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SECRET - 10 - The Under Secretary stated that the latter would be impossible but that it would be feasible to provide Export- Import Bank credit of not more than $100 million spread out over a five-year period and that this could also be embodied in a formal document. Mr. Aguirre de Carcer asked if this amount would affect credits for Spanish industrial projects. The Under Secretary stated that it would not. He added that he had explored with the Eximbank whether credits could be made available for educational purposes but that the bank had indicated that it could only provide credits for U.S. exports. The United States appreciates Spain's interest in obtaining assistance in the educational field but available CU funds have been severely cut in recent years. In any event this could be explored further at a later stage and should be divorced from the base negotiations and dealt with on its own merits. Mr. Aguirre de Carcer said that while it was amatter that was different from that of the bases he had to be concerned with the total impact on public Spanish opinion. In 1969 it was not as advantageous to be closely linked with the greatest power in the world as had been the case in 1953 and therefore the Spanish Government wanted to make the total U.S. -Spanish package as attractive as possible to the Spanish people. This was especially important now since the press had leaked a figure that was only one-eighth of the original Spanish request and which covered only military hardware. In this connection he added that Spain had benefited from powdered milk shipments pursuant to Title II of Public Law 480 which had been distributed privately in Spain through Caritas and which had constituted another positive element which the Spanish people could readily see and understand. The Under Secretary said that this program had now been terminated for all of Europe and that it would not be possible to start it again. However, the U.S. Department of Agriculture could sell powdered milk to Spain at a very low concessional price. SECRET [p.10 of15] NLN 04 69/8

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    "ocrText": "SECRET\n- 10 -\nThe Under Secretary stated that the latter would be\nimpossible but that it would be feasible to provide Export-\nImport Bank credit of not more than $100 million spread out\nover a five-year period and that this could also be embodied\nin a formal document. Mr. Aguirre de Carcer asked if this\namount would affect credits for Spanish industrial projects.\nThe Under Secretary stated that it would not. He added that\nhe had explored with the Eximbank whether credits could be\nmade available for educational purposes but that the bank had\nindicated that it could only provide credits for U.S. exports.\nThe United States appreciates Spain's interest in obtaining\nassistance in the educational field but available CU funds\nhave been severely cut in recent years. In any event this\ncould be explored further at a later stage and should be\ndivorced from the base negotiations and dealt with on its own\nmerits.\nMr. Aguirre de Carcer said that while it was amatter that\nwas different from that of the bases he had to be concerned\nwith the total impact on public Spanish opinion. In 1969 it was\nnot as advantageous to be closely linked with the greatest power\nin the world as had been the case in 1953 and therefore the\nSpanish Government wanted to make the total U.S. -Spanish package\nas attractive as possible to the Spanish people. This was\nespecially important now since the press had leaked a figure\nthat was only one-eighth of the original Spanish request and\nwhich covered only military hardware.\nIn this connection he added that Spain had benefited from\npowdered milk shipments pursuant to Title II of Public Law 480\nwhich had been distributed privately in Spain through Caritas\nand which had constituted another positive element which the\nSpanish people could readily see and understand.\nThe Under Secretary said that this program had now been\nterminated for all of Europe and that it would not be possible to\nstart it again. However, the U.S. Department of Agriculture\ncould sell powdered milk to Spain at a very low concessional\nprice.\nSECRET\n[p.10 of15]\nNLN 04 69/8"
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