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SECRET - 3 - Spain-EEC Negotiations. I am sending you a separate memorandum on this other quid pro quo in the Under Secretaries Committee report. The U.S. Go ernment position is still not sorted out, and I believe we need further interagency consideration of this issue in the context of our policy toward all the preferential agreements pending with the EEC. The other items seem to offer an adequate basis for Secretary Rogers to begin exploratory discussions with Lopez Bravo. The NATO link and the format of a general cooperation treaty should have special appeal for the Spanish. Pride is SO important to them -- this is why your willingness to receive Lopez Bravo will add SO greatly to the negotiation effort. The question of funding for base payments may become very difficult, and SO it is important to get on with the Congressional soundings on this. RECOMMENDATION: That you approve the Under Secretaries Committee report on the quid pro quo xcept for Spain-EEC negotiations. Approve Jan MAR 17 1970 Disapprove SECRET

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