD: 10 AUGUST 74 -\n9 26 PM\nNODIS\nE.O. 11652: GDS\nTAGS: PFOR, JA\nSUBJECT: YASUKAWA MEETING WITH PRESIDENT FORD AND\nSECRETARY\n1. SECRETARY MET WITH AMB. YASUKAWA AT WHITE HOUSE FOR\nAPPROXIMATELY 30 MINUTES AT 2:45 P.M. AUG. 9. DURING THAT\nTIME, SECRETARY ESCORTED YASUKAWA TO OVAL OFFICE FOR TEN-\nMINUTE PRIVATE MEETING WITH THE PRESIDENT.\n2. SECRETARY BEGAN BY EXPRESSING APPRECIATION FOR \"WARM\nWORDS\" CONTAINED IN AUG. 9 STATEMENT BY CHIEF CADINET\nSECRETARY NIKAIDO. SECRETARY SAID THAT MAIN PURPOSE OF\nTHIS MEETING WAS TO EMPHASIZE THAT FOREIGN POLICY OF PRE-\nVIOUS ADMINISTRATION WILL CONTINUE AND THAT FRIENDSHIP WITH\nJAPAN IS ONE OF ESSENTIAL ELEMENTS OF THAT POLICY. HE\nNOTED THAT MEETING WITH YASUKAWA WOULD BE FIRST MEETING\nOF NEW PRESIDENT WITH AN INDIVIDUAL FOREIGN AMBASSADOR--\nPRESIDENT HAD MET SHORTLY BEFORE WITH NATO AMBASSADORS AS\nA GROUP--AND EMPHASIZED THAT THIS WAS INTENDED TO SYMBOLIZE\nIMPORTANCE THE ADMINISTRATION ATTACHES TO RELATIONS WITH\nOUR ALLIES, INCLUDING JAPAN. IN RESPONSE, YASUKAWA STATED\nTHAT HIS GOVERNMENT APPRECIATES--AND FULLY RECIPROCATES--\nOUR CONTINUED EMPHASIS ON IMPORTANCE OF US-JAPAN RELATIONS.\n3. SECRETARY SAID THAT PRESIDENT HAD TOLD HIM IN DIS-\nCUSSIONS DURING THE LAST DAY AND A HALF THAT HE WOULD BE\nWILLING TO VISIT JAPAN IN LATE NOVEMBER OR EARLY DECEMBER\nIF THE GOJ WERE PREPARED TO RECEIVE HIM AT THAT TIME.\nHE SAID THAT THIS WOULD BE AMONG THE PRESIDENT'S FIRST\nVISITS ABROAD AND THAT IT WOULD SYMBOLIZE THE PRESIDENT'S\nINTENTION TO FURTHER STRENGTHEN US-JAPAN RELATIONSHIP.\ns\nPOLIBRARY\nYASUKAWA SAID HE WAS CERTAIN THAT GOJ WOULD WELCOME\nIBRARY\nPRESIDENTIAL VISIT, PROVIDED APPROPRIATE TIMING COULD BE\nGERALD\nWORKED OUT. SECRETARY SAID PRESIDENT COULD PROBABLY\nVISIT JAPAN NEXT SPRING IF GOJ SO PREFERRED. THEY AGREED\nREPORT\nNOT TO BE REPRODUCED WIT HE AUTHORIZATION OF THE EXECUTIVE SECRETAR\nGG 8/30/01\nDEPARTMENT OF STATE\nDepartment of State\nCAITED STATES OF AMERICA\nTELEGRAM\nPEODET\n-2- - STATE 175376\nNOT TO INFORM PRESS OF POSSIBLE PRESIDENTIAL VISIT UNTIL\nYASUKAWA REPORTED TO AND RECEIVED GUIDANCE FROM TOKYO.\n4. ON OTHER VISITS, SECRETARY SAID HE LOOKED FORWARD TO\nEXTENSIVE MEETING WITH FONMIN KIMURA WHEN ME ATTENDS\nUNGA IN SEPTEMBER. IN RESPONSE TO YASUKAWA'S STATEMENT\nTHAT KIMURA WOULD LIKE TO PAY COURTESY CALL ON PRESIDENT,\nSECRETARY STATED THAT HE WOULD \"DO UTMOST\" TO ARRANGE A\nMEETING BUT NOTED THAT OUR PAST PRACTICE HAS BEEN FOR\nPRESIDENT NOT TO RECEIVE FOREIGN MINISTERS DURING UNGA,\nSINCE HE WOULD BE UNDER PRESSURE TO SEE A NUMBER OF\nFOREIGN MINISTERS IF HE AGREED TO SEE ONE.\nS. YASUKAWA NOTED THAT AMBASSADOR HODGSON HAD INFORMED\nPRIME MINISTER TANAXA THAT SECRETARY WOULD LIKE TO VISIT\nJAPAN IN CONJUNCTION WITH HIS CHINA VISIT. HE STATED\nTHAT WE WOULD HAVE TO CONSULT CLOSELY ON TIMING, NOTING\nTHAT GOJ WILL BE OCCUPIED WITH MINISTERIAL CONSULTATIONS\n$\nWITH GERMANS OCT 8-9. SECRETARY INDICATED THAT PLANNING\nFOR CHINA VISIT IS NOT YET COMPLETED BUT THAT HE WOULD\n&\nFORD\nPROBABLY GO TO CHINA EITHER BETWEEN SEPTEMBER 3-15 OR\nOCTOBER 20-NOVEMBER 5.\nGERALD\nLIBRANY\nS. YASUKAWA STATED THAT FINMIN OHIRA WOULD VISIT\nWASHINGTON AROUND SEPTEMBER 30 FOR IMF/IBRD MEETING.\nN\nSECRETARY SAID HE WOULD WISH TO MEET WITH AND HOST LUNCH\nFOR OHIRA, STATING THAT HE FEELS GREAT AFFECTION FOR\nOHIRA.\n7. ONLY OTHER SUBSTANTIVE ISSUES DISCUSSED WERE TRADE\nBILL AND ECG ACTIVITIES. YASUKAWA REITERATED GOJ'S STRONG\nHOPE FOR EARLY PASSAGE OF TRADE BILL. SECRETARY SAID THAT\nWE WILL CONTINUE OUR EFFORTS WITH CONGRESS TO MOVE THE\nTRADE BILL AND THAT HE WAS HOPEFUL WE WOULD BE SUCCESSFUL.\n8. SECRETARY SAID THAT HE WAS PLEASED THAT GOOD PROGRESS\nHAD BEEN MADE AT LAST E OG MEETING IN BRUSSELS. YASUKAWA\nAGREED, STATING THAT HIS GOVERNMENT WAS PREPARED TO GO\nALONG WITH IEP PROPOSAL. SECRETARY SAID HE WAS CONSIDER-\nING POSSIBILITY OF INFORMAL TALKS ON ENERGY AMONG SMALLER\nGROUP OF COUNTRIES. HE NOTED THAT A NUMBER OF COUNTRIES,\nSECRET\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR\nDEPARTMENT OF STATE\nDepartment of State\n0\nUNITED OFFICE STATES OF AMERICA\nTELEGRAM\nSEGRET\n-3 - STATE 175376\nSR\nINCLUDING JAPAN, WOULD BE UNABLE TO BEAR BALANCE OF\nTRADE DEFICITS ARISING FROM OIL PRICES. HE SAID HE WOULD\nCONSULT WITH GOJ AS HIS THINKING BECAME FIRMER. KISSINGER\nEA/J: THUBBARD/SE\n08/09/74 X23152\nS/S - WHLUERS\nEA - MR. HUMMEL\nIs\n- MR. EAGLEBURGER\nS-\nS\nN S : 0\nGERALD\nFORD LIBRARY &\nSECRET\nDEVIDED\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETA\nCOPY\nOF 15 COPIES\nOF STATE\nDepartment of State\nUNITED STATES OF\nTELEGRAM\nSECRET\nProvided\n0 110016Z AUC 74 ZFF4\nFM SECSTATE WASHOC\nTO AMEMBASSY TOKYO IMMEDIATE 5980\nBT\nCONTROL: 2887Q\nSE CRET STATE 175377\nRECD: 10 AUGUST 74 -\nNODIS\n9 28 PM\nE.O. 11652: GOS\nTAGS: APOR, JA\nSUBJECT: GOJ RESPONSE TO SUGGESTED PRESIDENTIAL VISIT\n1. AMBASSADOR YASUKAWA CALLED ON ACTING ASSISTANT\nSECRETARY HUMMEL DURING MORNING OF AUGUST 10 UNDER INSYRUC-\nTIONS TO RESPOND URGENTLY TO SECRETARY'S SUGGESTION, MADE\nPREVIOUS DAY TO YASUKAWA, THAT PRESIDENT WOULD LIKE TO\nVISIT JAPAN IN LATE NOVEMBER OR EARLY DECEMBER (SEPTEL).\nYASUKAWA SAID HIS GOVERNMENT VERY MUCH APPRECIATED THE\nPRESIDENT'S OFFER AND HOPED THAT PRESIDENT, PERHAPS\nACCOMPANIED BY MRS. FORD, WOULD VISIT JAPAN AT EARLIEST\nPOSSIBLE DATE, IF POSSIBLE BY END OF THE YEAR. HE\nSUGGESTED THAT AGREEMENT OF BOTH GOVERNMENTS TO SUCH\nA VISIT SHOULD BE ANNOUNCED AS SOON AS POSSIBLE, LEAVING\nTIMING FOR LATER DISCUSSION THROUGH DIPLOMATIC CHANNELS.\nHE SAID GOJ HOPEO THAT ANNOUNCEMENT COULD BE AGREED UPON\nFOR JOINT RELEASE ON WEDNESDAY, AUGUST 14, OR EARLIER.\n2. YASUKAWA ALSO SAID THAT PM TANAKA WOULD LIKE TO VISIT\nWASHINGTON FOR BRIEF WORKING MEETING WITH PRESIDENT\nDURING HIS SEPTEMBER VISIT TO LATIN AMERICA AND CANADA. HE\nSAID THAT AFTERNOON OF SEPT 21 WOULD BE MOST CONVENIENT\nTIME FOR TANAKA, WHO WOULD BE ENROUTE BETWEEN A VISIT TO\nBRAZIL AND A REST STOP IN BERMUDA. HE COULD ARRIVE IN\nWASHINGTON IN TIME FOR MORNING M-ETING WITH PRESIDENT IF\nTHAT WERE MORE CONVENIENT. HE EMPHASIZED THAT TANAKA\nWOULD EXPECT NO CEREMONIAL OR SOCIAL EVENTS, THAT HE\nWOULD BE IN WASHINGTON ONLY A FEW HOURS, AND THAT HE\nWOULD NOT PLAN TO SPEND A NIGHT IN WASHINGTON.\nS\n3. HUMMEL AGREED TO CONVEY BOTH OF THESE SUGGESTIONS TO\nSECRETARY AS QUICKLY AS POSSIBLE. KISSINGER\nFORD\n&\nEA/J:THUBBARD:CB\n8/10/74 EXT: 23152\nGERALD\nLIBRARY\nEA - MR. HUMMEL\nS/S - MR. LUERS\nNOT TO BE REPRODUCED DECORT AUTHORIZATION OF THE EXECUTIVE SECRETAI\n44 8/30/01\n3\nCOPY 8 OF 15 800,722\nN\nOF STATE Dt\n0\nDepartment of State\nD\nUNITED STATES OF AMERICA\nTELEGRAM\nSEGRET\nCONTROL: 7285Q\n$\nRECD: 27 AUG '74 5:11P\n02, 20922 AUG 74 ZFF4\nFM SECSTATE WASHDC\nTO AMEMBASSY TOKVO HEACT IMMEDIATE 6247\nDT\n$ E G R E 1 STATE 100049\nN\nNODIS\n-\nE.O. 11652: GDS\nTAGS:\nOVIP JA\nSUBJECT:\nVISIT OF PRIME MINISTER TANAKA\nEYES ONLY FOR AMBASSADOR\n1. PRESIDENT FORD HAS AGREED RECEIVE PRIME MINISTER TANAXA\nSEPTEMBER 21. JAPANESE EMBASSY HAS BEEN INFORMED HERE.\nS\n2. WE PLAN ISSUE AT 5000 Pollo FOLLOWING PRESS ANNOUNCE-\nMENT, EMBARGOED FOR JOINT RELEASE IN TOKYO AND WASHINGTON\nAT 10:00 P.M. P. AUGUST 27 UACHINGTON TIME: \"PRIME MINISTER\nTANAKA OF JAPAN, AFTER HIS OFFICIAL VISITS TO MEXICO AND\nBRAZIL, WILL STOP OVER IN WASHINGTON, D.C. ON SEPTEMBER 21\nTO MEET WITH PRESIDENT FORD.\"\n11\nA\n3. WE PLAN ISSUE TRAVEL ORDERS AUTHORIZING YOUR RETURN TO\nPARTICIPATE IN MEETING. KISSINGER\nCD\nBT\n03049\nDRAFTED BY: EA/J: WCSHERMAN APPROVED BY: EA: MR. HUMMEL\nCLEARANCES: EA/P: MR. ROSEN WH: MR. SMYSER (PHONE) S: MR. BREMER\nS/S: JEMOFFAT\nS\nFORD LIBRARY s\nGG 8/30/01\nNOT TO BE REPRODUCED WITHOHL THE AUTHORIZATION OF THE EXECUTIVE SECRETA\nN\nSECORT\nCOPY 15 OF LDX 15 COE\nDEPARTMENT OF STATE\nSECRET\nDDo\nDepartment of State\n03-22-2017 UNITED AMERICA\nTELEGRA\nD\nSTATES OF\nP 102142Z OCT 74 ZFF6\nFM SECSTATE WASHDC\nCONTROL: 3 0 9 3Q\nS\nTO RUEHKO/AMEMBASSY TOKYO PRIORITY 7026\nRUEHDT/USMISSION USUN NEW YORK 9376\nINFO RUMJSL/AMEMBASSY SEOUL PRIORITY 4860\nRUESNG/USLO PEKING 3786\nBT\nSECRET STATE 223926\nA\n/\nNODIS\n8\nE.O. 11652:XGDS-1\nTAGS: PFOR, MARR, KS, KN, us, CH\nSUBJECT: PRC VIEWS ON UN COMMAND\nI\nFOR AMBASSADOR\nREF: STATE 220134\nS\nus\n1. EMBASSY TOKYO SHOULD NOT TAKE ACTION AS INSTRUCTED\nPARA 4 REFTEL. DISCUSSIONS ON THIS MATTER WITH JAPANESE\nHAVE TAXEN PLACE HERETOFORE AT USUN AND WE WILL CONTINUE\nTO FOLLOW UP THERE.\n2. FOR USUN: YOU ARE AUTHORIZED TO INFORM JAPANESE OF\nSUBSTANCE REFIEL, AND SEEK THEIR CONTINUED COOPERATION AS\n14\ny\nINDICATED PARA 4 REFTEL. INGERSOLL\nEA/J/WCSHERMAN/EA/K:DLRANARD:LM\n0\n10/10/74 EXT 23152\nEA:AWHUMMEL\nI\nIo:\nWBUFFUM\nS/S:JPMOFFAT\nDECLASSIFIED\nS\nE.O. 12958, SEC. 3.5\nFORD\nSTATE DEPT, GUIDELINES\nBY\nHn 9 NARA, DATE 1/27/03\nState Review\nTD 9/23/02\nNOT TO BE REPRODUCED WITHOUT THAUTHORIZATION OF THE EXECUTIVE SEC\nPY OF I5 COPIES\nCorrected copy:\nPara 3 line 3&4. line added.\n200-0\nOF STATE\n*\nDepartment of State 11/4/74\nUNITED AMERICA\nSEORET\nTELEGRAM\nSTATES OF\nSEONE!\nCONTROL: 0680Q\nRECD: 2 NOV 74\nP 0300297 NOV 74 ZFF4\n6:40PM\nFM SECSTATE WASHDC\nTO RUEHKO/AMEMBASSY TOKYO PRIORITY 0000\nRUFHOL/AMEMBASSY BONN PRIORITY 0000\nBT\nSECRET STATE 241954\nNODIS\nZOPIU\nE.O. 11652: XGDS 3\nTAGS: ENRG\nSUBJECT: CAMP DAVID FOLLOWUP\n1. FOLLOWING IS TEXT OF AN INFORMAL PAPER FOR ENDERS AND\nCOOPER DISCUSSIONS NEXT WEEK. REQUEST THAT TOKYO PASS TO\nMIYAZAKI AND YOSHIDA AND BONN TO POEHL AND HERMES. PLEASE\nSTRESS TO RECIPIENTS THAT THIS PAPER IS OF THE HIGHEST\nSENSITIVITY AND IS FOR THEIR EYES ONLY. REQUEST THAT NO\nDISTRIBUTION BE MADE IN EMBASSY.\n2. BEGIN TEXT. A PROPOSAL FOR MORE COMPREHENSIVE\nCOLLABORATION AMONG THE INDUSTRIALIZED COUNTRIES.\n3. IN LIGHT OF THE DANGEROUS SITUATION FACING THEM,\nPARTICULARLY AS A RESULT OF THE OIL PRICE INCREASES, THE\nINDUSTRIALIZED COUNTRIES SHOULD UNDERTAKE A MORE COMPRE-\nHENSIVE COLLABORATION WITH THE OBJECTIVESOF: BRINGING\nABOUT LOWER COSTS FOR THEIR OIL SUPPLIES: REDUCING THE\nZODIU\nDAMAGE TO THEIR ECONOMIES CAUSED BY THE HIGHER COSTS OF\nTHEIR IMPORTS: PREVENTING DISRUPTION OF THE BASIC COHESION\nOF THE COUNTRIES OF THE FREE WORLD: AND CREATING PRO-\nCEDURES TO IMPROVE THEIR CAPACITY TO RESPOND TO UNFORE -\nSEEN FUTURE EVENTS.\nA. IN UNDERTAKING THIS MORE COMPREHENSIVE COLLABORATION,\nTHE INDUSTRIALIZED COUNTRIES MUST BUILD UPON WHAT HAS\nALREADY BEEN ACCOMPLISHED AND IS ALREADY BEING UNDERTAKEN\nIN VARIOUS EXISTING INTERNATIONAL BODIES, INCLUDING THE\nFORD\nIMF. THE OECD, AND THE IEA.\nDECLASSIFIED\nE.O. 12956, SEC. 3.5\nGERALD ?\nLIBRARY\nSTATE DEPT, GUIDELINES\nSECRET\nBY 66\nNARA, DATE 8/30/01\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nZODIU\nOF STATE\nDepartment of State\nUNITED STATES OF AMERICA\nSECRET\nTELEGRAM\nSEORET\nPAGE -2- STATE 241954, NOV3\n5. AS THE NEXT STEP TOWARD THIS DESIRED COLLABORATION,\nFURTHER DISCUSSIONS SHOULD BE HELD AMONG THE FOREIGN AND\nFINANCE MINISTERS OF THE FIVE MAJOR NATIONS IN AN EFFORT\nTO REDUCE DIFFERENCES IN THEIR PERCEPTIONS OF PROBLEMS\nAND OPPORTUNITIES BEFORE FORMAL DISCUSSIONS OF CLOSER\nCOOPERATION ARE UNDERTAKEN WITH A WIDER GROUP OF INDUS-\nTRIALIZED COUNTRIES.\nN\n6. A PROGRAM OF ADDITIONAL COOPERATION IS DESIRABLE! ONE\nIN WHICH THE DIFFERENT PARTS REINFORCE ONE ANOTHER BOTH\nPOLITICALLY AND ECONOMICALLY.\n7. INCLUDED IN THE PROGRAM SHOULD BE: (A) AN INTER-\nNATIONALLY AGREED SET OF ADDITIONAL MEASURES INTENDED TO\nREDUCE RELIANCE BY THE INDUSTRIAL COUNTRIES ON IMPORTS OF\nOIL FROM OUTSIDE THE GROUP, TO BE REFERRED TO BELOW AS\n\"CONSERVATION MEASURES\": (B) A NEW SET OF COMMITMENTS\nAND PROCEDURES BY WHICH THE GROUP COULD PROVIDE ECONOMIC\nSUPPORT, AS NEEDED, IN THE FORM OF LOANS TO THOSE MEMBERS\nS\nOF THE GROUP WHICH WOULD OTHERWISE SUFFER ACUTE ECONOMIC\nDAMAGE AS A RESULT OF INTERNATIONAL ECONOMIC DEVELOP-\nMENTS, TO BE REFERRED TO BELOW AS \"FINANCIAL SOLIDARITY\nMEASURES\": AND (C) AN UNDERTAKING TO ATTEMPT TO DEVELOP\nVARIOUS OTHER FORMS OF COLLABORATION ON MEASURES SUPPORTIVE\nOF THE ACTIVITIES INCLUDED IN A AND B, REFERRED TO BELOW\nAS \"OTHER SUPPORTIVE MEASURES\".\n8. CONSERVATION MEASURES. ADDITIONAL MEASURES BY THE\nMAJOR INDUSTRIALIZED COUNTRIES TO REDUCE THEIR RELIANCE\nZODIU\nON HIGH COST OIL IMPORTS ARE DESIRABLE: TO REDUCE\nVULNERABILITY TO FUTURE INTERRUPTIONS IN SUPPLY: TO\nLIMIT THE REAL BURDEN BEING PLACED ON THEIR ECONOMIES BY\nTHE NECESSITY OF PAYING EITHER CURRENTLY FOR THE COSTLY\nIMPORTS OR ULTIMATELY FOR AMORTIZATION OF DEBT BEING\nUNDERTAKEN TO FINANCE THE CURRENT CONSUMPTION OF ENERGY:\nTO REDUCE THE DANGER OF POTENTIAL DISRUPTION TO THE WORLD'S\nFINANCING SYSTEM AS A RESULT OF CONCENTRATION OF LARGE\nHOLDINGS OF FINANCING ASSETS IN THE HANDS OF A SMALL\nNUMBER OF PRODUCING COUNTRY GOVERNMENTS: AND TO DEMON-\nSTRATE TO THE PRODUCERS MORE PROMPTLY THE DAMAGE WHICH\nFORD\nWILL BE DONE TO THEIR ECONOMIC WELFARE, AS WELL AS THAT\n&\nOF THE CONSUMING NATIONS, BY ATTEMPTS TO PROLONG CURRENT\nHIGH OIL PRICES.\nGERALD\nLIBRARY\nPEODET\nOLOIILI\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\n200-0\nOF STATE\nDepartment of State\nUNITED AMERICA\nSECRET\nTELEGRAM\nSTATES OF\nBEONET\nPAGE -3- STATE 241954, NOV 3\n9. THE MOST APPROPRIATE MIX OF ADDITIONAL CONSERVATION\nMEASURES WILL VARY FROM COUNTRY TO COUNTRY. AMONG THE\nIMPORTANT TYPES OF MEASURES ARE LIKELY TO BE REMOVAL OF\nOFFICIAL RESTRAINTS ON THE COST OF ENERGY TO CONSUMERS,\nIMPOSITION OF ADDITIONAL TAXATION ON CONSUMPTION OF\nIMPORTED ENERGY, AND INDUCEMENTS TO SWITCH FROM OIL TO\nOTHER SOURCES OF ENERGY.\n10. THE HIGHER PRICES WHICH HAVE BEEN ALLOWED TO TAKE\nN\nEFFECT IN THE MARKET PLACE HAVE ALREADY REDUCED OIL\nCONSUMPTION. NOT ONLY HAVE THE 5# TO 10# INCREASES FORE-\nCAST EARLIER FOR CONSUMPTION GROWTH IN 1974 NOT TAKEN\nPLACE, BUT RECENT CONSUMPTION LEVELS IN THE MAJOR INDUS-\nTRIAL COUNTRIES HAVE BEEN RUNNING 5# TO 10# BELOW THE\nLEVELS BEFORE THE OUTBREAK OF THE MID-EAST WAR IN OCTOBER\nD\n1973. SOME OF THE REDUCTIONS IN CONSUMPTION ARE ATTRI-\nBUTABLE, HOWEVER, TO THE SLOWER OVERALL RATES OF ECONOMIC\nGROWTH BEING EXPERIENCED IN THE INDUSTRIALIZED COUNTRIES,\nAND THERE IS NO ASSURANCE THAT IN THE ABSENCE OF NEW\nGOVERNMENT MEASURES THERE WILL BE NO RESURGENCE OF DEMAND\nS\nIN 1975 WHEN HIGHER RATES OF ECONOMIC GROWTH RESUME\nAND WHEN THE SHOCK OF THE SUDDEN MOVE TO HIGHER PRICES IS\nFURTHER IN THE PAST. UNDER THE CIRCUMSTANCES, ADDITIONAL\nCONSERVATION AND PRODUCTION-ENCOURAGING MEASURES ARE\nDESIRABLE IN ALL COUNTRIES, AND PROBABLY IN EVERY COUNTRY\nIT WILL BE EASIER TO GAIN LEGISLATIVE AND POPULAR ACCEPT-\nANCE OF ADDITIONAL MEASURES IF THEY ARE TAKEN IN THE\nN\nCONTEXT OF AN EQUITABLY SHARED COMPREHENSIVE PROGRAM\nOF INTERNATIONAL COOPERATION. (#READ AS PERCENT)\n11. IT IS PROBABLY NEITHER PRACTICAL NOR DESIRABLE TO\nEXPECT GOVERNMENTS TO COMMIT THEIR COUNTRIES TO SPECIFIC\nMAXIMUM AMOUNTS OF OIL IMPORTS IN 1975 OR TO ADOPT\nD\nIDENTICAL PROGRAMS OR STANDARDS OF CONSERVATION MEASURES.\nBUT INDIVIDUAL COUNTRY PROGRAMS FOR 1975 SHOULD BE COL-\nLATED INTO A TOTAL INTERNATIONAL PROGRAM, WHICH WOULD\nTHEN BE REVIEWED FOR THE ADEQUACY OF ITS TOTAL IMPACT AND\nFOR THE EQUITY OF DISTRIBUTION OF NATIONAL CONTRIBUTIONS,\nAND ADJUSTED AS NECESSARY. IT SHOULD BE USEFUL TO ESTAB-\nS\nLISH AN AGREED TIMETABLE FOR THE DEVELOPMENT OF NATIONAL\nPROGRAMS AND THEIR INTERNATIONAL REVIEW AND ADJUSTMENT.\nR.\nFORD\nBASED ON EXPERIENCE, IN THE COURSE OF 1975 ADDITIONAL\nMEASURES COULD BE CONSIDERED, IF NECESSARY, FOR IMPLEMEN-\nTATION LATER IN 1975 OR IN 1976.\nGERALD\nLIBRARY\nSECRET\nSEORLI\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nZOPIU\nOF STATE\nDepartment SECRET of State\nUNITED STATES OF AMERICA\nSECRET\nTELEGRAM\nPAGE -4- STATE 241954, NOV 3\n12. AS A FIRST APPROXIMATION, IT IS SUGGESTED THAT\nMEASURES BE SOUGHT WHICH WOULD RESULT IN TOTAL MEMBER OUN-\nTRY IMPORTS IN THE THIRD QUARTER OF 1975 OF AT LEAST 20\n,CT,\n-\nABOUT 5 1/2 MILLION BARRELS A DAY, BELOW THEIR IMPORTS\nOF ABOUT 27 1/2 MILLION BARRELS A DAY IN THE THIRD QUAR-\nN\nTER OF 1973. ALREADY, BY THE THIRD QUARTER OF 1974,\nTHEIR IMPORTS HAD BEEN REDUCED TO ALMOST HALF THE AMOUNT\nPROPOSED FOR THE THIRD QUARTER OF 1975. THE CUTBACK IN\nCONSUMPTION COULD ALTERNATIVELY BE EXPRESSED IN TERMS\nIN REDUCTION IN CONSUMPTION BELOW LEVELS WHICH WOULD\nHAVE PREVAILED IN THE ABSENCE OF NEW CONSERVATION\nD\nMEASURES.\n13. FINANCIAL SOLIDARITY. DESPITE THE REDUCTION IN OIL\nIMPORT COSTS WHICH CAN BE ACHIEVED BY ADDITIONAL\nCONSERVATION MEASURES, AND DESPITE THE DESIRABLE IMPACT\nWHICH SUCH CONSERVATION MAY HAVE IN PREVENTING FURTHER\nS\nINCREASES IN OIL PRICES AND POSSIBLY IN BRINGING ABOUT\nSOME PRICE REDUCTIONS, THE INDUSTRIALIZED COUNTRIES\nARE LIKELY TO BE FACED, IN 1975 AND LATER YEARS, WITH\nENORMOUS OIL IMPORT BILLS. VAST CHANGES IN THE PATTERN\nOF INTERNATIONAL TRADE AND INVESTMENT FLOWS WILL RESULT.\nADJUSTMENT OF THESE FLOWS IS LIKELY TO TAKE PLACE IN\nMANY DIFFERENT WAYS, BOTH THROUGH THE MANY EXISTING\nN\nCHANNELS OF CONTACT BETWEEN THE OIL-PRODUCING COUNTRIES\nAND THE INDUSTRIALIZED COUNTRIES AND THROUGH VARIOUS NEW\nCHANNELS.\n14. IN THIS PROCESS, HOWEVER, THERE IS THE DANGER THAT -\nIN THE ABSENCE OF NEW MEASURES OF INTERNATIONAL COOPERA-\nD\nTION on PARTICULAR INDUSTRIALIZED COUNTRIES MIGHT BE FACED\nWITH ACUTE ECONOMIC HARDSHIP OR WITH THE NECESSITY\nTO RELY ON FINANCIAL HELP FROM PRODUCING COUNTRIES ON\nTERMS WHICH SHOULD BE CONSIDERED POLITICALLY OR ECON-\nOMICALLY UNACCEPTABLE TO THE COMMUNITY OF INDUSTRIALIZED\nNATIONS. TO COUNTER THIS DANGER, IT WOULD SEEM HIGHLY\nS\nDESIRABLE THAT THE INDUSTRIALIZED COUNTRIES DEVELOP AMONG\nTHEMSELVES A NEW SET OF COMMITMENTS AND PROCEDURES BY\nA.\nFORD\nWHICH THE GROUP COULD PROVIDE ECONOMIC SUPPORT IN THE\nFORM OF LOANS, WHEN APPROPRIATE, TO INDIVIDUAL MEMBER\nCOUNTRIES OF THE GROUP. WHAT IS NEEDED IS MORE LIKELY\nGERALD\nLIBRARY\nTO PROVE A SAFETY NET THAN AN ARTIFICIAL LIMB, BUT THE\nSECRET\nJLUIILI\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nZOPIU\nOF STATE\nUNITED STATES OF\nDepartmentof State\nTELEGRAM\nPAGE -5- STATE 241954, NOV 3\nSAFETY NET WOULD NEED TO BE DESIGNED FOR USE IN ANY\nEMERGENCY WHICH MIGHT ARISE IN ORDER TO PROVIDE COUNTRIES\nIN ADVANCE WITH A CONFIDENCE WHICH WOULD ALLOW THEM TO\nAVOID INTERNATIONALLY DISRUPTIVE ECONOMIC POLICIES\nWHICH MIGHT OTHERWISE BE UNDERTAKEN OUT OF EXTREME FEAR\nOF THE FUTURE.\n15. TO BE EFFECTIVE IN COMBATTING FEAR, THE POTENTIALLY\nAVAILABLE LOANS WOULD HAVE TO BE VERY LARGE. ON THE\nN\nOTHER HAND, SUCH LOANS COULD NOT BE PROMISED TO ANY\nMEMBER OF THE GROUP AUTOMATICALLY. THE AVAILABILITY OF\nO\nTHE LOANS WOULD HAVE TO BE CONDITIONED UPON JUDGMENT\nON BEHALF OF THE GROUP THAT A PROSPECTIVE BORROWING\nNATION WAS FOLLOWING REASONABLE POLICIES OF SELF-HELP.\n16. AS A PRELIMINARY PROPOSAL TO MEET THE NEED FOR A\nSAFETY NET, IT IS SUGGESTED THAT CONSIDERATION BE GIVEN\nTO AN ACREEMENT AMONG INDUSTRIALIZED COUNTRIES THAT THEY\nWOULD - IN THE CONTEXT OF A LARGER PROGRAM OF COLLABORA-\nS\nTION ON CONSERVATION AND OTHER ENERGY MATTERS - AGREE TO\nUNDERTAKE LOAN COMMITMENTS CALLABLE ON DEMAND BY A COMMON-\nFUND WHEN LOAN ASSISTANCE WAS NEEDED AND APPROVED FOR A\nPARTICULAR MEMBER COUNTRY.\n17. THE PRINCIPLES ON WHICH THE FUND WOULD BE BASED COULD\nBE AS FOLLOWS: (A) THE TOTAL SIZE OF THE FUND WOULD\nBE RELATED TO THE ESTIMATED ANNUAL COMBINED DEFICIT ON\nCURRENT ACCOUNT OF PARTICIPATING COUNTRIES VIS-A-VIS\nOUTSIDE OIL SUPPLIERS CAN APPROPRIATE NUMBER FOR THE\nZOPIN\nFIRST YEAR MIGHT BE ONE HALF, WHICH WOULD PROVIDE A\nFUND ON THE ORDER OF $20 OR $25 BILLION). (B) EACH\nCOUNTRY'S MAXIMUM LENDING OBLIGATION AND MAXIMUM BORROW-\nING LIMIT WOULD BE IDENTICAL. (C) THESE LIMITS WOULD\nBE DETERMINED BASICALLY BY REFERENCE TO AN APPROPRIATE\nFORMULA INCORPORATING RELEVANT CONSIDERATIONS: AN\nAPPROPRIATE FORMULA MIGHT BE BASED ON OIL IMPORTS FROM\nOUTSIDE THE GROUP, PARTICIPATION IN FOREIGN TRADE, AND\nGNP. (D) PARTICIPANTS WOULD SHARE IN FINANCING LOANS\nFORD\nON THE BASIS OF THEIR SHARES IN THE FUND.\n&\nGERALD\nLIBRARY\ncroner\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nZODIU\nOF STATE\nDepartment of State\nUNITED STATES OF AMERICA\nTELEGRAM\nSEGRET\nPAGE -6- STATE 241954, NOV 3\n18. ADDITIONAL COMMITMENTS WOULD BE ANTICIPATED FOR\n1976. EACH LOAN FROM THE COMMON FUND WOULD BE APPROVED\nBY A BOARD OF TRUSTEES ACTING ON A QUALIFIED WEIGHTED\nVOTING BASIS ON BEHALF OF THE MEMBER NATIONS IN THE\nGROUP. THE DISCRETION OF THE BOARD SHOULD PROBABLY BE\nLIMITED BY AGREED GUIDELINES. THE BOARD MIGHT WELL BE\nASSOCIATED WITH THE OECD. PRESUMABLY, THE LOANS TO\nN\nAND FROM THE COMMON FUND WOULD BE ON COMMERCIAL TERMS.\nLOAN ASSISTANCE FROM THE COMMON FUND SHOULD PROBABLY\nBE MADE CONDITIONAL ON THE BORROWER MAKING APPROPRIATE\nUSE OF OTHER ASSETS AVAILABLE TOIT AND MAKING EFFORTS\nTO OBTAIN CAPITAL FROM OTHER SOURCES ON REASONABLE\nTERMS. BORROWERS WOULD ALSO BE EXPECTED NOT TO TAKE\nD\nTRADE OR OTHER RESTRICTIVE MEASURES INCONSISTENT WITH\nTHEIR GATT, IMF, AND OECD OBLIGATIONS.\n19. AN IMPORTANT FEATURE OF THE FINANCIAL SAFETY NET,\nAS DESCRIBED ABOVE, WOULD BE THAT THE ASSISTANCE TO ANY\nS\nPARTICULAR NATION WOULD NEITHER BE, NOR APPEAR TO BE,\nDEPENDENT ON THE APPROVAL OF ONE OR MORE OF THE OIL-\nPRODUCING COUNTRIES. THE ASSISTANCE WOULD BE ON A MUTUAL\nSELF-HELP BASIS AMONG THE INDUSTRIALIZED COUNTRIES. EACH\nOF THOSE COUNTRIES COULD RAISE THE FUNDS FOR ITS CON-\nTRIBUTION AS IT SAW FIT: FROM CASH ON HAND, FROM TAXATION,\nN\nOR FROM NEW BORROWING. SUCH NEW BORROWING COULD, IN\nEFFECT, BE FROM AN OIL-PRODUCING GOVERNMENT IF AN OIL\nPRODUCER HAPPENED TO PURCHASE THE DEBT OBLIGATIONS SOLD\nBY THE BORROWING GOVERNMENT ON THE MARKET, OR IF A LOAN\nWERE ARRANGED DIRECTLY BY THE BORROWING COUNTRY GOVERN-\nMENT FROM AN OIL PRODUCERS. BUT, IN THE USUAL - AND\nD\nPREFERABLE - CASE, LENDING TO THE COMMON FUND WOULD BE BUT\nONE OF THE MANY WAYS IN WHICH AN INDUSTRIALIZED COUNTRY\nGOVERNMENT WERE DISBURSING FUNDS, AND IT WOULD NOT BE\nPOSSIBLE TO MAKE AN UNAMBIGUOUS CONNECTION BETWEEN ONE\nSOURCE OF FUNDS FOR THE GOVERNMENT AND ONE USE OF FUNDS\nBY THAT GOVERNMENT.\nS\n20. IT WOULD ALSO BE POSSIBLE TO PROVIDE THAT THE TRUSTEES\nFORD\nOF THE COMMON FUND WOULD BE EMPOWERED TO MAKE INVESTMENTS\n&\nIN PROMISING INTERNATIONALLY SIGNIFICANT RESEARCH AND\nDEVELOPMENT PROJECTS WHEN APPROPRIATE.\nGERALD\nLIBRARY\nCEODET\n040161\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nZOPIU\nOF STATE\nDepartment of State\nUNITED STATES OF MEMBER\nTELEGRAM\nSECRET\nPAGE -7- STATE 241954, NOV 3\n21. AS AN ALTERNATIVE TO LOANS TO THE COMMON FUND, CON-\nSIDERATION COULD BE GIVEN TO BORROWING BY THE FUND ON\nTHE STRENGTH OF GUARANTIES PROVIDED BY THE COOPERATING\nGOVERNMENTS, PRESUMABLY IN ABOUT THE SAME PROPORTIONS\nAS LOANS MIGHT BE MADE TO THE COMMON FUND. IN SOME\nCOUNTRIES, IT MIGHT BE THAT SUCH GUARANTIES WOULD APPEAR\nLESS ONEROUS TO LEGISLATURES THAN DIRECT LOANS TO A\nCOMMON FUND, EVEN THOUGH THE RISK EXPOSURE TO THE\nN\nGOVERNMENTS WOULD BE THE SAME BY EITHER METHOD. ON THE\nOTHER HAND, THE GUARANTY METHOD WOULD HAVE A SIGNIFICANT\nPOLITICAL DISADVANTAGE IN THAT THE POLITICAL CREDIT FOR\nTHE ASSISTANCE MIGHT TEND TO ACCRUE IN LARGE MEASURE,\nTO THE PROVIDER OF THE LOAN FUNDS, QUITE POSSIBLY AN OIL\nPRODUCER, RATHER THAN TO THE PROVIDERS OF THE GUARANTIES\nD\nWHO WOULD BE THE REAL BEARERS OF THE RISK. THE GUARANTY\nROUTE WOULD ALSO HAVE THE DISADVANTAGE THAT THE RATE OF\nINTEREST PAID ON THE GUARANTEED BORROWINGS WOULD\nPROBABLY BE HIGHER THAN THAT PAID ON AVERAGE BY GOVERN-\nMENTS BORROWING THEIR SEPARATE SHARES OF THE NEEDED FUNDS\nDIRECTLY ON THEIR OWN SEPARATE FULL LEGAL OBLIGATIONS.\nS\nIN VIEW OF FREQUENT PUBLIC FAILURE TO UNDERSTAND THE\nNATURE OF GUARANTIES, THERE WOULD ALSO BE SOME DANGER\nTHAT THE GUARANTY ROUTE WOULD BE TREATED AS A \"SOMETHING\nFOR NOTHING\" METHOD AND WOULD THUS LEAD TO LESS CAREFUL\nMONITORING OF THE ASSISTANCE INVOLVED.\nN\n22. IT WOULD ALSO BE POSSIBLE, AS AN ALTERNATIVE TO THE\nCOMMON FUND OUTLINED ABOVE, TO CONSIDER ATTEMPTING TO USE\nTHE INTERNATIONAL MONETARY FUND AS THE PROVIDER OF THE\nDESIRED SAFETY NET FOR THE INDUSTRIALIZED COUNTRIES.\nTHAT ALTERNATIVE WOULD HAVE THE ADVANTAGE OF MAKING USE\nD\nOF AN EXISTING INSTITUTION WITHOUT REQUIRING ESTABLISH-\nMENT OF A NEW COMMON FUND. ON THE OTHER HAND, THERE\nWOULD BE A NUMBER OF DISADVANTAGES OF ATTEMPTING TO USE\nTHE IMF. ESTABLISHMENT WITHIN THE IMF OF A SAFETY NET OF\nTHE LARGE SIZE NECESSARY TO ACCOMPLISH THE DESIRED OB-\nS\nJECTIVE FOR THE MAJOR INDUSTRIALIZED COUNTRIES WOULD LEAD\nFORD\nTO BXTREME PRESSURES WITHIN THE IMF FOR LARGE, COMPARABLE\n&\nFACILITIES FOR THE LESS-DEVELOPED COUNTRIES, EVEN THOUGH\nSUCH FACILITIES WOULD NOT BE APPROPRIATE TO THE NEEDS OF\nGERALD\nLIBRARY\nRECRET\nSEURES,\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nN\nOF STATE\nO\nDepartment of State\nUNITED STATES OF AMERICA\nTELEGRAM\nD\nSECRET\nPAGE -8- STATE 241954, NOV 3\nMOST SUCH COUNTRIES. FOR MANY OF THEM, CONCESSIONAL\nLENDING IN SMALLER AMOUNTS WOULD BE APPROPRIATE. IT WOULD\nS\nALSO BE MORE DIFFICULT TO DEVELOP IN AN INTEGRATED PRO-\nGRAM OF CONSERVATION, FINANCIAL SOLIDARITY, AND OTHER\nSUPPORTIVE MEASURES, IF THE SAFETY NET WERE ATTEMPTED IN\nTHE IMF, WHICH INCLUDES IN ITS MEMBERSHIP BOTH THE OIL-\nPRODUCING COUNTRIES AND MANY OTHER COUNTRIES WHICH WOULD\nNOT BE LIKELY PARTICIPANTS IN THE PROPOSED INTEGRATED\nPROGRAM.\nN\n23. IN ANY EVENT, WHATEVER METHOD OF FINANCIAL SUPPORT\nIS CHOSEN FOR INDUSTRIAL COUNTRIES, THE NEED TO PROVIDE\nO\nADDITIONAL CONCESSIONAL ASSISTANCE TO DEVELOPING\nCOUNTRIES WILL NEED TO BE CONSIDERED. TO THE EXTENT\nTHAT FINANCIAL SOLIDARITY LEADS TO IMPROVED ECONOMIC\nD\nPERFORMANCE IN INDUSTRIAL COUNTRIES, LESSER AMOUNTS OF\nDIRECT FINANCIAL ASSISTANCE TO DEVELOPING NATIONS WILL\nBE REQUIRED HOWEVER.\n24. OTHER SUPPORTIVE MEASURES. ALTHOUGH CONSERVATION\nEFFORTS AND FINANCIAL SOLIDARITY WOULD BE THE TWO MOST\nS\nIMPORTANT INDIVIDUAL COMPONENTS OF A COMPREHENSIVE\nPROGRAM OF COOPERATION, THERE ARE LIKELY TO BE MANY\nOTHER INDIVIDUAL FORMS OF COOPERATION WHICH, IN COMBINA-\nTION, COULD BE SIGNIFICANTLY SUPPORTIVE OF THE TWO MAIN\nMEASURES. A COMPREHENSIVE PROGRAM SHOULD, THEREFORE,\nINCLUDE AN UNDERTAKING BY THE GOVERNMENTS INVOLVED TO\nN\nATTEMPT COOPERATION IN OTHER WAYS CONTRIBUTING TO THE SAME\nOBJECTIVES.\nO\n25. FOR THIS PURPOSE ECONOMIC RELATIONS WITH PRODUCERS\nWOULD BE REVIEWED IN AN EFFORT TO IDENTIFY WAYS AND MEANS\nIN WHICH OIL COMPANY POLICIES ON PRICING AND THE DIS-\nD\nTRIBUTION OF LIFTINGS, CONSUMING COUNTRY IMPORT AND\nEXPORT POLICIES, EXPORT CREDITS, AND LOANS AND POLICIES\nOF INTERNATIONAL FINANCIAL INSTITUTIONS COULD BE MANAGED TO\nYIELD A BETTER BALANCE OF BARGAINING POWER WITH THE\nPRODUCERS. TIMING AND CONTEXT OF BILATERAL AND EVENTUAL\nS\nMULTILATERAL PRODUCER/CONSUMER CONTACTS SHOULD ALSO\nBE STUDIED. INGERSOLL\nFORD\n&\nEB:TOENDERS\n11/2/74 X20396\nGERALD\nLIBRARY\nASSISTANT SECRETARY ENDERS\nSECRET\nS/S-0:RELTZ\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nCOPY is OF 15 COPIES.\n6\nDEPARTMENT OF STATE\nDepartment of State\nUNITED STATES OF 2\nCOME\nCONTROL: 1077Q\nRECD : NOV 4, 1974\n0 0503412 NOV 74 ZFF4\n10:41 P.M.\nFM SECSTATE WASHDC\nTO AMEMBASSY TOKYO IMMEDIATE 7522\nBI\nC 0 N F I D E N T I A L STATE 243162\nNODIS\nE.O. 11652: GDS\nTAGS: ENRG, EFIN\nSUBJECT: G-5 FINANCE DEPUTY'S LUNCHEON\nFOR ENDERS AND COOPER FROM BENNETT\nPOEHL CALLED TODAY TO REPORT THAT DE LAROSIERE WOULD\nNOT AGREE TO HOST G-5 FINANCE DEPUTY'S LUNCHEON ON\nNOVEMBER 19 OR 26. IT WAS NOT CLEAR WHETHER FRENCH\nWOULD ATTEND MEETING HOSTED BY ANOTHER. I INFORMED\nPOEHL I WOULD COME BACK WITH ADVICE NEXT WEEK. INGERSOLL\nX CO\nTREASURY: BENNETT\n11/4/74\nEB: JLKATZ\nS/S-0: GWETWOHIE\nUn\nFORD\nCONFIDENTIAL\nLIBRARY & OERALD\nGG 8/30/01\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET\nCDX\n7\nCOPY\nOF 15 COPIES\nDEPARTMENT OF STATE\n.\nDepartment of State\nUNITED STATES of\nTELEGRAN\nSECRET\n0 1020327 NOV 74 ZFF4\nCONTROL: 2836Q\nS\nFM SECSTATE WASHOC\nTO AMEMBASSY TOKYO NIACT IMMEDIATE 7677\nBT\n$ E ORE T STATE 247821\nNODIS\nN\nE.O. 11652: GDS\nTAGS: OVIP CKISSINGER, HENRY)\nSUBJECT: VISIT OF SECRETARY KISSINGER TO PRC\nFOR AMBASSADOR HODGSON FROM THE SECRETARY\n1. AT 12 NOON, NOVEMBER 11 (1:00 A.M. TUESDAY, PEKING\nTIME) THE FOLLOWING ANNOUNCEMENT WILL BE ISSUED JOINTLY\nIN WASHINGTON AND PEKING: BEGIN TEXT IT HAS BEEN AGREED\nUPON THROUGH CONSULTATIONS THAT THE UNITED STATES\nS\nSECRETARY OF STATE AND ASSISTANT TO THE PRESIDENT FOR\nNATIONAL SECURITY AFFAIRS, DR. HENRY A. KISSINGER, WILL\nVISIT THE PEOPLE'S REPUBLIC OF CHINA FROM NOVEMBER 25\nTO NOVEMBER 29, 1974. END TEXT\n2. YOU ARE INSTRUCTED TO INFORM PM TANAXA AT 2:00 P.M.\nTOKYO TIME NOVEMBER 11 OF THIS ANNOUNCEMENT, TELL HIM\nN\nWE WANTED JAPAN TO BE INFORMED IN ADVANCE, AND ASK THAT\nSTRICTEST SECRECY BE MAINTAINED UNTIL ANNOUNCEMENT IS\nMADE PUBLIC. YOU SHOULD ALSO EMPHASIZE TO HOST\nGOVERNMENT THAT \"THIS VISIT IS IN ACCORDANCE WITH THE\nSHANGHAI COMMUNIQUE WHICH CALLED FOR PERIODIC HIGH LEVEL\nCONTACTS BETWEEN THE TWO GOVERNMENTS. \"\nB\n3. WHEN YOU DELIVER ABOVE MESSAGE, YOU SHOULD ALSO REQUEST\nGOJ AGREEMENT TO PERMIT ME AND MY, PARTY TO OVERNIGHT IN\nJAPAN NOVEMBER 24, EN ROUTE FROM VLADIVOSTOK TO PEKING. KISSIN\nS\nEA:JJHELBLE/SB\nFORD\n11/06/74 X22146\nR\nEA - MR. HABIB\nS - MR. EAGLEBURGER\nS/S - 0: GTWOHIE\nGERALD\nCreamy\n46 8/30/01-\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET.\nNATIONAL ARCHIVES AND RECORDS ADMINISTRATION\nPresidential Libraries Withdrawal Sheet\nWITHDRAWAL ID 013781\nREASON FOR WITHDRAWAL\n....\nNational security restriction\nTYPE OF MATERIAL\nTelegram\nCREATOR'S NAME\nSECSTATE WASHDC\nRECEIVER'S NAME\nAMEMBASSY TOKYO\nTITLE\nGOJ Views Re Nuclear Controversy\nCREATION DATE\n11/11/1974\nVOLUME\n2 pages\nCOLLECTION/SERIES/FOLDER ID\n032400276\nCOLLECTION TITLE\nNATIONAL SECURITY ADVISER. PRESIDENTIAL\nCOUNTRY FILES FOR EAST ASIA AND THE\nPACIFIC\nBOX NUMBER\n8\nFOLDER TITLE\nJapan - State Department Telegrams:\nFrom SECSTATE - NODIS (1)\nDATE WITHDRAWN\n09/05/2001\nWITHDRAWING ARCHIVIST\nGG\nEXEMPTED\n8/13/07\n2/8/11\n6/30/2015\n9\nSECRET\nLdr -WH\nDEPARTMENT 23. OF STATE\n#\nDepartment of State\nUNITED STATES OF AMERICA\nTELEGRAM\nCONTROL: 32080\nS\n0 1213522 NOV 74 ZFF4\nRECD: 12 NOV'74, 904A\nFM SECSTATE WASHDC\nTO AMEMBASSY TOKYO IMMEDIATE 7724\nBT\n& E CRET STATE 248883\nNOOIS\nE.O. 11652: GOS\nTAGS: PFOR, JA\nSUBJECT:TANAKA GOVERNMENT CRISIS\n1. DURING CONVERSATION WITH HABIS REPORTED SEPTEL,\nYASUKAWA DISCUSSED CRISIS OF TANAKA CABINET AND SAID HIS\nRECENT CONTACTS IN JAPAN WITH KIMURA, OHIRA, SHIINA AND\nOTHERS HAD LED HIM TO CONCLUDE THAT, TANAKA WOULD RESIGN\nFOLLOWING PRESIDENT FORD'S VISIT. HE SAID SUCCESSOR\nGOVERNMENT WOULD BE FORMED BY LDP UNDER LEADERSHIP OF\nSHITNA, FUKUDA OR OHIRA.\n2. YASUKAWA EMPHASIZED THAT VISIT SHOULD PROCEED AS\nSCHEDULED AND WOULD NOT BE SIGNIFICANTLY AFFECTED BY\nTANAKA'S POLITICAL DIFFICULTIES.\nvl.\nKISSINGER\nBT\n#8883\nEA/J:UCSHERMAN:RD\n11/11/74 EXT 23152\nEA - MR. GLEYSTEEN\nS/S - MR. NOFFAT\nFORD\n&\nGERALD\nLIBRARY\nSECRET\nGG 8/30/01\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR'\nNATIONAL ARCHIVES AND RECORDS ADMINISTRATION\nPresidential Libraries Withdrawal Sheet\nWITHDRAWAL ID 013782\nREASON FOR WITHDRAWAL\n....\nNational security restriction\nTYPE OF MATERIAL\nTelegram\nCREATOR'S NAME\nSECSTATE WASHDC\nRECEIVER'S NAME\nAMEMBASSY TOKYO\nTITLE\nGOJ Views Re Nuclear Controversy\nCREATION DATE\n11/13/1974\nVOLUME\n1 page\nCOLLECTION/SERIES/FOLDER ID\n032400276\nCOLLECTION TITLE\nNATIONAL SECURITY ADVISER. PRESIDENTIAL\nCOUNTRY FILES FOR EAST ASIA AND THE\nPACIFIC\nBOX NUMBER\n8\nFOLDER TITLE\nJapan - State Department Telegrams:\nFrom SECSTATE - NODIS (1)\nDATE WITHDRAWN\n09/05/2001\nWITHDRAWING ARCHIVIST\nGG\nREDACTED\n8/13/07\n2/8/11\nWT\n10\nCOPY 9 OF 15 COPIES\nZOPIN\nOF STATE\nDepartment of State\nUNITED STATES OF AMERICA\nTELEGRAM\n0 1322297 NOV 74 ZFF4\nFM SECSTATE WASHDC\nT.O AMEMBASSY TOKYO IMMEDIATE 7760\nCONTROL: 3758Q\nBT\nT ORSECRET STATE 250522\nNODIS\nCAP STADIS\nE.O. 11652: XGDS\nTAGS: PFOR, MARR, JA\nNODIU\nSUBJECT: GOJ VIEWS RE NUCLEAR CONTROVERSY\n1. YASUKAWA CALLED ON HABIB EVENING NOV 12 TO DISCUSS\nNUCLEAR QUESTION PRIOR TO HIS RETURN TO JAPAN TO WELCOME\nPRESIDENT FORD. ACCORDING YASUKAWA, BOTH TANAKA AND OHIRA\nREMAIN CONVINCED THAT RESOLUTE ACTION TO RESOLVE ISSUE AND\nTAKE PUBLIC POSITION\nIS\nNECESSARY. HOWEVER, FONMIN KIMURA MAY BE WAVERING.\nYASUKAWA SAID HE WOULD TAKE NEW READING ON HIS RETURN TO\nJAPAN AND WOULD RELAY ANY NEW IMPRESSIONS TO DEPT THROUGH\nAMB HODGSON. NONE OF HIS STAFF AT JAPANESE EMBASSY HERE IS\nAWARE OF DETAILS HE HAS BEEN DISCUSSING AND HE THEREFORE\nDOES NOT RPT NOT WISH USE FONOFF CHANNELS FOR COMMUNICATION.\nKISSINGER\nTHEREY GERALD RORD\nEA/J WCSHERMAN:RD\n200-0\n11/13/74 EXT 23152\nEA - - MR. HABIB\nS/S - MR. MOFFAT\nI\nEA - MR. GLEYSTEEN\nDECLASSIFIED w/ portions exampted\nE.O. 12958 (no amendati) SEC 3.3\nMR# 10-094,1619\nstate dept etr 2/8/11\nBy\ndal NARA, Date 6/3/11\nTOP SECRET FAB SECRET\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nN\nCOPY /'-OF 15 COPIES\n141\nOF STATE\nDepartment of State\nUNITED\nTELEGRAM\nSTATES OF\nPEODET\nSEGALI\nS\nCONTROL: 3832Q\n0 1405542 NOV 74 ZFF4\nFM SECSTATE WASHOC\nRECD : NOV 15, 1974\nTO RUEHKO/ AMEMBASSY TOKYO NIACT IMMEDIATE 0000 1:03 A.M.\nRUDTC/ AMEMBASSY LONDON NIACT IMVEDIATE 0000\nRUFNPS/ AMEMBASSY PARIS NIACT IMMEDIATE 0000\nN\nBT\nSECRET STATE 250994\nNODIS\nE.O. 11652: XGDS\nTAGS: PFOR, ENRG\nSUBJECT: LETTER FROM SECRETARY TO FOREIGN MINISTER\n1. PLEASE DELIVER THE FOLLOWING LETTER TO THE FOREIGN\nMINISTER NOT BEFORE 5:00 PM LOCAL TIME THURSDAY, NOVEMBER\nS\n14 IN EUROPE, AND AS- EARLY AS POSSIBLE DURING THE BUSINESS\nDAY IN JAPAN, FRIDAY, NOVEMBER 15. THE SECRETARY'S SPEECH\nREFERRED TO IN THIS LETTER WILL BE DELIVERED THURSDAY,\nNOVEMBER 14 IN CHICAGO AT 9:25 PM LOCAL TIME. YOU SHOULD\nASK THAT THE SECRETARY'S LETTER BE HELD IN STRICTEST\nCONFIDENCE UNTIL HE DELIVERS THE SPEECH.\nN\n2. DEAR MR. MINISTER: THE EFFECTS OF THE ENERGY CRISIS\nHAVE NOW BECOME MANIFEST -- IN MORE RAPID INFLATION,\nARRESTED GROWTH, INCREASING STRAINS ON THE INTERNATIONAL\nFINANCIAL SYSTEM AND NARROWING OPPORTUNITIES FOR GOVERN-\nMENTS TO CONTROL THEIR COUNTRIES' 0 7 N POLITICAL AND\nECONOMIC DESTINY. THIS RELENTLESS COURSE OF EVENTS LENDS\nTD State Dept 9/23/02 Review\nNEW URGENCY TO OUR JOINT EFFORTS TO DESIGN AND CARRY OUT\nAN EFFECTIVE STRATEGY TO OVERCOME THE PROBLEMS EMANATING\nFROM THE ENERGY CRISIS.\n3. THE USG RELIEVES THAT THE CONCLUSION IS INESCAPABLE\nTHAT COOPERATION AMONG THE MAJOR OIL CONSUMING AREAS OF\nS\nEUROPE, NORTH AMERICA AND JAPAN IS THE FUNDAMENTAL PRE-\nDECLASSIFIED\nE.O. 12958, SEC. 3.5\nSTATE DEPT, GUIDELINES\nHR, NARA, DATE 1/27/03\nREQUISITE FOR AN EFFECTIVE PROGRAM OF ACTION. THE CRISIS\nITSELF DEFIES NATIONAL SOLUTIONS. BUT YORKING TOCETHER\nWE UO HAVE OPTIONS WHICH WE 00 NOT HAVE SEPARATELY.\nTHEREAS NO COUNTRY ALONE, EXCEPT POSSIBLY THE UNITED\nFORD is GENALD LIBRARY\nBY.\nSECRET\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nOP a. STATE\nDepartment of State\nUNITED\nTHESHAN\nSTATES of\nPEODET\nSEORE!\n-2- STATE 250994\nS\nSTATES, CAN PROTECT ITSELF IN A SELECTIVE EMBARGO,\nTOGETHER WE CAN DO SO.\n4. WE NOW NEED TO MOVE FURTHER IN THE COOPERATIVE\nENDEAVORS BEGUN THIS YEAR AT THE WASHINGTON ENERGY CON-\nFERENCE AND CARRIED FORWARD IN SUBSEQUENT DELIBERATIONS.\nOUR WORK HAS NOW PROGRESSED TO THE STAGE WHERE WE\nN\nSHOULD ADVANCE SOME OF THE PROPOSALS WE HAVE BEEN COM-\nSIDERING AMONG THE FIVE TO THE BROADER GROUP OF COUNTRIES\nTHAT WILL NEED TO ACT ON THEM. AS A PART OF THIS PROCESS,\nI INTEND TO PRESENT SOME U.S. PROPOSALS IN A SPEECH ON THE\nEVENING OF NOVEMBER 14 IN CHICAGO. I WANT TO SHARE WITH\nYOU SOME OF THE REASONING BEHIND THESE PROPOSALS, AS\nWELL AS THE NATURE OF THE PROPOSALS THEMSELVES, ALTHOUGH\nOUR GENERAL THOUGHTS ARE ALREADY FAMILIAR TO YOU.\n5. ON THE IMPORTANT QUESTION OF OIL PRICE, THE PRODUCERS\nHAVE \"ADE IT CLEAR THAT POLITICAL PERSUASION OP NEGOTIA-\nTION IS NOT NOW GOING TO RESULT IN ANY NOTABLE PRICE\nS\nDECREASE. THE ALTERNATIVE LEFT US is, THEREFORE. THE\nDIFFICULT BUT WORKABLE ONE OF ACTION ON THE CONSUMER\nSIDE (1) TO CREATE THE OBJECTIVE CONDITIONS FOR A N\nEVENTUAL PRICE REDUCTION, AND (2) TO PROTECT THE VITALITY\nOF OUR ECONOMIES IN THE INTERIM PERIOD OF HIGH OIL PRICES.\nTO ACHIEVE THE FIRST OBJECTIVE CONSUMING COUNTRIES NEED\nMAJOR NEW EFFORTS BOTH TO REDUCE DEMAND FOR OIL THROUGH\nN\nCONSERVATION AND TO DEVELOP NEW SOURCES OF ENERGY SUPPLY.\nIN THE PERIOD UNTIL THESE ACTIONS REACH FULL EFFECTIVENESS\nCONSUMING COUNTRIES, AS WE HAVE RECOGNIZED, NEED TO\nCOMPLETE TWO SAFETY NETS, ONE TO DEAL WITH ANY NEW OIL\nSUPPLY EMERGENCY AND THE OTHER TO DEAL WITH ANY POTENTIAL\nINABILITY OF THE FINANCIAL SYSTEM TO RECYCLE THE HUGE\nFLO# OF OIL FUNDS.\n6. ENERGY CONSERVATION OFFERS US THE MOST IMMEDIATE\nPROSPECT OF RELIEF FROM HIGH OIL PRICES. FOR POLITICAL\nAS WELL AS ECONOMIC REASONS EFFECTIVE CONSERVATION MUST\nS\nBE A COLLECTIVE EFFORT. AT A MINIMUM WE SHOULD COL-\nLATE OUR INDIVIDUAL COUNTRY PROGRAMS FOR 1975 TO MAKE SURE\nTHAT ,VF ART DOING ENOUGH. THE U.S. \"ILL PROPOSE THAT\nTHE INDUSTRIALIZED COUNTRIES SET THE GOAL OF REDUCING\n:\nFORD\nTHEIR CONSUMPTION FROM WHAT IT OTHER#ISE WOULD HAVE BEEN\nBY THREE MILLION BARRELS PER DAY (150 MILLION TONS AT\nGERALD\nCrease\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETAR\nN\nOF STATE\nDepartment of State\nUNITED OFFICE STATES OF\nTELEGRAM\nSEDDET\n-3- STATE 250994\nAN ANNUAL RATE) BY THE END OF 1975. THE UNITED STATES\nHAS ALREADY ANNOUNCED A PROGRAM TO REDUCE OUR CONSUMP-\nS\nTION OF IMPORTED OIL BY ONE MILLION BARRELS PER DAY IN\n1975. IN THE CONTEXT OF A COMMON GOAL OF CONSUMING\nCOUNTRIES, THE UNITED STATES IS PREPARED TO ACHIEVE\nFURTHER SAVINGS.\n7. IN DEALING WITH RECYCLING OF OIL FUNDS, WE NEED TO\nN\nCONSIDER THREE BASIC OBJECTIVES: TO PROTECT THE\nINTEGRITY OF OUR FINANCIAL INSTITUTIONS, TO ENSURE THAT\nNO NATION FEELS FORCED TO PURSUE DISRUPTIVE POLICIES\nFOR LACK OF ADEQUATE FINANCE AND TO MAKE SURE NO CONSUM-\nING COUNTRY IS COMPELLED TO ACCEPT FINANCING ON INTOLER-\nABLE POLITICAL AND ECONOMIC TERMS. THE TASK FOR\nGOVERNMENTS IS TO PROVIDE A BACK-UP, INTERGOVERNMENTAL\nFACILITY THAT CAN AUGMENT PRIVATE RECYCLING PHENEVER\nNECESSARY. SUCH A SAFETY NET WOULD HELP ASSURE THE\nSTABILITY OF THE ENTIRE SYSTEM AND THE CREDITWORTHINESS\nOF PARLICIPATING GOVERNMENTS.\nS\n8. WITH THESE CONSIDERATIONS IN MIND THE UNITED STATES\nIS PROPOSING THAT THE INDUSTRIALIZED COUNTRIES CREATE\nA COMMON LOAN AND GUARANTY FACILITY TO PROVIDE A MEANS\nFOR RECYCLING UP TO DOLS 25 BILLION IN 1975. GOVERNMENTS\nWOULD INDIVIDUALLY CHOOSE HOW TO MEET THEIR COMMITMENTS\nTO SUCH A FACILITY, BUT PRESUMABLY MOST WOULD CHOOSE TO\nN\n00 SO BY BORROWING. CALLS ON GOVERNMENTS' COMMITMENTS\nTO PROVIDE FUNDS TO THE FACILITY WOULD BE MADE IN\nCONNECTION WITH SPECIFIC DECISIONS OF PARTICIPATING\nGOVERNMENTS ON SUPPORT TO COUNTRIES IN NEED OF FINANCING,\nAFTER FULL RESORT TO PRIVATE OPPORTUNITIES AND REASONABLE\nSELF-HELP MEASURES.\n9. WE ARE ALREADY CONSIDERING NE\" WAYS OF ASSISTING\nDEVELOPING COUNTRIES IN THEIR ACUTE FINANCIAL PROBLEMS.\nWE NEED TO CONSIDER NEW POSSIBILITIES OF PROVIDING\nHIGHLY CONCESSIONAL FINANCING TO THE DEVELOPING COUNTRIES\nMOST SERIOUSLY HURT BY THE CURRENT CRISIS. IN PARTICULAR,\nS\nSPECIAL FINANCING OF THE IMF NEEDS TO BE PROVIDED ON\nTERMS MORE SUITABLE TO THESE COUNTRIES' NEEDS.\n=\nFORD\n10. AS YOU KNOW. THE US HAS ALWAYS BEEN IN FAVOR OF s\nCONSTRUCTIVE DIALOGUE WITH 21L PRODUCING COUNTRIES.\nGERALD\nOTHER\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nDEPARTMENT OF STATE\nDepartment of State\nGRING\nTELESHAN\nSTATES\nOF\nSECRET\n-4- STATE 250994\nCONSUMER COUNTRY COOPERATION IS NOT ANTAGONISTIC TO\n$\nCONSUMER-PRODUCER COOPERATION, BUT AN ESSENTIAL PREPAR-\nATION FOR THIS BROADER DIALOGUE.\n11. THE USG HOPES THAT CONSUMING COUNTRIES CAN MOVE\nPROMPTLY TO BROADEN OUR COOPERATIVE EFFORT. THE NEW\nINTERNATIONAL ENERGY AGENCY is BES1 PLACED TO DEVELOP\nA PROCRAM OF ACTION ON CONSERVATION, NF # SUPPLIES AND\nN\nPREPARATION OF CONSUMER POSITIONS FOR THE EVENTUAL\nCONSUMER-PRODUCER DIALOGUE. NE SUGGEST THAT THE GROUP\nOF 10 FINANCE MINISTERS DEVELOP A PROPOSAL FOR FINANCIAL\nCOOPERATION LOOKING TO ENACTMENT WITHIN THE OECD FRAME-\nWORK.\n12. THE ISSUES AND TASKS BEFORE US COMPRISE A PROGRAM OF\nCONSIDERABLE MAGNITUDE, REQUIRING DIFFICULT POLITICAL\nDECISIONS. BUT JUST AS THE TURADIL OF THE IMMEDIATE\nPOST- AR PERIOD BECAME A MOMENT OF GREAT CREATION 15:\nS\nINTERNATIONAL COOPERATION, SO CAN THE ENERGY CRISIS OF\nTODAY BE ONE LEADING TO HISTORIC ACHIEVEMENT THROUGH\nCOOPERATION. THE ECONOMIC FACTS OF TODAY ARE STARK, AS\nTHEY WERE IN 1947-1948. THE STRUCTURE EMERGING FROM\nTHAT CHALLENGE HAS SECURED OUR DEMOCRATIC INSTITUTIONS,\nECONOMIC PROGRESS AND SECURITY FOR A GENERATION. THESE\nACHIEVEMENTS ARE NOW THREATENED. BUT SITH THE SAME\nPOLITICAL VISION, COURAGE, AND ABOVE ALL, COOPERATION\nTHAT SUSTAINED US IN THE EARLIER YEARS, WE CAN MEET THE\nNEW ENERGY CHALLENGE.\n13. I LOOK FORWARD TO WORKING WITH YOU ON THESE TASKS\nIN THE PERIOD IMMEDIATELY AHEAD, AND HOPE THAT WE CAN\nan\nCOUNT ON YOUR SUPPORT AND THAT OF YOUR GOVERNMENT FOR\nTHE PROPOSALS WE HAVE MADE.\nSIGNED HENRY A. KISSINGER.\n14. FOR PARIS: FINAL SENTENCE OF LETTER SHOULD FND WITH\nS\n\"ORUS QUOTE IMMEDIATELY AHEAD UNQUOTE, ELIMINATING ALL\nTHEREAFTER FROM QUOTE AND HOPE UNQUOTE THROUGH QUOTE \"E\nHAVE MADE. UNQUOTE. KISSINGER\nEB/IFD:PHBVEKER:CU\nEUR: AHARTMAN\nGERALD FORD LIBRARY\n11/13/74 EXT. 29496\nEB:MR. ENDERS\nS: LSEAGLEDURGER\nEA:HABIB\nCEDRET\nS/S-O: RELT\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\nCDX 12\n11\nCopy 15 copies\n& STATE DF\nDepartment of State\nUNITED STATES OF\nCEPORT\nSECTION\nTELEGRAM\nR 1506052 NOV 74 ZFF4\nControl: 4235Q\nFM SECSTATE WASHDC\nRecd: Nov 15, 1974\nTO AMEMBASSY TOKYO 7815\n1:16 AM\nBY\nSECRETSTATE 252073\nNODIS\nZOP\nTAGS: ENRG\nE.O. 11652: XGOS\nFOR THE AMBASSADOR FROM ENDERS\nSUBJECT: CAMP DAVID FOLLOW-UP\nREF: TOKYO 14778\n1. MANY THA\" KS FOR YOUR REPORT ON JAPANESE MEDIA COVERAGE\nVISIT, OF MY VISIT AND FOR YOUR HELPFUL ROLE IN HANDLING THIS\nS\n2. YOU WILL HAVE SEEN BY NOW FROM THE SECRETARY'S CHICAGO\nSPEECH THAT WE ARE PRESENTING THE ESSENCE OF OUR\nPROPOSALS TO A BROAD GROUP OF GOVERNMENTS AND TO THE\nPUBLIC. THIS COURSE SHOULD BOTH ADVANCE OUR ENERGY\nSTRATEGY AND FACILITATE OUR TASK IN PROJECTING A\nCOHERENT PUBLIC IMAGE OF WHAT WE ARE ABOUT. THANKS\nN\nFOR YOUR HELP IN A VERY DELICATE STAGE OF THESE\nINTERNATIONAL DISCUSSIONS. INGERSOLL\nEB/IFD: PHBOEKER\n0\n11/14/74 29496\nEH:TOENDERS\nS/S-0: R. ELTZ\nS\nDECLASSIFIED\nE.O. 12956, SEC. 3.5\nSTATE DEPT, GUIDELINES\nFORD\nBY 66\n, NARA, DATE 8/30/01\n?\nPEOPLE\nGERALD\nLIBRARY\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY\n13\nCOPY 10 OF 10 COPIES\n17 NOV. 742 2219\n4850\n11\nDEPARTMENT OF STATE\n707\n-\nDepartment of State\nUNITED OF\nSECRET\nNOD028\nTELEGRA\nSTATES\nPAGE 01 STATE 253571\n00\nORIGIN NODS-00\nS\nINFO OCT-01 1001 R\nORAFTED BY Pl JJSTSCO:WES\nAPPROVED BY P.I J SISCO\nS/S-0: R. ELTZ\n088589\nN\n0 1722062 NOV 74 ZFF0\nFM SECSTATE WASHDC\nTO WHITE HOUSE IMMEDIATE\nINFO AMEMBASSY CAIRO IMMEDIATE\nUSHISSION USUN NEW YORK IMMEDIATE\nAMEMBASSY TOKYO IMMEDIATE\n& C a the 7 STATE 253571\nNODIS\nCHEROKEE, TOSEC 003, WHITE HOUSE PLS PASS TO SAM 27000\nS\nE.O. 116521 GDS\nTAGS: DVIP, TKISSINGER, HENRY A.)\nSUBJECTICONVERSATION BETWEEN SISCO AND WALDHEIM\nN\nFOR RECRETARY FROM SISCO\n--\nWHITE HOUSE PLS\nPASS MESSAGE TO SAM 27000\n0\n1. Y REACHED WALDHEIM THIS AFTERNOON TO CONVEY TO HIM\nESSENCE OF PARAS TWO AND THREE OF CAIRO 9273,\nK $\n2. I TOLD WALDHEIM BOTH WE AND EGYPTIANS WERE WEIGHING\nIN WITH ASAD AND URGED A DIRECT MESSAGE FROM HIM. HE\nSAID HE SENT SUCH A MESSAGE TO ASAD LAST NIGHT MAKING\nESSENTIALLY SAME, ARGUMENT SUGGESTED BY FAHMI. HE IS\nAWAITING A REPLY.\nS\n3. AS TO HIS REPORT, HE NORMALLY PUTS ONE OUT ONE WEEK\nBEFORE THE SECURITY COUNCIL MEETING, MEETING NOT SCHEDULED\nFORD\n&\nSECRET\nGERALD\nLIBRARY\nGG 8/30/01\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECR\nOF STATE\nUNITED\nAMERICA\nDepartment of State\nSECRET\nTELEGRA\nSTATES OF\nPAGE 02 STATE 253571\nYET BUT WILL OBVIOUSLY BE HELD TOWARD END OF MONTH WHEN\nUNDOF MANDATE EXPIRES. I URGED, AND HE AGREED, THAT HE\nS\nWOULD HOLD UP ISSUANCE OF REPORT UNTIL VERY LATEST\nPOSSIBLE TIME. IN SHORT IN HIS OWN WORDS RATHER THAN A\nWEEK BEFORE SECURITY COUNCIL MEETING, HE WILL HOLD \"IT\nTO THE LAST MINUTE\".\n4. I DID NOT, HOWEVER, CONVINCE HIM. TO KEEP KHADDAM\nNON-RENEWAL REQUEST OUT OF THE SECRETARY GENERAL'S REPORT\n/\nIF WE GET TO THAT POINT. I NOTED HE WAS NOT UNDER ANY\nOBLIGATION TO INCLUDE SYRIAN POSITION, THAT HE SHOULD\nCONFINE HIS REPORT TO THE FACTS OF SITUATION, EXPLAINING\nWHAT UNDOF HAS DONE IN APPEALING TO PARTIES AND SECURITY\nCOUNCIL THAT UNDOF BE CONTINUED. WALDHEIM MAINTAINED\nTHAT KHADDAM HAD ASKED HIM TO REFLECT SYRIAN POSITION\nIN HIS REPORT, AND IF THEY HOLD TO, THIS POSITION,\nHE WILL HAVE TO INCLUDE IT IN RECORT. I ASKED HIM NOT\nTO MAKE ANY FINAL JUDGEMENT ON THIS. I ASKED WHETHER\nHE HAD SYRIAN POSITION IN WRITING. HE SAID ORALLY ONLY.\nTHE REASON I ASKED IS THAT\nIF THE SYRIANS HOLD\nS\nTO THEIR POSITION WE CAN GO BACK TO WALDHEIM IN A FEW\nDAYS AND INSIST THAT HE INSIST WITH THE SYRIANS THAT\nLATTER PUT IT IN WRITING.\n5. WE AGREED WE WOULD BE IN TOUCH ON THIS AGAIN EARLY IN\nTHE week.\n6. SECRETARY MAY WANT TO AUTHORIZE FILTS TO COMMUNICATE\nESSENCE OF AROVE TO FAMHI. INGERSOLL\nS\nFORD\nSECRET\n&\nBERALD\nLIBRARY\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRE\n14\nCOPY 100F OF 10 COPIES\nDEPARTMENT OF STATE\nHGV\n00405\n708\nDepartment of State\nUNITED STATES OF\nBECRET\nN00034\nTELEGR\nPAGE 01 STATE 253577\n00\nORIGIN NODS-00\nS\nINFO OCT-01 /001 R\nDRAFTED BY PIARAPHEL\nAPPROVED BY P:MR. SISCO\nS/S-O:PKJOHNSONIRAM\n009262\nX\n0 1802032 NOV 74 ZFF4\nFM SECSTATE WASHOC\nTO WHITE HOUSE IMMEDIATE\n0\nAMEMBASSY TOKYO IMMEDIATE IMMEDIATE\nS E e RE 7 STATE 253577\nNODIS\nCHEROKEE, TOSEC 008\nE.O. 11652:\nS\nTAGS:PFOR, UN. IS, OVIP CKISSINGER, HENRY An\"\nSUBJECT:EXCHANGE OF LETTERS BETWEEN WALDHEIM AND RABIN\nWHITE HOUSE PASS SAM 27000\nFOR THE SECRETARY FROM SISCO\nI.\n1. THE TEXTS OF THE FOLLOWING LETTERS FROM SYG WALDHEIM TO\nPM RABIN ON NOVEMBER 16 AND THE RESPONSE FROM RABIN TO\nWALDHEIM ON NOVEMBER 17 WERE GIVEN ME BY MINISTER SHALEV\nWHO ASKED THAT THEY BE PASSED TO YOU. TEXTS FOLLOW:\n2. FROM WALDHEIM TO RABIN: QUOTE DEAR PRIME MINISTER.\nI HAVE BEEN FOLLOWING WITH GROWING ANXIETY THE MOST RECENT\nDEVELOPMENTS IN THE MIDDLE EAST.\nI AM DEEPLY CONCERNED THAT THE PRESENT INCREASE IN TENSION\nMAY LEAD TO A BREAKDOWN OF THE CFASE FIRE WHICH I FIRMLY\nS\nBELIEVE NONE OF THE PARTIES DESIRE AND WHICH WILL CERTAINLY\nFORD\n&\nLIBRARY\nDÉCLASSIFIED\nGERALD\nSECRET\nE.O. 12956, SEC. 3.5\nH\nSTATE DEPT, GUIDELINES\nBY GG\nNARA, DATE 8/30/01\nNOT TO BE REPRODUCED WITHOUT\nDEPARTMENT Op STATE\nUNITED\nDepartment of State\nSECRET\nTELEGR\nSTATES of\nPAGE 02 STATE 253577\nBE IN THE LONG TERM INTERESTS OF NO ONE.\nS\nSUCH A DEVELOPMENT WOULD REMOVE ANY IMMEDIATE POSSIBILITY\nOF MAKING REAL PROGRESS TOWARD A PEACEFUL AND JUST SETTLE-\nMENT IN THE MIDDLE EAST.\nY FOR MY PART HAVE BEEN DDING AND WILL CONTINUE TO DO ALL\nTHAT I CAN TO CONTRIBUTE TO A SOLUTION OF THIS CRUCIAL\nPROBLEM.\nAS AMBASSADOR TEKOAH WILL HAVE INFORMED YOU I HAVE BEEN AD-\nVISED BY THE FOREIGN MINISTER OF SYRIA OF THE INTENTION OF\nHIS GOVERNMENT NOT TO AGREE TO THE RENEWAL OF THE MANDATE\nOF UNDOF WHEN ITS CURRENT SIX-MONTH MANDATE EXPIRES.\nALTHOUGH THIS IS A MATTER WHICH HAS TO 88 DECIDED BY THE\nSECURITY COUNCIL I AM NATURALLY DEEPLY CONCERNED AT THE\nPOSSIBLE CONSEQUENCES OF SUCH A DEVELOPMENT. I SHOULD ADD\nTHAT THE ADOVE-MENTIONED TALKS DEALT ONLY WITH THE QUESTION\nOF UNDOF'S RENEWAL AND DID NOT COVER THE DISENGAGEMENT\nAGREEMENT AS A WHOLE,\nS\nI WISH TO ASSURE YOU THAT WE ARE MAKING EVERY POSSIBLE\nEFFORT TO AVERT ANY DEVELOPMENT WHICH MIGHT LEAD TO A NEW\nOUTBREAK OF FIGHTING IN THE MIDDLE EAST.\nI AM SURE THAT WE CAN COUNT ON THE COOPERATION OF YOUR\nGOVERNMENT IN THIS EFFORT WHICH TS VITAL NOT ONLY TO THE\nCOUNTRIES OF THE REGION BUT ALSO TO WORLD PEACE.\nI SHALL OF COURSE KEEP AMBA3SADOR TEKOAH FULLY INFORMED\nOF DEVELOPMENTS.\nPLEASE ACCEPT MR', PRIME MINISTER. THE, ASSURANCES OF MY\nHIGHEST CONSIDERATION. KURT WALDHEIM. UNQUOTE.\n3. FROM RABIN TO WALDHEIM: QUOTE DEAR SECRETARY GENERAL.\nI AGREE WITH YOU THAT IT WOULD BE MOST REGRETTABLE TF THE\nS\nPRESENT TENSION CONTINUED ENDANGERING THE DISENGAGEMENT\nAGREEMENT AND THE CEASEFIRE. I CAN ASSURE YOU THAT ISRAEL\nBECRET\nGERALD\nLIBRARY\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET\nDEPARTMENT OF By state\nUNITED\nDepartment of State\nSECRET\nTELEGR\nSTATES OF\nPAGE 03 STATE 253577\nATTACHES IMPORTANCE TO THE MAINTENANCE OF THE TERMS OF THE\nDISENGAGEMENT AGREEMENT AND THE CEASEFIRE AS A PREREQUISITE\nS\nFOR PROGRESS TOWARDS PEACE.\nI WOULD LIKE TO CLARIFY THAT ISRAEL HAS NOT BEEN THE\nINITIATOR OF THIS TENSION. ISRAEL WAS OBLIGED TO TAKE\nCERTAIN LIMITED PRECAUTIONARY STFPS ONLY AFTER IT BECAME\nCLEAR THAT SYRIAN ARMED FORCES HAD BEEN PUT IN A STATE OF\nALERT,\nN\nYOUR MESSAGE REFERRED TO THE INTENTION OF THE SYRIAN\nGOVERNMENT NOT TO AGREE TO THE RENEWAL OF THE MANDATE OF\nUNDOF WHEN ITS CURRENT SIX MONTH MANDATE EXPIRES. THIS\nDEVELOPMENT IS CERTAINLY DAMAGING TO THE PROSPECTS OF\nPEACE. I MUST MAKE IT CLEAR THAT ISRAEL CONSIDERS THE\nUNDOF'S ROLE AN INTEGRAL PART OF THE DISENGAGEMENT AGREE-\nMENT. THE COMMITMENTS OF SYRIA AND ISRAEL, AS SET OUT IN\nTHE AGREEMENT AND PROTOCOL, BOTH. CONSTITUTING ONE INDIVIS**\nIBLE WHOLE, ARE CLEAR AND SPECIFIC.\nS\nTHE ESTABLISHMENT AND STATIONING OF UNDOF IN THE AREA\nDESIGNATED IN THE AGREEMENT IS ONE OF THE PRINCIPLES OF\nTHE AGREEMENT. UNDOF'S ROLE IS, INTER ALIA, TO SUPERVISE\nTHE AGREEMENT AND PROTOCOL WITH REGARD TO THE AREA. OF SEP-\nARATION AND LIMITATION. PARAGRAPH E OF THE AGREEMENT\nSPECIFICALLY STATES THAT THE PROVISIONS CONCERNING THE\nCEASEFIRE, THE DISENGAGEMENT AND THE DEMILITARIZATION\nN\nWOULD BE INSPECTED BY UN PERSONNEL, WHO, UNDER THIS AGREE-\nMENT, WOULD COMPRISE THE UNDOF: THERE IS NO TIME LIMIT ON\nTHE VALIDITY OF THE AGREEMENT AND THE FUNCTIONS OF THE\nUNDOF THEREUNDER.\nI WISH TO EMPHASIZE THE SERIOUSNESS WITH WHICH WE WOULD\nVIEW A BREACH OF AGREEMENT. I AM GLAD TO HAVE YOUR ASSUR-\nANCE THAT YOU ARE MAKING EVERY EFFORT TO AVERT UNDESTRABLE\ndevelopments. I CAN ASSURE you OF THE COOPERATION OF THE\nGOVERNMENT OF ISRAEL IN YOUR EFFORTS. UNQUOTE. INGERSOLL\nS\nSECRET\nFORD\n&\nGERALD\nLIBRARY\nNOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRE"
}