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SECRET
- 2 -
NATO link: Although full membership in NATO is out of the
question while Franco is in power, there are several possible links
short of that on which we should be prepared to make the strongest
possible effort to secure the agreement of our NATO Allies; the
first step is to determine precisely what type of NATO link interests
the Spanish most; our earnest efforts should be accepted by the
Spanish as a quid pro quo in itself.
.-Education Assistance: In view of Spain's strong interest in
assistance from us in its comprehensive education reform, we can
offer a dramatic expansion of existing programs to provide training
in the U.S. for Spanish teachers and administrators; this will cost
from $1 - 5 million per year, for which special funds would have to
be appropriated; the first step is a joint review of Spain's needs.
Base payments: We can pay up to $25 million per year for the
bases if it can be funded through the Defense Department budget, not
through the military assistance program; this funding may provoke
strong reaction from the Foreign Affairs committees of Congress, and
if you approve, the Congressional leadership will be sounded out on
this point; alternatively, if it becomes necessary we can offer up to
$5 - 10 million per year in the military assistance program.
-Military credits: The Export-Import Bank will consider
sympathetically applications for credits involving equipment and
services; the Spanish are interested in such credits for the purchase
of F-4 aircraft, and the Bank has $85 million ear-marked for that
purpose this fiscal year.
-FDIP reclassification: We can adjust the classification of Spain
in our Foreign Direct Investment Program to improve the prospect of
American investment in Spain; the Spanish have long desired this change.
--General cooperation treaty: In response to a Spanish desire for
a broader and more dignified formal relationship, we would offer a
general cooperation treaty which would affirm existing cooperative
arrangements in many fields in addition to the base arrangements;
the treaty would be submitted to the Senate for advice and consent; it
would not contain a defense commitment.
SECRET
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"ocrText": "SECRET\n- 2 -\nNATO link: Although full membership in NATO is out of the\nquestion while Franco is in power, there are several possible links\nshort of that on which we should be prepared to make the strongest\npossible effort to secure the agreement of our NATO Allies; the\nfirst step is to determine precisely what type of NATO link interests\nthe Spanish most; our earnest efforts should be accepted by the\nSpanish as a quid pro quo in itself.\n.-Education Assistance: In view of Spain's strong interest in\nassistance from us in its comprehensive education reform, we can\noffer a dramatic expansion of existing programs to provide training\nin the U.S. for Spanish teachers and administrators; this will cost\nfrom $1 - 5 million per year, for which special funds would have to\nbe appropriated; the first step is a joint review of Spain's needs.\nBase payments: We can pay up to $25 million per year for the\nbases if it can be funded through the Defense Department budget, not\nthrough the military assistance program; this funding may provoke\nstrong reaction from the Foreign Affairs committees of Congress, and\nif you approve, the Congressional leadership will be sounded out on\nthis point; alternatively, if it becomes necessary we can offer up to\n$5 - 10 million per year in the military assistance program.\n-Military credits: The Export-Import Bank will consider\nsympathetically applications for credits involving equipment and\nservices; the Spanish are interested in such credits for the purchase\nof F-4 aircraft, and the Bank has $85 million ear-marked for that\npurpose this fiscal year.\n-FDIP reclassification: We can adjust the classification of Spain\nin our Foreign Direct Investment Program to improve the prospect of\nAmerican investment in Spain; the Spanish have long desired this change.\n--General cooperation treaty: In response to a Spanish desire for\na broader and more dignified formal relationship, we would offer a\ngeneral cooperation treaty which would affirm existing cooperative\narrangements in many fields in addition to the base arrangements;\nthe treaty would be submitted to the Senate for advice and consent; it\nwould not contain a defense commitment.\nSECRET"
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