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Review of Negotiations June 1968-June 1969
The 1953 bilateral Defense Agreement was due for renewal in
September 1968. During that summer, the Spanish presented their
"shopping list" of military assistance with a price tag of $1.2 billion,
to which we countered with an offer of $100 million. By September the
figures were honed to $700 vs $140. The Spanish then formally invoked
a provision of the Agreement calling for a six-month period of consulta-
tions -- to end on March 26, 1969. Discussions continued at the military
level in attempts to arrive at a more realistic assessment of Spanish
requirements. By early March 1969 the figures were still far apart,
$570 vs $175 million, and by March 26 agreement was reached "in principle"
to extend the Agreement for five years subject to the completion of the
negotiations. Negotiations continued, and near the end of May the Spanish
made it clear that they were no longer prepared to consider a full five
year extension. At that point we had the choice of (a) a massive but virtually
hopeless effort to secure a five year extension, (b) seek any agreement for
a shorter term (3 years to 18 months) and then have a basic review of our
policy goals in Spain, or (c) break off negotiations and evacuate the bases.
The President opted for the second alternative, and finally, on June 20,
an agreement was signed extending the 1953 Agreement for two years from
September 1968. The price tag was $50 million in grant military aid and
$35 million in credits. In accordance with this extension agreement, the
1953 Defense Agreement, if not renewed or replaced will expire on
September 26, 1970. We will then have one year before its formal termina-
tion, in addition to a reasonable time thereafter to complete the evacuation.
The atmosphere in which the negotiations were conducted was less
than ideal. Oncour side, they spanned the close of one administration and
the opening of another. The Congress was increasingly concerned about
our "security commitment" to Spain. General Burchinal's hegotiations"
with the Spanish military as well as the unfortunate "Pathfinder Express"
exercise received much public attention. The New York Times and
Washington Post came out against the renewal of the base agreement. On
the Spanish side the Franco regime seemed very old. The "state of ex-
ceptions" a crack-down on "liberal" elements, involving a suspension
of civil rights -- was imposed, and then lifted as the negotiations went into
high gear. Rumors of a cabinet shuffle were widespread; the status of the
Foreign Minister was less than certain. The Spanish were tightening the
noose around Gibraltar and at the same time the controlled Spanish press
demanded an end to the base rental arrangements with the US, and insisted
SECRET
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"ocrText": "SECRET\nReview of Negotiations June 1968-June 1969\nThe 1953 bilateral Defense Agreement was due for renewal in\nSeptember 1968. During that summer, the Spanish presented their\n\"shopping list\" of military assistance with a price tag of $1.2 billion,\nto which we countered with an offer of $100 million. By September the\nfigures were honed to $700 vs $140. The Spanish then formally invoked\na provision of the Agreement calling for a six-month period of consulta-\ntions -- to end on March 26, 1969. Discussions continued at the military\nlevel in attempts to arrive at a more realistic assessment of Spanish\nrequirements. By early March 1969 the figures were still far apart,\n$570 vs $175 million, and by March 26 agreement was reached \"in principle\"\nto extend the Agreement for five years subject to the completion of the\nnegotiations. Negotiations continued, and near the end of May the Spanish\nmade it clear that they were no longer prepared to consider a full five\nyear extension. At that point we had the choice of (a) a massive but virtually\nhopeless effort to secure a five year extension, (b) seek any agreement for\na shorter term (3 years to 18 months) and then have a basic review of our\npolicy goals in Spain, or (c) break off negotiations and evacuate the bases.\nThe President opted for the second alternative, and finally, on June 20,\nan agreement was signed extending the 1953 Agreement for two years from\nSeptember 1968. The price tag was $50 million in grant military aid and\n$35 million in credits. In accordance with this extension agreement, the\n1953 Defense Agreement, if not renewed or replaced will expire on\nSeptember 26, 1970. We will then have one year before its formal termina-\ntion, in addition to a reasonable time thereafter to complete the evacuation.\nThe atmosphere in which the negotiations were conducted was less\nthan ideal. Oncour side, they spanned the close of one administration and\nthe opening of another. The Congress was increasingly concerned about\nour \"security commitment\" to Spain. General Burchinal's hegotiations\"\nwith the Spanish military as well as the unfortunate \"Pathfinder Express\"\nexercise received much public attention. The New York Times and\nWashington Post came out against the renewal of the base agreement. On\nthe Spanish side the Franco regime seemed very old. The \"state of ex-\nceptions\" a crack-down on \"liberal\" elements, involving a suspension\nof civil rights -- was imposed, and then lifted as the negotiations went into\nhigh gear. Rumors of a cabinet shuffle were widespread; the status of the\nForeign Minister was less than certain. The Spanish were tightening the\nnoose around Gibraltar and at the same time the controlled Spanish press\ndemanded an end to the base rental arrangements with the US, and insisted\nSECRET"
}