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Records pertain to the Persian Gulf.
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FI010-02 Case Number 198751 Scanned
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FI010-02 Case Number 198751 Scanned
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Records pertain to the Persian Gulf.
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Records of the White House Office of Records Management (George H.W. Bush Administration)
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198751
THE WHITE HOUSE
FI010-02
WASHINGTON
February 14, 1991
Dear Senator Bill Roth:
Thank you for your letter to the President conveying your
concerns about the possibility of a surtax to cover the costs
borne by the United States in Operation Desert Shield/Desert
Storm. The President has stated that he does not believe that a
surtax is necessary.
I fully agree that with the United States shouldering the
heaviest burden in the allied effort to liberate Kuwait, we must
secure the financial and logistical support of our coalition
partners. I can assure you that they recognize that the world
has much to gain from a satisfactory outcome to this endeavor and
are making substantial contributions to help defray our expenses.
In brief,
-
Twenty-eight other countries have their own military forces
in the Persian Gulf, Saudi Arabia and the Gulf states.
-
Our allies have provided both cash and in-kind assistance to
help us meet our needs and cover our expenses. Their
support is covering close to 90 percent of our 1990 costs.
Total commitments by our allies exceed $51 billion for
1990-91, with major contributions from Saudi Arabia, Kuwait,
Japan, and Germany.
-
In addition, many other countries have taken the
responsibility for assisting those nations which have
suffered the most from the international sanctions against
Iraq. The Gulf Crisis Financial Coordination Group
established by President Bush has committed $14.3 billion
for exceptional economic assistance for these states.
We appreciate your support for our efforts to secure equitable
burden-sharing of the costs associated with Desert Shield and
Desert Storm.
Sincerely,
Breat
Brent Scowcroft
The Honorable William V. Roth, Jr.
United States Senate
Washington, D.C. 20510
THE WHITE HOUSE
WASHINGTON
February 14, 1991
Dear Senator Check Grassley:
Thank you for your letter to the President conveying your
concerns about the possibility of a surtax to cover the costs
borne by the United States in Operation Desert Shield/Desert
Storm. The President has stated that he does not believe that a
surtax is necessary.
I fully agree that with the United States shouldering the
heaviest burden in the allied effort to liberate Kuwait, we must
secure the financial and logistical support of our coalition
partners. I can assure you that they recognize that the world
has much to gain from a satisfactory outcome to this endeavor and
are making substantial contributions to help defray our expenses.
In brief,
-
Twenty-eight other countries have their own military forces
in the Persian Gulf, Saudi Arabia and the Gulf states.
-
Our allies have provided both cash and in-kind assistance to
help us meet our needs and cover our expenses. Their
support is covering close to 90 percent of our 1990 costs.
Total commitments by our allies exceed $51 billion for
1990-91, with major contributions from Saudi Arabia, Kuwait,
Japan, and Germany.
-
In addition, many other countries have taken the
responsibility for assisting those nations which have
suffered the most from the international sanctions against
Iraq. The Gulf Crisis Financial Coordination Group
established by President Bush has committed $14.3 billion
for exceptional economic assistance for these states.
We appreciate your support for our efforts to secure equitable
burden-sharing of the costs associated with Desert Shield and
Desert Storm.
Sincerely,
Beent
Brent Scowcroft
The Honorable Charles E. Grassley
United States Senate
Washington, D.C. 20510
0044
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
February 11, 1991
Nati Sec Advisor
has seen
ACTION
MEMORANDUM FOR BRENT SCOWCROFT
THROUGH:
TIMOTHY E. DEAL
SIGNED
FROM:
MEG LUNDSAGER
SUBJECT:
Congressional Letter on Financing Desert Shield
Purpose
To reply on behalf of President Bush to a letter from Senators
Roth and Grassley.
Background
Senators Roth and Grassley sent the President a letter on
December 13 (Tab B) opposing a surtax to pay for Operation Desert
Shield. We originally staffed the letter to Treasury, but when
they indicated they would have an acting assistant secretary
respond, we decided to draft a reply for your signature.
In the draft reply, you refer to the President's statement that
he does not believe a tax increase is necessary and provide an
update on the recent pledges received from our allies.
Concurrence by: Richard Haass, Virginia Lampley
RECOMMENDATION
A
That you sign the letters to Senators Roth and Grassley
Attachments
Tab A
Draft Replies
Tab B
Incoming Correspondence
December 18, 1990
Dear Chuck:
Thank you for your recent letter to the President, cosigned by
Senator Roth, regarding the current situation in the Persian
Gulf.
We appreciate being apprised of your opposition to the implemen-
tation of a surtax to pay for Operation Desert Shield and your
thoughts on the need for our allies to shoulder more of the
financial burden. Your concerns have been noted, and I have
taken the liberty of sharing your comments with the President's
national security advisors so that they, too, are aware of your
views in this regard.
Thank you again for your interest in writing.
With best regards,
Sincerely,
Frederick D. McClure
Assistant to the President
for Legislative Affairs
The Honorable Charles E. Grassley
United States Senate
Washington, D.C. 20510
FDM: SLM:
bcc: w/ copy of inc to NSC - for direct response
bcc: w/ copy of inc to Dept. of State - FYI
December 18, 1990
Dear Bill:
Thank you for your recent letter to the President, cosigned by
Senator Grassley, regarding the current situation in the Persian
Gulf.
We appreciate being apprised of your opposition to the implemen-
tation of a surtax to pay for Operation Desert Shield and your
thoughts on the need for our allies to shoulder more of the
financial burden. Your concerns have been noted, and I have
taken the liberty of sharing your comments with the President's
national security advisors so that they, too, are aware of your
views in this regard.
Thank you again for your interest in writing.
With best regards,
Sincerely,
Frederick D. McClure
Assistant to the President
for Legislative Affairs
The Honorable William V. Roth, Jr.
United States Senate
Washington, D.C. 20510
FDM: SLM:
bcc: w/ copy of inc to NSC - for direct response
bcc: w/ copy of inc to Dept. of State - FYI
98751
United States Senate
10044
kno Bure
WASHINGTON, D.C. 20510
December 13, 1990
The President
The White House
1600 Pennsylvania Ave., N.W.
Washington, D.C. 20500
Dear Mr. President:
We are greatly concerned about recent news reports that
quote several leaders of Congress advocating a surtax to pay
for Operation Desert Shield. We believe it is imperative that
our allies who are benefiting directly should pay the monetary
burden for Operation Desert Shield.
America's contribution of human and military resources is
more than ample. For our Persian Gulf allies, the benefits are
direct, substantial and quantifiable. While we have made the
overwhelming commitment of people and resources to stabilize
the Persian Gulf and defend the oil and territorial interests
of our allies, they are receiving an overwhelming share of the
windfall benefits.
The cost of Desert Shield is now reported to be
approaching $3 billion per month and could exceed $35 billion
by the end of September 1991. If war breaks out, that figure
would escalate sharply. But, such dollar measures fail to
include the true burden on the American people -- over 500,000
of America's best and brightest young people whose lives are at
risk as long as they are stationed in the Persian Gulf region.
In addition, the dollar figures fail to include the billions of
dollars of equipment being used to defend -the Persian Gulf
allies.
While Desert Shield costs $3 billion per month, recent
estimates state that our Persian Gulf allies are receiving $5
billion per month in windfall oil profits plus the security of
well-defended borders. As of November 30, according to the
Department of Defense, the contributions actually received from
our allies total $4 billion in cash and $380 million in in-kind
assistance.
Page 2
We encourage the administration to continue its efforts to
ensure that our allies shoulder their share of the burden for
Desert Shield and to pursue a vigorous program of soliciting
pledges and collecting contributions from our allies. We hope
that when you speak of the allies paying their "fair share"
that you take into account the American commitment of extremely
valuable human and military resources. Accordingly, we
respectfully request that you inform us on a periodic basis of
the results of the administration's efforts to obtain
contributions.
Finally, we urge that you announce as soon as possible
your intention to oppose strongly the use of a surtax because
of its potential negative impact on the U.S. economy and
because of the inherent unfairness in the proposition that
American workers would pay the bulk of the cost while others
reap the bulk of the benefits. Such an increased tax burden
would potentially prolong and deepen the current economic
slowdown. It makes no sense to tax ourselves into a deeper
recession in order to prevent a recession caused by a
disruption in the supply of oil.
We look forward to your response, and to your assurances
that the administration is accomplishing a fair and equitable
program to pay for Operation Desert Shield.
Sincerely,
Beil
Chuck
William V. Roth, Jr.
Charles E. Grassley
United States Senator
United States Senator
Cong Lts on furncing Desert Shield
National Security Council
The White House
PROOFED BY:
Ling
LOG # 10044
URGENT NOT PROOFED:
SYSTEM PRS NSC INT
BYPASSED WW DESK:
DOCLOG 24. A/O
SEQUENCE TO
HAS SEEN
DISPOSITION
H Ken Hill
1
2
Kg
A
Bill Sittmann
Bob Gates
3
8
Brent Scowcroft
Y
Bill Sittmann
Situation Room
West Wing Desk
5 APNSA, Hom Has 2/14 Seen
NSC Secretariat
6
B
MSI 2/14
R
53
A= = Action RECEIVE I = Information
D = Dispatch
R = Retain
N = No further Action
IV
cc:
VP
Sununu
Other
91 13 FEB13
Should be seen by:
(Date/Time)
COMMENTS
VII
00
DISPATCH INSTRUCTIONS:
UNCLASSIFIED
RECORD ID: 9010044
NSC/S PROFILE
RECEIVED: 27 DEC 90 11
TO: GRASSLEY, CHARLES E
ROTH, WILLIAM V
FROM: SCOWCROFT
DOC DATE: 14 FEB 91
SOURCE REF:
KEYWORDS: PERSIAN GULF
IRAQ
KUWAIT
ECONOMICS
CO
PERSONS: ROTH, WILLIAM V
GRASSLEY, CHARLES E
SUBJECT: SCOWCROFT REPLY TO LTR TO PRES FM GRASSLEY & ROTH RE FINANCING FOR
DESERT SHIELD
ACTION: SCOWCROFT SGD LTRS
DUE DATE: 31 DEC 90
STATUS: C
STAFF OFFICER: LUNDSAGER
LOGREF:
FILES: WH
NSCP:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
LUNDSAGER
NSC CHRON
COMMENTS:
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSJWD
CLOSED BY: NSMJT
DOC 3 OF 3
UNCLASSIFIED
UNCLASSIFIED
RECORD ID: 9010044
ACTION DATA SUMMARY REPORT
DOC ACTION OFFICER
CAO ASSIGNED ACTION REQUIRED
001 HAASS
Z 90122711 PREPARE MEMO FOR SCOWCROFT
001 TREASURY
Z 90123112 FOR RECOMS/DRAFT REPLY
001
Z 91021311 ACTION TRANSFERRED
001 LUNDSAGER
Z 91021311 PREPARE MEMO FOR SCOWCROFT
002 SCOWCROFT
Z 91021311 FOR SIGNATURE
003
X 91021418 SCOWCROFT SGD LTRS
UNCLASSIFIED
UNCLASSIFIED
RECORD ID: 9010044
NSC/S PROFILE
RECEIVED: 27 DEC 90 11
TO: PRESIDENT
FROM: ROTH, WILLIAM V
DOC DATE: 13 DEC 90
GRASSLEY, CHARLES E
SOURCE REF: 198751
KEYWORDS: PERSIAN GULF
CO
PERSONS:
SUBJECT: LTR TO PRES OPPOSING USE OF A SURTAX TO PAY FOR OPERATION DESERT
SHELD
ACTION: PREPARE MEMO FOR SCOWCROFT
DUE DATE: 31 DEC 90
STATUS: S
STAFF OFFICER: HAASS
LOGREF:
FILES: WH
NSCP:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
HAASS
CHARLES
PILLING
LAMPLEY
ROSTOW
WELCH
28
COMMENTS:
assign to Treasury with a very shead short
DISPATCHED BY hundong
DATE
12/01/20
BY HAND W/ATTCH
OPENED BY: NSJWD
CLOSED BY:
DOC 1 OF 1
UNCLASSIFIED
90- 94836
File with 198751
DRAF
The Honorable Charles E. Grassley
United States Senate
FI 010-02
Washington, D.C. 20510
Dear Senator Grassley:
Secretary Brady has received a copy of your December
letter, cosigned with Senator Roth, advising President Bush of
your desire to see a fair sharing of the costs of Operation
Desert Shield and expressing opposition to use of a U.S. surtax
to finance these costs.
From the outset, as a leader in fostering unity of the
world community against Iraq's forcible seizure of its sovereign
neighbor, Kuwait, the Administration has recognized the potential
for the United States to bear an unfair proportion of financial
costs associated with the Crisis. Secretary Brady and other
Administration officials are actively engaged in continuing
efforts to forestall such an outcome and to secure equitable
responsibility sharing among our coalition partners.
Considerable success has been achieved thus far,
although more remains to be done. Many nations, both
industrialized and poor, have committed human, military, and
financial resources to this worthy effort. Other than the United
States, there are 28 countries that have stationed 245,000 troops
in the Gulf States to oppose Iraq.
In addition, our allies have given money and other
assistance to the United States to cover our military expenses.
In 1990, this support is estimated to have covered 80% of our
incremental expenses and $13.5 billion in economic assistance has
been contributed so far for 1990-91 by 22 countries to those
nations most severely affected by the international economic
sanctions against Iraq. Efforts to secure commitments for
additional support, particularly as regards 1991, are in
progress. For example, you will have seen announcements by Saudi
Arabia, Kuwait, Japan and Germany of their intentions to
contribute collectively more than $40 billion in financing of
allied military operations in the Gulf in the first quarter of
this year.
We are hopeful that adequate further recognition of
responsibility will be forthcoming from coalition partners as the
situation develops. If needed, the Administration anticipates
submitting a supplemental appropriations request for incremental
-2-
Desert Storm costs not covered by contributions from other
countries. There is no need at this time to address the issue of
a surtax or other taxes to help fund Operations Desert Shield and
Desert Storm. However, as you are no doubt aware, the President
in general does not favor higher tax rates as a solution to
budget problems.
Sincerely,
Mary C. Sophos
Acting Assistant Secretary
(Legislative Affairs)
EXECUTIVE SECRETARIAT CORRESPONDENCE PROFILE
PROFILE #: 90-94836
CREATE DATE: 01/02/91
ADDRESSEE: Brady, Nicholas F.
AUTHOR: Kelley, Sally
Secretary
White House
SUBJECT: RE: The Honorable William Roth
ABSTRACT: Ltr to President opposing the use of a surtax to pay for
operation Desert Shield.
TASK ASSIGNMENT MEMORANDUM
ASSIGNED TO: KENNETH W. GIDEON
TAX POLICY
DUE DATE: 01/16/91
ACTION REQUIRED: Direct Reply
WH ID #: 9010044
TASK: Please prepare a response for the signature of the Assistant
Secretary, Legislative Affairs, and send two comeback copies to
Exec Sec, noting WHID # and ES Control # on each for transmittal
to the White House.
DISTRIBUTION: OASIA
LEGISLATIVE AFFAIRS
GENERAL COUNSEL
POLICY MANAGEMENT
EXEC SEC
Doath letter sent
90-94836
NATIONAL SECURITY COUNCIL
ID 9010044
REFERRAL
DATE: 31 DEC 90
MEMORANDUM FOR: DOWNING, B
TREASURY
DOCUMENT DESCRIPTION:
TO: PRESIDENT
SOURCE: ROTH, WILLIAM V
DATE: 13 DEC 90
SUBJ: LTR TO PRES OPPOSING USE OF A SURTAX TO PAY FOR OPERATION DESERT
SHELD
REQUIRED ACTION: FOR RECOMS/DRAFT REPLY
DUEDATE: 04 JAN 90
COMMENT:
D.L. Mugridge
FOR
GEORGE VAN ERON
DIRECTOR NSC SECRETARIAT