173. Telegram 160682 From the Department of State to the Embassy in Kenya, July 24, 1974, 2025Z
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PAGE 01 STATE 160682
61
ORIGIN SS-30
INFO OCT-01 ISO-00 SSO-00 NSCE-00 /031 R
O R 242025Z JUL 74
FM SECSTATE WASHDC
TO AMEMBASSY
INFO AMEMBASSY ADDIS ABABA
AMEMBASSY DAR ES SALAAM
AMEMBASSY
AMEMBASSY
AMEMBASSY MOGADISCIO
AMEMBASSY
USCINCEUR
C O N F I D E N T I A L STATE 160682
EXDIS
E.O. 11652: GDS
TAGS: PFOR, MASS,
SUBJECT:RESPONSE TO ANTICIPATED
REF: (A)
(C) MOGADISCIO 1138 (NOTAL)
1. DEPT AND DOD BELIEVE THAT DOLS. 40 MILLION CONGRESSION-
OR FMS CREDIT DURING FY 1975 UNLESS PRESIDENTIAL AUTHORITY
TO WAIVE CEILING IS RESTORED AS PROPOSED IN LEGISLATION
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SUBMITTED BY THE ADMINISTRATION. AS A PRACTICAL MATTER,
HOWEVER, EVEN IF WAIVER AUTHORITY IS RESTORED, FLEXIBILITY
ALSO CONSTRAINED BY LIMITED FUNDS EXPECTED TO BE AVAILABLE,
EXISTING PROGRAMS, AND PRIORITIES. ALSO, AVAILABILITY OF
CREDIT FUNDS NORMALLY NOT KNOWN UNTIL LATE IN THE FISCAL
YEAR. QUESTION OF FUTURE CREDIT PROGRAMS FOR ALL AFRICAN
COUNTRIES IS SUBJECT HIGH LEVEL OVER-ALL REVIEW OF AFRICAN
ARMS POLICY.
2. ON QUESTION OF FMS CASH SALES, DEPARTMENT IS INCLUDING
THAT SEVEN ADDITIONAL COUNTRIES BE MADE ELIGIBLE FOR FMS
CASH SALES. SUBMISSION THIS PROPOSAL TO WHITE HOUSE BEING
EXPEDITED.
3. EXIM BANK IS FORBIDDEN BY LAW TO FINANCE ARMS SALES
TO LDCS. WHILE PRIVATE COMMERCIAL CREDIT MAY SOMETIMES
BE ARRANGED BY
(A) ARE LIKELY TO BE EQUIPPED WITH GOVERNMENT FURNISHED
EQUIPMENT (GFE) AND, THEREFORE, REQUIRE FMS CASH SALES
ELIGIBILITY DETERMINATION BY PRESIDENT. IF ITEMS DID NOT
CONTAIN GFE, EXPORT LICENSE MIGHT BE APPROVED FOR
COMMERCIAL
WITHOUT COMPLETE DESCRIPTION OF ITEMS BOUGHT.
4. IN VIEW OF ABOVE, SHOULD KENYATTA APPROACH YOU ON
QUESTION MILITARY ASSISTANCE, YOU SHOULD REPLY THAT WHILE
USG IS SYMPATHETIC TO KENYAN PERCEPTION OF NEED THE USG
OPERATES UNDER SEVERE CONGRESSIONAL AND FISCAL RESTRAINTS
IN THIS FIELD. YOU SHOULD DESCRIBE THESE RESTRAINTS
BUT ADD THAT YOU WILL NONETHELESS PROMPTLY FORWARD HIS
REQUEST TO THE DEPARTMENT FOR CONSIDERATION.
5. GENERAL APPROACH YOU SUGGEST IN PARAS 4 AND 5 REFTEL
(A) HAS POTENTIAL MERIT AND WE BELIEVE IT MIGHT APPEAL TO
KENYATTA FOR HIM TO BECOME THE SPOKESMAN FOR A JOINT,
MORE RESTRAINED APPROACH BY THE GOVERNMENTS IN
TO ARMS ACQUISITION PROGRAMS. IF YOU MAKE SUCH AN
APPROACH, YOU SHOULD POINT OUT SOURCE OF THE PROBLEM,
I.E., SUBSTANTIAL ARMS DELIVERIES TO THE AREA BY
SOVIETS, EAST BLOC, AND PRC HAVE INCLUDED MOST MODERN
AND SOPHISTICATED WEAPONS SYSTEMS.
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ITS OWN SECURITY, THEREFORE, ARE FULLY UNDERSTOOD BY US.
IF ALL CONCERNED IN
STAND THE POTENTIAL COST IN BOTH ECONOMIC AND POLITICAL
TERMS OF ARMS RACES, COMPETITION, IT COULD BENEFIT ALL.
GIVEN THE DEVELOPMENTS OF PAST SEVERAL YEARS, HOWEVER,
IT IS NOT COUNTRIES WHO HAVE MAINTAINED FULL NON-ALIGNED
STATUS OR EVEN THOSE WHO HAVE MAINTAINED CLOSE RELATION-
SHIPS WITH WEST WHICH HAVE BEEN IN VANGUARD OF THE
AFRICAN STATES UNDERTAKING MAJOR ARMS ACQUISITIONS BUT
RATHER SOVIET AND PRC CLIENTS.
6. FYI ONLY. YOU SHOULD ALSO BE AWARE THAT USG NOW
RESPONDING TO URGENT ETHIOPIAN ARMS REQUESTS WITH INCREASE
IN FMS CREDITS, EXPEDITED DELIVERY OF PROGRAMMED MAP
EQUIPMENT AND AUTHORIZATION OF INCREASED CASH SALES. SUCH
INITIATIVE AS THE ONE YOU PROPOSE WOULD HAVE TO AVOID
BEING CONTRADICTORY TO OUR PRESENT EFFORTS ON BEHALF OF
SUPPLIES TO THE HORN COULD ONLY COME INTO EFFECT AFTER
OVERCOME THE DISADVANTAGES THEY NOW FEEL VIS-A-VIS THEIR
NEIGHBORS. END FYI. KISSINGER
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