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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 DECLASSIFIED SECRET/NODIS/XGDS E.O. 12958 Sec. 3.6 MR 01-125 St. in 2/12/02 MEMORANDUM OF CONVERSATION dal NARA, Date 3/11/02 PARTICIPANTS: President Ford Dr. Henry A. Kissinger, Secretary of State and Assistant to the President for National Security Affairs Wells Stabler, Ambassador to Spain (briefly) Lt. General Brent Scowcroft, Deputy Assistant to the President for National Security Affairs DATE AND TIME: Tuesday, March 4, 1975 9:55 - 10:33 a. m. PLACE: The Oval Office [Ambassador Stabler came in briefly. The President spoke of the importance of Spain. Stabler left at 10:00 a. m. The conversation continued on other subjects. Kissinger: The Iranian stuff is going very well. We have agreed on a $12. 5 billion program over five years -- this is non-military. There will be military purchases as well. Six billion for nuclear development, five billion for port facilities, 2.5 billion for agriculture. In addition, they will sell 500, 000-750, 000 barrels per day below OPEC price and tied to military purchases. The other program we can announce in principle, to be signed while the Shah is here. The oil deal will bring pressure on the price structure, because the purchasers will have to find where else to make a cut of that size. In view of what the French did on the invitation, it would be crazy for us not to go forward on things like this. The President: When can we announce this? FORD Kissinger: We can't. Th ey first want to sell a certain amount of oil A GERALD LIBRARY to us. We can then cut wherever we want and they can raise production. CLASSIFIED BY Henry A. Kissinger SEGRET/NODIS/XGDS EXEMPT FROM GENERAL DECLASSIFICATION SCHEDULE OF EXECUTIVE ORDER 11652 EXEMPTION CATEGORY 5(b)(3) AUTOMATICALLY DECLASSIFIED ON Imp. to Det. SEGREF/NODIS/XGDS 2 It must either produce price cuts or further cutbacks. But the $12. 5 billion can be announced today. What they want is to announce the oil deal and further purchases together. I don't think they realize what they are doing. Algeria has already cut production by two million barrels. They can't cut further. Our joint commissions are pushing the producers into big development programs, for which they will need the additional oil production. You should tell Ansary We shouldn't haggle over the price so long as it is below the OPEC price. The key thing is that the production is coming out of someone else's hide. We may have broken OPEC, or will have if we can make one more deal like this. Maybe it's too fast, because we need to get our system in place first. They will buy other things with the $1. 5-to-2 billion in receipts for the oil deal. The money will never leave the United States. The President: Congratulations. I think that is great. Kissinger: If we can get the same with the Saudis, it will be great. The President: The announcement today will have a good impact on Congress. Kissinger: The Saudis have reacted strongly to what they think is an anti-Saudi campaign in the American press. Could we draft a letter to Faisal to reassure him? The President: Sure. Kissinger: It is unconscionable what the pressure groups in this country are doing. I talked to Kennedy. I told him they are creating a disaster in foreign policy. He doesn't think we have the votes on Turkish aid in the Senate. We should check with Mansfield before we commit to vote. [The President reads about our negotiating efforts in Cambodia in 1973.] The President: How much has been released? FORD a GERALD SECRET/NODIS/XGDS SEGRET/NODIS/XGDS 3 Kissinger: None of the 1973 stuff. But we can give it to some of the key Congressmen. Some of my people are opposed to putting it out -- it will embarrass some of the governments. The President: I think we have to get the record out. Speaking of Thailand, what is the significance of their withdrawal announcement? Kissinger: DOD is playing games. It is inevitable that once they saw us pulling out they would want to get ahead of us. Also, they have decided we have had it in Southeast Asia. The President: I thought he was pro-American. Kissinger: He may just be saying this, but the trend is inevitable. There is too much tendency in the government to pay off Congress for short- term gains at the expense of our long-term goals. But with Cambodia falling, the Thais would be a shaky country in any case. As foreign governments look at us and our decline in our world position, the process will be accelerated. The Nutter article was good. It is a moral and political disaster. We are talking only money - - people are urging a disaster. What the Syrians have done is line up the Palestinians saying now if Egypt moves alone, the Palestinians will attack Sadat. A letter from you is essential, but if it surfaces, it will make a stink with the Jews. The President: How specific can we be? Does that contradict our promise not to force them off the Golan? Kissinger: No. Just promise a major effort. The promise is important - but Nixon did promise the '67 borders to the Syrians. If Israel was smart, they would talk with the Syrians, move it to Geneva and let it get screwed up. The President: I told Dinitz they shouldn't negotiate in public. Kissinger: The Israelis are irresponsible. Anti-Semitism is bubbling. The press campaign against the Saudis is disastrous. The President: What about Church and Pearson? FORD SECRET/NODIS/XGDS GERALD SECRET/NODIS/XGDS 4 Kissinger: We have to tell them it has to be sufficient, that we shouldn't discriminate against them for economic aid, and that they would have to be eligible for FMS. Church will never agree. The President: He is worried about wiretaps when we are piling up information about where the oil companies are investing. He is signing authorizations but I am worried about Church. SECRET/NODIS/XGDS GERACO ? LIBRARY FORD P/K 4 mar 75 w/wells stable [DIablee left at 10:00 AM] Stabler in P talks of importance of Spain States out. K The & Iranin stuff going my will again or 12.5 but prog on 5 yes was mil. will purchases self well. 6 his have, 5 hil part pac., 2.5 bil agn Indiantin, thing will self 500,000 750,000 btb/day below Open prin - trial to mil purchases The Mer prog an can immunt in punciple, to be cigared while chah is has The and will bring pressured one price structures, be came the purshan will have to find where else to make ent of that size. Invia firthate Fr did on investation, it be cruzy favour to TO in forward on thing bibd this P when associate this? K Weemit. They just want to sell a certain critt fort to no. We can then into williams wont & thing can production. It must with prosher price into or further which But 12.5 bil can he amount whatchy want ist to announce C all dids further purchases together I don't think they realize whatever doing. alpria has already ant pood 2 Kanil GHL. They 'an't unt fourther. One joint enisns che pushing froductions into Any proup, for which thing wind well all and frod. You should Well We shouldn't hngper arenc pice 70 my of it when offer perse. The hey thing is L is coming ant of someone elses hate. We my have t when Open, will home if wt com morks C more deal the this, Trangler too foot, have we herd to get our Loyaton m plue 12t. FORL d DECLASSIFIED GERALD AUTHORITY per me 1-126#; State its 2/12/02 BY We NLF, DATE 5/26/04 K They will hay other things w/c 140-2hil maints for e and The $ mills when have us: P Cregrets. I think that is great. K If ine can gete have C Samilis with great, P ammenit a day will have geral night on Cory. K Sandie had realted struggly A what they think is anti- Samili in us priso, of fra letter 8 Favial to Massume him? P Sun K It what - pressure perspin this cruntry are doing K I taked to Kinnecky Told him they exatery a hearter in FP. He dusn't think are hunc inter or tink ail in Smoth. should check w/ hope we commits vote (Parads negot. efferts u Cambrahia in 73) P Hour much Nussed? K none of c 73. But give it to same of hey Compression Some f my people are of paints pritting it ant- embanus share of c gosts. P I think as have to get recordant. K Speaking & Thaird what is tig of w/demal amount OOD playing goods. It investable that one they same us purling ant ctory would wont 8 get thead fro. also they have clearied and have hol It in SEA P the he was pro. US K H & may just he saying This, but trend investable Then is to much tending ten Govt of pay off Cry for shot term garis at exponse of our lmg then goals. But w/ falling, Theirs would tor customer in any c ase a fourign your look at uspend an dechie in am would position, C frees and be accounted Gutter entrish good. & is a political disarter. use talking only morey - peoplease urging a beath What Systems have done is time up Palis- surgery ment if F more alure, the Pa of and attack Sadat. a when pm your is expentivel, but if at surfaces it will make a strick w/c June P How specific? ? Does that contract am to pace then -(B- Ghlam? K No. just promise a imagin effort. The provise is important - but N did 61 brilles to System If I was smart, they would tark as/ Sysins, more itt + let it yet scremeding P I 6th sinty # they should hegatiats in public X The I are anti- Sinntise is hubbing. The press company against c Samlin is disartion P What about Clainh/Prons? K we have to tell them it has to he sufferment, that we shouldrit charamicate against them for learnaid, of that They would have to he engish for FMS # to Gloch will here ayur. X of P Live worrind atmt winetops when me and priving cy info about where ail any mis dn invisting He sign anthony who but hr would Chinah on get

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    "ocrText": "File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library\nMEMORANDUM\nTHE WHITE HOUSE\nWASHINGTON\nDECLASSIFIED\nSECRET/NODIS/XGDS\nE.O. 12958 Sec. 3.6\nMR 01-125 St. in 2/12/02\nMEMORANDUM OF CONVERSATION\ndal NARA, Date 3/11/02\nPARTICIPANTS:\nPresident Ford\nDr. Henry A. Kissinger, Secretary of State\nand Assistant to the President for\nNational Security Affairs\nWells Stabler, Ambassador to Spain (briefly)\nLt. General Brent Scowcroft, Deputy Assistant\nto the President for National Security Affairs\nDATE AND TIME:\nTuesday, March 4, 1975\n9:55 - 10:33 a. m.\nPLACE:\nThe Oval Office\n[Ambassador Stabler came in briefly. The President spoke of the\nimportance of Spain. Stabler left at 10:00 a. m. The conversation\ncontinued on other subjects.\nKissinger: The Iranian stuff is going very well. We have agreed on a\n$12. 5 billion program over five years -- this is non-military. There\nwill be military purchases as well. Six billion for nuclear development,\nfive billion for port facilities, 2.5 billion for agriculture. In addition,\nthey will sell 500, 000-750, 000 barrels per day below OPEC price and\ntied to military purchases. The other program we can announce in\nprinciple, to be signed while the Shah is here. The oil deal will bring\npressure on the price structure, because the purchasers will have to\nfind where else to make a cut of that size. In view of what the French\ndid on the invitation, it would be crazy for us not to go forward on things\nlike this.\nThe President: When can we announce this?\nFORD\nKissinger: We can't. Th ey first want to sell a certain amount of oil\nA\nGERALD\nLIBRARY\nto us. We can then cut wherever we want and they can raise production.\nCLASSIFIED BY Henry A. Kissinger\nSEGRET/NODIS/XGDS\nEXEMPT FROM GENERAL DECLASSIFICATION\nSCHEDULE OF EXECUTIVE ORDER 11652\nEXEMPTION CATEGORY 5(b)(3)\nAUTOMATICALLY DECLASSIFIED ON Imp. to Det.\nSEGREF/NODIS/XGDS\n2\nIt must either produce price cuts or further cutbacks. But the $12. 5\nbillion can be announced today. What they want is to announce the oil\ndeal and further purchases together. I don't think they realize what\nthey are doing. Algeria has already cut production by two million\nbarrels. They can't cut further. Our joint commissions are pushing\nthe producers into big development programs, for which they will need\nthe additional oil production.\nYou should tell Ansary\nWe shouldn't haggle over the price\nso long as it is below the OPEC price. The key thing is that the production\nis coming out of someone else's hide. We may have broken OPEC, or\nwill have if we can make one more deal like this. Maybe it's too fast,\nbecause we need to get our system in place first.\nThey will buy other things with the $1. 5-to-2 billion in receipts\nfor the oil deal. The money will never leave the United States.\nThe President: Congratulations. I think that is great.\nKissinger: If we can get the same with the Saudis, it will be great.\nThe President: The announcement today will have a good impact on\nCongress.\nKissinger: The Saudis have reacted strongly to what they think is an\nanti-Saudi campaign in the American press. Could we draft a letter\nto Faisal to reassure him?\nThe President: Sure.\nKissinger: It is unconscionable what the pressure groups in this country\nare doing.\nI talked to Kennedy. I told him they are creating a disaster in\nforeign policy. He doesn't think we have the votes on Turkish aid in the\nSenate. We should check with Mansfield before we commit to vote.\n[The President reads about our negotiating efforts in Cambodia\nin 1973.]\nThe President: How much has been released?\nFORD\na\nGERALD\nSECRET/NODIS/XGDS\nSEGRET/NODIS/XGDS\n3\nKissinger: None of the 1973 stuff. But we can give it to some of the\nkey Congressmen. Some of my people are opposed to putting it out --\nit will embarrass some of the governments.\nThe President: I think we have to get the record out.\nSpeaking of Thailand, what is the significance of their withdrawal\nannouncement?\nKissinger: DOD is playing games. It is inevitable that once they saw\nus pulling out they would want to get ahead of us. Also, they have\ndecided we have had it in Southeast Asia.\nThe President: I thought he was pro-American.\nKissinger: He may just be saying this, but the trend is inevitable. There\nis too much tendency in the government to pay off Congress for short-\nterm gains at the expense of our long-term goals. But with Cambodia\nfalling, the Thais would be a shaky country in any case. As foreign\ngovernments look at us and our decline in our world position, the process\nwill be accelerated. The Nutter article was good. It is a moral and\npolitical disaster. We are talking only money - - people are urging a\ndisaster. What the Syrians have done is line up the Palestinians saying\nnow if Egypt moves alone, the Palestinians will attack Sadat. A letter\nfrom you is essential, but if it surfaces, it will make a stink with the\nJews.\nThe President: How specific can we be? Does that contradict our\npromise not to force them off the Golan?\nKissinger: No. Just promise a major effort. The promise is important -\nbut Nixon did promise the '67 borders to the Syrians. If Israel was smart,\nthey would talk with the Syrians, move it to Geneva and let it get screwed\nup.\nThe President: I told Dinitz they shouldn't negotiate in public.\nKissinger: The Israelis are irresponsible. Anti-Semitism is bubbling.\nThe press campaign against the Saudis is disastrous.\nThe President: What about Church and Pearson?\nFORD\nSECRET/NODIS/XGDS\nGERALD\nSECRET/NODIS/XGDS\n4\nKissinger: We have to tell them it has to be sufficient, that we shouldn't\ndiscriminate against them for economic aid, and that they would have to\nbe eligible for FMS. Church will never agree.\nThe President: He is worried about wiretaps when we are piling up\ninformation about where the oil companies are investing. He is signing\nauthorizations but I am worried about Church.\nSECRET/NODIS/XGDS\nGERACO ? LIBRARY FORD\nP/K 4 mar 75\nw/wells stable [DIablee left at 10:00 AM]\nStabler in P talks of importance of Spain\nStates out.\nK\nThe & Iranin stuff going my will again or\n12.5 but prog on 5 yes was mil. will purchases\nself well. 6 his have, 5 hil part pac., 2.5 bil agn\nIndiantin, thing will self 500,000 750,000 btb/day\nbelow Open prin - trial to mil purchases The Mer\nprog an can immunt in punciple, to be cigared\nwhile chah is has The and will bring pressured\none price structures, be came the purshan will have\nto find where else to make ent of that size. Invia\nfirthate Fr did on investation, it be cruzy favour\nto TO in forward on thing bibd this\nP\nwhen associate this?\nK\nWeemit. They just want to sell a certain critt\nfort to no. We can then into williams wont\n& thing can production. It must with prosher\nprice into or further which But 12.5 bil can\nhe amount whatchy want ist to announce\nC all dids further purchases together\nI don't think they realize whatever doing. alpria\nhas already ant pood 2 Kanil GHL. They 'an't unt\nfourther. One joint enisns che pushing froductions\ninto Any proup, for which thing wind\nwell all and frod.\nYou should Well We shouldn't\nhngper arenc pice 70 my of it when offer\nperse. The hey thing is L is coming\nant of someone elses hate. We my have t when\nOpen, will home if wt com morks C more deal\nthe this, Trangler too foot, have we herd to get\nour Loyaton m plue 12t.\nFORL\nd\nDECLASSIFIED\nGERALD\nAUTHORITY per me 1-126#; State its 2/12/02\nBY We\nNLF, DATE 5/26/04\nK\nThey will hay other things w/c 140-2hil maints\nfor e and The $ mills when have us:\nP\nCregrets. I think that is great.\nK\nIf ine can gete have C Samilis with great,\nP\nammenit a day will have geral night on Cory.\nK\nSandie had realted struggly A what they think\nis anti- Samili in us priso,\nof fra letter 8 Favial to Massume him?\nP\nSun\nK\nIt what - pressure perspin this\ncruntry are doing\nK\nI taked to Kinnecky Told him they exatery a hearter\nin FP. He dusn't think are hunc inter or tink\nail in Smoth. should check w/\nhope we commits vote\n(Parads negot. efferts u Cambrahia in 73)\nP\nHour much Nussed?\nK\nnone of c 73. But give it to same of hey Compression\nSome f my people are of paints pritting it ant- embanus\nshare of c gosts.\nP\nI think as have to get recordant.\nK\nSpeaking & Thaird what is tig of w/demal amount\nOOD playing goods. It investable that one they same us\npurling ant ctory would wont 8 get thead fro. also\nthey have clearied and have hol It in SEA\nP\nthe he was pro. US\nK\nH & may just he saying This, but trend investable\nThen is to much tending ten Govt of pay off Cry\nfor shot term garis at exponse of our lmg then\ngoals. But w/ falling, Theirs would tor\ncustomer in any c ase\na fourign your look at uspend an dechie in am\nwould position, C frees and be accounted Gutter\nentrish good. & is a political disarter. use\ntalking only morey - peoplease urging a beath\nWhat Systems have done is time up Palis- surgery ment\nif F more alure, the Pa of and attack Sadat. a when\npm your is expentivel, but if at surfaces it\nwill make a strick w/c June\nP\nHow specific? ? Does that contract am\nto pace then -(B- Ghlam?\nK\nNo. just promise a imagin effort. The provise is\nimportant - but N did 61 brilles to System\nIf I was smart, they would tark as/ Sysins, more\nitt + let it yet scremeding\nP\nI 6th sinty # they should hegatiats in public\nX\nThe I are anti- Sinntise is hubbing.\nThe press company against c Samlin is disartion\nP\nWhat about Clainh/Prons?\nK\nwe have to tell them it has to he sufferment, that\nwe shouldrit charamicate against them for learnaid,\nof that They would have to he engish for FMS\n# to Gloch will here ayur.\nX of P\nLive worrind atmt winetops when me and priving\ncy info about where ail any mis dn\ninvisting He sign anthony who\nbut hr would Chinah on get"
}