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SECRET - 3 - Points for you to raise: - --Ask how we plan to fund this program -- out of State's CU budget -- or will some special legislation be required; How receptive will the Congress be; -Tactically, how do we offer this in the negotiations, since we apparently do not know what the Spanish want or what we can offer. d. Spain - EEC Negotiations. This section reflects the decision recorded in NSDM 45: oppose the preferential trade agreement in its present form, but encourage a broader arrangement between Spain and the EEC. Depending upon the EEC reaction, there could be a negative impact on the base negotiations. Points for you to raise: --Ask about the timing of the EEC issue; --Is it possible that we can have the base negotiations com- pleted before the EEC problem breaks open; --How will this issue be handled in the negotiations. Points Not in the Paper. To ensure that additional quids have been considered, you might wish to raise the following: a. Technological assistance. One would think there is some way for us to offer technical assistance in modernizing Spain's industry and agriculture. This would seem to appeal to the new technocrats running the Spanish Government, and at the same time not cost us very much. If there are on-going projects, couldn't they be greatly expanded? b. Co-production of military equipment. Apparently the real sweetener in the French military equipment sale (chiefly Mirage aircraft) was the arrangement whereby a good deal of the manufacture (or at least assembly) was done in Spain. This is also consistent with Spain's interest in developing its own military hardware manufacturing capability. Can we not offer something along those lines? SECRET

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    "ocrText": "SECRET\n- 3 -\nPoints for you to raise:\n- --Ask how we plan to fund this program -- out of State's\nCU budget -- or will some special legislation be required;\nHow receptive will the Congress be;\n-Tactically, how do we offer this in the negotiations, since\nwe apparently do not know what the Spanish want or what we\ncan offer.\nd. Spain - EEC Negotiations. This section reflects the decision\nrecorded in NSDM 45: oppose the preferential trade agreement in its\npresent form, but encourage a broader arrangement between Spain and\nthe EEC. Depending upon the EEC reaction, there could be a negative\nimpact on the base negotiations.\nPoints for you to raise:\n--Ask about the timing of the EEC issue;\n--Is it possible that we can have the base negotiations com-\npleted before the EEC problem breaks open;\n--How will this issue be handled in the negotiations.\nPoints Not in the Paper. To ensure that additional quids have been\nconsidered, you might wish to raise the following:\na. Technological assistance. One would think there is some way\nfor us to offer technical assistance in modernizing Spain's industry\nand agriculture. This would seem to appeal to the new technocrats\nrunning the Spanish Government, and at the same time not cost us\nvery much. If there are on-going projects, couldn't they be greatly\nexpanded?\nb. Co-production of military equipment. Apparently the real\nsweetener in the French military equipment sale (chiefly Mirage\naircraft) was the arrangement whereby a good deal of the manufacture\n(or at least assembly) was done in Spain. This is also consistent with\nSpain's interest in developing its own military hardware manufacturing\ncapability. Can we not offer something along those lines?\nSECRET"
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