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SECRET/EXDIS
- 2 -
"In connection with the five-year extension of
the Defense Agreement (and we assume favorable considera-
tion of the Colossus project which has been suspended
pending the renewal of the base negotiations) the U.S.
Government is prepared to provide, subject to Congressional
authorization and appropriation, up to $175 million of
grant military assistance over the five-year period of
the extension with the understanding that our tenure on
the bases will be for a full five years from and after
September 26, 1968, with a six-month consultation period
plus an additional year thereafter in which to withdraw
from Spain if no new Defense Agreement is concluded.
"Additionally, we would be willing to review our
military materiel resources after the cessation of hos-
tilities in Vietnam or by September 26, 1971, whichever
comes earlier, in order to determine whether and to what
extent other materiel which may become excess to our needs
could be provided to Spain during this five-year extension
at no additional cost to the U.S.
"The $175 million will substantially assist in the
modernization of the Spanish Armed Forces. It is not
possible for us to agree on a precise list of items at
this time, since pricing and availability are never certain
and Spanish defense needs may change over the period. How-
ever, against the background of the military discussions,
we are persuaded that these resources can be applied
against the priorities which Spain will establish to make
a significant and continuing contribution in the interests
of both our governments.
"General Burchinal, who is presently in Washington,
is ready to assist General Diez-Alegria, should he need
additional clarification as to the lists of equipments
they have been discussing. General Burchinal can be in
Madrid at any moment. "
SECRET /EXDIS
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"ocrText": "SECRET/EXDIS\n- 2 -\n\"In connection with the five-year extension of\nthe Defense Agreement (and we assume favorable considera-\ntion of the Colossus project which has been suspended\npending the renewal of the base negotiations) the U.S.\nGovernment is prepared to provide, subject to Congressional\nauthorization and appropriation, up to $175 million of\ngrant military assistance over the five-year period of\nthe extension with the understanding that our tenure on\nthe bases will be for a full five years from and after\nSeptember 26, 1968, with a six-month consultation period\nplus an additional year thereafter in which to withdraw\nfrom Spain if no new Defense Agreement is concluded.\n\"Additionally, we would be willing to review our\nmilitary materiel resources after the cessation of hos-\ntilities in Vietnam or by September 26, 1971, whichever\ncomes earlier, in order to determine whether and to what\nextent other materiel which may become excess to our needs\ncould be provided to Spain during this five-year extension\nat no additional cost to the U.S.\n\"The $175 million will substantially assist in the\nmodernization of the Spanish Armed Forces. It is not\npossible for us to agree on a precise list of items at\nthis time, since pricing and availability are never certain\nand Spanish defense needs may change over the period. How-\never, against the background of the military discussions,\nwe are persuaded that these resources can be applied\nagainst the priorities which Spain will establish to make\na significant and continuing contribution in the interests\nof both our governments.\n\"General Burchinal, who is presently in Washington,\nis ready to assist General Diez-Alegria, should he need\nadditional clarification as to the lists of equipments\nthey have been discussing. General Burchinal can be in\nMadrid at any moment. \"\nSECRET /EXDIS"
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