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MEMORANDUM fir THE WHITE HOUSE WASHINGTON SECRET/NODIS DEC. 12, 1971 MEMORANDUM OF CONVERSATION (FOR THEPRESIDENT'S FiLE) Participants: The President - Prime Minister Caetano Dr. Henry A. Kissinger Ambassador Coelho General Vernon Walters Place: Quarters of Commanding General, Lajes Field, Azores Time: 10:20 p. m., December 12, 1971 The President opened the conversation by expressing his thanks to the Prime Minister for all he had done to facilitate the meetings on Portuguese soil; it was very important that we solve the thorny monetary problem and if we could make progress on Portuguese soil so much the better. The President recalled that this was his first visit to Portuguese soil as President. He had been to Lisbon in 1963 and he believed that General Eisenhower had been the last U.S. President to visit Portugal. Dr. Caetano said he had been happy to do what he could to facilitate the meeting and if progress could be made in this delicate field on Portu- guese soil this would be a source of pride and satisfaction to the whole Portuguese people. The President said that prior to his visits to Peking and Mos cow he had wanted to talk to all of our NATO allies but that time had not made this possible and he was therefore particularly pleased to have this occa- sion to talk to the Prime Minister and exchange views with him. The Pres- ident said that he was also happy that the Agreement on the Azores had been successfully concluded. The Prime Minister said that he too was happy at this but that looking at it realistically, Portugal had received little and given little, yet both he and the President would be criticized for it at home. The President then recalled that he had told the Prime Minister when the latter had been to Washington for General Eisenhower's funeral that the new administration would seek ways not to make things more dif- ficult for our friends and allies and Dr. Kissinger could bear witness to DECLASSIFIED E.O. 12958, Sect. 3.6 SECRET/NODIS By SRG NARA, Date 1/6/98