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NV TELCON Secretary Schlesinger - Secretary Kissinger January 4, 1974 2:50 p. m. K: I am going to send Dayan off in a few minutes. We have made some very ggood progress. We are not all the way, not yet, but 90% of the way. They are psycopathic, though that this be kept only to you. I have to meet with him again tomorrow. I am fairly op- timistic, though. They want some assurances of longer term supplies so I thought you could. S: Well, that's a political thing. You understand we have now committed 1.3 billion. After we pass 1.5 billion it has to be a Presidential determination. K: Under these conditions we will be able to do that though. I think you could tell them its no problem and be willing to discuss a long term supply proposal with them. S: This is what the administration wants? K: Yes. S: Okay. The P K: The President wants to do this if they are helpful in the political thing. Moreover, if. I think we will have less trouble from the Arabs if we do it clearly related to getting them to make concessions. We wouldn't be delivering these things until they have delivered a part of it anyway. If they could see some positive tone as a result of their positive thinking. S: We will give them positive tone. The things we will not be too positive about are the following: (1) There are certain advanced items we just don't have in our inventory. They are asking for C which, you knowis still in R&D. This sophisticated stuff just isn't available. (2) We can do the A-4s, we can go ahead with Skyhawks and 50 million dollars worth of choppers they want. K: I'd be pretty good on Skyhawks and choppers. S: The A-4s and othe r advanced to a lesser extent, though. K: They are getting walleye's aren't they. S: We have walleyes but what they want is the advanced walleyes, the extended long range walleyes. We just don't have those available.

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