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    "ocrText": "SECRET\n2\nExcess Service stocks. Grant MAP could be coupled with excess stocks to\nprovide a larger military assistance package but the Spanish are not likely\nto give much weight to used materiel.\nService-funded military assistance. Grant assistance might be funded in\nthe Defense budget but authorizing legislation would be required. This\nAdministration's sounding last spring prior to negotiating the current\nextension of the bases encountered strong opposition to Defense funding\nin the Senate Foreign Relations and House Foreign Affairs Committees.\nTo press for such funding could arouse jurisdictional sensitivities in\nCongress and might jeopardize support of key Congressional leaders for\nforeign aid legislation. We should not count on this alternative without\na careful canvass of Congressional attitudes.\nMilitary sales credits. We agreed in the current two-year base extension\nto provide $35 million in Ex-Im Bank credits or guarantees and have offered\nEx-Im credits totalling $120 million in FY 1970 to cover Spanish purchases\nof F-4s. It should be feasible within the projected level of Ex-Im Bank\nmilitary credits to developed countries ($270-300 million in FY 1970-1971)\nto provide military credits in the range $25-50 million per year for the\nnext five years.\nEducation support. Spain has shown strong interest in US support for its\neducational reform plan. State Department is now sponsoring 113 Spanish\nscholars and students at a cost of about $500,000. This program could be\nexpanded to provide additional training in the US for teachers and adminis-\ntrators and associated in-country assistance for educational reform. We\nbelieve $1-5 million per year could be justified to Congress as a special\nprogram within the world-wide exchange program, but such educational\nassistance should be preceded by a joint review of Spain's educational\nreform needs.\nRecommendation\nIt may be desirable to provide general guidance to our negotiators on the\nrange of budgetary resources they may offer as quid-pro-quo for Spanish\nbases in line with the foregoing discussion.\nRobert SMayo Robert P. Mayo\nDirector\nAttachment\nSECRET"
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