Department State Washington DC
Secret December
14, 1971
Memorandum for Mr. Henry A. Kissinger
The White House
Subject: Military Supplies for Pakistan
Our earlier memorandum on this subject (December 9)
stated that there are no legal impediments to the resumption of military
supplies to Pakistan. However, the expiration of
Continuing Resolution Authority (CRA) since that memorandum was written causes
some problems. In addition, there are some practical aspects of the means of
providing assistance that should be taken into account if a decision is made
to do so.
Cash Sales: To sell military supplies to Pakistan would be the simplest
method for the USG. However, the Pakistan Government is suffering from an
extreme shortage of foreign exchange and is already in default on its debts to
a number of governments, including the United States. Cash sales do not
therefore appear to be a realistic way of providing assistance.
Military Assistance: Help could be provided through
MAP. The major problem here would relate to the general shortage of funds. All
indications from the Conference- Committee are that the authorization will be
at most $502 million. If there is no aid legislation for FY 1972, a CRA would
probably provide at most only $452 million. These limited funds will require
severe constraints on our three largest and most important programs (Cambodia, Korea, and Turkey) and will require sharp cutbacks
in virtually all other programs. It will therefore be difficult to find any
substantial amount in MAP funds to finance assistance to Pakistan without producing serious
adverse effects on other security assistance programs of importance to the United States.
Credit Sales: As soon as we have a new CRA or FY
1972 aid legislation, Foreign Military Sales (FMS) credits should be used. As
a result of
cuts made by the Congress in the Administration's
authorization requests, credit funds will also he in short supply but that
shortage will not be so critical as the shortage in MAP funds. FMS credit sales
would therefore appear to be the best means of providing assistance to Pakistan.
Excess Defense Articles: There might be some excess
articles that Pakistan could use. The provision of
excess is normally a time-consuming process, however, and, in addition, funds would
have to be found from MAP or FMS credit for the rehabilitation, packing and
shipping of such articles.
Third Country Transfers: Transfers of equipment from
third countries (e.g., Jordan, Iran, Turkey) would avoid the immediate
problem of finding a means to finance the transaction. Nevertheless, our role
in arranging such transfers and our consent to them would undoubtedly lead to
expectations on the part of the third country involved that the USG would
reimburse it in kind or in cash. The problem of financing assistance would
therefore arise at a slightly later date and would have to be handled within
the limitations stated above, through MAP or FMS, or excess.
Transfer from DOD Stocks: Section 506 of the Foreign
Assistance Act authorizes the President to take military equipment from U.S. military stocks and use it
for the purposes of the Foreign Assistance Act if he determines that such
action is "vital to the security of the United States." This special
authority has been used rarely in the past. It could not be used now until a
new CRA or FY 1972 aid legislation is in effect.
Continuing Resolution Authority: CRA expired on
December 8. As noted above, in the absence of a new CRA we could not extend FMS
credit, nor could the President authorize the transfer of equipment from U.S.
military stocks. It should also be noted that we do not know what levels would
be established for MAP and FMS in a new CRA. Some consideration is being given
at present to a CRA limited to "salaries and expenses." Such a CRA
would severely limit our ability to provide assistance to Pakistan. The only
realistic possibility would be to re-allocate funds from the other MAP
programs, which will already be suffering severe shortages.
Theodore L. Eliot, Jr.
Executive Secretary
Source: Bangladesh Liberation War and the Nixon House 1971, Enayetur
Rahim and Joyce L. Rahim, Pustaka Dhaka, p – 437 - 438