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Bill Donaldson/Secy Kissinger 2 D: Okay. It's not just the embargo but just the idea that, you know, finally now with all the pressure they put on, even the United States is now trying to make a deal with them. It just makes them feel that the whole strategy is brighter than maybe I'm not questioning that we shouldn't have a contingency plan. K: A contingency plan won't do us any good if we haven't opened the discussion. D: Right. Okay. I guess I would want to haul out the contingency plan the minute we see that these other guys don't go along with us; in case they don't go along. K: Yeah, but why is that better to open the discussion and then let it drag until the other guys don't go along with us? D: I just think he might interpret it as a sign of weakness. Your judgment K: Well, I'd like to see By the time the others have sewed up large chunks of this thing, it doesn't do us much good to open the discussion. D: So far, you know, those deals are pretty small. I mean, 200 thousand barrels a day to the French is nothing. And the British haven't even K: Well, we don't have to go that way. I think it will be a better pressure though if we have an option to go this way. D: Right. K: I have never seen the advantage in not getting yourself an option. D: Right. K: Secondly, I had a press conference this morning and I announced that the President was going to make an initiative next week. D: Oh, you did. K: Yeah. D: Good. Well, that brings me to the second reason why I was going to call you. And, that is, first of all, I talked to both the Germans and the British Ambassadors. The British, you know, were very forthcoming and he said he would go back to them and he was all very friendly. The German guy was a little more guarded in the sense he felt they were in a sort of a special position now because they now share the EC thing. K: Oh, bull!

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