FY 1973 FOREIGN ASSISTANCE BILL - -

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000600090002-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 20, 2016
• Document Release Date: October 17, 2006
• Sequence Number: 2
• Publication Date: March 10, 1972
• Content Type: REPORT

10 MAR 1,112
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FY 1973 Foreign Assistance bill --
1. The bill has not yet been introduced.
2. The FY 1972 Foreign Assistance bill contained 9 provisions which
were a problem to the Agency (after it cleared the Senate, only 4 problems
remained. Three were favorably resolved; i. e. :
(a )
(b)
meeting - 10 Mar. 1972
ceiling and 25X1
reporting requirements did not apply to Agency's traditional activities,
leaning on the precedent established for a similar Symington amend- 25X1A
ment in the Defense Procurement Act;
(d) We really did not have much steam behind our position on the
one item not favorably resolved which expanded reportingrequirements
to Congress on defense articles, including those supplied to local or
free world forces in SE Asia.
3.. I do not believe there will be any requirement to repeat the above
restrictions in the FY 1973 authorization bill to continue their effect beyond 30
June 1972 as the provisions are in the nature of permanent law.
4. ,(1)Foreign economic assistance is already authorized through 30 June
1973, but military assistance will have to be authorized for FY 1973 (military
assistance- for Laos and Vietnam is authorized under Defense Procurement Bill.)
(2) (a) Military assistance for Cambodia is authorized under
the Foreign Assistance Bill.
DOS review(s) comple
(b) A new requirement starting 1 July 1972 is that military
assistance for Thailand must also be authorized under the Foreign
Assistance or Military Sales Bill which is under the jurisdiction
of the Senate Foreign Relations Committee. The greatest bulk of
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March 1, 1972
MEMORANDUKFOR THE,CHAIRMAN, WASHINGTON SPECIAL ACTION GROUP
Subjec6: The Symington Ceiling on Assistance for Laos
SECRET/SENSITIVE/NODIS
that we will remain within the FY 1972 ceiling set by the
Symington Amendment. It must therefore be determined by
the highest authority whether programs in Laos are to be
contracted or restructured to permit compliance with the
In response to your memorandum of February 16, 1972, I
am attaching a report giving the best estimates which the
appropriate agencies have received from their respective
elements of the country team in Laos concerning probable 1 :}
expenditures during FY 1972 for existing programs at cur-
rently planned levels and the estimated additional expendi-
tures which would accrue if various augmentations already
requested by Ambassador Godley were to be approved. We
have not attempted to quantify additional expenditures if
there were a maximum North Vietnamese military effort in
Laos because it would depend upon the form the offensive
would take and the type of resporaje which was decided upon.
As for cuts which would not irlupair esser Liaj. miiitaly pro-
grams, we are attempting to ascertain thepeffect of reduc-
ing stockpiles in Laos toward the end of the fiscal year,
of changing contracting arrangements, and of cutting some
economic programs.
In preparing the response to your inquiry, no effort I
was made in Washington or by field offices to examine all
the possibilities for economies or the military consequence's
of program reductions aimed at remaining within the ceiling.'
Further, the new programs requested by Vientiane have not
yet been subjected to critical appraisal. On the other
hand, Embassy Vientiane has clearly favored the continua-
tion of current programs at on-going levels, and has re-
quested a'number of increases.
It is nonetheless the opinion of the members of the
Interagency Ad Hoc Group on Laos that without a reduction
in the level of currently approved programs, it is unlikely
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$350, million ceiling or whether the executive should seek
legislative relief from the ceiling so that US program:;
can continue at current or increased levels. We suggest
that this determination be made and furnished to Embassy
Vientiane as soon as possible so that if the decision is
made to attempt to remain within the coiling--or the. Con-
gress does not provide legislative relief--the reductions
can be made in an orderly fashion over as long a period
of time as possible.
.William H.'Sullivan
Chairman
Ad Hoc Group on Laos
Attachment: as stated
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THE WHITE HOUSE
urc buyv?~ :gi?fry t
P?B 7w'2_ . _ 02.. ?(o
February 16, 1972
THE UNDER SECRETARY OF STATE
THE DEPUTY SECRETARY OF DEFENSE
THE DIRECTOR OF CENTRAL INTELLIGENCE
THE CHAIRMAN, JOINT CHIEFS OF STAFF
SUBJECT: The Symington Ceiling on Assistance for Laos
Under Secretary of State Irwin's memorandum of February 7, 1972
proposed a meeting to discuss the issues involved in a possible need
for an increase in the) ceiling on assistance for Laos. Before holding
a meeting I believe it is essential that we have the best possible agreed
interagency estimates of possible expenditures including the following:
-- Total FY 1972 expenditures relevant to the Symington ceiling
for current programs at originally planned levels, and including re-
placement of losses incurred on the PDJ, in December.
-- The additional expenditures involved in Ambassador Godley's
request' for an increase in RLAF T-28 and AC-47 sortie levels.
-- Total FY 1972 expenditures relevant to the Symington ceiling
which encompass any additional measures which might reasonably be
expected to be necessary in the event of a maximum enemy military
effort in Laos between now andlthe end of the dry season.
-- An estimate of what, program costs, if any, within the current
FY-72 budget could be cut without impairing essential military programs
in Laos (e. g. costs lower than estimated for the SGU program because
numbers are below estimated recruiting. levels, non-essential aid
projects, etcetera).
I request, therefore, that the Interagency Ad Hoc Group on Laos prepare
a detailed study of estimated Laos expenditures. If there is interagency'
disagreement as to the estimates involved, then the best possible range
of estimates should be provided together with' the assumptions underlying
each estimate.
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The study should be forvyarded to the Chairman of the WSAG not later
than March 1, 1972.
Henry'A. Kissinger
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