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SECRET - 10 - IV. SPANISH OBJECTIVES IN THE NEGOTIATION The Spanish have indicated to us that, in contrast to the period of the 1953 agreement, when U.S. military and economic aid was important to Spain, today Spain is relatively prosperous and does not need material aid but rather political benefits from its tie to the U.S. This attitude was already evidenced by the Spanish in the 1968 negotiations, when they insisted that the 1953 defense agreement, based on military aid in return for military bases, could not be extended but must be replaced by a new agreement covering cooperation in the fields of education, science, agriculture, economic affairs, and other civilian fields, as well as in the military field. The 1970 agreement ostensibly did cover all these fields, although the military area remained predominant. Even in the military part of the agreement, however, the grant aid element was modest -- $26 million over the five year period. The amount of U.S. military materiel purchased by the Spanish under the agreement was much larger -- $120 million, half credit and half cash. With nearly $7 billion in monetary reserves and a booming economy, Spain today has no need for material assistance. Spain's needs lie in the political and in the technological fields. In the political field Spain's objective is to become accepted as an equal among the major nations of the world. She is barred from membership in NATO and the European Community at least SO long as General Franco lives, however. The Spanish have therefore turned to the idea of a security treaty with the United States as a means of achieving a status equal to -- if apart from -- that of the European NATO countries. Spanish military planning SECRET Reproduced at the Richard Nixon Presidential Library and Museum RESL

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    "ocrText": "SECRET\n- 10 -\nIV. SPANISH OBJECTIVES IN THE NEGOTIATION\nThe Spanish have indicated to us that, in\ncontrast to the period of the 1953 agreement, when\nU.S. military and economic aid was important to\nSpain, today Spain is relatively prosperous and\ndoes not need material aid but rather political\nbenefits from its tie to the U.S. This attitude\nwas already evidenced by the Spanish in the 1968\nnegotiations, when they insisted that the 1953\ndefense agreement, based on military aid in return\nfor military bases, could not be extended but must\nbe replaced by a new agreement covering cooperation\nin the fields of education, science, agriculture,\neconomic affairs, and other civilian fields, as\nwell as in the military field. The 1970 agreement\nostensibly did cover all these fields, although the\nmilitary area remained predominant. Even in the\nmilitary part of the agreement, however, the grant\naid element was modest -- $26 million over the five\nyear period. The amount of U.S. military materiel\npurchased by the Spanish under the agreement was\nmuch larger -- $120 million, half credit and half\ncash.\nWith nearly $7 billion in monetary reserves\nand a booming economy, Spain today has no need for\nmaterial assistance. Spain's needs lie in the\npolitical and in the technological fields. In the\npolitical field Spain's objective is to become\naccepted as an equal among the major nations of\nthe world. She is barred from membership in NATO\nand the European Community at least SO long as\nGeneral Franco lives, however. The Spanish have\ntherefore turned to the idea of a security treaty\nwith the United States as a means of achieving a\nstatus equal to -- if apart from -- that of the\nEuropean NATO countries. Spanish military planning\nSECRET\nReproduced at the Richard Nixon Presidential Library and Museum\nRESL"
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