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SECRET 7121 EXECUTIVE OFFICE OF THE PRESIDENT bureau OF THE budget WASHINGTON, D.C. 20503 FEB 2 1970 MEMORANDUM FOR THE PRESIDENT Subject: US Policy Toward Spain (NSSM 46) This memorandum contains my comments and recommendations on the issues raised by the draft Review Group report on US Policy Toward Spain (NSSM 46). Two issues deserve particular attention -- The relative current and future importance of US military rights and facilities in Spain. The feasibility of paying for any quid-pro-quo expected by Spain for extending these rights and facilities. Importance of US Military Rights and Facilities We agree with State and Defense that all of the facilities and rights in Spain are not of co-equal importance. Moreover, we believe it important for this government to understand their relative importance before entering into further negotiations. To assist in developing this understanding, I am forwarding the attached priority ranking which is based on our review of US military facilities and rights in Spain. Paying for quid-pro-quo The following paragraphs provide our comments on each of the quid-pro-quo alternatives considered in the Review Group report that would require budgetary resources. Grant military assistance (MAP). We agree with State and Defense that grant military assistance (MAP) funds will be very difficult to obtain. Congress did not provide additional MAP funds requested for Spanish Bases in FY 1970 and may not do so in the future. Thus, as in FY 1970 any future MAP quid-pro-quo is almost certain to be at the expense of other countries. Accordingly, commitments to provide MAP-funded military assistance to Spain should be avoided if possible; if unavoidable, not more than $5-10 million per year should be offered if the affects on other country programs are to be within acceptable limits. SECRET

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    "ocrText": "SECRET\n7121\nEXECUTIVE OFFICE OF THE PRESIDENT\nbureau OF THE budget\nWASHINGTON, D.C. 20503\nFEB 2 1970\nMEMORANDUM FOR THE PRESIDENT\nSubject: US Policy Toward Spain (NSSM 46)\nThis memorandum contains my comments and recommendations on the issues\nraised by the draft Review Group report on US Policy Toward Spain (NSSM 46).\nTwo issues deserve particular attention --\nThe relative current and future importance of US military rights\nand facilities in Spain.\nThe feasibility of paying for any quid-pro-quo expected by Spain\nfor extending these rights and facilities.\nImportance of US Military Rights and Facilities\nWe agree with State and Defense that all of the facilities and rights in\nSpain are not of co-equal importance. Moreover, we believe it important\nfor this government to understand their relative importance before entering\ninto further negotiations. To assist in developing this understanding, I\nam forwarding the attached priority ranking which is based on our review\nof US military facilities and rights in Spain.\nPaying for quid-pro-quo\nThe following paragraphs provide our comments on each of the quid-pro-quo\nalternatives considered in the Review Group report that would require\nbudgetary resources.\nGrant military assistance (MAP). We agree with State and Defense that\ngrant military assistance (MAP) funds will be very difficult to obtain.\nCongress did not provide additional MAP funds requested for Spanish Bases\nin FY 1970 and may not do so in the future. Thus, as in FY 1970 any future\nMAP quid-pro-quo is almost certain to be at the expense of other countries.\nAccordingly, commitments to provide MAP-funded military assistance to Spain\nshould be avoided if possible; if unavoidable, not more than $5-10 million\nper year should be offered if the affects on other country programs are to\nbe within acceptable limits.\nSECRET"
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