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-13-
(2) Probably requires US acquiescence in a
GOS-EC preferential trade agreement which
will be contrary to our fundamental
commercial policies and would damage our
trade interests, endanger the movement
toward freer trade, encourage other
countries to seek preferential ties to
the EC that would be discriminatory to
our commerce, and precipitate demands on
the US for preferential trading arrange-
ments from those excluded from EC arrange-
ments.
(3) Will require additional quid pro quo in
MAP funds, credit for military sales,
financial support for Spanish educational
programs, and/or political concessions
difficult to obtain during a period of
declining defense and foreign aid budgets.
OPTION II
Retain some military facilities and rights in Spain,
but place primary emphasis on other than defense aspects
of our bilateral relationship.
This option is based on the premise (which enjoys
greater currency in State than Defense) that full retention
of present US bases in Spain is not realistic. It
pre-supposes that while some capabilities might be
abandoned, compensation for the loss of others could
be assured through relocation or the procurement of
additional forces.
Within this option there is a substantial range of
choice as to which facilities and functions we might attempt
to retain. Thus there is scope for bargaining. The
Spanish Government will naturally seek compensation
commensurate with the rights accorded us. A detailed
definition of the value to be assigned the retention of
particular functions has not yet been jointly formulated by
State and DOD. Both Departments have acknowledged, however,
that their ordering of priorities corresponds generally
with the following list arranged in descending order of
strategic values.
SECRET
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"ocrText": "SECRET\n-13-\n(2) Probably requires US acquiescence in a\nGOS-EC preferential trade agreement which\nwill be contrary to our fundamental\ncommercial policies and would damage our\ntrade interests, endanger the movement\ntoward freer trade, encourage other\ncountries to seek preferential ties to\nthe EC that would be discriminatory to\nour commerce, and precipitate demands on\nthe US for preferential trading arrange-\nments from those excluded from EC arrange-\nments.\n(3) Will require additional quid pro quo in\nMAP funds, credit for military sales,\nfinancial support for Spanish educational\nprograms, and/or political concessions\ndifficult to obtain during a period of\ndeclining defense and foreign aid budgets.\nOPTION II\nRetain some military facilities and rights in Spain,\nbut place primary emphasis on other than defense aspects\nof our bilateral relationship.\nThis option is based on the premise (which enjoys\ngreater currency in State than Defense) that full retention\nof present US bases in Spain is not realistic. It\npre-supposes that while some capabilities might be\nabandoned, compensation for the loss of others could\nbe assured through relocation or the procurement of\nadditional forces.\nWithin this option there is a substantial range of\nchoice as to which facilities and functions we might attempt\nto retain. Thus there is scope for bargaining. The\nSpanish Government will naturally seek compensation\ncommensurate with the rights accorded us. A detailed\ndefinition of the value to be assigned the retention of\nparticular functions has not yet been jointly formulated by\nState and DOD. Both Departments have acknowledged, however,\nthat their ordering of priorities corresponds generally\nwith the following list arranged in descending order of\nstrategic values.\nSECRET"
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