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- 2 - I think we have to come up with something after the first of the year. K: I think it is intolerable for us to wreck our whole alliance for 2 to 3 points in exchange rates. Your position with the President today. I wasn't at the meeting, but Haig was. I agreed with it. R: I am not sure what John is talking about, "burden sharing. 11 It is true the Germans should do more. And we can work out an agreement. K: We have more barriers against the Europeans than they against us. R: I know. This NATO meeting - I don't know what I am going to say. We are going to ask the Italians to make direct contribution. K: We must stay away from that static contribution. If they are going to do more they should do it for their own forces. I thought Johnson's instructions were to stay off the burden-sharing on this trip. R: He keeps coming to me - what do you want us to do? I say tell them build your own barracks and don't worry about us. That's contrary to what the President is saying. K: Lots of luck on your speech. R: Well, it is not a good speech. K: Well, I think it a sensible speech.

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