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SECRET - 5 - The Spanish clearly desire positive results from these NATO initiatives within the lifetime of our present Defense Agreement, i.e., September 1970. We may not, in fact, be able to make any of them materialize within that period. We must, therefore, get the Spanish Government to accept our earnest and sincere efforts as quid pro quo in itself. b. Base Payments We believe that we should be prepared to pay up to $25 million a year for the bases if it can be included in the Defense Department budget. This would be a proper method of funding, since it would in effect be payment for the maintenance of facilities that are important for U.S. defense and should not be subtracted from funds we count on for the regular military assistance program in the absence of joint defense commitments. Since we have no defense commitments with Spain and do not intend to enter into any in the course of the base negotiations, we do not believe we can adequately justify to the Congress the use of increasingly hard to obtain MAP funds to pay for the Spanish bases. It should be recognized that the transfer of Spanish facility funding from MAP to the Defense budget could SECRET

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