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September 26, 1974 - Ford, Kissinger, FRG Foreign Minister Hans-Dietrich Genscher
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1552808
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September 26, 1974 - Ford, Kissinger, FRG Foreign Minister Hans-Dietrich Genscher
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Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
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Germany (West)
North Atlantic Treaty Organization. (4/4/1949 - )
International economy
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File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
SECRET/NODIS
MEMORANDUM OF CONVERSATION
PARTICIPANTS:
Hans-Dietrich Genscher, Federal Vice Chancellor
and Minister of Foreign Affairs, FRG
Guenther Van Well, Political Director, MFA
Berndt Von Staden, Ambassador of FRG
President Gerald Ford
Dr. Henry A. Kissinger, Secretary of State and
Assistant to the President for National Security
Affairs
Lt. General Brent Scowcroft, Deputy Assistant to
the President for National Security Affairs
DATE AND TIME:
Thursday, September 26, 1974
5:35 - 6:38 p. m.
PLACE:
The Oval Office
The White House
[Press and photographers were admitted briefly at the beginning. ]
Kissinger: Mr. Van Well was a student of mine.
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES stahleview3/9/04
Genscher: I am the only German who wasn't!
President: I keep running into all sorts of people who were his students.
NARA, DATE 5/5/04
Kissinger: I don't brag about the one who was hanged in Burundi.
President: How long will you be here?
DECLASSIFIED
E.O. 12958, SEC. 3.5
Genscher: I'll be going back Saturday. Forgive me for speaking German,
but it is serious business.
Kissinger: The Foreign Minister made a special effort to stay over.
FORD
&
BY
SECRET/NODIS
TOP SECRET XGDS (3)
CLASSIFIED BY: HENRY A. KISSINGER
GERALD
LIBRARY
SECRET/NODIS
2
Genscher: The Chancellor asked me to express appreciation for your
statement of support for us, Europe, or the Alliance. It came at a
time of difficulty on Berlin, and it is comforting to know we have your
support in need. I have used this to good effect with public opinion and
the Bundestag.
President: I am looking forward to meeting the Chancellor. I want
you to know I continue to rely on Secretary Kissinger. I have an
excellent working relationship with Secretary Kissinger. We are
working together on problems around the globe.
The Camp David meeting is very important. I am very pleased that you
and the others are coming for this. We must find a way to implement
what we have said in speeches and solve the terrible economic problems
created by the oil prices.
Genscher: I heard Dr. Kissinger's speech and read yours. I said
parallel things in New York. A German paper said that compared to
you I had silk gloves. We see the problems like you have expressed.
We hope to solve them by cooperation, not confrontation. It is serious
for the industrialized countries, but more so for the Third World who
have not the resources to cope. To us, this is a question not only of a
shifting of economic power to the oil producers, but how the oil dollars
will be recycled. We are concerned about the effect this will have on
the world economic system. In our view it is not that they have ill will,
but they may not understand the effect it could have on the world economic
and political system. It is not a matter for central banks -- not ours,
Europe's, or yours. We must find a joint solution to cope with this
urgently.
President: In the meantime the energy sharing program will make
a contribution.
Genscher: I am happy that the French will take part in the Saturday
meeting.
President: As we move ahead to develop alternatives in the energy field,
with coal and other resources, we want to work together with others who
might be affected. The sharing is very important.
Kissinger: We have looked at this closely and will have preliminary
ideas to advance. Later we will have ideas for dealing with the massive
recycling problem, which hurts Italy, for example, and also for dealing
with the producers.
FORD
?
SECRET/NODIS
DERALD
LIBRAR
SECRET/NODIS
3
President: If our economies collapse, the money doesn't do the
producers much good.
Genscher: You are about to make important economic decisions. For
our progress, economic stability is an important pillar. We are
embedded in the Common Market so we can affect things only to a
limited extent. We hope to hold inflation in 7-1/2% and wages to
2-1/2% in 1974. Germans view with concern the matters of inflation.
Ten percent is the magic number. We have 2-1/2% now. The programs
we have now are limited and goal oriented. 900 million marks. To go
farther woul d undermine stability. We have a round table for discussion
between government, industry and labor.
President: We have had several summit meetings, and tomorrow is
the big one. I want the facts to be brought out and the recommendations
of the best brains. In opening the conference I will say that we will work
with our allies on a worldwide basis. Please tell the Chancellor that
we will do nothing that is harmful, and hopefully things that are only
helpful. We anticipate inflation of about 8-1/2 to 9 percent by year end.
We had some setbacks in industrial production; unemployment is at
5.5%, and it is going up gradually. Probably it will be close to 6% at
year's end. By our standards that is not good, but it is not a catastrophe.
We have had it at 8% If we can get a handle on it all, 1975 will be a
good year. There is hope for a tax adjustment, and a good farm year.
If we can get hold of oil prices, that would be the best shot in the arm.
By any fair standards the U.S. economy is strong. We take strong action
not to go into a slump, but not to let things get out of hand. It is a fine
line to walk.
Genscher: We think the problems confronting you you can manage more
easily than some have claimed. We are together with the others in the
EC and this poses a problem. In Italy, for example, we have the potential
not only of economic but of political instability. You will be able to
manage and find the narrow path between inflation and recession. We
are worried about the potential effect of the economic situation on political
stability. That is why we give aid to Italy. The government is trying
hard to restore stability. They have a strong Communist Party waiting
to take over, God forbid. That would draw a cloud over other European
countries. We don't want to see what NATO has prevented come about
by the internal route.
President: We couldn't tolerate.
we would oppose the Communist
Party having any substantive participation in the Italian or any other
government.
SECRET/NODIS
SECRET/NODIS
4
Kissinger: Any participation
President: That's right. I didn't say it accurately. We don't want
any participation.
Genscher: I have often discussed this with Secretary Kissinger. The
entire Mediterranean area is in danger and must be carefully looked at.
I don't know about Portugal--the Communists there are the best organized.
In Greece things are not assured. In Spain and Yugoslavia we don't know
what would happen after their leaders pass. If Yugoslavia joined the
Warsaw Pact, that would be destabilizing in itself. We can't let NATO
be undermined--it is the alpha and omega of our and your security. I
believe it is necessary that we look at detente in the proper light. There
is no alternative to supporting it, but there is a danger of playing down
the threat which exists. I speak frequently of "realistic" detente because
the Communist threat must always be kept in mind. We must keep NATO
functioning smoothly and strong. US troops are essential to that, and
I keep pointing that out.
President: There are those here who think because of detente and
20 years of peace in Europe we can cut back our strength and pull back
our troops. We got where we are through strength, not weakness. But
we have had some tough times with Congress on the question of the troop
cut. It is easier this year because we worked harder at it. The Alliance
must know we want to stand strong, but we have a problem with Congress.
Kissinger: Also the Germans were great in helping with the offset
problem, and also we solved the debate within the Alliance. The Foreign
Minister has been very helpful in this.
Genscher: You are right about the period of peace, but we must watch
that it is not endangered by unilateral actions of the West. I do not
think unilateral military measures are useful, or in MBFR also--which
is the purpose of it. We worried about a military statute coming out of
MBFR. We are the strongest European member, and the East European
one has reliable partners and an imbalance is possible. On Berlin the
danger is not over. We made progress with the Quadripartite Agreement
but must watch that the GDR might take measures affecting Berlin in the
25th anniversary. We are reassured by your strong support on Berlin.
SECRET/NODIS
FORD
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DECLASSIFIED
NSC MEMO, 11/24/98, E.O. 12958, STATE SEC. DEPT. 3.5 GUIDELINES state Derien33/9/04
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