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1555808
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Germany (FRG) - Chancellor Schmidt (3)
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1555808
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document
title
Germany (FRG) - Chancellor Schmidt (3)
description
This file contains material relating to NORTHAG Brigade.
collections
Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
subjects
Tanzania
Great Britain
Germany (West)
North Atlantic Treaty Organization. (4/4/1949 - )
Finance
Steel
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1555808
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1976-12-31
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12
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1976
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1976-04-01
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4
year
1976
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d4ef52a5b9656d70
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The original documents are located in Box 2, folder "Germany (FRG) - Chancellor Schmidt (3)" of the National Security Adviser's Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 614 COPY OP IMMED DE NTE #1898 1041727 D 131716Z APR 76 FM PRESIDENT FORD TO CHANCELLOR SCHMIDT H60492 APRIL 13, 1976 DEAR MP. CHANCELLOR: THANK YOU FOR SHARING WITH ME YOUR THOUGHTS ON THE SPECIALTY STEEL PROBLEM AND ITS RELATIONSHIP TO THE BROADER PROBLEMS OF INTERNATIONAL ECONOMIC POLICY. AS YOU NOTED, WE AGREED AT RAMBOUILLET THAT THE MAJOR TRADING NATIONS SHOULD AVOID SOLVING THEIR PROBLEMS AT THE EXPENSE OF OTHERS. THIS CON- SIDERATION WAS HIGH AMONG THOSE THAT LED ME TO DECIDE NOT TO ACCEPT THE REMEDIES PROPOSED BY THE INTERNATIONAL TRADE COMMISSION IN THIS CASE AND TO CHOOSE INSTEAD TO ATTEMPT TO NEGOTIATE AN ORDERLY MARKETING AGREEMENT. THUS, I AM SEEKING TO PROVIDE AN OPPORTUNITY FOR THE U.S. AND ITS TRADING PARTNERS TO DEVELOP A MUTUALLY SATISFACTORY RESOLUTION OF THIS DIFFICULT PROBLEM. I HOPE THAT THIS WILL BE THE END RESULT OF THE CONSULTATIVE PROCESS NOW SET IN MOTION. I BELIEVE BOTH OF us RECOGNIZE THAT ON A NUMBER OF FRONTS THE MONTHS AMEAD POSE SIGNIFICANT CHALLENGES TO INTERNATIONAL ECONOMIC COOPERATION. IT WILL BE ESPECIALLY IMPORTANT THAT WE REMAIN IN CLOSE CONTACT DURING THIS PERIOD. I GENUINELY HELCOME RECEIVING YOUR VIEWS, AND CAN ASSURE YOU THAT ANY OBSERVATIONS YOU SHOULD MAKE ON ANY SUBJECT WILL BE HEAVILY WEIGHED IN OUR INTERNATIONAL POLICY CONSIDERATIONS. SINCERELY YOURS GERALD R. FORD 0245 *WHSR COMMENT HYLAND, MCFARLANE, RODMAN RECALLED P8N1002327 PAGE 01 OF 01 TOR:104/17:27Z DTG#131716Z APR 76 S COPY FORD 3 0 DECLASSIFIED E.O. 12958, SEC. 3.5 GERALD NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES BY ha , NARA, DATE 3/5/DM Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 2159X SECRET/NODIS April 20, 1976 MEMORANDUM FOR Mr. George S. Springsteen Executive Secretary Department of State SUBJECT: Specialty Steel I am attaching for the information of your principals only copies of an exchange of messages between President Ford and Chancellor Schmidt on the specialty steel issue. These copies should be handled as NODIS and should not be transmitted outside the Department. Jeanne mm Davis Staff Secretary Attachments & SEGRET/NODIS DECLASSIFIED E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES BERALD BY we , NARA, DATE 3/5/04 3/5 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library REW E 1459 26 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Herald R. Ford GERALD Gerald R. Ford The Digitized from Box of the NSA at the Presidential Library Dear Mr. President: The International Trade Commission has proposed to you on the basis of the Trade Act of 1974 to introduce import quotas for specialty steels. The restrictive nature of that proposal causes me -- and I suppose not me alone -- considerable concern. If that recommendation were accepted the climate throughout the world would essentially deteriorate. For there can be no doubt that in the case of protectionist measures being taken by the United States, other countries, if faced with internal economic difficulties, would immediately follow suit and restrict their imports. This would be a heavy blow economically, and place in jeopardy the first successes we have achieved with difficulty through our policy of stimulating economic activity. Thus, the decision you will have to make within a few days on the proposal made the International Trade Commission assumes an importance reaching far beyond the United States national sphere. It could have the effect of an international signal. I assume that when making your decision you will take into account the arrangements which we made in the Declaration of Rambouillet on 17 November 1975 concerning the international economic and trade policy to be followed jointly. One of the main points on which we had agreed then was that we as main trading nations would avoid resorting to measures by which an attempt would be made to solve internal, national problems at the expense of other countries, with damaging consequences in the economic, social and political fields. In view of this understanding, I am convinced that in making your decision you will live up to the great responsibility which precisely your country has to bear in the present phase of world economic development. With kind regards, Yours, Helmut Schmidt FORD & GERALD Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library MEMORANDUM 2159X NATIONAL SECURITY COUNCIL SECRET ACTION April 13, 1976 MEMORANDUM FOR BRENT SCOWCROFT Quty.13 FROM: Mr. Clift ld SUBJECT: Message to Chancellor Schmidt In the package at Tab I, the President has approved and signed a message to Chancellor Schmidt responding to Schmidt's message of concern over implementing U.S. actions on specialty steel. As the incoming Schmidt message was received via the direct Bonn line to the White House, I recommend that you approve dispatch of the President's response via the White House's direct line to Bonn. Bob Hormats concurs. RECOMMENDATION That you approve immediate dispatch of the message at Tab A via the White House line to Bonn. APPROVE RMfors DISAPPROVE ETabA DECLASSIFIED E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES BY his , NARA, DATE 3/5/04 SECRET XGDS Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library I 1974 GERALD ? 1948817 FORD Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library MEMORANDUM THE PRESIDENT HAS SWEE 1459 - Add on THE WHITE HOUSE WASHINGTON SECRET ACTION April 9, 1976 MEMORANDUM FOR: THE PRESIDENT B FROM: BRENT SCOWCROFT SUBJECT: Response to Message from Chancellor Schmidt As you will recall, on March 11 Chancellor Schmidt sent you a message (Tab B) stating his concern that your acceptance of the ITC recommendation on specialty steel would cause a deterioration in the international economic climate and trigger other countries to restrict imports. He noted that at Rambouillet it was agreed that the main trading nations would avoid resorting to measures to solve internal problems at the expense of other countries. At Tab A is a message thanking Schmidt for sharing his thoughts with you, emphasizing that the Rambouillet agreement was high among the considerations that led you to decide to negotiate an orderly marketing agreement rather than accept the ITC recommendation, expressing the hope that negotiations will lead to a mutually satisfactory solution of the problem, and welcoming Schmidt's views in the future on the difficult challenges now being posed to international economic cooperation. RECOMMENDATION: That you approve the response to Schmidt at Tab A. William Seidman concurs. SECRET - GDS 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2 The following messa has been received from Chan llor Schmidt: Dear Mr. President: The International Trade Commission has proposed to you on the basis of the Trade Act of 1974 to introduce import quotas for specialty steels. The restrictive nature of that proposal causes me -- and I suppose not me alone -- considerable concern. If that recommendation were accepted the climate throughout the world would essentially deteriorate. For there can be no doubt that in the case of protectionist measures being taken by the United States, other countries, if faced with internal economic difficulties, would immediately follow suit and restrict their imports. This would be a heavy blow economically, and place in jeopardy the first successes we have achieved with difficulty through our policy of stimulating economic activity. Thus, the decision you will have to make within a few days on the proposal made the International Trade Commission assumes an importance reaching far beyond the United States national sphere. It could have the effect of an international signal. I assume that when making your decision you will take into account the arrangements which we made in the Declaration of Rambouillet on 17 November 1975 concerning the international economic and trade policy to be followed jointly. One of the main points on which we had agreed then was that we as main trading nations would avoid resorting to measures by which an attempt would be made to solve internal, national problems at the expense of other countries, with damaging consequences in the economic, social and political fields. In view of this understanding, I am convinced that in making your decision you will live up to the great responsibility which precisely your country has to bear in the present phase of world economic development. With kind regards, Yours, Helmut Schmidt GERALD Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2 MEMORANDUM 1459 NATIONAL SECURITY COUNCIL ACTION March 11, 1976 MEMORANDUM FOR: BRENT SCOWCROFT FROM: ROBERT HORMATS RH SUBJECT: Message from Chancellor Schmidt on Specialty Steel Issue We have just received the following communication from Chancellor Schmidt for the President regarding the specialty steel decision. It would be useful for the President to have this as soon as possible so that it can be factored into his decision. The memorandum at Tab I transmits Schmidt's message to the President. RECOMMENDATION: That you sign the memorandum for the President at Tab I. sent Tab Illinois 70 President by FOR: & Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library zi J A GERALD R LIBRARY FORD Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library REWRITE 1459 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Herald R. Ford Gerald R. Ford Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library REWRITE 1459 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Herald R. Gerald R. Ford Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Pres pl 2159X - NATIONAL SECURITY COUNCIL April 19, 1976 TO: WILLIAM G. HYLAND FROM: Jeanne W. Davi m SUBJECT: Copy of Schmidt Exchange to State Shall I send a copy of the attached exchange to State? They will, of course, want to send it to our Embassy. Denis Clift is doubtful but believes it should go NODIS, if at all. State has been complaining about our insistence on NODIS handling of messages primarily because they were originally transmitted backchannel, rather than on content. Send to State NODIS: Yes With No LIMDIS: Yes No Authorize FYI transmission to Embassy Bonn: Yes No woff - Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2 2159X NATIONAL SECURITY COUNCIL April 19, 1976 TO: WILLIAM G. HYLAND FROM: Jeanne W. Dav SUBJECT: Copy of Schmidt Exchange to State Shall I send a copy of the attached exchange to State? They will, of course, want to send it to our Embassy. Denis Clift is doubtful but believes it should go NODIS, if at all. State has been complaining about our insistence on NODIS handling of messages primarily because they were originally transmitted backchannel, rather than on content. Send to State NODIS: Yes No LIMDIS: Yes No Authorize FYI transmission to Embassy Bonn: Yes No FORD GERALD Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library REWRITE 1459 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Heard R. 17d Gerald R. Ford The following message has been received from Chancelor Schmidt: Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library Dear Mr. President: The International Trade Commission has proposed to you on the basis of the Trade Act of 1974 to introduce import quotas for specialty steels. The restrictive nature of that proposal causes me -- and I suppose not mc alone -- considerable concern. If that recommendation were accepted the climate throughout the world would essentially deteriorate. For there can be no doubt that in the case of protectionist measures being taken by the United States, other countries, if faced with internal economic difficulties, would immediately follow suit and restrict their imports. This would be a heavy blow economically, and place in jeopardy the first successes we have achieved with difficulty through our policy of stimulating economic activity. Thus, the decision you will have to make within a few days on the proposal made the International Trade Commission assumes an importance reaching far beyond the United States national sphere. It could have the effect of an international signal. I assume that when making your decision you will take into account the arrangements which we made in the Declaration of Rambouillet on 17 November 1975 concerning the international economic and trade policy to be followed jointly. One of the main points on which we had agreed then was that we as main trading nations would avoid resorting to measures by which an attempt would be made to solve internal, national problems at the expense of other countries, with damaging consequences in the economic, social and political fields. In view of this understanding, I am convinced that in making your decision you will live up to the great responsibility which precisely your country has to bear in the present phase of world economic development. With kind regards, Yours, Helmut Schmidt Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2nd 2159X SECRET ACTION April 13, 1976 MEMORANDUM FOR BRENT SCOWCROFT FROM: Mr. Clift SUBJECT: Message to Chanceller Schmidt In the package at Tab I, the President has approved and signed a message to Chancellor Schmidt responding to Schmidt's message of concern over implementing U.S. actions on specialty steel. As the incoming Schmidt message was received via the direct Bonn line to the White House, I recommend that you approve dispatch of the President's response via the White House's direct line to Bonn. Bob Hormats concurs. RECOMMENDATION That you approve immediate dispatch of the message at Tab A via the White House line to Bonn. APPROVE DISAPPROVE FORD LIBRARY b 07V650 ADClift:gw:4/13/76 DECLASSIFIED E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES OERALD Pr FORD LIBRARY BY lab ' NARA, DATE 3/5/04 XGDS Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library an-2 MEMORANDUM PRESIDENT HAS SEEN 1459 - Add on THE WHITE HOUSE WASHINGTON SECRET ACTION April 9, 1976 MEMORANDUM FOR: THE PRESIDENT B FROM: BRENT SCOWCROFT SUBJECT: Response to Message from Chancellor Schmidt As you will recall, on March 11 Chancellor Schmidt sent you a message (Tab B) stating his concern that your acceptance of the ITC recommendation on specialty steel would cause a deterioration in the international economic climate and trigger other countries to restrict imports. He noted that at Rambouillet it was agreed that the main trading nations would avoid resorting to measures to solve internal problems at the expense of other countries. At Tab A is a message thanking Schmidt for sharing his thoughts with you, emphasizing that the Rambouillet agreement was high among the considerations that led you to decide to negotiate an orderly marketing agreement rather than accept the ITC recommendation, expressing the hope that negotiations will lead to a mutually satisfactory solution of the problem, and welcoming Schmidt's views in the future on the difficult challenges now being posed to international economic cooperation. RECOMMENDATION: That you approve the response to Schmidt at Tab A. William Seidman concurs. LIBRAR SECRET - GDS bb 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library n REWRITE 1459 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Herald R. Gerald R. Ford The Digitized following from Box 2 of nicssage the NSA Presidential as correspondence with Foreign Leaders Collection at the Library 2n-4 Dear Mr. President: The International Trade Commission has proposed to you on the basis of the Trade Act of 1974 to introduce import quotas for specialty steels. The restrictive nature of that proposal causes me -- and I suppose not me alone -- considerable concern. If that recommendation were accepted the climate throughout the world would essentially deteriorate. For there can be no doubt that in the case of protectionist measures being taken by the United States, other countries, if faced with internal economic difficulties, would immediately follow suit and restrict their imports. This would be a heavy blow economically, and place in jeopardy the first successes we have achieved with difficulty through our policy of stimulating economic activity. Thus, the decision you will have to make within a few days on the proposal made the International Trade Commission assumes an importance reaching far beyond the United States national sphere. It could have the effect of an international signal. I assume that when making your decision you will take into account the arrangements which we made in the Declaration of Rambouillet on 17 November 1975 concerning the international economic and trade policy to be followed jointly. One of the main points on which we had agreed then was that we as main trading nations would avoid resorting to measures by which an attempt would be made to solve internal, national problems at the expense of other countries, with damaging consequences in the economic, social and political fields. In view of this understanding, I am convinced that in making your decision you will live up to the great responsibility which precisely your country has to bear in the present phase of world economic development. With kind regards, Yours, Helmut Schmidt Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library got 2159X SECRET ACTION April 13, 1976 MEMORANDUM FOR BRENT SCOWCROFT FROM: Mr. Clift SUBJECT: Message to Chanceller Schmidt In the package at Tab 1, the President has approved and signed a message to Chancellor Schmidt responding to Schmidt's message of concern over implementing U.S. actions on specialty steel. As the incoming Schmidt message was received via the direct Bonn line to the White House, I recommend that you approve dispatch of the President's response via the White House's direct line to Bonn. Bob Hormats concurs. RECOMMENDATION That you approve immediate dispatch of the message at Tab A via the White House line to Bona. APPROVE DISAPPROVE ADClift:gw:4/13/76 DECLASSIFIED E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES GERALD A FORD SECRET BY , NARA, DATE 3/5/04 XGDS Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library MEMORANDUM PRESIDENT HAS SETT 1459 - Add on 20.2 THE WHITE HOUSE WASHINGTON SECRET ACTION April 9, 1976 MEMORANDUM FOR: THE PRESIDENT B FROM: BRENT SCOWCROFT SUBJECT: Response to Message from Chancellor Schmidt As you will recall, on March 11 Chancellor Schmidt sent you a message (Tab B) stating his concern that your acceptance of the ITC recommendation on specialty steel would cause a deterioration in the international economic climate and trigger other countries to restrict imports. He noted that at Rambouillet it was agreed that the main trading nations would avoid resorting to measures to solve internal problems at the expense of other countries. At Tab A is a message thanking Schmidt for sharing his thoughts with you, emphasizing that the Rambouillet agreement was high among the considerations that led you to decide to negotiate an orderly marketing agreement rather than accept the ITC recommendation, expressing the hope that negotiations will lead to a mutually satisfactory solution of the problem, and welcoming Schmidt's views in the future on the difficult challenges now being posed to international economic cooperation. RECOMMENDATION: That you approve the response to Schmidt at Tab A. William Seidman concurs. SECRET - GDS th 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 20.3 REWRITE 1459 3/26/76 Dear Mr. Chancellor: Thank you for sharing with me your thoughts on the specialty steel problem and its relationship to the broader problems of inter- national economic policy. As you noted, we agreed at Rambouillet that the major trading nations should avoid solving their problems at the expense of others. This consideration was high among those that led me to decide not to accept the remedies proposed by the Inter- national Trade Commission in this case and to choose instead to attempt to negotiate an orderly marketing agreement. Thus, I am seeking to provide an opportunity for the U.S. and its trading partners to develop a mutually satisfactory resolution of this difficult problem. I hope that this will be the end result of the consultative process now set in motion. I believe both of us recognize that on a number of fronts the months ahead pose significant challenges to international economic cooperation. It will be especially important that we remain in close contact during this period. I genuinely welcome receiving your views, and can assure you that any observations you should make on any subject will be heavily weighed in our international policy considerations. Sincerely yours, Herald R. Gerald R. Ford The Digitized following from Box 2 of messag the NSA Presidential as correspondence with Foreign Leaders Collection at the Geold Library 20.4 Dear Mr. President: The International Trade Commission has proposed to you on the basis of the Trade Act of 1974 to introduce import quotas for specialty steels. The restrictive nature of that proposal causes me -- and I suppose not me alone -- considerable concern. If that recommendation were accepted the climate throughout the world would essentially deteriorate. For there can be no doubt that in the case of protectionist measures being taken by the United States, other countries, if faced with internal economic difficulties, would immediately follow suit and restrict their imports. This would be a heavy blow economically, and place in jeopardy the first successes we have achieved with difficulty through our policy of stimulating economic activity. Thus, the decision you will have to make within a few days on the proposal made the International Trade Commission assumes an importance reaching far beyond the United States national sphere. It could have the effect of an international signal. I assume that when making your decision you will take into account the arrangements which we made in the Declaration of Rambouillet on 17 November 1975 concerning the international economic and trade policy to be followed jointly. One of the main points on which we had agreed then was that we as main trading nations would avoid resorting to measures by which an attempt would be made to solve internal, national problems at the expense of other countries, with damaging consequences in the economic, social and political fields. In view of this understanding, I am convinced that in making your decision you will live up to the great responsibility which precisely your country has to bear in the present phase of world economic development. With kind regards, Yours, Helmut Schmidt Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2P P NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 017581 REASON FOR WITHDRAWAL National security restriction TYPE OF MATERIAL Memorandum CREATOR'S NAME Robert Hormats, Denis Clift RECEIVER'S NAME Brent Scowcroft RECEIVER'S TITLE Assistant to the President for National Security Affairs TITLE Response to Message from Chancellor Schmidt CREATION DATE 03/22/1976 VOLUME 1 page COLLECTION/SERIES/FOLDER ID 035100026 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL CORRESPONDENCE WITH FOREIGN LEADERS BOX NUMBER 2 FOLDER TITLE Germany (FRG) - Chancellor Schmidt (3) DATE WITHDRAWN 03/12/2004 WITHDRAWING ARCHIVIST GG Saintized 4/12/05 Digitized from Box 2 of Collection theZGerald R Ford Presidential Library 945 MEMORANDUM 1459 - Add on wall NATIONAL SECURITY COUNCIL ACTION SECRET March 22, 1976 MEMORANDUM FOR: BRENT SCOWCROFT FROM: ROBERT HORMATS OUH DENIS CLIFT en SUBJECT: Response to Message from Chancellor Schmidt At Tab A is a draft Presidential message responding to Schmidt's message (Tab B) stating his concern that the President's acceptance of the ITC recommendation on specialty steel would cause a deteriora- tion in the international economic climate and trigger other countries to restrict imports, and would be inconsistent with Rambouillet The President's response thanks Schmidt for sharing his thoughts, emphasizes that the Rambouillet agreement was high among the considerations which led him to reject the ITC recommendations in favor of negotiating an orderly marketing agreement, expressing the hope that the negotiations will achieve satisfactory results and welcoming Schmidt's views in the future on international economic issues. RECOMMENDATION: That you sign the memorandum for the President recommending his approval of the message to Schmidt at Tab A. That if the President approves, you approve transmittal to Schmidt 25X1 :1 and our sending a copy of the final reply to State. DECLASSIFIED, with postions exempt AUTHORITY RAC 4/12/05; State Abc guideliness Y Un NLF, DATE 11/26/07 Presidential Library Review of NSC and DOS Equiti SECRET GDS Approved For Release 2005/04/12 : NLF-PC_F_L-2-1-1-5 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 3 562 *******U NCLASSIFIE ********S COPY OP IMMED SAZ142 DE RGFAK 003 1131415 0 2214152 APR 75 FM CHANCELLOR SCHMIDT TO PRESIDENT FORD UNCLAS ANNEX CHARLIE MESSAGE MSGNR 0912 FEDERAL REPUBLIC OF GERMANY THE FEDERAL CHANCELLOR BONN, APRIL 22TH, 1976 DEAR MR PRESIDENT, I THANK YOUR VERY MUCH FOR YOUR LETTER OF 15 APRIL 1976 IN WHICH YOU SUGGEST THAT THE RAMBOUILLET TALKS BE CON- TINUED. I AM VERY MUCH IN FAVOUR OF YOUR IDEA AND I FULLY CONCUR WITH YOU IN YOUR ASSESSMENT OF THE PRODUCTIVE AND HELPFUL EFFECTS WHICH THE RAMBOUILLET CONFERENCE HAS HAD, BEFORE WE DEFINITELY DECIDE FOR ANOTHER CONFERENCE TO BE HELD IT SHOULD HOWEVER BE MADE SURE, AS WAS DONE LAST TIME, THAT THERE IS SUFFICIENT SUBSTANCE TO WARRANT A SUCCESSFUL OUTCOME OF THE CONFERENCE. I WOULD BE GLAD TO GO INTO THESE QUESTIONS WITH MY OLD FRIEND GEORGE SHULTZ, I BUGGEST THAT IN ORDER TO ARRANGE FOR AN EARLY APPOINTMENT GEORGE SHULTZ GET IN TOUCH WITH THE HEAD OF THE FEDERAL CHANCELLERY, STATE SECRETARY DR SCHUELER. AFTERWARDS A SIMILAR GROUP OF PERSONAL REPRESENTATIVES AS LAST TIME SHOULD EXPLORE THE SUBJECTS FOR DISCUSSION, PROVIDED THAT THE SUGGESTION TO CONTINUE OUR RAMBOUILLET TALKS EETS WITH A FAVOURABLE REACTION FROM OUR COLLEAGUES AS WELL. I AVAIL MYSELF OF THIS OPPORTUNITY, MR PRESIDENT, TO THANK YOU FOR YOUR MESSAGE OF 13 APRIL AND ESPECIALLY FOR YOUR PERSONAL COMMITMENT AS REGARDS QUESTIONS OF TRADE POLICY, I AM CONVINCED THAT THE SUCCESS OF OUR POLICIES WHICH IS NOW BECOMING INCREASINGLY APPARENT IS DUE DECISIVELY TO OUR EFFORTS TO AVOID UNSUITABLE WAYS AND MEANS IN REVIVING OUR NATIONAL ECONOMIES. WITH KIND REGARDS, SGD. HELMUT SCHMIDT, BT *WHSR COMMENT SCOWCROFT, HYLAND, MCFARLANE, RODMAN RECALLED PSN#011337 PAGE 01 OF 01 TDR8113/15846Z DTG8221415Z APR 76 *******U N CLASSIFIE D*******S COPY FORD & GERALD LIBRARY Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET 4 892 *******8 COPY OP IMMED DE WTE #2324 1211929 0 3020272 APR 76 FM THE WHITE HOUSE TO CHANCELLOR SCHMIDT ECREP SENSITIVE EYES ONLY WH60609 APRIL 30, 1978 FROM: BRENT SCONCROFT TD: CHANCELLOR SCHMIDT, FEDERAL REPUBLIC OF GERMANY DEAR MR. CHANCELLOR: SECRETARY KISSINGER HAS ASKED THAT I PASS TO YOU AND FOREIGN MINISTER GENSCHER THE FOLLOWING REPORT THAT HE PREPARED PERSONALLY FOR YOU SOTH ON HIS MEETINGS WITH PRESIDENT NYERERE: QUOTE: I HOPE THE FOLLOWING REPORT ON MY DISCUSSIONS WITH NYERERE WILL PROVE HELPFUL TO YOU DURING HIS FORTHCOMING VISIT, NYERERE IS AN INFLUENTIAL LEADER AND AN ENGAGING INTERLOCUTOR. MY STOP IN TANZANIA WAS THE KEY ONE FOR MY ENTIRE TRIP AND IT WOULD NOT HAVE GONE BETTER. I FORESHADOWED MY LUSAKA SPEECH AND OUR APPROACH ELICITED A VERY POSITIVE RESPONSE FROM HIM WHICH HE IN TURN IS PASSING ON TO OTHER KEY AFRICAN LEADERS, MORE FUNDAMENTALLY, WE FOUND MUCH COMMON GROUND DESPITE ESSENTIAL IDEOLOGICAL ANTIPATHY. WE BOTH WANT TO KEEP APRICA FREE OF EXTRACONTINENTAL RIVALRY AND INFLUENCE, AND WE BOTH SEE AFRICAN UNITY AND RAPID PROGRESS ON SOUTHERN AFRICAN ISSUES AS THE WAY TO ACHIEVE THIS GOAL. I EMPHASIZED THE FOLLOWING POINTS, WE WERE PUTTING THE AUTHORITY OF THE UNITED STATES ON THE SIDE OF A RAPID NEGOTIATED SETTLEMENT IN RHODESIA. WE HAVE HAD OTHER INTERNATIONAL AND DOMESTIC PREOCCUPATIONS AND MAY HAVE NEGLECTED AFRICA, BUT NOW WE WERE PREPARED TO MOVE FORCEFULLY. AT THE SAME TIME, I STRESSED THAT WE WOULD OPPOSE SOVIET AND CUBAN INTERVENTION. I OUTLINED FOR HIM THE ELEMENTS OF OUR STANCE ON RHODESIA WHSR COMMENT HYLAND, MCPARLANE, RODMAN RECALLED PSN#021696 PAGE 01 TOR:121/19:29Z DTG#302027Z APR 75 BECRET COPY DECLASSIFIED E.O. 12958, SEC. 3.5 GEWALD STRIIARY NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES, State Deview 9/16/03 BY lula NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET *******S COPY AND SOUTHERN AFRICA GENERALLY WHICH I GAVE IN MY SPEECH IN ZAMBIA THE NEXT DAY. WE WANTED MAJORITY RULE TO COME THROUGH A NEGOTIATED SETTLEMENT AND WANTED TO SEE A GOVERNMENT EMERGE THAT WAS TRULY AFRICAN, NOT THE PUPPET OF MOSCOW OR HAVANA. WE WERE DETERMINED TO PREVENT ANY FUTURE ANGOLAS. WE WOULD GIVE MORAL, POLITICAL AND ECONOMIC SUPPORT FOR MAJORITY RULE IN ORDER TO BRING SMITH AROUND. AT THE SAME TIME, WE COULD NOT AID THE LIBERATION MOVEMENTS DIRECTLY, AND WE WANTED TO SEE PROTECTION OF THE RIGHTS OF THE WHITE MINDRITY, THUS WE HAD SOME PARALLEL INTERESTS WITH THE AFRICANS BUT IN ORDER FOR us TO HELP THEY HAVE TO STOP ATTACKING us ALL THE TIME. THE AMERICAN PEOPLE WOULD NOT UNDERSTAND WHY WE WERE HELPING THOSE WHO SEEMED TO BE ENEMIES. NYERERE RESPONDED TO OUR APPROACH IN VERY POSITIVE FASHION, SAYING THAT IT CONSTITUTED A MAJOR STEP FORWARD, HE STRESSED OUR JOINT DESIRE TO KEEP OUT GREAT POWER RIVALRY WHICH ONLY SERVES TO DIVIDE AFRICA. TO THIS END HE AND OTHER BLACK AFRICANS WERE TELLING THE LIBERATION MOVEMENTS IN RHODESIA TO PULL TOGETHER: AND WERE FLATLY ORDERING MOSCOW, HAVANA, PEKING AND THE SCANDINAVIANS TO PROVIDE ALL AID THROUGH THE JOINT LIBERATION COMMITTEE OF THE DAU RATHER THAN DIRECTLY TO INDIVIDUAL RHODESIAN FACTIONS so AS TO MANIPULATE THEN. IN SHORT, HE SHARED OUR DESIRE TO HEAD OFF ANY FUTURE ANGOLAS. THE AFRICANS, HAVE TURNED TO GUERRILLA WARFARE IN RHODESIA BECAUSE SMITH MADE CLEAR THAT HE WASN'T YET READY TO NEGOTIATES HE SAID THAT HE AND THE OTHER APRICANS WOULD SUPPORT THE NEGOTIATION ROUTE AGAIN ONCE IT WAS CLEAR THAT SHITH WAS SERIOUS. HE ADDED THAT HE WOULD CONTINUE TO SUPPORT CONSTITUTIONAL GUARANTEES FOR THE WHITES WHO WISH TO REMAIN IN RHODESIA, THOUGH PEOPLE LIKE SMITH AND THE "SEEKERS OF COMFORT" WOULD HAVE TO LEAVE AND COULD BE COMPENSATED. HE ALSO MADE A BRIEF PITCH ON EARLY NAMISIA INDEPENDENCE, HE ALSO VOLUNTEERED THAT HE UNDERSTOOD OUR LIMITS, HE DID NOT EXPECT us TO GIVE ARMS TO AFRICAN LIBERATION MOVEMENTS. ME RECOGNIZED THAT SOUTH APRICA WOULD REQUIRE A LONGER PERIOD OF TIME TO BOLVE THAN RHODESIA AND NAMISIA. NYERERE ORCHESTRATED HIS MEDIA, AND HIS MEETINGS WITH US IN A SKILLFULLY INTEGRATED WAY THAT REMINDS ME OF THE CHINESE. IN ALL THESE CONTEXTS HE DELIBERATELY CHOSE NOT TO HIT US FRONTALLY WITH DEMANDS WHICH WOULD HAVE MADE IT IMPOSSIBLE FOR US TO RESPOND CONSTRUCTIVELY. INSTEAD HE MADE CLEAR THAT HE UNDERSTOOD THE LIMITATIONS ON OUR ACTIONS (SUCH AS MILITARY AID TO LIBERATION MOVEMENTS) AND STRESSED THEMES (SUCH AS PREVENTING FUTURE ANGOLAS) WHERE WE COULD FIND COMMON GROUND. HE CONCENTRATED ON THE FUTURE RATHER THAN THE PAST. RECALLED PSN#021595 PAGE 02 TOR:121/19:29Z DTG1302027Z APR 76 YORD SECREY *******8 COPY GERALO LIBRARY Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET *******S COPY A8 YOU KNOW, HE IS NOW THE MOST INFLUENTIAL AFRICAN LEADER ON SOUTHERN AFRICAN ISSUES AND ONE OF THE LEADERS OF THE THIRD WORLD. HE COMBINES IMPECCABLE REVOLUTIONARY CREDENTIALS, A WIDE-RANGING INTELLECT, AND HARD-HEADED REALISM. HE IS BOTH AN ARTICULATE IDEOLOGUE AND A PRAGMATIST WHO IS INTERESTED IN RESULTS, HE MAS PARTICULAR INFLUENCE WITH ZAMBIA, MOZAMBIQUE AND BOTSWANA, BUT ALMOST ALL AFRICAN STATES LISTEN TO HIM ON SOUTHERN AFRICAN ISSUES. IF HE DECIDES TO BE HELPFUL, HE CAN HELP SET A DIRECTION AND TONE FOR THE CONTINENT. SINCE MY TANZANIA STOP NYERERE HAS IN FACT BEEN HELPFUL. HE HAS GIVEN CONSIDERABLE PUBLICITY TO OUR APPROACH. BASED ON MY PREVIEW OF THE SPEECH, HE CONTACTED KAUNDA IN ADVANCE AND TALKED TO MOZAMBIQUE'S MACHEL IN DAR ES-8ALAAM THE DAY OF THE SPEECH, AT THE LUSAKA LUNCH KAUNDA GOT UP AFTER MY PRESENTATION AND WARMLY WELCOMED IT ON BEHALF OF THE FOUR PRESIDENTS (ZAMBIA, TANZANIA, MOZAMBIQUE AND BOTSWANA), WE HAVE RECEIVED A VERY POSITIVE REACTION so FAR IN AFRICA AND THE UNITED STATES, WITH A FEW INEVITABLE EXCEPTIONS. IN SHORT, I THINK YOU WILL FIND THE TALKS WITH NYERERE VERY STIMULATING. YOU WILL, OF COURSE, WANT TO STRESS YOUR OWN THEMES BUT I BELIEVE IT WOULD BE EXTREMELY HELPFUL TO ALL OF us IN THE WEST IF YOU COULD UNDERLINE TWO POINTS. FIRST, AFRICANS SHOULD SOLVE THEIR OWN PROBLEMS WITHOUT RESORTING TO THE USE OF EXTERNAL POWERS, INTERPERENCE BY ONE OUTSIDE COUNTRY IS BOUND TO LEAD OTHERS TO COUNTER IT. SECOND, COUNTRIES LIKE TANZANIA CANNOT EXPECT THE WEST TO HELP ON PROBLEMS OF SOUTHERN AFRICA AND DEVELOPMENT WHILE SIMULTANEOUSLY BEING ATTACKED AND OPPOSED AT EVERY TURN, THERE MUST BE SOME TONING DOWN OF RHETORICAL CONFRONTATION IF WE ARE TO BUILD THE NECESSARY DOMESTIC SUPPORT FOR POSITIVE POLICIES. I WOULD WELCOME HEARING THE RESULTS OF YOUR TALKS. WARM REGARDS, HENRY A. KISSINGER UNQUOTE SINCERELY, BRENT SCOWCROFT ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS RECALLED PSN#21696 PAGE 03 OF 83 TOR#121/19:29Z DT683020272 APR 76 SECRET *******S COPY FORD o GERALD LIBRARY Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library THE FOLLOWING MESSAGE WAS RECEIVED BY THE SITUATION ROOM: TO THE PRESIDENT FROM CHANCELLOR CF FRG OVER DUBUQUE FRG 707 MR. PRESIDENT, UPON LEAVING THE UNITED STATES I WOULD LIKE TO EXPRESS TO YOU MY SINCERE APPRECIATION FOR THE VERY GOOD TALKS WE HAD IN WASHINGTON AND MY GRATITUDE FOR THE FRIENDSHIP AND HOSPITALITY YOU EXTENDED TO ME DURING MY STAY IN THE UNITED STATES. WITH WARMEST REGARDS, SINCERELY HELMUT SCHMIDT CHANCELLOR OF THE FED. REP. OF GERMANY Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 6a THE WHITE HOUSE WASHINGTON SECRET August 30, 1976 Dear Mr. Chancellor: Thank you for your letter of July 29 concerning our discussions on defense issues during your recent visit. I wish to confirm your understanding that the traditional balance of payments offset arrangements, typified by those implemented between 1961 and 1975 pursuant to the NATO Resolutions of July 26, 1957, are no longer relevant. I note with pleasure your expectation that military procurement by the Armed Forces of the Federal Republic in the United States, which has formed the basic element of such agreements, can be expected to continue as in the past. I confirm with you the importance which both our governments attach to the transfer of a United States combat brigade to North Germany, and I welcome your offer to contribute an amount of DM 171. 2 million toward the costs of the brigade's initial relocation. Continuing stationing costs are, of course, under the Status of Forces Agreement and the supplementary agreement thereto, the responsibility of the stationing power. Finally, I also confirm our understanding that your government does not rule out the possibility of SECRET DECLASSIFIED E.O. 12958, SEC. 3.5 BY NSC MEMO, ba 11/24/98, STATE DEPT. GUIDELINES state Review. 9/16/03 GERALD LIBRARY , NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET -2- contributions being considered in future exceptional cases which lie in the interests of collective defense. With kind regards. Sincerely, Herald R. Food His Excellency Helmut Schmidt Chancellor of the Federal Republic of Germany Bonn SECRET Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library MEMORANDUM 4503X THE WHITE HOUSE WASHINGTON SEGRET/SENSITIVE ACTION August 25, 1976 MEMORANDUM FOR THE PRESIDENT FROM: Brent Scowcroft B SUBJECT: Reply to Chancellor Schmidt on NORTHAG/Offset FRG Chancellor Schmidt has sent you a letter (at Tab B) stating his interpretation of US-FRG understandings on defense issues reached during his official visit to Washington last month. His letter is an accurate expression of the discussions and understandings between the two of you and between Secretary Kissinger and Foreign Minister Genscher. The reply for your signature to Chancellor Schmidt at Tab A would confirm these understandings, specifically, that: -- the traditional balance of paymentsoffset arrangements are no longer relevant; -- FRG military procurement in the US can be expected to continue as in the past; -- the FRG will contribute DM 171. 2 million toward initial relocation of a US combat brigade to North Germany; -- continuing stationing costs are the responsibility of the stationing power; and -- the FRG does not rule out the possibility of contributions being considered in future exceptional cases which lie in the interests of collective defense. Your reply to Chancellor Schmidt has been coordinated with the Departments of State, Treasury and Defense. RECOMMENDATION That you sign the letter to Chancellor Schmidt at Tab A. DECLASSIFIED SECRET/SENSITIVE E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES state loview 9/16/03 XGDS BY the , NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library Segret BUNDESREPUBLIK DEUTSCHLAND Bonn, July 29, 1976 DER BUNDESKANZLER Dear Mr. President, the question of balance of payments offset arrangements between the Federal Republic of Germany and the United States of America has been discussed on several recent occasions by the Secretary of State of the United States of America and the Minister of Foreign Affairs. They were agreed that the offset arrangement implemented by our two governments between 1964 and 1975 in pursuance of the NATO Resolution of July 26, 1957, is no longer applicable in view of significant improvements in the fields of international monetary and economic policy. Therefore, I wish to note our agreement that the traditional balance of payments offset has lost its relevance. However, military procurement by the Armed Forces of the Federal Republic in the United States, which has formed the basic element of past such agreements, can be expected to continue as in the past. His Excellency Mr. Gerald Ford President of the United States of America Washington, D.C. DECLASSIFIED NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES state Review 9/16/03 E.O. 12958, SEC. 3.5 BY m 1 NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library - 2 - The Government of the Federal Republic of Germany welcomes the intention of the United States administratio to transfer a combat brigade to North Germany. It attaches special importance to this step to strengthen the defense capability of the alliance, and is prepared in this exceptional case to make a single payment of up to 171,2 million Deutsche Mark towards the cost of the military accomodation of the brigade. However, the Federal Government deems it important to state that this special, single contribution does not establish any obligation on the part of the Federal Republic of Germany to pay stationing costs which, under the Status of the Forces Agreement and the supplementary agreement thereto, is the responsibility of the stationing power. The Federal Government does not rule out the possibility of contributions being considered in future exceptional cases which lie in the interests of collective defense. With kind regards, Sincerely, yours Mann Summy Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 4503X MEMORANDUM Discharge NATIONAL SECURITY COUNCIL ACTION August 11, 1976 MEMORANDUM FOR BRENT SCOWCROFT FROM: Richard T. Boverie RTB Robert Gates Rg. SUBJECT: Presidential Reply to Chancellor Schmidt on NORTHAG/Offset Chancellor Schmidt has sent the President a letter (at Tab B) setting forth his interpretation of US-FRG understandings on defense issues reached during his official visit to Washington last month. The points in the letter are, in our view and that of the Department of State, an accurate reflection of the discussions and understandings between the two leaders and between Secretary Kissinger and Foreign Minister Genscher. NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES 9/16/03 The memorandum for your signature to the President at Tab I would forward the Chancellor's letter, together with a brief summary and a proposed reply. The President's reply at Tab A, prepared by State with minor, non-substantive revisions here, would confirm the understandings noted by the Chancellor. (State's draft, annotated with our changes, is NARA, DATE 13/5/04 at Tab II. State has concurred in our revisions.) As we noted in our earlier memorandum to you on the Chancellor's letter, we believe that Defense clearance should be handled by you with Staser Holcomb DECLASSIFIED E.O. 12958, SEC. 3.5 to avoid reopening State-Defense disagreements at the bureaucratic level. Similarly, Bob Hormats recommends (and we concur) that you inform Under Secretary Yeo at Treasury of the Chancellor's letter and the substance of the President's reply. Treasury has been involved throughout this process until recent weeks and has a legitimate interest in knowing of the President's BY an reply to Chancellor Schmidt. Your clearance with Yeo would satisfy the need to touch base with Treasury without delaying the President's reply. Bob Hormats concurs. RECOMMENDATION 1. That you clear the Presidential reply at Tab A with Holcomb at Defense and Yeo at Treasury. 2. That you sign the memorandum to the President at Tab I. SECRET/SENSITIVE/XGDS Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 45031 the 6d MEMORANDUM anne 8/23 / Nent Presedent freward 8/26 am NATIONAL SECURITY COUNCIL ACTION August 11, 1976 MEMORANDUM FOR BRENT SCOWCROFT FROM: Richard T. Boverie RTD Robert Gates Rg. SUBJECT: Presidential Reply to Chancellor Schmidt on NORTHAG/Offset Chancellor Schmidt has sent the President a letter (at Tab B) setting forth his interpretation of US-FRG understandings on defense issues reached during his official visit to Washington last month. The points in the letter are, in our view and that of the Department of State, an accurate reflection of the discussions and understandings between the two leaders and between Secretary Kissinger and Foreign Minister Genscher. NBC MEMO, 11/24/98, STATE DEPT. GUIDELINES state Beview 9/16/03 The memorandum for your signature to the President at Tab I would forward the Chancellor's letter, together with a brief summary and a proposed reply. The President's reply at Tab A, prepared by State with minor, non-substantive revisions here, would confirm the understandings noted by the Chancellor. (State's draft, annotated with our changes, is NARA, DATE 3/5/04 at Tab II. State has concurred in our revisions.) As we noted in our earlier memorandum to you on the Chancellor's letter, we believe that Defense clearance should be handled by you with Staser Holcomb DECLASSIFIED E.O. 12958, SEC. 3.5 to avoid reopening State-Defense disagreements at the bureaucratic level. Similarly, Bob Hormats recommends (and we concur) that you inform Under Secretary Yeo at Treasury of the Chancellor's letter and the substance of the President's reply. Treasury has been involved throughout this process until recent weeks and has a legitimate interest in knowing of the President's reply to Chancellor Schmidt. Your clearance with Yeo would satisfy the need to touch base with Treasury without delaying the President's reply. FORD BY Pr Bob Hormats concurs. GERALD AMERICA RECOMMENDATION 1. That you clear the Presidential reply at Tab A with Holcomb at Defense and Yeo at Treasury. 2. That you sign the memorandum to the President at Tab I. SEGRET/SENSITIVE/XGDS Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library DEPARTMENT OF STATE 7617035 Washington, D.C. 20520 August 10, 1976 SECRET NODIS MEMORANDUM FOR MR. BRENT SCOWCROFT THE WHITE HOUSE Subject: Proposed Reply from President to Letter from FRG Chancellor on Northag/Offset Attached is a proposed reply from the President to a letter from FRG Chancellor Schmidt on the subject of Northag/offset. for Executive Secretary Attachments: 1. Proposed letter from the President 2. Letter from Chancellor Schmidt SECRET GDS 3/5/04 3 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET Dear Mr. Chancellor: Thank you for concerning our discussions your letter of July 29 to the on defense issues during your recent visit. I wish to balance of payments confirm your understanding that the traditional offset A arrangements, typified by those implemented between 1961 and 1975 pursuant to the NATO Resolution of July 26, 1957, are no longer relevant. I note with pleasure [however] your expectation that military procurement by the Armed Forces of the Federal Republic in the United States, which has formed the basic element of such agreements, can be expected to continue as in the past. I confirm with you the importance which both our governments attach to the transfer of a United States combat brigade to North Germany, and I welcome your offer to contribute an amount of DM 171.2 million toward the costs of the brigade's initial Continuing stationing costs are, of course, under the Status of Forces Agreement and the supplementary agreement thereto, the responsibility of the stationing power. His Excellency Helmut Schmidt, Chancellor of the Federal Republic of Germany, Bonn. DECLASSIFIED SECRET E.O. 12958, SEC. 3.5 STATE DEPT, GUIDELINES state 9/16/03 BY NARA DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library SECRET -2- Finally, I also confirm our understanding that your government does not rule out the possibility of contri- being considered [ Note: butions in future exceptional cases which lie in the < Added phrase interests of collective defense. makes consistent with text of With kind regards. Schmidt letter.] ] Sincerely, Gerald R. Ford SECRET LIBRARY Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library NATIONAL SECURITY COUNCIL 4503 WASHINGTON, D.C. 20506 SECRET/NODIS August 9, 1976 MEMORANDUM FOR C. Arthur Borg Executive Secretary Department of State SUBJECT: Letter From FRG Chancellor on NORTHAG/Offset The attached letter has been received from Chancellor Schmidt stating his interpretation of the US-FRG understanding on defense issues reached during his official visit to Washington last month. It would be appreciated if the Department of State would prepare a proposed reply from the President to Chancellor Schmidt setting forth the U.S. position on this issue. The draft reply should be forwarded no later than August 11, 1976 for consideration by the President. Staff JMD Secretary Jeanne Davis Attachment SEGRET/NODIS/XGDS DECLASSIFIED E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES BY 4b , NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library MEMORANDUM NATIONAL SECURITY COUNCIL 4503 SECRET/NODIS/XGDS ACTION August 6, 1976 MEMORANDUM FOR BRENT SCOWCROFT FROM: A. Denis Clift and Richard T. Boverie LTB SUBJECT: Schmidt Letter on NORTHAG/Offset The memorandum for Jeanne Davis' signature to State at Tab A would forward Chancellor Helmut Schmidt's letter of July 29 setting forth his understanding of the agreement reached with the President on NORTHAG and Offset. The memorandum would request the Department of State to prepare a proposed reply from the President to the Chancellor stating the U.S. position on these issues. The reply is requested by August 11 to permit Presidential action prior to the departure for Kansas City. We believe that Defense clearance should be handled by you with Holcomb following receipt of the State draft to avoid reopening State-Defense disagreements at the bureaucratic level. RECOMMENDATION That you approve the memorandum at Tab A. APPROVE BD OTHER SECRET/NODIS/XGDS DECLASSIFIED E.O. 12968, SEC. 3.5 NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES state Review 9/16/03 BY ben , NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 6 So to THE WHITE Schuckft HOUSE WASHINGTON Delivered by Charge Neils Hower, FRE, 6 10pm, 8/5/76 [RE: SCHMOT LTR TO Pres] Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library Geheim BENDESREPUBLIK DEUTSCHLAND Bonn, den 29. Juli 1976 DER BUNDESKANZLER Sehr geehrter Herr Präsident, die Frage von Devisenausgleichsvereinbarungen zwischen der Bundesrepublik Deutschland und den Vereinigten Staaten von Amerika wurde jüngst verschiedentlich vom Außenminister der Vereinigten Staaten und dem Bundes- minister des Auswärtigen erörtert. Sie stimmten darin überein, daß die Devisenausgleichsregelung, die aufgrund der NATO-Resolution vom 26. Juli 1957 in den Jahren 1961 bis 1975 von unseren beiden Regierungen durchgeführt wurde, angesichts der bedeutenden Verbesserungen im internationalen währungspolitischen und wirtschafts- politischen Bereich nicht mehr anwendbar ist. Daher möchte ich unser Einvernehmen darüber feststellen, daß der herkömmliche Zahlungsbilanzausgleich gegen- standslos geworden ist. Es kann jedoch davon ausgegangen werden, daß die militärischen Beschaffungskäufe durch die Streitkräfte der Bundesrepublik Deutschland in den Vereinigten Staaten von Amerika, die das wesentliche Element solcher früheren Vereinbarungen dargestellt haben, wie in der Vergangenheit fortgeführt werden. Seiner Exzellenz dem Präsidenten der Vereinigten Staaten von Amerika Herrn Gerald Ford DECLASSIFIED Washington E.D. 12958, SEC. 3.5 STATE DEPT, GUIDELINES 9/16/03 BY in NAD^ 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 2 Die Regierung der Bundesrepublik Deutschland begrüßt die Absicht der Regierung der Vereinigten Staaten von Amerika, eine Kampfbrigade nach Norddeutschland zu verlegen. Sie mißt diesem Vorhaben eine besondere Bedeutung für die Stärkung der Verteidigungskraft der Allianz bei und ist in diesem außergewöhnlichen Falle bereit, mit einer einmaligen Zahlung bis zu 171,2 Mio DM zu den Kosten der militärischen Unterbringung der Brigade beizutragen. Die Bundesregierung legt allerdings Wert auf die Feststellung, daß dieser besondere einmalige Kosten- beitrag keine Verpflichtung der Bundesrepublik Deutsch- land zur Zahlung von Stationierungskosten begründet, die nach dem Truppenvertrag und der Zusatzvereinbarung den Stationierungsmächten obliegt. Die Bundesregierung schließt nicht aus, daß sie in künftigen, im Interesse der gemeinsamen Verteidigung liegenden außergewöhnlichen Fällen prüfen wird, ob die Möglichkeit einer Kostenbeteiligung besteht. Mit freundlichen Grüßen Her evgluence Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library CLASSIFICATION SECRET ATTACHMENT NATIONAL SECURITY COUNCIL REFERRAL Date: 31 August 1976 NSC log # 4503 NSC Receipt # 1202 MEMORANDUM FOR: C. Arthur Borg Executive Secretary Department of State DOCUMENT DESCRIPTION: PRESIDENTIAL "GREEN" LETTER To: Chancellor Helmut Schmidt From: President Ford Date: 30 August 1976 Subject: ACTION REQUESTED: Draft reply for: President's Signature White House Staff Other Direct reply Furnish info copy XXX Dispatch VIA CLASSIFIED POUCH! Translation Recommendations / Comments Appropriate Handling Other Information DUE DATE: COMMENTS: ** ATTACHED IS ONE SEALED ENVELOP & CY FOR YOUR FILE ONLY! HANDLE AS NODIS for B.Menhont Jeanne W. Davis Staff Secretary CLASSIFICATION: SECRET ATTACHMENT Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library DOC RECD LOG NUMBER 6x MO DA MO DA HR INITIAL ACTION o NSC CORRESPONDENCE PROFILE 8 6 8 9 09 7604503X TO: PRES FROM: SECSTATE $/8 'UNCLAS LOG IN/OUT SCOWCROFT X SECDEF LOU NO FORN NODIS HYLAND DCI X REF C EYES ONLY EXDIS DAVIS STATE PASEC $ CODEWORD SOURCE/CLASS/DESCRIPTION OTHER Clift/Bovere TS SENSITIVE SUBJECT ack ltr to Presfm Schmidt re his understandy of agreement w/ Pres re NORTHAG + offset - LA ! INTERNAL ROUTING AND DISTRIBUTION REC ACTION REQUIRED ACTION CONCUR- COOR- INFO CY RENCE DINATE FOR ADV CYS S'CROFT/ WGH MEMO FOR SCOWCROFT STAFF SECRETARY MEMO FOR PRES CONGRESSIONAL REPLACE FOR A ECONOMIC DISTRIBUTION/INITIAL ACTION ASGMT APPROPRIATE ACTION EUR/ CANADA/ OCEANS MEMO TO FAR EAST/ PRC RECOMMENDATIONS ( INTELLIGENCE JOINT MEMO LATIN AMERICA REFER TO FOR: MID EAST/ NO. AFRICA ANY ACTION NECESSARY? NSC PLANNING CONCURRENCE PROGRAM ANALYSIS DUE DATE: SCIENTIFIC COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS SUB-SAH/ AFRICA UN ROOMAN Leonard, m DATE FROM TO STATUS SUBSEQUENT ACTION REQUIRED (OR TAKENI: DUE CY TO 8/9 Scowcreft X Decision 8/11 8.9 NSAB I Sconoroft approved ment 8/9 DAVIS s SUBSEQUENT ROUTIN JBSEQUENT ROUTING/ACTIONS 8/9 Sgn memo to Bozg D 8/10 Reed Davis state Ayd memo drutt to Bozg 8/11 Child d 8/11 S Memo for thes 8/11 Lourne 8/11 Taken outside suplem 8/11 BOUERIE GATES Sirroft "X" APPROPRIATE ACTiON 8/30 Per P Sgn mem to Schmilt 8/30 DISPATCH VIA 8/31 STATE Secretament Bion C Pres sgd memo Sa Schmilt MICROFILM & FILE ROMTS NOTIFY NSC/S DISP INSTR for pouct M/F'D BY SPECIAL DISPOSITION: IF CRT 10: ADC N6 DY SPECIAL INDEXING: OPEN WH SA PP CLOSE PA SUSPENSE CY ATTACHED NSC 76-21 U.S. GOVERNMENT PRINTING OFFICE - 599-022 - 1976 599-022 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 7A MEMORANDUM THE WHITE HOUSE WASHINGTON TOP SECRET/SENSITIVE INFORMATION December 12, 1976 MEMORANDUM FOR: THE PRESIDENT FROM: BRENT SCOWCROFT B The following message has just been received from Chancellor Schmidt: "Dear Mr. President, "Concerning the project of a safety-net for sterling balances, I am informed that the Central Bankers of the Club of Ten will meet tomorrow Monday in Bale/Switzerland. The USA will be represented by Mr. Wallich. The German Federal Bank Chairman Klasen and the Bank of England Chairman will also participate. In regard to this meeting I would like to propose that Mr. Wallich is being given instructions so as to enable the meeting to envisage the safety-net solution in so far as is necessary for Prime Minister Callaghan to tell the British Parliament on Wednesday about the fact that the safety-net is in the making. "I believe that Mr. Callaghan needs not to speak more specifically. I do assume that German Government officials and German Central Bank officials will meet their American counterparts in Washington, D.C. on Wednesday. "They should then be in a position to draw up the agreement on the safety- net for sterling balances. If my assumptions are correct this would make it possible to announce the principles of the safety-net in the later course of this week. One should hope that thereby any psychologic danger for sterling balances can be avoided. "I beg your understanding for bothering you over the weekend but I think the matter is important. "I have not informed our British friend about this message. /s/ Your Truly, Helmut Schmidt Federal Chancellor of Germany" DECLARCIFIED TOP SECRET SENSITIVE E.O. 12958, SEC. 3.5 NSC MEMO, 11/24/96, STATE DEPT. GUIDELINES state Deview 9/16/03 BY John , NARA, DATE 3/5/04 Digitized from Box 2 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library 7Pm Thank you for your message of December 10. Derek Mitchell has already arrived in Washington and has been meeting with Arthur Burns and Ed Yeo. I can assure you that we will, in the discussions on the sterling balances problem, convey what we believe to be constructive, substantive ideas and proposals which both meet our domestic requirements and are responsive to your needs. We are also aware that the United Kingdom has a number of ideas and proposals, and that a considerable amount of work has been done in the BIS. It is my hope and expectation that con- structive negotiations can reach a positive, mutually satisfactory solution to this problem. While we intend to move as rapidly as possible, I believe that on an issue as complex as this, final agreement will be unlikely by Monday evening. I do understand your concerns, however, and we shall be as responsive as possible in conveying by Monday evening wording which reflects the progress of our discussions as of that time.