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UNC SECRET FIED Background Paper on DOD Major Substantive Changes to Response to NSSM 46 1. On page 5 of Part 11, insert the following new paragraph 2: "Ambassador Hill has reported his expectation that the Spanish Government will ask in excess of $250 million (including up to approximately $100 million credit) for military purposes over five years, plus US assistance in educational reform (cost to US estimated up to $40 million), and a more understanding US viewpoint toward Spanish policy objectives, especially their arrangements with the Common Market. He believes that they may settle for approximately the dollar value upon which our current arrangement is based (i.e., $25 million per year in grants, $17.5 million per year in credits), but that they may insist that part of the money be used for non-defense items. However, he cautions that US desires to expand our facilities in Spain, for example, the weapons training range, could drive the price higher.' Rationale: The President and the NSC should be made aware of Ambassador Hill's estimate of the likely quid pro quo implications of a new US-- Spanish relationship. 2. Part III, page 21, add new sentences 2 and 3: "It takes into account the view of the Department of Defense that 'it is of great importance to retain the present military arrangements in Spain, and every effort to do so should be made in the forthcoming negotiations.' It also assumes that with the loss of most of the northern tier of African states, our ability to operate from Spanish bases may be key to continued control of the Western Mediterranean in the face of growing Soviet presence in the area." Rationale: Provides the President and the NSC a clearer appreciation of the rationale behind Option 1. 3. Part III, page 24, add new Advantage 6: "Takes advantage of an exceptional opportunity to utilize quid pro quo sought by GOS to exert major US influence over time on basic educational reform and thereby on Spanish social and political evaluation, with favorable consequences for Spain's relations both with Europe and the US." Rationale: Language is identical to that of Advantage 9 of Option 2. Since Option 1 seeks to make every effort to retain US military rights and facilities, it is reasonable to assume that US support for Spanish educa- tional reform should be even more forthcoming under Option 1 than under Option 2. Therefore, the above cited advantage should be attributed to Option 1 as well. DECLASSIFIED/RELEASED ON 4/16/02 by NARA on the recommendation of the NSC under provisions of E.O. 12958 UNC SECRET RS

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    "ocrText": "UNC\nSECRET\nFIED\nBackground Paper\non\nDOD Major Substantive Changes to Response to NSSM 46\n1. On page 5 of Part 11, insert the following new paragraph 2:\n\"Ambassador Hill has reported his expectation that the Spanish\nGovernment will ask in excess of $250 million (including up to approximately\n$100 million credit) for military purposes over five years, plus US\nassistance in educational reform (cost to US estimated up to $40 million),\nand a more understanding US viewpoint toward Spanish policy objectives,\nespecially their arrangements with the Common Market. He believes that\nthey may settle for approximately the dollar value upon which our current\narrangement is based (i.e., $25 million per year in grants, $17.5 million\nper year in credits), but that they may insist that part of the money be used\nfor non-defense items. However, he cautions that US desires to expand\nour facilities in Spain, for example, the weapons training range, could\ndrive the price higher.'\nRationale: The President and the NSC should be made aware of Ambassador\nHill's estimate of the likely quid pro quo implications of a new US--\nSpanish relationship.\n2. Part III, page 21, add new sentences 2 and 3:\n\"It takes into account the view of the Department of Defense that\n'it is of great importance to retain the present military arrangements\nin Spain, and every effort to do so should be made in the forthcoming\nnegotiations.' It also assumes that with the loss of most of the northern\ntier of African states, our ability to operate from Spanish bases may be\nkey to continued control of the Western Mediterranean in the face of growing\nSoviet presence in the area.\"\nRationale: Provides the President and the NSC a clearer appreciation of\nthe rationale behind Option 1.\n3. Part III, page 24, add new Advantage 6:\n\"Takes advantage of an exceptional opportunity to utilize quid pro quo\nsought by GOS to exert major US influence over time on basic educational\nreform and thereby on Spanish social and political evaluation, with\nfavorable consequences for Spain's relations both with Europe and the US.\"\nRationale: Language is identical to that of Advantage 9 of Option 2. Since\nOption 1 seeks to make every effort to retain US military rights and\nfacilities, it is reasonable to assume that US support for Spanish educa-\ntional reform should be even more forthcoming under Option 1 than under\nOption 2. Therefore, the above cited advantage should be attributed to\nOption 1 as well.\nDECLASSIFIED/RELEASED ON 4/16/02\nby NARA on the recommendation of the NSC\nunder provisions of E.O. 12958\nUNC SECRET\nRS"
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